Guide

Prize Draw vs Raffle vs Lottery: What's the Difference in the UK?

Prize Draw vs Raffle vs Lottery: What's the Difference in the UK?

"Prize draw", "raffle" and "lottery" are often used interchangeably, but in the UK they are legally distinct — and the difference decides whether an operator needs a gambling licence.

The quick answer

  • A lottery (including most paid raffles) is a form of gambling: you pay to enter and winners are chosen purely by chance. Lotteries generally require a licence or registration with the Gambling Commission.
  • A free prize draw has a genuine free entry route, so it is not a lottery and needs no gambling licence.
  • A prize competition requires skill, knowledge or judgement to enter (for example a question), which also takes it outside lottery law.

Lotteries and raffles

A raffle is simply a small-scale lottery — think of a charity or club raffle. Under the Gambling Act 2005, lotteries can usually only be run by good causes (society lotteries), local authorities, or under the National Lottery, and they typically need to be registered or licensed. Running a private commercial paid raffle without a licence is generally not allowed.

Free prize draws

This is what most online "prize draw" operators run. Because they offer a genuine, equally weighted free entry route (usually free post), they are lawful without a gambling licence — provided the free route is real and clearly signposted.

Prize competitions

These require an element of skill or knowledge — a question you must answer correctly to enter. If the skill element is genuine, they sit outside lottery law too.

What it means for you

For entrants the practical difference is small, but it pays to know:

  • If a paid-only "raffle" has no free entry route and no skill element, treat it with caution — it may not be compliant.
  • Always look for the free entry route or the skill question; their presence is a good sign the operator understands the rules.

This is general information, not legal advice — always check the operator's own terms. For the legal detail, see are prize draws legal in the UK?, and to find compliant operators, see the best UK raffle sites.