Free Draw vs Prize Competition

[MaybeOnAHotdog]

Hello,

A friend and I are interested in setting up a Free Draw with paid entry route/Prize Competition and are stuck interpreting the legalities of the business.

We intend to offer cash prizes to entrants that either pay for tickets or enter for free via a postal route option.

Our confusion arises around the Gambling Commission's guide on Free Draws and Prize Competitions and whether we need to display a skill/knowledge aspect for entrants.

We notice the big businesses in this field, (omaze, ELITECOMPETITIONS, LUCKYDAYCOMPETITIONS), all offer this, but a few local businesses with a substantial following do not?

As per the Gambling Commission's guide, the Free Draw guidance:

If you run a free draw with a paid entry route, you must make sure that:​

• people can choose to take part without paying
• the free entry route can be no more expensive and must be no less convenient than the paid route
• the free entry route must also be available at the normal rate. For example, you cannot use special delivery in the free route and First Class in the paid route
• the free entry route must be promoted and displayed at the same level as the paid for routes
• the choice between the free entry route and the paid entry route must be promoted so that people who want to participate can see it
• the system that determines prizes should not recognise the two routes as different.

looks just as sound as the Prize Competition guidance:

What is a prize competition?​

A prize competition is where the outcome is determined by the participants skill, judgement or knowledge.

The organisers of a prize competition must be able to show that the skill, knowledge or judgement required will:

• discourage people wishing to enter from doing so because it is too difficult
• prevent a proportion of those who enter from winning a prize

Multiple choice questions, or questions that allow a second chance if your first answer is wrong, rarely meet this criteria.

The Gambling Commission's guidance also points to the Gambling Act 2005 where even more confusion ensues as multiple parts seem to contradict one another.

Does anyone have any experience in this field and are willing to share?

Thank you for reading!