Three words get used for the same thing online. In Great Britain they mean different things in law, and the difference decides whether a site is allowed to sell tickets.
Lottery
The Gambling Commission’s guidance says a promotion is a lottery where people must pay to take part, prizes are allocated, and allocation is wholly by chance (or a series of processes the first of which is wholly by chance). A lottery needs a licence. An unlicensed one is illegal.
Free draw
A free draw sits outside the lottery rules. The guidance says an arrangement is a lottery only where participants are required to pay to enter. The ASA describes a prize draw as one where “the winner is chosen at random from all valid entries”. (ASA: prize draws.)
Prize competition
A prize competition is outside the lottery rules if winning takes genuine skill, knowledge or judgement. The guidance says the difficulty must be high enough that a significant proportion of people are prevented from entering, or from winning. A question as easy as guessing the colour of Rudolf’s nose would not qualify.
Where paid ticket sites fit
A site that sells tickets for a chance-based prize has to offer a genuine free route to stay outside the lottery rules. See what the ASA says a free entry route must be and free prize draws in the UK.
Sources: the Gambling Commission’s guidance Prize competitions and free draws: the requirements of the Gambling Act 2005 (December 2009, copy hosted by Torfaen Council) and its quick guide, Running prize competitions and free draws (March 2018). The Commission says to seek legal advice if you are unsure about a competition.
How Hoardsy runs its competitions
- Closing dates are never extended for slow sales.
- There’s no minimum number of sales: every end-draw prize and top instant prize is awarded, sold out or not.
- Every competition page shows its prizes and your chance per ticket before you enter.
- Every competition can be entered free by post, with the same chances as a paid ticket. See free postal entry.
Keep reading
- All Hoardsy guides
- Are online prize draws legit?
- What the ASA has ruled on UK competition sites
- How to spot a risky competition site
Last checked 12 October 2026.
Hoardsy
See the competitions
Choose a draw or an instant game. Every prize and its chance is on the page before you enter.
18+, Great Britain only. Free postal entry on every competition.
