Are Prize Competitions Gambling? Competition Sites vs Gambling Explained
Why UK prize draws sit outside gambling law, how they differ from lotteries and betting, and what that means for your protections as a player.
Quick answer
In law, most UK prize competitions are not licensed gambling. Because they offer a free entry route, or a genuine test of skill, they fall outside the definition of a lottery in the Gambling Act 2005, so they do not need a Gambling Commission licence. In practice, though, paying for a chance to win works a lot like gambling, so it makes sense to treat it the same way.
What the law counts as a lottery
Under the Gambling Act 2005, an arrangement is a lottery when three things are true: you pay to take part, there is a prize, and the winner is decided wholly by chance. Running a lottery for profit without a licence is illegal.
Prize competition sites avoid that definition in one of two ways.
- A free draw. The Act exempts draws where there is a free way to enter that is no more expensive and no less convenient than paying, and that is publicised well enough for people to know about it. Postal entry is the usual route. Free and paid entries go into the same draw with the same chance.
- A prize competition based on skill. If the skill, knowledge or judgement required is enough to stop a significant proportion of people from winning, the result no longer depends wholly on chance. A very easy question does not meet that test on its own.
Most UK competition sites rely on the free entry route. Many also ask a question, but the free route is what does the legal work. Read more in our guide to whether online competitions are legal in the UK.
How competitions compare with other products
- Prize draws with a free entry route: no Gambling Commission licence. Covered by consumer law, advertising rules and, for signatories, the DCMS Voluntary Code.
- Skill competitions (for example spot the ball): no licence if the skill test is genuine. The Voluntary Code does not cover skill-only competitions.
- Lotteries (National Lottery, society lotteries, The Health Lottery): licensed and regulated as gambling.
- Betting, casinos and online slots: licensed by the Gambling Commission, with self-exclusion, affordability checks and formal complaint routes.
What being outside gambling law means for you
Because prize draw operators are not licensed by the Gambling Commission, some protections that gamblers rely on do not apply.
- GamStop does not cover them. GamStop self-exclusion applies to Gambling Commission-licensed online operators, so it will not block prize draw sites.
- The Gambling Commission will not handle complaints. There is no gambling ombudsman route. Complaints go to the operator first, then to your card provider, Trading Standards or the courts. See what to do if a competition site won't pay out.
- Bank gambling blocks may not catch them. Whether a bank's gambling block stops a payment depends on how the merchant is categorised, which varies between operators.
What does apply is consumer protection law, the advertising codes enforced by the ASA, data protection law and, for operators who have signed it, the DCMS Voluntary Code of Good Practice for Prize Draw Operators.
Why it can still feel like gambling
The legal difference is real, but the experience is similar: you spend money, the outcome is chance, and fast instant wins and countdowns can encourage repeat spending. The government recognised this risk. The Voluntary Code asks signatories to cap credit card payments at £250 a month per player, bar credit cards for instant wins entirely, and offer monthly spend limits that you can set as low as £0.
How to keep it under control
- Set a monthly spend limit in your account on every site you use.
- Pay by debit card rather than credit card.
- Use the free postal entry route for expensive tickets.
- Compare your real chances before you buy with our odds calculator.
- Stick to operators that have signed the Voluntary Code. Read why we only list signatories.
If spending on competitions has stopped being fun, the National Gambling Helpline is free and confidential on 0808 8020 133, run by GamCare. It helps with prize draws as well as licensed gambling.
Frequently Asked Questions
Do competition sites need a gambling licence?
No, as long as they offer a genuine free entry route or a real test of skill. Those features take them outside the definition of a lottery in the Gambling Act 2005.
Is a prize draw the same as a raffle?
Not legally. A traditional raffle is a type of lottery, and is only legal without a licence in limited cases such as small events. Online prize draws avoid being lotteries by offering free entry.
Does GamStop block competition sites?
No. GamStop only covers online operators licensed by the Gambling Commission. Prize draw operators are not licensed, so use each site's own spend limits and, if needed, ask your bank about payment blocks.
Can I complain to the Gambling Commission about a competition site?
No. The Gambling Commission does not regulate prize draws with a free entry route. Complain to the operator first, then use your card provider, Citizens Advice and Trading Standards, or the small claims court.
Are prize competitions safer than gambling?
Not automatically. The odds are often clearer than in other products, because ticket numbers are capped, but you can still lose more than you planned. Set a budget and use spend limits.
Sources
- Voluntary Code of Good Practice for Prize Draw Operators, GOV.UK
- Gambling Act 2005, legislation.gov.uk
- GamCare
Last updated November 2026. RaffleScout is an independent comparison site and does not give legal advice.