Online Raffle Rules UK: Are Online Raffles Legal for Charities?

Yes — online raffles are legal in the UK, but only when they're run under the right structure. Raffles are legally lotteries, regulated by the Gambling Act 2005 and overseen by the Gambling Commission, and selling tickets online adds an extra layer of rules. Here's what a charity, school or community group needs to know before selling a single ticket. (This is general guidance, not legal advice — the Gambling Commission's guidance is the authority.)

The golden rule

A raffle with paid tickets and prizes decided by chance is a lottery, and lotteries may only be run for good causes — never for private or commercial profit — and only under one of the recognised structures below.

The main legal structures

Incidental lottery. A raffle held at an event (a fete, gala or quiz night) where tickets are sold only at the venue, during the event. No licence or registration is needed, but you can spend no more than £500 on prizes (donated prizes are unlimited) and £100 on expenses, there's no rollover, and you can't sell tickets online in advance.

Small society lottery. The standard route for most charity raffles with advance ticket sales. Your organisation registers with its local authority (£40 initial fee, £20 annual renewal), keeps ticket proceeds under £20,000 per draw and £250,000 per year, returns at least 20% of proceeds to the cause, keeps any single prize at £25,000 or under, and submits a simple return after each draw. Our step-by-step small society lottery registration guide covers the process.

Large society lottery. Above those thresholds you need an operating licence from the Gambling Commission itself — a significantly bigger undertaking.

Free draws and prize competitions. If entry is genuinely free (or there's a free postal entry route), or winning depends on skill, the draw generally falls outside lottery regulation. The rules are easy to get wrong — take advice before relying on this route.

What changes when you sell tickets online?

Selling raffle tickets on a website or by text is remote gambling, and a society running its own online sales generally needs the appropriate remote licence or must work through a licensed operator — this is the step that catches most charities out. The practical solutions:

1. Use a platform operating under a Gambling Commission licence — such as DONATE's online raffle service, where ticketing, age checks, the draw, winner notification and record-keeping are handled within our licence as a charity ourselves.
2. Register your own society lottery and use a licensed External Lottery Manager (ELM) to run the online mechanics for you.

Rules that apply to every charity raffle

• Tickets must not be sold to under-16s (and check your operator's own age policy, which may be stricter).
• Every ticket must be the same price — no "3 for £5" discounting on society lotteries.
• The society's name, promoter and price must appear on society lottery tickets.
• Raffle ticket purchases are not eligible for Gift Aid — see Gift Aid rules for raffles and auctions.
• Keep records of proceeds, expenses and prizes; small society lotteries must file a post-draw return with the local authority.

Run a compliant raffle without the admin

DONATE runs fully compliant online charity raffles under our Gambling Commission licence — ticketing, payments, the draw and winner notifications handled for you, for causes of any size. Schools and PTAs should also see our dedicated school raffle guide.