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Are Prize Competitions Legal in the UK?
Paid competitions giving away cars and houses are everywhere — so how are they legal when lotteries are tightly licensed? The answer lies in two routes set out in the Gambling Act 2005.
The line that matters
A lottery is, broadly, where you pay to enter and prizes are allocated wholly by chance — that needs a licence. To stay legal without a gambling licence, a paid competition must take one of two routes.
Route one: genuine skill
If winning depends on skill, judgment or knowledge — enough to deter a significant proportion of people from entering or to eliminate a significant proportion of entrants — it’s a prize competition, not a lottery. That’s why spot-the-ball and tie-breaker questions exist.
Route two: a free entry route
If there’s a genuine free way to enter, treated equally to paid entries, it’s a free draw rather than a lottery. That’s the "no purchase necessary" postal route you see on big house draws.
New for 2026
A Voluntary Code for Prize Draw Operators took effect on 20 May 2026, pushing clearer transparency and fairer free routes. See the 2026 prize draw code, the free entry route and what a skill-based competition is.
Frequently asked questions
Are prize competitions legal in the UK?
Yes — if they require genuine skill, or offer a genuine free entry route, they are not classed as a lottery.
Do prize draws need a Gambling Commission licence?
No — a free-entry prize draw or a genuine skill competition sits outside gambling licensing.
Is there new regulation in 2026?
Yes — a Voluntary Code for Prize Draw Operators took effect on 20 May 2026.
Related guides: prize draw vs lottery, the free entry route and what a skill-based competition is.