Online raffles have become a super popular way to raise money, whether it's for charity, a community project, or even just a fun event. But with anything involving money and prizes, you might be wondering: Is it legal to run an online raffle in the UK? The short answer is yes – as long as you follow some important rules. Let’s break down why online raffles are legal and how you can make sure yours is above board.
1. What is a Raffle in the UK?
In the UK, a raffle is considered a type of lottery, which means it falls under the Gambling Act 2005. This law covers all kinds of gambling, including lotteries and raffles. So, if you want to run an online raffle, you need to follow the guidelines set out by this act to keep things legal.
There are three main types of raffles (or lotteries) you can run in the UK:
- Private lotteries
- Incidental lotteries
- Public lotteries
Each type has different rules, so let’s break it down.
2. Different Types of Legal Raffles
a) Private Raffles
These are raffles where tickets are only sold to a specific group of people, like your coworkers or members of a club. Since they’re closed to the general public, you don’t need a license to run them. Common examples are:
- Workplace lotteries: Only people in your company can buy tickets.
- Residents’ lotteries: For people who live in the same building or community.
As long as you’re keeping it within that group, private raffles are pretty straightforward and don’t require much paperwork.
b) Incidental Raffles
Incidental lotteries happen as part of a bigger event, like a school fair or a fundraiser. You can sell tickets at the event, and the draw needs to happen during that same event. You don’t need a license for these as long as:
- Tickets are sold only at the event.
- Prizes are relatively small and tied to the event.
These are great for spontaneous fundraising and keeping things fun and easy!
c) Public Raffles
If you want to open up your raffle to the general public or raise money for charity, you’re entering public lottery territory. In this case, you might need a license, either from the local authority or the Gambling Commission, depending on the size of your raffle.
For smaller raffles raising money for charity, a Small Society Lottery License from your local authority will cover you. But if your raffle is larger or more commercial, you’ll need to register with the Gambling Commission.
3. Rules for Running an Online Raffle
When you move your raffle online, you need to be a bit more careful to follow the rules. Here’s what you need to make sure you do:
a) Get Registered (if Needed)
If your raffle is open to the public and you’re expecting a lot of money to be involved, you’ll need to register with your local authority or the Gambling Commission. For smaller charity raffles, a local Small Society Lottery License should be enough. Bigger raffles may need a Gambling Commission license.
b) No Profit for Personal Gain
You can’t run a raffle just to make a profit for yourself unless you have the right gambling license. If you’re doing it for charity, make sure the money raised (minus any costs like marketing or prizes) goes to the intended cause.
c) Be Transparent
Your online raffle needs to be fair and transparent. That means being clear about how people can enter, what the prizes are, and how the winners will be chosen. The draw should be random, and the prizes need to be awarded as promised.
d) Promote Responsible Gambling
Since raffles are technically a form of gambling, it’s important to include messaging about gambling responsibly. You should provide links to support services like GamCare or BeGambleAware in case anyone needs help.
e) Check Age Restrictions
Participants in online raffles must be over 16 if it’s for a charity and over 18 for commercial raffles. Be sure to verify the age of your entrants to stay on the right side of the law.
4. How to Avoid Running an Illegal Raffle
While running a raffle is legal, there are a few things that could make it illegal, so here are the key mistakes to avoid:
- Running it for personal gain without a license: If you're making a profit for yourself without proper licensing, your raffle is illegal.
- Not donating the proceeds as promised: If you say the raffle is for charity, make sure the money actually goes where you said it would.
- Not being clear with participants: Make sure people understand the rules, the odds, and the prizes. Lack of clarity could lead to legal issues.
5. Top Tips for Running a Successful (and Legal) Online Raffle
Here are some best practices to make sure your raffle runs smoothly:
- Get the right license: Figure out what type of raffle you’re running and whether you need to register with your local authority or the Gambling Commission.
- Be clear about entry fees and prizes: Make sure people know how much tickets cost and what the prizes are.
- Keep good records: Track ticket sales, expenses, and prize winners. It’ll make everything more transparent and help if any questions come up.
- Get legal advice if you need it: If you’re not sure about something, don’t hesitate to get professional advice.
Wrapping It Up
Yes, you can legally run an online raffle in the UK, but you need to stick to the rules set out by the Gambling Act 2005. Whether it’s a small private raffle or a larger charity draw, following the right steps ensures you’re compliant with UK law and can keep everything fun and above board.
Alternatively you could also try using a platform like Raffaly. It’s a legit way to run online raffles, and it takes care of everything—from setting up the raffle to selling tickets via different payment methods, withdrawing your funds, and more. You can check out all the features here!