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Understanding the consumer landscape in free draws and prize competitions
This short report explores consumer behaviour in relation to free draws and prize competitions
Published: 22 January 2026
Last updated: 22 January 2026
This version was printed or saved on: 22 January 2026
Online version: https://www.gamblingcommission.gov.uk/report/understanding-the-consumer-landscape-in-free-draws-and-prize-competitions
Introduction
Background
In this report we take a closer look at consumer behaviour in relation to free draws and prize competitions, which are commonly referred to as prize draws. While free draws and prize competitions are not regulated under the Gambling Act 2005, they are relevant to our wider evidence priorities, particularly in relation to Evidence Theme 2: The range and variability of gambling experiences. This topic also forms a roadmap for this theme looking at how gambling fits into people’s lives.
Our aim was to better understand who participates in free draws and prize competitions, if and how they gamble, and and how this activity fits into the broader consumer landscape. By doing so, we can deepen our understanding of the world around the gambling sector and improve our insight into consumer behaviours that may share characteristics with gambling
This report draws on three distinct data sources:
- Gambling Survey for Great Britain (GSGB) data1 to examine participation levels and demographic patterns
- YouGov Finance open banking data2 to explore financial behaviours and spending
- Similar Web web traffic data3 to understand online engagement with free draw and prize competition providers.
By triangulating these sources, we can generate richer insights than any single dataset could provide alone and enhance the robustness of our findings. This is also an example of using GSGB to identify and explore new and evolving consumer behaviours, by having a survey vehicle which is flexible enough to add topical and ad hoc questions to it. It also highlights how combining multiple data sources can support the Commission in understanding activities in context.
<sup id="ref-1">1</sup> Gambling Survey for Great Britain online survey, April 2024 to April 20252 YouGov Finance (opens in new tab) , April 2024 to April 2025
3 SimilarWeb (opens in new tab), May 2024 to April 2025
Definitions
What are free draws and prize competitions?
Free draws and prize competitions can be run for commercial or private gain and are often used to promote products or offer high-value prizes such as cars or houses. These formats are increasingly popular on digital platforms, which allow individuals to enter for a chance to win luxury goods.
These draws or competitions are sometimes used to raise funds for charitable causes, generate public interest, or incentivise purchases. It’s important to note that these types of schemes can closely resemble lotteries, however, free draws and prize competitions are not regulated forms of gambling as they meet the rules that exempt them being classed as a lottery draw outlined in the Gambling Act 2005 (opens new tab).
There are two types that this report covers:
Free Draws
Free draws are structured in one of two ways:
Completely free entry: Participants are not charged beyond the standard cost of communication, such as the price of a postage stamp when the free entry route is by post.
Dual-route entry: Both paid and free entry options are offered. In these cases, the free route must be:
- clearly promoted alongside the paid route
- no less convenient or accessible than the paid option
- available at no more than the standard rate of communication
- treated equally in the prize allocation process where the system must not favour paid entries.
Prize Competitions
Prize competitions differ in that they rely on an element of skill, knowledge, or judgment to determine the winner. To qualify as a genuine prize competition under UK law, the challenge must be sufficiently able to:
- deter a significant number of people from entering, or
- prevent a significant proportion from winning.
Simple multiple-choice questions typically do not meet this threshold. Prize competitions do not need to offer a free entry route and are exempt from being classed as a lottery because the outcome is not determined wholly by chance, meeting the criteria set out in the Gambling Act 2005.
Legal Considerations
Neither free draws nor prize competitions require a lottery licence, provided they are structured in a way that meets the rules set out in the Gambling Act 2005 that exempt them from being classed as a lottery (opens in new tab). For example, free draws having a free route of entry ensures it meets the exemption and does not require a license. Failure to meet these requirements may result in the activity being classified as an illegal lottery, which is subject to enforcement.
The Department for Culture, Media and Sport (DCMS), in collaboration with the prize draw industry, has developed and published a voluntary Code of Conduct (opens in new tab) for prize draw operators, which sets out a series of best practice principles aimed at improving transparency, accountability and consumer protections across the sector. While the Code does not introduce new legal requirements or replace existing consumer or advertising law, it reflects a broader focus on raising standards within free draws and prize competitions.
More details on the legal distinctions between lotteries, free draws, and prize competitions.
Data Sources and Methodology
This report draws on 3 data sources to explore participation in free draws and prize competitions and build a broader understanding of this activity. Each source offers a unique perspective, and together they allow for a more comprehensive and triangulated view of the free draw and prize competition landscape.
All brand names have been removed for confidentiality and commercial sensitivity.
