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 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?