Online prize competitions

Disputes can also arise over the administration and fairness of a competition, for instance, if participants claim a draw was not conducted properly, prizes were withheld, or entry terms were unclear. In such cases, both organisers and entrants may need legal advice to resolve matters efficiently and protect their rights.

Our specialist team of prize competition lawyers advise on all aspects of running online competitions, draws and promotions, ensuring full compliance with the Gambling Act 2005, ASA and CAP Codes, data protection laws and consumer law. Whether you are launching a new competition business or scaling an existing platform, we provide clear, commercial advice to protect your brand and minimise risk.

Our expertise covers:

Legal compliance: Ensuring promotions comply with the Gambling Act 2005, advertising codes and data protection laws.
Tailored website documentation: Drafting bespoke terms and conditions, privacy policies and website audits.
Risk assessments and legal health checks: Identifying compliance gaps in your competition platform or app.
Licensing advice: Guiding you through whether your competition requires a licence and assisting with applications.
Business structuring: Helping prize competition operators structure their businesses to comply with the forthcoming industry Code of Conduct.
Commercial and brand protection: Preparing agreements with brands, influencers, affiliates and partners, and advising on IP and brand strategy.
Company incorporation: Assisting with setting up new prize competition businesses correctly from the start.

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How can Ellis Jones help your prize competition business?

We understand the fast-paced and highly regulated nature of the prize competition industry. With the rapid growth of online raffles, giveaways and promotions, businesses need clear, practical legal guidance to remain compliant while staying commercially competitive.

Our team of experts have specific expertise in advising operators in this niche and emerging area of law, including advising on any new developments. We combine deep regulatory knowledge with a commercial mindset that helps our clients not only meet their legal obligations but also build strong, scalable and reputable competition businesses.

We have acted for both start-ups and established operators, guiding them through compliance with the Gambling Act 2005, data protection legislation and consumer law, and the UK advertising codes. We are also able to advise on any new legislation and regulations that will impact your existing prize competition. Because we are a full-service law firm, our prize competition clients also benefit from our wider experience in intellectual property, data protection, corporate structuring and commercial contracts, ensuring every part of your business is protected.

We focus on preventing legal issues before they arise, safeguarding your brand and ensuring your competition can operate confidently within the law. Whether you are launching a new online raffle or scaling an existing competition platform, our expert solicitors can guide you through every legal and compliance requirement.

Get in touch today for a free, no-obligation meeting with our specialist Business Services team and make sure your competition is built on solid legal foundations.

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"I recently enlisted the services of Ellis Jones, specifically Victoria Simpkin, for legal assistance regarding my prize competition website. I must say, the service provided by the team, particularly by Victoria, was truly exceptional."

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"Right from the start, Ellis Jones demonstrated professionalism. Victoria meticulously scrutinised my website, ensuring no detail was overlooked. Their attention to detail was commendable, meticulously evaluating every aspect of my platform to ensure compliance with both legal standards and Facebook's requirements."

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Online prize competition FAQs

Is my raffle or prize competition site really gambling and do I need a licence?

The Gambling Act 2005 regulates “gambling” which is defined as “gaming”, “betting” or “participating in a lottery”. These activities involve payment and the allocation of a prize wholly reliant on chance. Lotteries cannot be run for commercial gain and most can only be run for good causes such as charities, sporting or cultural clubs or other not-for-profit causes – all of which heavily rely on income from lotteries to support their work.

If your prize competition site falls outside the scope of gaming, betting or a lottery, you will not require a gambling licence. However, bear in mind that it is a criminal offence to run these activities without a licence, so it is vital that your raffle or prize competition site is run in a way which complies with the Gambling Commission’s requirements. The Gambling Commission (www.gamblingcommission.gov.uk) licenses and regulates how people and businesses provide gambling in Great Britain.

How do I run my raffle or prize competition lawfully without requiring a licence?

There are two main ways to run your prize competition site lawfully. The first is to offer a free alternative route of entry, such as a postal route. The second way is to incorporate an element of skill, knowledge or judgment into the competition so as to prevent a significant proportion of the public from winning the prize and participating in the competition. Whilst this may sound simple, the laws surrounding free entry and the skill based element are quite complex and you should seek legal advice before promoting the competition.

How do I legally raffle my house or car?   

You can only raffle your house or car where the beneficiary (that is, the recipient of all lottery profits after expenses and prize costs are deducted) is a good cause and the organiser/promoter of the lottery is a non-commercial society such as a charity.

The only way in which you may raffle your house or car legally would be via a free draw or prize competition. If you are organising a prize competition or free draw,  it is your responsibility to make sure that you are compliant with the law so as to avoid being an illegal lottery. If in doubt, you should seek legal advice and that’s where we can help.