Triangulation and Analytical Approach
Each dataset offers a different lens:
- Gambling Survey for Great Britain (GSGB) survey data provides insight into who is participating
- YouGov Finance open banking data allows us to observe spending behaviour, offering a real-world view of financial engagement with free draw and prize competition providers
- SimilarWeb web traffic data helps us understand the scale and frequency of online engagement, revealing how often people visit these sites and how interest may vary over time.
Gambling Survey for Great Britain (GSGB)
The GSGB is a nationally representative survey of adults aged 18 and over in Great Britain, for further details about the methodology of the overall survey, visit the technical report. Whilst the survey is predominately designed to gather consumer data in relation to gambling behaviours, through the use of ad hoc and topical questions we can also gather information from consumers about other topics, such as free draws and prize competitions. This is important to understand the broader landscape and how these types of activities sit alongside regulated gambling activities.
The GSGB uses a mixed mode approach and respondents can complete survey responses online or via a paper survey. The question on free draws and prize competitions, along with other topical or ad hoc questions, was asked only to those respondents who completed the survey online. The GSGB survey data in this report is from respondents who answered the survey online between April 2024 and April 2025, giving a total sample size of 13,049.
To ensure accurate comparisons in this report, the analysis is limited to online respondents during the same period, April 2024 to April 2025. As a result, figures related to other gambling activities may differ from our official statistics, which are based on the full, nationally representative sample. These figures should not be used as a replacement for our official statistics. Instead, they should be interpreted solely within the context of this report, specifically when contextualising free draw and prize competition participation to headline gambling activities.
The question was worded as follows:
“In the past four weeks have you spent any money to enter an online draw or competition for the chance to win a substantial prize such as a luxury house?”
This question was designed to capture self-reported participation in free draws and prize competitions, particularly those that had participated in a paid entry. Demographic and behavioural data from the GSGB were used to explore participation overall, as well as in the context of other activities.
YouGov Open Banking Data
To complement the self-reported consumer data from GSGB, we analysed anonymised open banking data acquired from YouGov Finance (opens in new tab). This dataset includes real-world financial transactions from consenting participants, which was used to explore spending behaviours related to free draw and prize competition providers. The data covers the period between April 2024 and April 2025. Users with incomplete transaction history were removed resulting in a complete 12 months of transactional data from 15,245 users, of which 2,678 made at least one transaction with a free draw or prize competition provider. Differences in mode of payments are not accounted for. For example, if payment is aided by telephone, this is not specified and can’t be distinguished.
We identified transactions with over 30 free draw and prize competition providers. To ensure robust analysis, we excluded any providers with fewer than 10 users in the dataset, resulting in a final sample of 20 providers. To explore patterns in user behaviour across these providers, we grouped the data and providers into four equal-sized categories based on the average amount users spend, commonly referred to as quartiles. These groups range from the lowest to the highest spenders and allow us to compare trends in transaction size, visit frequency, and overall engagement.
SimilarWeb Web Traffic Data
To understand online engagement with free draw and prize competition providers, we viewed web traffic data from SimilarWeb (opens in new tab). This includes metrics such as total visit volumes per site and average visits per user for a selection of free draw and prize competition websites. SimilarWeb is a digital intelligence platform that estimates website and app traffic, offering insights into user behaviour and online market trends. The data covers the period from May 2024 to April 2025, looking at the same providers identified in the open banking data, which allows us to assess the scale and reach of these free draw and prize competition providers.
Strengths and Limitations Summary
The use of a multi-source approach enhances the reliability and depth of our insights by enabling us to examine behaviours from multiple angles. This methodology helps us to identify patterns that may remain hidden when relying on a single data source. For example, while SimilarWeb data provides valuable information on free draws and prize competition site visits, it does not capture the volume of actual transactions. However, using alongside other data sources, helps to gain a more comprehensive understanding. For example, YouGov’s open banking data can be used to contextualise spending on free draw and prize competition providers, complementing the behavioural insights from web traffic data.
However, the data sources used are not fully representative of the entire population in Great Britain. The GSGB used in this context reflects responses from individuals who completed the survey online, and open banking data is drawn from participants more likely to engage in research.
It is important to note that the open banking and web traffic data, as well as GSGB, are drawn from different user samples, meaning individual-level comparisons are not possible. Nevertheless, triangulating these independent sources enables us to construct a more holistic picture of behaviour across the sector. Open banking data reveals how much and how often users spend, while web traffic data shows how frequently and widely free draw and prize competition providers are accessed. Together, these perspectives highlight the diversity of user engagement. It also demonstrates the value of the GSGB in identifying and exploring new and evolving consumer behaviours and the vast insights we can get from just a single question on the survey.
