Prize competitions and Skilled Prize Competitions, follow the rules.
Ever since the gambling act (Gambling Act 2005) has changed in the UK a lot of companies are trying to enter the market of “Prize Competitions, Free Draws and Skill Knowledge Prize Competitions”.
There are quite a few rules to follow before your company is allowed to qualify. In this blog, we’ll highlight the most import rules and guidelines to successfully set up your business.
Free draws (Free and Paid entries)
Under the Gambling Act 2005 (the Act), it states that when you’re holding a free draw or free draw and paid entries, both should be treated equally. There may be no difference in the way a customer accepts the way he or she applies for the draw.
Customers clearly need to understand that they can partake in the draw by either paying or for free and that they have both options. It is not allowed to make have a different route for the customer to apply to the draw in case they choose to partake in the draw for free.
Basically what the Act is trying to avoid in these kinds of draws, is that the paid route has a higher chance of winning or an easier way to partake. Both routes need to be treated as equals and should both have the same chance of winning the draw.
Also, both free and paid entries should be equally visible on the website, making sure that the customer is informed accordingly.
Skilled Prize Competitions
This the most common way that business use the Act. It allows them to present a paid draw after the customer has registered themselves and have partaken in some kind of “skilled game” or “skilled test”, before paying for their price ticket(s). The entry to the competition must completely rely on skill, judgment or knowledge. There as still quite a few rules to follow:
- UK registered company.
- Age restriction.
- Clear acknowledgement in the T&C’s for customers from other countries that they may not be allowed to partake in the draw.
- Clear understanding of what the customer is partaking in, description of price and value of price that can be won.
- Explanation of how the draw will take place.
- How winners will receive their price.
If you need help, or need support with setting up a merchant account for your Skilled Prize Competitions (Knowledge Prize Competition) website, please contact us here. For more information on the law itself please go here or here.