- The law
- Gambling Act 2005, sections 14, 258 and 259 and Schedule 2; CAP Code section 8 (rules 8.15, 8.17, 8.19 to 8.21, 8.24 and 8.28)
- Who enforces it
- Gambling Commission (illegal lotteries); Advertising Standards Authority (ASA), which enforces the CAP Code
- Penalties
- Promoting or advertising an illegal lottery is a criminal offence; CAP Code breaches lead to ASA rulings and sanctions, with referral to Trading Standards as a last resort.
What it means for your email
- A draw where people pay to enter and winners are picked by chance is a lottery, which a business can't run for commercial gain. Either make it free to enter, or offer a free route alongside the paid one.
- A free route must be no more expensive and no less convenient than the paid route, publicised so people are likely to notice it, and treated the same when prizes are allocated.
- A prize competition (won by skill, judgement or knowledge) can charge for entry only if the challenge is hard enough to put off, or stop from winning, a significant share of people. The Gambling Commission says multiple choice questions rarely meet this.
- The email itself must give the significant conditions: how to enter, the closing date, the number and nature of the prizes, and any limits on who can enter. A closing date tucked away only in the full terms is unlikely to be acceptable.
- If space is tight, give those key terms and link clearly to the full terms, which should stay easy to find for the whole promotion.
- Winners must be picked at random, either by a verifiably random computer process or under the eye of an independent observer, and prizes should usually arrive within 30 days.
Do
- Put the closing date, prizes, how to enter and who can enter in the email, near the call to action.
- Link to full terms that cover how and when winners are told, how winners are published, and any cash alternative.
- Keep evidence of how each winner was chosen.
- Make the free entry route as visible as the paid one if you have both.
Don't
- Don't make a purchase or payment the only way into a prize draw.
- Don't call something a prize if everyone or most people get it. The difference between a gift and a prize must be clear.
- Don't exaggerate the chances of winning, or say or imply someone has won when they haven't.
- Don't charge winners to claim a prize, for example through a premium-rate call.
- Don't extend the closing date just because entries are low.
Good to know
- Normal-rate post, phone or other communication costs don't count as paying to enter.
- Advertising an illegal lottery is itself an offence under section 259, so the email can be the problem even if someone else runs the draw.
- The Gambling Commission doesn't approve or design free draws or prize competitions, and no licence is needed if they meet the Act.
- The CAP Code is self-regulation, written by the Committee of Advertising Practice and enforced by the ASA. It isn't law, but upheld rulings are published and persistent offenders face sanctions.
Sources
- Gambling Act 2005, section 14 (legislation.gov.uk)
- Gambling Act 2005, Schedule 2 (legislation.gov.uk)
- Gambling Act 2005, section 258 (legislation.gov.uk)
- Gambling Act 2005, section 259 (legislation.gov.uk)
- Free draws and prize competitions (Gambling Commission)
- Promotional marketing: Prize draws (ASA and CAP)
- Promotional marketing: Closing dates (ASA and CAP)
- Sanctions (ASA)
Researched by Mailfois · 2026/27 edition · checked 20 October 2026
Not legal advice. This is a plain-English summary. Check the sources for anything specific, or take professional advice. Spotted something out of date? Email [email protected] and we'll credit you if you'd like.