Why the law matters
If you enter, run, or promote prize competitions in the UK, understanding the legal framework is important. The rules determine whether a competition is lawful, how it must be structured, and what protections consumers have. Getting it wrong can mean fines, prosecution, or your competition being shut down.
The Gambling Act 2005: the foundation
The Gambling Act 2005 is the primary legislation governing lotteries, raffles, and betting in the UK. It draws a clear line between gambling (which requires a Gambling Commission licence) and prize competitions (which do not, provided they meet certain conditions). This distinction is the foundation of UK competition law.
What makes a competition legal?
Under UK law, a prize competition is legal if it meets one of two conditions:
The two legal routes
- Skill or judgement. The competition requires participants to exercise genuine skill or judgement to enter. This cannot be trivially easy. A question like "What colour is the sky?" would not qualify.
- Free entry route. The competition offers a free way to enter alongside any paid entry option. This is typically a postal entry route where participants send a postcard with their details. The free entry must provide the same chance of winning as a paid entry.
Key distinction
If a competition charges for entry, selects winners purely by chance, and does not offer a free entry route, it is legally a lottery. Running an unlicensed lottery is a criminal offence under the Gambling Act 2005.
The free entry route in practice
Most online competition platforms in the UK operate under the free entry route model. Participants can pay for tickets through the website, but there is always a postal entry option. The postal entry details must be clearly published, and the free entry must carry the same chance of winning. Some platforms also run entirely free competitions that require no payment and no postal entry.
Who regulates prize competitions?
Prize competitions with a free entry route are not regulated by the Gambling Commission. Instead, they fall under general consumer protection law and the Advertising Standards Authority (ASA). The ASA enforces the CAP Code, which sets rules for how competitions can be promoted. Key requirements include that terms must be clear, prominent, and available before entry, and that promotions must not mislead consumers about the nature of the prize or the chances of winning.
Lotteries and raffles: different rules
Lotteries and raffles are governed by stricter rules. A lottery requires a Gambling Commission licence unless it falls under a specific exemption (such as small society lotteries run by charities). Raffles are subject to similar oversight. The key difference from prize competitions is the absence of a free entry route or skill element.
Regulatory overview
Regulated by ASA and consumer protection law. No Gambling Commission licence needed.
Regulated by ASA. No Gambling Commission licence needed if skill is genuine.
Requires Gambling Commission licence. Criminal offence if unlicensed.
Gambling Act exemptions apply. Must comply with specific rules on prize limits and reporting.
What consumers should know
As a consumer, the law gives you several protections. Paid competitions must offer a free entry route. Terms must be published and accessible. Prize descriptions must be accurate. Draw methods should be fair. If a competition fails to meet these standards, you can report it to the ASA or, in cases of suspected fraud, to Action Fraud.
Check before you enter
A well-run platform will publish its free entry instructions, terms, and draw methodology clearly. If you cannot find any of these, the competition may not be compliant with UK law.
How Odds Up complies with UK law
Odds Up operates as a prize competition platform with a free postal entry route for all paid competitions. We are a registered UK company (Odds Up Ltd). Our terms and conditions are published on every competition page. Draws use cryptographically secure random selection. We also run free-entry competitions that anyone with an account can enter at no cost. Every aspect of how we operate is designed to be fully compliant with UK competition law.