Free Entry Rules
The information below is a brief outline of how free entry rules are applied to the entry process. The main points are covered, but you can find the full requirements stated by the Gambling Commission within the Gambling Act 2005
The Gambling Act 2005 states the following:-
“a prize competition is one where success depends on the exercise of skill, judgment or knowledge by the participants and does not, as it does in a lottery, rely wholly on chance.”
To clarify, adding a skills based question as part of the entry process means that the competition no longer completely relies on chance in order to win. This completely separates prize competitions from a lottery where winning fully relies on chance only.
What does this have to do with a free entry process?
Why a Free Entry is Needed?
We have learned that a skills based question must be part of the entry process in order to be separated from the rules of a lottery. However, what if the skills based question is way too easy? Does the entry process rely on an element of skill anymore?
The answer to this is, No. If the question is clearly too easy, then the gambling commission will class the online raffle in question as an illegal lottery!
How then can a question be judged as too easy, or too difficult? Furthermore, what is difficult to one person may be easier to another!
This is where the free entry rules come into play.
The 2 Types of Free Entry
The 2 types of free entry rules are as follows:-
1. Where all entries are free
The Gambling Act 2005 states the following:-
‘Free’ is any method of communication charged at the normal rate, and specifically refers to the use of first or second class post.
Normal rate means that there can be no additional payment over what it normally costs to use a particular method of communication. For example, special delivery is not classed as free.
2. Where there is both a paid and a free entry route.
The Gambling Commission states If you run a free draw with a paid entry route, you must make sure that:
- people can choose to take part without paying
- the free entry route can be no more expensive and must be no less convenient than the paid route
- the free entry route must also be available at the normal rate. For example, you cannot use special delivery in the free route and First Class in the paid route
- the free entry route must be promoted and displayed at the same level as the paid for routes
- the choice between the free entry route and the paid entry route must be promoted so that people who want to participate can see it
- the system that determines prizes should not recognise the two routes as different.
In simple terms, if a free entry route is available, it must be treated in the same way as the paid route.
The most common method for entering for free is via post.
Free Postal Entry
You will find that the majority of online raffle providers will give entrants the choice of both purchasing a ticket or entering for free. Entering for free will usually require entrants to fill in a postcard with specific details and send to a chosen address. Once the postcard is received a ticket number will be allocated to the entrant, usually via an email.
As mentioned above, the free entry process must be treated in the same way as the paid entry. This includes the fact that the cost of sending a postcard MUST NOT cost more than the paid entry! If it does, this will place the entrant at a disadvantage and result in that specific online raffle being at risk of the gambling commission classing it as an illegal lottery.
A second class stamp (in 2024) costs 85p. It is essential then that this cost is not more than the cost of entering via the paid route.
Displaying the Free Entry Route
The free entry route must be displayed at the same level as the paid for routes. This essentially means that the free entry must be displayed in such a way that it is as visible as the eg ‘Buy a Ticket’ or ‘Buy Now’ button for those opting for the the paid route. Online raffle providers will mainly choose to display the free entry postal route just above or just below the ‘Buy Now’ button. This ensures that those entering can clearly see that a free entry route is available!
Terms & Conditions
Every online raffle provider should have terms & conditions that explain how the free entry works. The text eg. ‘See Free Postal Entry’ must be a clickable link. Upon clicking the text, the Terms & Conditions for the Free Entry route must be one click away. The entrant clicking the text should not need to search for this information through the main terms & conditions.
If you would like to learn more about the entry process you mind find it beneficial to read our other post ‘Do I Need to Answer a Question to Enter?’