Are House Raffles Legal in the UK?

Why the terminology matters: raffle vs prize competition

The word “raffle” is used loosely in everyday speech to describe any paid-entry draw for a prize. In UK law, “raffle” has no specific legal definition — what matters is whether the draw is a lottery or a prize competition.

• A lottery under the Gambling Act 2005 is a scheme where participants pay to enter a draw determined purely by chance. Running a lottery without a Gambling Commission licence (or registration with a local authority as a small society lottery) is a criminal offence under section 258 of the Act.
• A prize competition is an arrangement where the outcome is determined by chance but a genuine free-entry route exists, or where the outcome involves a skill element. Prize competitions of this type are not lotteries and do not require a Gambling Commission licence.

A “house raffle” that charges for entries and selects a winner purely by chance, with no free-entry route, is therefore an unlicensed lottery — illegal in the UK. A house prize competition that offers a genuine free-entry route is legal.

What makes a house competition legal?

The legal conditions for a compliant UK house prize competition are:

1. A genuine free-entry route
The free-entry route must be genuinely open to all — it cannot be buried beyond practical use, require extraordinary effort to find, or be limited to so few free entries as to be meaningless. CAP Code Chapter 8 (rules 8.17 and 8.17.2) requires that any free-entry route be explained clearly and prominently, not just made “practicable” in principle.

2. Transparent terms and conditions
The operator must publish clear T&Cs covering the prize, entry mechanism, draw date, how the winner is selected, and how they are notified. Gambling Commission guidance and the CAP Code require promotion terms to be made readily available to participants.

3. Compliant advertising
Advertising must not mislead consumers about their chances of winning, overstate the charitable element, or present the draw as a lottery. The ASA/CAP Code rules on prize promotions apply, and the ASA has already tested this in practice: it upheld a complaint against an Omaze advert (ruling published 7 October 2020, asa.org.uk) for failing to explain the free postal entry route clearly and prominently, in breach of CAP Code rules 8.17 and 8.17.2. Omaze was told not to repeat the ad in that form.

4. No exclusion of free entrants from the draw
Free entries must be included in the same draw as paid entries. A draw that segregates free entries into a secondary pool, or does not include them at all, may not meet the free-entry test.

What makes a house competition illegal?

A house draw is illegal if:

• It charges for entry and selects a winner purely by chance without offering a genuine free-entry route → unlicensed lottery
• The free-entry route is not genuinely accessible (e.g. the letter must be sent to an impossible or undisclosed address) → arguably not a genuine free-entry route
• The organiser claims it is a charity raffle to benefit a specific cause, but the organiser is not a registered charity or licensed lottery operator → potentially fraudulent misrepresentation

The Gambling Commission and Trading Standards have the power to investigate and prosecute operators of unlicensed lotteries. Under section 263 of the Gambling Act 2005, promoting or facilitating an unlicensed lottery (an offence under sections 258–262) carries, on summary conviction, an unlimited fine and/or up to 51 weeks’ imprisonment in England and Wales, or up to six months’ imprisonment in Scotland (legislation.gov.uk).

Are self-organised house competitions legal?

An individual wishing to raffle their own house can do so legally as a prize competition, provided the free-entry route condition is met. Platforms such as Raffall help structure self-organised draws as prize competitions. Raffall implements the free-entry requirement through a postal route: entrants write their user ID, Raffall ID and the answer to the entry question on a postcard and post it to Raffall’s registered office, with entries treated equally to paid entries in the draw (help.raffall.com, July 2026).

The individual organiser is responsible for compliance. Key risks for self-organisers:

• Structuring the draw incorrectly (no genuine free-entry route) → unlicensed lottery
• Failing to transfer the property if entries are insufficient → potential fraud
• Tax implications for the organiser on the proceeds — HMRC generally treats proceeds from running a draw as taxable, either as trading income or miscellaneous income depending on the scale and frequency of the activity (“badges of trade” test). This is a material question for anyone self-organising a draw, and professional tax advice should be sought before proceeding — see our guide to raffling your own house for more detail.

For more on self-organised draws, see our guide to raffling your own house.

How do Omaze and Raffle House comply?

Both Omaze and Raffle House operate as prize competitions:

• Both offer a free postal entry route: Omaze’s is confirmed via its official rules, and Raffle House publishes its own postal entry route at rafflehouse.com/post, with postal entries treated identically to paid entries for the draw
• Both are expected to advertise in compliance with the CAP Code. The ASA has previously upheld a complaint against an Omaze advert for not explaining its free-entry route clearly and prominently (asa.org.uk, ruling published 7 October 2020) — a reminder that ASA scrutiny applies to this sector and operators do not always get it right first time
• Neither holds a Gambling Commission lottery licence, because as prize competitions they do not require one

For the full picture on house draws — who operates them, what they give to charity and how to enter — see our win-a-house page and our guide to how house competitions work.