Online Raffle Rules UK: Are Online Raffles Legal for Charities?
Are online raffles legal in the UK? Yes, when run as a registered small society lottery. The Gambling Act rules for charity raffles, online ticket sales and free prize draws, explained plainly.
Yes, online raffles are legal in the UK when they're run under the right structure. A raffle is legally a lottery, regulated by the Gambling Act 2005 in England, Wales and Scotland. For most charities, schools and community groups the answer is simple: register a small society lottery with your local council, and you can sell tickets online, by text or in person. Here's what you need to know before selling a single ticket. (This is general guidance, not legal advice. The Gambling Commission's guidance and your council are the authorities.)
The golden rule
A raffle with paid tickets and prizes decided by chance is a lottery. 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, and the result is announced there. No licence or registration is needed, but you can spend no more than £500 on prizes (donated prizes don't count) and £100 on expenses, there's no rollover, and you can't sell tickets in advance or online.
Small society lottery. The standard route for charity raffles with advance ticket sales, online or offline. Your organisation registers with its local council (£40 to register, then £20 a year) and then:
- keeps ticket sales to £20,000 per lottery and £250,000 per calendar year across all its lotteries
- gives at least 20% of proceeds to the cause
- keeps any single prize at £25,000 or under
- sends the council a return within three months of each draw
Our step-by-step small society lottery registration guide covers the process.
Large society lottery. Above those limits you need an operating licence from the Gambling Commission itself, which is a much bigger undertaking.
Free prize draws and prize competitions. If winning depends on real skill, or entry is genuinely free, it isn't a lottery. A free entry route only counts if it is no dearer and no less convenient than paying, is publicised as prominently, and gives the same chance of winning. These are easy to get wrong, so take advice before relying on them.
What changes when you sell tickets online?
Less than most people think. A society that runs a small society lottery under its council registration can sell tickets online or by phone without a Gambling Commission remote licence, as the Commission confirms in its small society lottery guidance. What changes is the admin: online ticket sales need proper records, the right details on every ticket and a clear stop at the £20,000 limit.
That's what DONATE's raffle service does for you. The raffle stays your own small society lottery: you add your licence number, council and date of issue once, and DONATE shows them on every raffle page. Tickets are sold online and by text, the draw runs from your portal, and winners are told for you.
If a third party actually manages your lottery for you (choosing prizes, running promotion and taking responsibility for it), that firm needs a Gambling Commission External Lottery Manager licence.
Rules that apply to every charity raffle
- Under-16s can't buy tickets. The minimum age for society lotteries is 16.
- Every ticket costs the same. No "3 for £5" bundles on society lotteries.
- Tickets show the right details: the society's name, the ticket price, the name and address of the person responsible for the lottery (the promoter) and the draw date. That applies to digital tickets too.
- No Gift Aid on tickets. A raffle ticket is a payment for a chance to win, not a donation. See Gift Aid rules for raffles and auctions.
- Keep records of ticket sales, expenses and prizes for your return to the council.
- Follow the fundraising code. The Fundraising Regulator's Code of Fundraising Practice has a section on lotteries and prize draws.
In Northern Ireland the Gambling Act 2005 doesn't apply. Society lotteries there are registered with the district council under separate rules, so check with your council before you start.
Online raffle rules FAQs
Are online raffles legal in the UK? +
Yes. The usual route for a charity, school or club is a small society lottery registered with the local council, which lets you sell tickets online, by text or in person. A raffle held and drawn at an event with tickets sold only there is an incidental lottery and needs no registration.
Do we need a Gambling Commission licence to sell raffle tickets online? +
Not for a small society lottery. A society registered with its local council can sell tickets online or by phone without a Gambling Commission remote licence, as long as it stays within £20,000 per lottery and £250,000 a year. Above those limits you need a large society lottery licence from the Commission.
Do I need a licence to run a charity raffle? +
For a raffle drawn at an event with tickets sold only at that event, no. For advance or online ticket sales, your organisation needs a small society lottery registration with its local council (£40, then £20 a year).
How much can a small society lottery raise? +
Up to £20,000 in ticket sales per lottery and £250,000 per calendar year, with at least 20% of proceeds going to the cause and no single prize over £25,000.
Can under-18s buy charity raffle tickets? +
The legal minimum age for society lottery tickets is 16. Selling a ticket to someone under 16 is an offence.
Is Gift Aid available on raffle tickets? +
No. HMRC treats a raffle ticket as a payment for the chance to win, not a donation, so it never qualifies for Gift Aid, even if the buyer would happily have donated the money.
Run your raffle without the admin
Once your small society lottery is registered, DONATE's online raffles handle the rest: tickets online and by text, your licence details on every raffle page, the draw from your portal and winners told for you. Schools and PTAs should also see our school raffle guide.