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Thinking of raffling off your home?

Here's what you need to know

Lotteries – or raffles - cannot be run for any commercial gain or profit, such as selling your house or a car. They can only be run for good causes – such as charities, hospices, air-ambulance services or other not-for-profit causes.

You may have seen some people raffling their home as a prize, but it’s actually a free draw or prize competition, which can be organised for profit.

But be careful, if the free draw or prize competition hasn’t been set up correctly, you could be running an illegal lottery and breaking the law - make sure you seek legal advice!

Prize competitions: Unlike a lottery where the outcome depends on chance, the outcome of a genuine prize competition must depend on the exercise of skill, knowledge, or judgment by the participant.

The element of skill, knowledge or judgment in a competition must prevent:

  • a significant proportion of people from taking part or

  • a significant proportion of people who do take part from receiving a prize.

If your competition relies on chance it may be considered a lottery and could be illegal.

Free draws can be organised commercially for private benefit and profit. There must be a free method of entry for participants, whether this is online, or by post (incurring a ‘reasonable cost’).

If you are organising a free draw or prize competition it is your responsibility to ensure you are compliant with the law. If in doubt, you should seek legal advice.