Q&As

Can the chance to win a prize in a draw be considered valuable consideration?

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Published by a ÀÏ˾»úÎçÒ¹¸£Àû TMT expert
Published on: 21 February 2023
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What type of prize promotion?

The question which was submitted did not specify which type prize promotion is intended to be used. For example, is this a free prize draw, a lottery or a competition dependent on the use of skill?

Free prize draws or competitions dependent on the use of skill

The Gambling Act 2005 (GA 2005) provides for the regulation of lotteries, betting and gaming, but activities such as free prize draws and competitions involving an element of skill do not fall under its ambit.

For more information about free prize draws or for discussion regarding the use of skill, please refer to our Practice Note: Prize promotions.

Lotteries

Under GA 2005, most types of lottery are illegal. A lottery can only be lawfully operated under a lottery operating licence, unless it falls within one of the limited exceptions detailed in GA 2005.

For more information regarding simple and complex lotteries, please refer to our Practice Note: Prize promotions and Gambling law—at-a-glance guide.

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United Kingdom
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