If you’re planning a charity raffle or prize draw in the UK, it’s important to understand the legal rules. Raffles fall under gambling legislation, so there are strict requirements to ensure your draw is compliant with the UK Gambling Commission.
This article explains the main legal options for running a prize draw and key compliance points to keep in mind.
Legal options for prize draws
1. Skill-Based Prize Competition
A prize competition selects winners based on skill, knowledge, or judgement rather than chance. Examples include answering a question, solving a puzzle, or submitting a creative entry.
Licence requirements: No lottery licence is required if the draw is structured around skill.
Key compliance points: Clearly define how winners are selected and ensure the skill element is genuine.
2. Free-Entry Prize Draw
A free-entry prize draw allows participants to enter without paying. You can also offer a paid or donation route, but the free entry option must always be clearly available and treated equally.
Licence requirements: No licence is required if the free-entry route is accessible and clearly promoted.
Key compliance points: Paid and free entrants must have an equal chance of winning.
3. Licensed Lottery (Paid Entry)
If participants pay for a chance to win and the winner is determined by chance, a lottery licence is required. There are two types:
Small Society Lottery: Suitable for draws under £20,000 per draw or £250,000 per year; licensed via your local council.
Large Society Lottery: For higher-value or national campaigns; licensed via the Gambling Commission.
Key compliance points: Register your society (usually a charity), appoint a promoter, follow advertising and ticketing rules, and submit financial returns.
General Compliance Requirements
Transparency: Clearly communicate entry rules, eligibility, and how winners are chosen.
Fairness: Paid and free entrants (if applicable) must have an equal chance of winning.
Record-Keeping: Keep accurate records of ticket sales, entries, and prize allocations.
How GiveWheel Helps
GiveWheel simplifies compliance for charity raffles and prize draws:
Supports skill-based competitions with customisable trivia and free-entry routes
Automatic prize draw winner generation
Handles fund distribution to registered charities
Allows unlimited charity splits for donations
No platform fees for organisers and low transaction fees (1.2%)
Using GiveWheel assists in ensuring your raffle or prize draw is engaging, legal, and fully transparent, while maximising charitable impact. When setting up your GiveWheel prize draw, you should ensure you are compliant with all rules set out by the Gambling Commission related to prize competitions (where a skill-based question is selected) or free draws (where a free entry route is selected).
A free entry route or skill-based question is required on all GiveWheel prize draws, except where a relevant licence is held, or the regulations do not apply in your territory.