Frequently asked questions (FAQs)

Can I run a reverse auction without a licence?


 

You can run a reverse auction without a licence from the Gambling Commission, as long as it qualifies as a prize competition rather than a lottery. The Gambling Act 2005 requires the outcome of a prize competition to rely on skill, knowledge or judgement, rather than wholly on chance.

Our information paper Reverse auctions - Frequently asked questions - June 2008 and guidance Prize competitions and free draws - The requirements of the Gambling Act 2005 - December 2009 provides more detail.

Also see: Do I need a licence to run a penny auction website?

Page last reviewed: February 2013

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