This is an editorial guide provided for information only. fortunegames.com is an online slots site and is not affiliated with, nor an agent of, BOTB, Omaze, Raffle House or any competition operator named. Prizes, odds, ticket prices and rules are set by the relevant operator and can change — always check the official site and terms for the latest details. Nothing here is legal, tax or financial advice.
How Do Competition Companies Make Money?
If a company is giving away a £4 million house, how on earth does it profit? It’s a fair question — and the answer is simpler than it looks. Here’s where your entry fee goes.
The basic model
Operators sell entries. From that revenue they pay for the prize, spend heavily on marketing to drive more entries, and cover their running costs. Whatever’s left is profit — or, for charity draws, a donation to the charity partner after the operator takes its cut.
For-profit prize draws
Companies like Omaze buy the prize, market aggressively, and guarantee a minimum donation to charity each draw — keeping the remainder. A large share of ticket money typically goes on marketing, which is part of why the proportion reaching charity has been debated.
Skill competitions
Skill-based operators keep entry fees, award the prize or a cash alternative, and retain the margin. Transparency has varied across the industry — which is exactly what the 2026 code aims to improve, by requiring clearer disclosure of where the money goes. See how subscription competitions work and whether prize competitions are legal.
Frequently asked questions
Where does my entry fee go?
To the prize, marketing and the operator’s costs — and, for charity draws, a donation to the charity partner.
Do competition companies make a profit?
For-profit operators aim to, after prize and marketing costs; charity draws guarantee a minimum donation and keep a cut.
How much goes to charity?
It varies and has been debated; the 2026 code pushes operators to disclose this more clearly.
Related guides: how subscription competitions work, the 2026 prize draw code and whether prize competitions are legal.