Prize competitions We do not regulate prize competitions and free draws and you do not need a licence to run them. But you must be careful you do not organise them in a way which could constitute an illegal lottery. Prize competitions can be organised commercially for private benefit and profit. This contrasts with lotteries, which can only be run for good causes. We have therefore published advice to help explain the difference. Unlike a lottery where the outcome depends on chance, the outcome of a genuine prize competition must depend on the exercise of skill, knowledge, or judgment by the participant. If your competition relies on chance it may be considered a lottery and could be illegal.
We do not approve or provide advice on how to run your particular competition. The rules and conduct of your competition are solely your responsibility. If you are organising a prize competition it is your responsibility to ensure you are compliant with the law. If in doubt, you should seek legal advice. Thinking of raffling off your home? A raffle can be a nice boost to the bottom line for your non-profit fundraising event. Before adding a raffle to your event, double check that raffles are legal for non-profits in your area. If they are, choose attractive items that get donated for the event to use in the raffle, or purchase them at a reasonable price. 1: Accept Cash, Checks and Credit Cards I suggest that your non-profit be prepared to accept cash, checks and credit cards as payment for raffle tickets. Make sure to advertise the fact that you are accepting credit cards at the raffle table through signage and announcements from the podium.
2: Display the Items, When Possible Nothing gets people salivating over the possibility of winning an item more than being able to see the item right in front of them as they purchase chances. Whenever possible, create a nice display with the items that may be won so that event attendees can easily see them. 3: Be Visible I’ve seen far too many non-profits that hold fundraising events, add a raffle, tuck the raffle table out of the way in a corner of the event venue and then wonder why they didn’t sell as many chances as they thought they would. If you’re going to be holding a raffle, you might as well try to sell as many tickets as possible. Place your raffle table front and center as people are coming in to the event hall. This goes hand in hand with being visible. In order to raise as much as possible, train your staff and volunteers to really sell the tickets.
This means encouraging guests who are only buying one ticket to buy two or three, sending staff members roving from table to table selling tickets, and ensuring that the emcee makes several announcements about the raffle from the podium. Don’t be pushy, but do sell. As with all things in fundraising, if you’re going to take the time and energy to hold a raffle, you might as well do it right. Be sure to make your raffle a priority, and get people excited about buying tickets and finding out who won. 2016 by The Fundraising Authority LLC. FAQs raffles and lotteries Running a raffle at events can increase profits, whilst also building links with local businesses. As raffles fall under the terms of the Gambling Act 2005, we asked the Gambling Commission – what do PTAs need to know? A typical ‘small society lottery’ is a raffle where players buy a ticket with a number on it.
The tickets are randomly drawn and those holding the same numbered tickets win prizes. Another version is a sweepstake – for example, where the participants pay to randomly pick a name in a ‘guess the name of the teddy’ game. The person who guesses the winning name wins the teddy. An ‘incidental non-commercial lottery’ doesn’t require any permissions or licences. These are held at non-commercial events, such as school fêtes. All ticket sales and draws must take place during the event. A ‘small society lottery’ requires a licence from your local authority.