Lotteries and raffles

Raffles and Lotteries
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Raffles and lotteries can be used to raise money for charities while giving people the chance to win prizes.

They can offer an alternative way for people who wouldn’t normally give donations to charity to support good causes. They can also be a way to raise awareness of charities and may lead to lottery players going on to support the charity in other ways in the future. 

When organising a lottery, think about what kind of activity you want to do and work out what kind of lottery it would be:

In answering these questions you should be able to determine which type of lottery you are organising. Some of the most commons types are:

Prize competitions and free draws

Prize competitions and free draws are not regulated in terms of gambling and therefore you do not need a licence to organise these activities (although you do still need to be aware of consumer legislation such as those for unfair commercial practices).

Prize competitions are those which are not based wholly on chance. To qualify as a prize competition there needs to be a sufficient level of skill involved that will:

The outcome of a prize competition is determined by the application of skill, knowledge or judgment; not chance.

A free prize draw is a competition where all entries are free or entries can be made by paying. In this case, free can mean any method of communication charged at a normal rate such as a first or second class stamp.

If organising a prize competition or free prize draw it is important to make sure that they qualify as these and you do not inadvertently organise an illegal lottery.

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