How to start a competition business in the UK

The difference between a legal competition and an illegal lottery comes down to how people enter. Get this wrong and the business is finished before it starts.

• A prize competition must involve genuine skill, knowledge, or judgement to enter — otherwise it is a lottery and needs a licence.
• Free entry routes (usually postal) turn a paid draw into a legal prize draw under the Gambling Act 2005.
• Publish clear terms and conditions: closing date, prize details, how the winner is chosen, and how they are contacted.
• Register as a sole trader or limited company and keep records of every draw for accounting and disputes.
• Follow ASA/CAP advertising rules — prizes and odds must be described accurately.

This is general guidance, not legal advice — check the Gambling Commission's rules or speak to a solicitor before your first paid draw.

A generic shop template will not cut it. A competition site has to do a handful of specific jobs, and entrants judge you on all of them:

• Live entry counters and per-competition entry limits so people can see the odds.
• A checkout that handles card payments and instant order confirmation.
• A skill question step on every paid entry.
• A free-entry form to satisfy the legal alternative route.
• An admin area to publish competitions, close them, and draw winners.
• Winner announcements and video draws to build trust.

You can rent a white-label platform monthly, or own a custom site outright. Owning it means no revenue share and full control of your branding — that is the route I build for clients, as with Dave's Competitions.

Trust is the whole game. People need to believe the prize is real and the draw is fair before they will spend a penny.

• Run your first few competitions with low ticket prices to build a track record.
• Post the draw live on Facebook or Instagram — transparency drives repeat entrants.
• Build an email and SMS list from day one; repeat entrants are far cheaper than new ones.
• Use winner testimonials and delivery photos as your main social proof.
• Reinvest early profits into paid social targeting your prize's audience.