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.
What is a cash alternative in a competition?
A cash alternative is a fixed sum of money the operator offers instead of the physical prize. If you win a car, a holiday or a house, you may be able to take cash rather than the item — often set at a percentage of the prize’s headline value and stated clearly in the terms before you enter.
How it works
When the competition is set up, the operator decides whether a cash alternative will be available and at what level. If you win and prefer money, you tell them within the time stated in the terms, and they pay the agreed amount instead of arranging the item. Not every competition offers one, and the figure is fixed in advance, so you know what you are choosing between.
Why it is often less than the headline value
The cash alternative is frequently lower than the prize’s advertised value — sometimes substantially. That is partly because operators buy prizes at trade or bulk prices, and partly a commercial choice to encourage winners to take the physical item. With a house or a car, the “value” also assumes you would pay full retail, which a winner never does, so a 50 to 80 per cent cash figure is common.
When taking the cash makes sense
Cash can be the practical choice when the prize comes with ongoing costs — a car to insure and run, or a house to maintain and possibly relocate to. It is also simpler if the item is not something you want or can use. Like the prize itself, a cash alternative is tax-free in the UK, though interest earned on it once banked is taxable in the normal way.
Frequently asked questions
Is a cash alternative always offered?
No. It is the operator’s choice, set when the competition launches. The terms will state whether cash is available and how much it is before you enter.
Is the cash the full value of the prize?
Usually less. It often sits at a percentage of the headline value because operators buy prizes below retail and prefer winners to take the item itself.
Is the cash alternative taxed?
No. Like the prize it replaces, a cash alternative is tax-free in the UK. Any interest you later earn on the money is taxable as normal.
Can I change my mind after choosing?
Generally no, once you have made your choice within the stated window. Decide carefully and check the deadline in the terms before confirming.
Related guides: Winning a car in a competition · Winning a house in a competition · Can you sell a competition prize?
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).