Editorial note: this guide is general information about how competitions, lotteries and gambling work in the UK. It is not advice, and it does not describe any specific promotion offered by Fortune Games. Rules, prices and regulations can change, so always check the operator’s current terms.
How do competition sites make money?
Prize competition sites make money mainly from entry fees. They sell tickets for a draw, and as long as the total raised is more than the value of the prize plus their running costs, the difference is profit. The prize is real, but the business is designed to come out ahead across all the entries sold.
Where the money comes from
Most sites run a single prize (a car, cash, a tech bundle) and sell a capped number of tickets at a set price. If 10,000 tickets sell at a few pounds each and the prize and costs come to less than that total, the operator keeps the remainder. Some sites add instant wins, tiered prizes or token rewards to keep people entering, and many sell ongoing subscriptions rather than one-off entries, which gives a steadier income.
The free entry route and the law
UK paid-to-enter competitions usually stay outside gambling licensing in one of two ways: by including a genuine element of skill, or by offering a free entry route (typically a postal entry) that has the same chance of winning as a paid one. The free route is required for the model to be lawful as a prize draw, but in practice most people pay, and the small number who post in does not change the maths much for the operator.
What this means for entrants
None of this makes competition sites scams — most established operators are legitimate and pay out genuine prizes. It simply means the value, on average, sits with the operator rather than the entrant, in the same way a lottery does. Treat entry fees as money spent for entertainment, set a budget you are comfortable losing, and remember the free route exists if you would rather not pay at all.
Frequently asked questions
Do competition sites always make a profit?
Not on every single draw. A site can lose money if too few tickets sell, which is why many reserve the right to extend a deadline, draw on a reduced prize, or offer a cash alternative. Across all their draws, though, the model is built to be profitable.
Is the free entry route genuinely free?
Yes. A legitimate operator must give free entries the same chance of winning as paid ones. The catch is effort and time rather than money, and most entrants simply pay instead.
Are competition sites regulated?
Genuine skill-based competitions and free prize draws sit outside Gambling Commission licensing, but they must still follow consumer law and the ASA/CAP advertising codes. Pure-chance paid draws are lotteries and do need a licence or charity/society exemption.
Can I tell how much profit a site makes?
Rarely in detail, but you can see the ticket price, the cap on tickets and the prize value in the terms. Multiplying price by the cap gives a rough sense of the money raised against the prize on offer.
Related guides: Are prize competitions legal in the UK? · How to find the free entry route · Prize competition vs lottery
18+ only. Gambling should be fun, never a way to make money. Please play responsibly and only with money you can afford to lose. If gambling is affecting you or someone you know, free, confidential support is available 24/7 from the National Gambling Helpline on 0808 8020 133, run by GamCare. You can also visit BeGambleAware (begambleaware.org) or self-exclude from UK-licensed online operators through GAMSTOP (gamstop.co.uk).