How to Legally Run a Competition Website in the UK

Running an online competition can be a fantastic way to build engagement, grow your audience and even generate an additional revenue stream for your business. However, in the UK, competition websites are subject to strict legal rules.

If you're setting up a prize draw, raffle or skill-based competition, it's essential to understand where the law draws the line between a legal competition and an illegal lottery.

This guide outlines the key points you need to know to operate your competition website lawfully in the UK — and how DrawEngine can help you take away the stress of managing it all.

Understand the Legal Categories of Competitions

Under the UK Gambling Act 2005, competitions generally fall into three categories:

• »Lotteries - Where participants pay a fee to enter and winners are selected by chance. Running a lottery without a license is illegal unless it qualifies as a small-society lottery or charity raffle.
• »Prize Competitions - Where entry is free or has a no-purchase-necessary option, and winners are selected by skill or judgment. These are usually legal if they offer a genuine opportunity to win without payment. However, the rules must be clear and fair.
• »Free Draws - Where entry is free and winners are selected by chance. These are legal as long as there is no payment required to enter.

Ensure a Genuine Skill or Free Entry Route

If you're charging for entries, you must demonstrate that:

• » The competition includes a genuine skill-based element (more than just a trivial question). It can be a gray area to determine what constitutes sufficient skill, so err on the side of caution.
• » Or, you provide a free entry route that is clearly communicated and easy to use (such as postal entry), this should be treated equally to paid entries.

This is the single most important safeguard against your competition being classed as an unlawful lottery.

Be Transparent with Terms and Conditions

Your competition website should spell out:

• »How to enter – clear guidance on how to enter the competition, including any costs involved for both free and paid entry routes.
• »Opening and closing dates
• »Prize details
• »How the winners are chosen
• »Eligibility rules – including age and location restrictions (e.g. UK residents only, 18+).
• »When and where the winners will be announced

Protect Consumer Rights

• » Honest descriptions of prizes and the chance of winning.
• » No hidden costs for winners.
• » Compliance with UK GDPR when handling personal data of entrants.

Check your Marketing and Advertising

• » ASA's CAP Code (advertising standards).
• » Social media platform rules (e.g. Facebook, Instagram, TikTok).

How DrawEngine Makes Running Competitions Effortless

While compliance can feel like a maze, DrawEngine is built to simplify every part of the process. Instead of juggling spreadsheets, randomisers and legal checklists, you can manage everything in one platform that's designed for UK competition businesses.

With DrawEngine, you get:

• Compliance Made Simple – built-in features to help with free entry options, skill-based questions and audit trails that help prove that your competition is fair and legal.
• Fair, Transparent Draws – Automated winner selection with verifiable randomisation, removing any doubt or accusations of bias.
• GDPR-Ready Data Handling – Secure storage and privacy tools that keep you on the right side of data protection law.
• Time-Saving Automation – From tracking entries to notifying winners, DrawEngine cuts down hours of manual admin.

Put simply, DrawEngine takes care of the hard work – helping with compliance, fairness and efficiency – so you can focus on what really matters: growing your audience, selling tickets and creating excitement around your brand.

Final Thoughts

Competition websites can be exciting and profitable, but only if operated within the law. By including a genuine skill element or a free entry route, being transparent, and following consumer protection rules, you'll stay compliant and build trust with participants.

With DrawEngine by your side, you don't have to manage it all alone. From automated draws to GDPR compliance, it's the easiest, most stress-free way to run competitions in the UK.

Key takeaway: Stay legal, stay fair – and let DrawEngine do the heavy lifting.

Disclaimer

DrawEngine is a software platform for running online prize draws, raffles and competitions. We do not operate or manage raffles directly and we do not provide legal advice. Whilst we will help you in any way that we can, operators are solely responsible for ensuring their competitions are run in compliance with local laws and regulations.

Page last updated: 10th September 2025