Key Findings
Participation (GSGB)
8 percent of respondents1 reported spending money on an online draw or competition to win a large prize in the past four weeks.
Looking at participation by age group (Figure 1), a higher proportion of 45 to 54 year olds reported spending money on a free draw or prize competition than any other age group. However, participation was generally concentrated within the 25 to 64 age range. This mirrors the demographic profile typically seen for lottery draw participation.
Figure 1. Past 4 week free draw and prize competition participation by age
Question wording: In the past four weeks have you spent any money to enter an online draw or competition for the chance to win a substantial prize such as a luxury house?
| Age group | Past 4 week participation in free draws and prize competition (percentage) | Base size* |
|---|---|---|
| 18 to 24 | 5% | 1,238 |
| 25 to 34 | 9% | 2,405 |
| 35 to 44 | 9% | 2,216 |
| 45 to 54 | 11% | 2,110 |
| 55 to 64 | 10% | 2,094 |
| 65 to 74 | 6% | 1,880 |
| 75 and over | 4% | 1,131 |
Males and females were equally likely to have spent any money to enter a free draw or prize competition in the past 4 weeks (8 percent).
Although free draws and prize competitions are not classified as regulated gambling activities, they share similarities with lottery draws, in terms of the game style and demographic profile. To provide context to gambling activities, table 1 shows that participation in these draws or competitions over the past 4 weeks is comparable to online instant win games in terms of overall participation rates.
Table 1: Participation in headline gambling activities in the past 4 weeks amongst online respondents to the GSGB survey in April 2024 to April 2025
| Headline gambling activity | Participation in the past 4 weeks (percentage) |
|---|---|
| Lottery draws | 35% |
| Scratchcards | 12% |
| Betting | 11% |
| Online instant win games | 8% |
| Fruit and slots games | 5% |
| Bingo | 4% |
| Casino games | 4% |
Approximately 1 in 5 respondents who spent money on a free draw or prize competition in the past 4 weeks had not participated in any gambling activities alongside (Table 2). A similar proportion (22 percent) had engaged in one gambling activity, while a further 25 percent had participated in two.
This demonstrates that the majority (80 percent) of respondents who participate in free draws or competitions, also participated in gambling activities.
Table 2: Number of gambling activities participated in by respondents who spent money on a free draw or prize competition in the past 4 weeks.
| Number of gambling activities in the past 4 weeks | Proportion (percentage) |
|---|---|
| 0 activities | 19% |
| 1 activity | 22% |
| 2 activities | 25% |
| 3 activities | 12% |
| 4 activities | 7% |
| 5 activities | 3% |
| 6 activities | 3% | 7 activities | 2% | 8 activities | 1% | 9 or more activities | 6% |
Note: The maximum number of gambling activities a respondent could report is 20. The full list of gambling activities can be found in the GSGB Annual report (2023): Official statistics.
Overall, the most common gambling activities to take part in for those who had spent money on a free draw or prize competition in the past 4 weeks, were lottery draws (68 percent), scratchcards (25 percent) and online instant win games (23 percent).
These activities can share common characteristics with free draws and prize competitions, such as low-cost entry, chance-based outcomes, and the potential for large rewards. The high participation rates in these activities among free draw and prize competition participants suggests a preference for similar types of experiences. This may indicate that these individuals are drawn to specific formats of play, or that they engage in activities they are familiar with and enjoy.
Spend (YouGov Finance, Open Banking data) and Web Traffic (SimilarWeb)
Using YouGov finance’s (opens in new tab) open banking data we have been able to identify transactions with free draw and prize competition providers. To complement this, we have looked at the SimilarWeb (opens in new tab) web traffic data offering insights into user behaviour and online market trends, which allows us to assess the scale and reach of these providers alongside the open banking data to build on the bigger picture of spend and traffic in one. Visit the data source and methodology section for more details.
As shown in Table 3 and 4, we grouped the providers into four equal-sized categories based on the average amount users spent over the 12 month period, which are known as quartiles. Quartiles are a way of dividing data into four parts, from the lowest to the highest values. In this case, they help us compare user behaviour across providers with the lowest, middle, and highest average spend per user. This approach supports a more detailed exploration of trends in transaction volume, visit frequency, and overall engagement, using both open banking and web traffic data.
Across all free draw and prize competition providers analysed, users spent £75.38 on average over the year, making 9 transactions. Separately, web traffic data shows that users visited these providers an average of 3.4 times per month, with total monthly visits averaging nearly 479,000. While these datasets are not linked at the individual level, their combined insights suggest that free draws or prize competitions are not just one-off experiences. Instead, they appear to be a semi-regular activity for many users, with consistent patterns of both financial and digital engagement.
