Category: Competition Websites

This is a practitioner’s guide written by a signatory to the Code. It assumes you have already read our overview of the Voluntary Code and the Code itself on gov.uk, and want to move straight to implementation. Where the Code uses flexible language like “reasonable” or “proportionate”, we explain the practical standard that other signatories and licensed gambling operators treat as the working definition.

A competition website template gives you the visual framework and ticketing mechanics to run prize draws online. For many operators searching for a fast, low-cost starting point, a template appears to solve the build problem. It does not solve the two problems that actually stop UK competition businesses from trading: getting the compliance structure right under the Gambling Act 2005, and getting a payment provider to accept competition ticket sales as a permitted business activity. Operators who launch on a template without addressing both are typically live within days and shut down within weeks.

Running a Facebook Live Draw correctly is one of the most important trust-building activities a UK competition website operator can do. It proves the draw is real, that the winner is selected fairly, and that you are a legitimate business. But it also carries genuine compliance risk. Broadcasting the wrong data on screen is a GDPR breach. Using the wrong draw method may not satisfy CAP Code Rule 8.24. And new Facebook pages face platform restrictions that catch operators out before they even go live. This guide covers everything you need to run a compliant, transparent, and effective Facebook Live Draw.

Running a raffle legally in the UK as an online competition business requires understanding one critical distinction first: most commercial prize draw websites do not operate as raffles in the legal sense at all. Under the Gambling Act 2005, a lawful online competition must either rely on genuine skill (Section 14) or offer a free entry route (Section 339), or both. Neither requires a Gambling Commission licence if structured correctly.

A prize draw in the UK is a promotional competition where winners are selected by chance rather than skill. Under the Gambling Act 2005, prize draws are legal without a gambling licence provided they offer a free entry route that is promoted as prominently as any paid route. Operators must also comply with the CAP Code advertising rules and, from May 2026, the DCMS Voluntary Code of Good Practice for Prize Draw Operators.

Starting a competition business in the UK means building a commercial operation that sells paid entries to win prizes, structured to operate legally without a Gambling Commission licence. When the compliance structure is correct, the niche has a genuine audience, and the financial foundations are in place before the first entry is sold, the model works. When any of those three things are missing, the business stalls before it finds its audience.

Yes. You can start a competition website as a sole trader in the UK. Specialist payment providers including Cashflows accept sole trader applications for prize competition and game of skill businesses, provided your business bank account is registered in your trading name. You must still meet the same compliance requirements as any other operator — a genuine free entry route or correctly structured skill question under the Gambling Act 2005, properly written terms and conditions, and a compliant website structure in place before applying for merchant approval.

Traffic alone does not build a successful competition platform. Many prize draw websites attract strong visitor numbers yet struggle to convert those visits into completed entries. This issue of abandoned entries is not unique—competition websites face many of the same challenges as e-commerce platforms in online shopping, where users often leave before completing a purchase. An ecommerce store is the online shopping platform where users browse, add items to their cart, and complete or abandon purchases.

Trust is the single biggest conversion factor on a UK competition or prize draw website. Visitors are being asked to spend money on a chance to win, which creates natural caution. The elements that resolve that caution are: professional presentation with clear structure, visible compliance including free entry routes and skill questions, transparent draw mechanics, documented winner history, secure and recognised payment processing, and consistent communication. Sites that treat trust as an afterthought lose entries before the checkout is ever reached. The brands that scale most reliably in this market are not always those with the biggest prizes. They are the ones that feel the most credible.

UK online competitions are lawful under one of three categories: a free draw (no payment), a prize competition (paid, won by genuine skill), or a paid prize draw with a properly structured free entry route. A skill-based competition only qualifies if the skill element is difficult enough to prevent a significant proportion of entrants from entering or winning. A free entry route only qualifies if it is charged at no more than the normal postal rate, displayed at equal prominence to paid entry, and not artificially restricted. Competitions relying on a token skill question or a buried free entry route risk being classified as illegal lotteries, which triggers merchant account freezes, advertising bans, and Gambling Commission enforcement. The DCMS Voluntary Code (in effect since 20 May 2026) adds transparency and fair-draw expectations on top of statutory requirements. Compliance must be built into platform structure, not implied in wording. Every Nera-built competition website is structured to meet both routes correctly.