Prize Competitions and Free Draws: What the Rules Actually Say

An advert for a car or cash prize can make entering look simple. The legal position is less simple, and calling something a “competition” does not decide which rules apply.

The Gambling Commission distinguishes genuine skill competitions from free draws. In a prize competition, the skill, judgement or knowledge required must be sufficiently demanding. The Commission says ordinary multiple-choice questions, or questions that allow another attempt after a wrong answer, rarely meet that test.

A free draw may include a paid entry option, but its free route must meet requirements too. It must be properly publicised, no less convenient and no more expensive than the paid route, and the prize-selection system must not treat entrants differently according to the route used.

These arrangements do not need a Gambling Commission licence when they satisfy the relevant requirements. If they do not, an organiser may be running an unlawful lottery. The Commission also says that it does not approve free draws or prize competitions.

That means two shortcuts are unhelpful: assuming every competition is an illegal gambling business, or assuming a simple question makes every draw legitimate.

Before spending money, read the entry conditions, closing arrangements and prize terms. A gallery of winners tells you who won; it does not tell you what entering is likely to cost you. This article does not make unverified allegations about individual competition businesses.

Gambling Commission: free draws and prize competitions