When we examine the quartiles, distinct behavioural patterns begin to emerge. In the highest spend quartile, users spent £141.85 across 14 transactions, indicating frequent and sustained financial engagement. Providers in this group also saw an average of 4.5 visits per user per month, suggesting a regular digital interaction. In contrast, users in the lowest spend quartile spent £28.93 across an average of 3.6 transactions, with an average of 2.9 website visits per user per month. This points to less frequent participation and lower levels of engagement overall.
Free draw and prize competition providers in the upper-middle quartile recorded the highest total monthly visits, 909,210, despite a lower per-user visit frequency of 2.7 visits on average per month. This suggests that these providers may appeal to a broader audience, even if individual users engage less frequently. While we cannot directly match spending and visit behaviour at the user level, comparing these patterns at the aggregate level still reveals valuable insights.
Table 3: Free draw and prize competition spend activity by spend quartiles.
| Free draw and prize competition provider spend quartile* | Average spend per user per year (£) | Average number of transactions per user per year |
|---|---|---|
| Highest spend quartile | £141.85 | 14.0 |
| Upper middle quartile | £76.13 | 10.0 |
| Lower middle quartile | £54.63 | 8.8 |
| Lowest spend quartile | £28.93 | 3.6 |
| Overall average | £75.38 | 9.0 |
- Spend quartiles are defined over providers, not individuals. See Methodology section for more details.
Table 4: Free draw and prize competition web traffic activity by spend quartiles
| Free draw and prize competition provider spend quartile* | Average monthly visits per site | Average monthly website visits per user |
|---|---|---|
| Highest spend quartile | 231,272 | 4.5 |
| Upper middle quartile | 909,210 | 2.7 |
| Lower middle quartile | 611,675 | 3.6 |
| Lowest spend quartile | 163,427 | 2.9 |
| Overall average | 478,896 | 3.4 |
- Spend quartiles are defined over providers, not individuals. See Methodology section for more details.
In addition to the annual averages, monthly web traffic data (Figure 2) reveals clear seasonal and cyclical patterns in user engagement. While visit numbers fluctuate month to month, there is a general upward trend toward the end of the year, culminating in a prominent peak in December 2024. This increase, reaching 12.5 million visits, could be driven by heightened consumer activity during the Christmas period. Engagement remains high into January before dipping in February and recovering again in March. These patterns suggest that user interaction with free draw and prize competition providers is shaped not only by provider-specific factors but also by broader seasonal trends in the wider consumer landscape.
Figure 2: Total number of visits to free draw and prize competition websites
| Month | Total visits (millions) |
|---|---|
| May 2024 | 8.0 |
| June 2024 | 7.4 |
| July 2024 | 8.8 |
| August 2024 | 9.5 |
| September 2024 | 8.1 |
| October 2024 | 9.0 |
| November 2024 | 9.7 |
| December 2024 | 12.5 |
| January 2025 | 12.3 |
| February 2025 | 9.3 |
| March 2025 | 9.5 |
| April 2025 | 10.5 |
| Total | 114.6 |
1 Respondents consist of those who completed the GSGB survey online between April 2024 to April 2025. Sample size: 13,049
Conclusion
This report has explored the participation patterns, spending behaviours, web traffic, and gambling activity profiles of individuals engaging with free draws and prize competitions. Our aim was to better understand who participates in free draws and prize competitions, if and how they gamble and, and how this activity fits into the broader consumer landscape.
Overall, we have seen a range of experiences from participants of free draws and prize competitions, which appear to be a semi-regular activity for many users. This is shown by the consistent patterns of both financial and digital engagement.
We understand that the activity is popular among consumers, at a similar level to online instant win games, with a similar customer demographic profile to lottery draws.
We have seen that free draw and prize competition participation is likely to sit alongside gambling as an analogous activity, as 80 percent of those who spent money on a free draw or prize competition in the past 4 weeks also participated in a gambling activity. Participation in lottery draws, scratchcards and online instant win games were most popular for those who have participated in a free draw or prize competition.
Web traffic data has shown that engagement is shaped by broader seasonal trends in the consumer landscape as the monthly web traffic numbers reveal clear seasonal and cyclical patterns in user engagement. While visit numbers fluctuate month to month, there is a general upward trend toward the end of the year.
This work illustrates the power of using a single survey question, when paired with multiple data sources, to generate detailed and meaningful insights. Ongoing monitoring free draw and prize competition landscape will continue, as the question remains in the GSGB survey, enabling us to track trends in participation over time.