What legislation governs the running of free prize draws? The Gambling Act 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. For advice on whether a prize promotion activity constitutes an activity which falls under the Gambling Act 2005 or not, see Q&A: What rules should I be aware of when running a prize promotion?. The British Code of Advertising, Sale Promotion and Direct Marketing (CAP Code) sets out the rules for running prize promotions, including free prize draws; it applies to all marketing communications in print, cinema, video social media and paid online advertising. What is a free prize draw? In a traditional free prize draw, there must be a free entry route and the winner must be chosen at random or by chance from all valid entries. What is the CAP