Are Sweepstakes Legal in the UK?

Updated 27 October 2026 · By SquadGames · 4 min read

Under the Gambling Act 2005, a sweepstake where people pay to enter and winners are chosen by chance is likely to count as a lottery, and promoting an unlicensed lottery is an offence. Workplace sweepstakes usually rely on an exemption with strict conditions. A free sweepstake, with no payment to enter, is much simpler.

This is general information, not legal advice. If you are unsure whether your sweepstake is allowed, check the Gambling Commission guidance or ask a solicitor.

When a Sweepstake Is a Lottery

According to a legal guide from Pinsent Masons, a lottery has three parts: payment to enter, one or more prizes, and allocation by chance. A sweepstake where people pay and the draw is random fits that description.

The Workplace Exemption

The same guide sets out conditions for a work lottery, including:

The organisers and everyone who buys a ticket must work on the same premises.
Tickets are sold in person to colleagues, so selling by email or messaging does not qualify.
It must be run without private profit.
The draw takes place on the premises.
Tickets are the same price, non-transferable, and paid for before being issued.

That is why remote or multi-site teams collecting entry fees by message can fall outside the exemption.

Free Sweepstakes

Because a lottery involves payment to enter, a draw where nobody pays does not fit that definition as the guide describes it. This is why SquadGames has no entry fees and no real money. Prizes are bragging rights.

What to Do

If it is free, you are in the simplest position.
If you charge, check the Gambling Commission guidance and take advice if you are unsure.
Keep records and keep any money small and transparent.

Frequently Asked Questions

A free sweepstake generally is. A sweepstake where people pay to enter is likely to count as a lottery, which is regulated, so check the rules and the exemptions that apply.

Workplace lotteries have specific conditions, including that everyone works on the same premises and tickets are sold in person. Check the details or run a free one instead.

SquadGames is free to play with no entry fees and no real-money prizes, so it does not involve paying to enter a draw.

Run your sweepstake in SquadGames

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