Research clinic: Free Prize Draws

Will the new Gambling Act change the rules for Free Prize Draws?

No. Free draws are, and will remain under the Gambling Act 2005, free of statutory regulatory control. Such competitions and draws will continue to be able to be organised commercially for private benefit and profit. This contrasts with public lotteries which remain the preserve of good causes and must, unless they qualify in one of the ‘exempt’ categories, continue either to be licensed by the Gambling Commission, if above a certain size, or to be registered with a local authority.

What distinguishes a lottery from a prize draw?

The 2005 Act defines the basic elements of a lottery as follows:

Persons are required to pay to participate
One or more prizes are allocated to the participants in the scheme; and
Prizes are allocated wholly by chance.

An arrangement is a lottery only if the participants are required to pay to enter. Schedule 2 to the 2005 Act gives details of what is to be treated as amounting to ‘payment to enter’ for the purposes of distinguishing free draws from lotteries.

For draws connected to research projects, “free” will include any method of communication (post, telephone or other) at a “normal rate”. “Normal rate” is defined as “a rate which does not reflect the opportunity to enter a lottery”. It includes “ordinary first-class or second-class post (without special arrangements for delivery)”.

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MRS Code of Conduct
Conducting research with children and young people - guidelines and FAQs
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