United Kingdom: does a prize promotion need a licence?
No. A purchase at the normal price is not payment to enter, which makes the promotion a lawful free draw.
Rated: straightforward
Planning effort, not legal risk, and not legal advice. Before every launch the mechanic is confirmed by a law firm admitted in the market.
In detail
A purchase at the normal price is not payment to enter, so a purchase-linked draw is already a lawful free draw; a paid-entry chance draw is an illegal lottery
No licence: the Gambling Act 2005 takes free draws and genuine skill competitions outside the licensing regime. The CAP Code governs how the promotion is advertised and run
Winnings generally untaxed for individuals; the VAT position of goods given as prizes sits with the promoter and is confirmed per campaign
In November 2025 DCMS published a voluntary code for prize-draw operators; compliance is expected from May 2026 and no legislation has followed. Northern Ireland runs on its own 1985 Order, amended in 2022 to align the purchase-at-regular-price rule with Great Britain
Paid-entry games of chance are illegal lotteries without a Gambling Commission licence; a purchase at the normal price, a free-entry route or a skill mechanic keeps a promotion outside the licensing regime under Schedule 2 of the Gambling Act 2005. That is what removes the licence, not the CAP Code: the Code (Committee of Advertising Practice) governs how the promotion is advertised and run, with published terms, auditable draws and #Ad disclosure. Winnings are generally untaxed for individuals; the VAT position of goods given as prizes sits with the promoter and is confirmed per campaign. In November 2025 the DCMS published a voluntary Code of Good Practice for prize-draw operators, with compliance expected from May 2026; no legislation has followed. Status: mid-2026.
What this means for your campaign
No lead time. The CAP Code governs how the promotion is run and advertised; since May 2026 a voluntary DCMS code for prize-draw operators is also expected.
All 41 markets side by side
The permit check puts all 41 markets side by side and adds up the effort for your market selection. The full legal sources are on the market rules overview.
Planning a campaign in United Kingdom?
Tell us the mechanic, the markets and the date. You get a fixed-price concept back within three business days, including the permit route per market.