How to run a raffle legally in the UK (society lottery vs prize competition vs free draw)

TL;DR

Under the Gambling Act 2005, any arrangement where people pay to enter and a prize is allocated wholly by chance is a lottery — and a lottery is illegal unless it falls under a specific exemption. The two legal alternatives are a prize competition (which must contain a genuine skill element or include a free-entry route) and a free draw (where entry is free for everyone). Pick one and stay strictly inside its rules.

Route 1: Small society lottery

A small society lottery is the legal vehicle most UK charities, sports clubs, and non-commercial societies use to run raffles. The society registers with the local authority where it's based (currently a £40 application fee and £20 annual renewal, allow 4–8 weeks). Once registered, you can run lotteries provided you:

• Use proceeds for the society's stated non-commercial purpose.
• Keep at least 20% of proceeds going to that purpose.
• Stay under £20,000 of ticket sales per lottery and £250,000 per calendar year.
• Keep any single prize at or under £25,000.
• Sell every ticket at the same price, and only after it's paid for.
• File a return with the local authority within three months of the draw.

Above any of those thresholds you need a Gambling Commission Lotteries Operating Licence — a different and much larger commitment. For a full walkthrough see how to run a charity raffle; for the cost framing once you're live see our pricing page.

Route 2: Prize competition

A prize competition is not a lottery as long as it includes one of:

• A genuine skill, knowledge, or judgement element that meaningfully limits the number of entrants able to enter the prize draw. A trivial "is the sky blue?" question doesn't qualify and has been treated by the Gambling Commission as evidence of an unlicensed lottery.
• A free-entry route — an obvious, equally weighted way to enter without paying. Most operators offer a postal entry route to a published address. The free route must be reasonably easy to use and the free entries must have the same chance of winning as paid entries.

If you have one of those, you can sell paid entries alongside, and the competition is legal without a licence. If you have neither, you're running an unlicensed lottery.

Route 3: Free draw

A free draw is exactly what it sounds like: nobody pays to enter. Free draws are widely used as marketing promotions ("enter your email to win a year of free coffee"). They don't require a licence or registration.

A free draw can sit alongside a paid product — for example, a sweepstake where the entry comes free with purchase of a magazine — provided the value the entrant pays for is the product, not the chance to win.

Which route should you pick?

• You're a charity, sports club, or non-commercial society. Use a small society lottery. It's slower to set up but legally simplest.
• You're a creator, business, or individual selling tickets. Use a prize competition with a free-entry route. Don't rely on "skill" questions — the bar is higher than people assume.
• You want to drive an email list or product launch. A free draw is usually the right tool. Cheap, fast, no compliance overhead.

More on the definitional differences: prize competition vs raffle vs lottery. On licensing specifics: do you need a licence to run a raffle in the UK?

Primary sources: Gambling Commission — Lotteries and the Law, Gambling Commission — Small society lotteries, and Schedule 2 of the Gambling Act 2005.