Free prize draws and prize competitions are growing fast online, often offering high-value prizes like houses or cars. While they can look similar to lotteries, they fall outside gambling regulation if they meet strict legal tests. New UK data now gives a clearer picture of who is taking part and how often.

• Free prize draws and prize competitions are legal in the UK if they meet exemptions under the Gambling Act 2005, meaning they are not classed as lotteries. Free draws must offer a genuine free entry route that is clearly promoted and no less convenient than paid entry. Prize competitions must be decided by skill or judgement rather than chance.

• Data from the Gambling Survey for Great Britain shows that 8% of online respondents spent money on an online draw or competition in the past four weeks. Participation was highest among people aged 45 to 54 and mainly concentrated between ages 25 and 64. Men and women were equally likely to take part.

• Around 80% of participants in free prize draws also took part in at least one regulated gambling activity during the same period. Lottery draws, scratchcards, and online instant win games were the most common overlapping activities. About one in five participants did not gamble at all.

• Open banking data from YouGov indicates users spent an average of GBP 75.38  (ca. EUR 87) per year on free prize draws, across nine transactions. Higher-spend providers saw more frequent transactions, suggesting repeat engagement. Lower-spend providers were linked to more occasional participation.

• SimilarWeb data shows users visited free prize draw websites an average of 3.4 times per month, with strong seasonal effects. Total visits peaked in December 2024 at 12.5 million, before dipping in February. This suggests engagement rises around major promotional periods rather than being evenly spread through the year.

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