Do Raffle Providers Need A Licence?

Online Raffle providers (Prize Competitions) DO NOT require a gambling licence or any other licence to run their competitions. This is because they are not classed as ‘Gambling’ by the UK Gambling Commission.

However, if online raffles do not meet the required criteria outlined by The Gambling Commission, they will be deemed as an ‘Illegal Lottery’. If this is the case then the raffle provider in question will be investigated and most likely shut down.

Why is a Licence Not Needed?

To learn in detail about why online raffles are not deemed as gambling, you can venture over to ‘What is the Law for Online Raffles’. 

In brief, The Gambling Commission class Online Raffles (Prize Competitions) as the following..

“A prize competition is where the outcome is determined by the participants skill, judgement or knowledge. ”

By including a skill based question or puzzle, an online raffle will be..

“placed outside of the scope of the Gambling Act and generally do not require any licensing or regulation from the Gambling Commission”.

The Gambling Commission state that the skills based question must be difficult enough for a ‘significant’ amount of people to get it wrong. If the raffle provider chooses to provide an easy question, then a free entry route must be available.

Please note that the official name for Online Raffles, outlined by the Gambling Commission, is ‘Prize Competitions’. The term ‘Online Raffles’ is what we (Rafflers Ltd) refer to to describe such competitions. Prize Competitions are the exact same type of competition that follow a certain set of rules and regulation.

For a more detailed explanation about Online raffles, you might like ‘What is the Law for Online Raffles’. 

Online Raffle Licences & UK Regulations – FAQs

No, online prize draw providers do not need a gambling licence in the UK. According to the UK Gambling Commission, prize draws are not classed as gambling when they meet specific legal requirements. Because of this, legitimate online prize draw businesses can run competitions without a gambling licence.

Online prize draws are not classed as gambling because they are legally defined as ‘prize competitions’. The UK Gambling Commission states that a prize draw is a contest where the outcome depends on skill, knowledge, or judgement rather than pure chance.
By including a skill-based question or puzzle, the draw falls outside the scope of UK gambling laws, meaning it usually does not require licensing.

If a prize draw does not meet the legal criteria for a prize draw, it may be classed as an illegal lottery. Illegal lotteries fall under the Gambling Act 2005 and require a licence to operate.
If a draw provider runs an illegal lottery without a licence, they could face investigation, fines, and potential shutdown.

To remain legal, a prize draw must include a genuine element of skill. According to the UK Gambling Commission, the skill-based question must be difficult enough that a significant proportion of people could answer incorrectly.
This skill element ensures the prize draw cannot be considered a lottery.

If the skill question is too easy, the prize draw could be treated as relying mostly on chance. To remain compliant, the organiser must usually provide a free entry route. This helps ensure the prize draw does not operate like a paid lottery, which would require a licence.

Yes. Even though prize draws are not regulated like gambling, the UK Gambling Commission can still investigate businesses if they believe the draw is operating as an illegal lottery.
This usually happens when prize draws rely entirely on chance or fail to meet the required legal criteria.

Online prize draw providers should ensure their prize draws:

  • Include a genuine skill-based question

  • Follow the guidance of the UK Gambling Commission

  • Provide a free entry route if the question is too easy

  • Clearly explain the draw rules and entry methods

Following these guidelines helps ensure the draw remains a legal prize draw rather than an illegal lottery.