When it comes to prize competitions or, as they are more commonly known, “raffle or lottery competitions”, the Gambling Commission sets the rules for ticket sales and viable businesses.
If you’re thinking of getting into the space as an operator, it’s worth seeking legal opinion to avoid being deemed as an illegal lottery.
However, if legal jargon is your bag, then you can delve into the Gambling Act 2005 to understand the key characteristics that make up a legal raffle, be that a prize competition or lottery.
If you’re hoping to set up as a raffle or lottery operator, here are five top questions, and the answers to help you succeed along the way.

Is a Raffle the Same as a Lottery?

The short answer is no. You typically need a licence to run a lottery, be you a local authority operator or a private society lottery, both of which attract a number of legal requirements.
Most ubiquitous in the market are charity lotteries that now represent over £1bn in annual revenue, with prize competitions themselves seeing strong demand for their offerings too.
Whilst both sell raffle tickets, it is not compulsory for prize competitions to raise funds from ticket prices for good causes, although several companies do, enabling their customers to both engage in potentially life changing competitions, while also helping to make some positive change to others at the same time.

Do Charity Raffles Come with Legal Requirements?

When it comes to charity raffle rules, operators do have several legal and financial requirements that they must adhere to so that they remain a going concern.
Whether a society lottery is categorised as 'small' or 'large' – determined by their level of proceeds ('large' if it generates proceeds of over (i) £20,000 for one draw, or (ii) £250,000 annually), is an important consideration.
As changes in 2020 highlighted, large society lotteries require a Gambling Commission licence, whilst small society lotteries must be registered with the local authority. In all cases, 20% of all society lottery proceeds need to be applied directly for the relevant charity’s purposes.

Do You Need a Licence to Run a Raffle in the UK?

When talking colloquially about ‘house and car raffles’, these prize competitions do not require a license to run a raffle, can opt not to raise money for good causes and generate revenue for private or commercial gain.commercial gain or private gain.
To ensure the business remains viable it has the freedom to choose how customers enter a competition be that a free entry method, or via a method that involves skill, judgement or chance that result in a minimum exclusion rate.
While there are other important considerations, this is fundamental to be deemed legal by the Gambling Commission.

Are There Restrictions on Who You Can Sell To?

The key restrictions in place when selling raffle tickets is ensuring the participant is from the UK and over the age of 18. It is also advisable to carry out anti-money laundering checks on the winner, even though they are randomly drawn.

What Happens if You Break These Rules for Selling Raffle Tickets in the UK?

Provided that each raffle complies with the Gambling Act 2005, the company promoting the prize competition should be deemed legal and able to continue to operate. As ever, when seeking to be compliant interpretation of the law is best done in conjunction with a lawyer, ideally a specialist in the gambling sector.

Are you Tempted to Try Your Luck in a Raffle Draw?

Read our past winners' testimonials for further details on how tickets sold translated into game changing moments. Buy a ticket or subscribe to raise money for your chosen registered charity today!