Q&As

What rules should I be aware of when running a prize promotion?

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Published on LexisPSL on 06/12/2013

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • What rules should I be aware of when running a prize promotion?
  • What are prize promotions?
  • Which legislation and regulatory guidance govern prize promotions?
  • How do I structure a prize promotion so that it does not fall under the ambit of the Gambling Act 2005?
  • What should I do now?

What rules should I be aware of when running a prize promotion?

What are prize promotions?

Prize promotion activities can be structured in many ways (examples include free prize draws, competitions and lotteries) and in turn each of these formats can be structured in different ways, for example:

  1. a free prize draw could be administered as an instant-win, pre-selected winner, winner selected at random, or winner selected at random but against a pre-determined criteria

  2. a lottery could be structured as either a simple lottery or complex lottery (see Practice Note: Prize promotions for more details)

  3. a competition may be dependent on any manner of skills, judgment or knowledge, such as crosswords or photographic skill

When running a prize promotion it is important to be very clear on how the particular promotional activity is structured because that will affect which rules and regulations the activity needs to comply with. For more information, see Practice Note: Prize promotions and also theGambling Commission Guidance on prize promotions.

Which legislation and regulatory guidance govern prize promotions?

Prize promotions are subject to a mixture of legislation and codes of conduct.

The Gambling Act 2005 (GA 2005) provides for the regulation of lotteries, betting and gaming, but activities such as free prize draws and competitions involving an element of skill do not fall under its ambit. It is therefore advisable to structure a prize promotion

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