Prize competitions and prize draws (free draws) do not require a license to operate in Great Britain. Unlike lotteries which are regulated in the UK by The Gambling Commission.
Prize Competitions – The winners of prize competitions are determined by a game of skill. For example, entrants are asked a question, and have to answer it correctly in order to win a prize. If more than one person gets the answer correct, you may draw the winner(s) at random from all valid entries to the prize competition. You may charge the entrant to enter a prize competition.
Prize draws (free draws) – are promotions where the entry is free (or at least has a genuine free entry route) and the winners are determined at random. Entry is possible via purchase of a product or service as long as the entry component is a free one.
The Advertising Standards Authority (ASA) – the independent regulator of advertising across all media in the UK. They are responsible for applying Advertising Codes, which are written by the Committees of Advertising Practice (CAP).
CAP Code Section 8 is relevant to prize draws, specifically Rule 8.24 concerning the way that you award any prizes:
“Promoters of prize draws must ensure that prizes are awarded in accordance with the laws of chance and, unless winners are selected by a computer process that produces verifiably random results, by an independent person, or under the supervision of an independent person.”
Some promoters do it the old fashioned way and print out the entries to perform a “barrel” draw. This is generally allowed if the draw is held or verified by an independent person or persons. However, in most cases, this is very time consuming, cumbersome and makes it difficult to keep records of the prize draw (it is also important that you keep a true record of the draw should a consumer prompt a review by the Advertising Standards Authority (ASA).
It can also lead to a potential perception of doubt issue. Entrants are much more likely to feel confident about the draw knowing that it was performed electronically by an independent third party such as the OneStopWin Random Number Generator. It’s generally accepted to use a random function within a spreadsheet application. However, you would be advised to take a video of the whole process showing the data input, the actual draw, and the results of the draw. Most good online competition promoters go live on the internet and video record the whole process of making a draw, later posting this video also online for those who missed the live draw.
Random Number Generator by OneStopWin meets the requirements of the CAP Code in respect of the “randomness” of the prize draw process. By using our free service, you do not need an independent observer as the OneStopWin Random Number Generator system itself acts as the official independent third party. On conclusion of a draw a certificate of compliance is automatically emailed to you with the results ensuring that you are keeping proper records should you need evidence at a later date.
How to gain trust with my entrants to show that my prize draw is legitimate?
- Use the independent and compliant OneStopWin free Random Draw Generator to conduct all of your draws.
- Publish the certificate of compliance on your website and social media channels after each draw.
- Stream your prize draw live on the internet.
- Post the prize draw video on your website and social media channels after the draw for all to see. Especially for the ones who missed the live draw.
If you have questions about anything please visit the Random Number Generator FAQ’s section or contact us.