Online Raffles

Selling raffle tickets online in the UK requires a remote lottery operating licence from the Gambling Commission, in addition to any local authority registration for the underlying lottery. This requirement applies regardless of the size of the raffle, the value of the prizes, or the charitable status of the organiser. For a broader overview, see our complete guide to online raffle tickets. A school PTA selling raffle tickets through a website, a charity taking payments via PayPal, and a sports club running a draw through a Facebook group are all selling lottery tickets remotely and all require the same licence.

The Remote Lottery Licence

The Gambling Act 2005 treats the sale of lottery tickets through any remote communication — internet, email, telephone, or mobile app — as remote gambling. A society wishing to sell tickets through any of these channels must hold a remote lottery operating licence issued by the Gambling Commission.

The remote licence is separate from and additional to:

• small society lottery registration (with the local authority) — which authorises the underlying lottery
• a large society lottery operating licence (from the Gambling Commission) — if applicable

In other words, a society registered as a small society lottery with the local authority can sell tickets in person and by post. To add online sales, it must also obtain a remote lottery operating licence from the Gambling Commission.

The cost and administrative burden of a remote lottery operating licence is disproportionate for most community organisations. The licence application process involves fees, compliance requirements, and ongoing reporting obligations designed for commercial-scale remote gambling operations. In practice, very few PTAs, sports clubs, churches, or small charities hold remote lottery licences.

What Counts as Selling Online

The distinction between promoting a raffle online and selling tickets online is the critical boundary. Promoting is permitted; selling without a remote licence is not.

Promoting online (permitted without a remote licence):

• posting about the raffle on social media (what the prizes are, when the draw is, where to buy tickets in person)
• emailing members about the raffle with details of how to buy in person
• listing the raffle on the society's website with information about in-person sales points
• sharing photos of prizes on Instagram, Facebook, or other platforms

Selling online (requires a remote licence):

• accepting payment via a website for raffle tickets
• taking payment via PayPal, bank transfer, or card payment in exchange for allocating ticket numbers
• running a Facebook group where members send money and are assigned ticket numbers
• using an online form to take ticket orders with payment
• processing telephone orders with card payment

The test is whether the transaction — the exchange of money for a ticket — takes place through a remote channel. If it does, a remote licence is required. If the transaction takes place in person (even if the buyer learned about the raffle online), no remote licence is needed.

The Free Prize Draw Alternative

A free prize draw is not a lottery. Because participants do not pay to enter, the "payment" element required for a lottery under the Gambling Act is absent. Free draws fall outside lottery regulation entirely and do not require any licence, registration, or compliance with lottery rules.

Organisations that want to run an online promotion without a remote licence sometimes structure the arrangement as a free prize draw rather than a raffle. The Gambling Commission publishes guidance on the distinction between lotteries and free draws.

For a free draw to be genuinely free:

• no payment may be required to enter — not even a nominal amount
• the free entry route must be clearly communicated — not hidden in terms and conditions or made artificially difficult to find
• the free route must offer the same chance of winning as any paid route (if a paid route also exists)

A common model is a paid entry route alongside a free postal entry route. For example: "Enter online for £5, or enter free by sending your name and address to [postal address]." The Gambling Commission has stated that the free entry route must be genuinely available and the terms must not discourage people from using it.

If the arrangement is structured so that the free route is a formality — buried in small print, requiring disproportionate effort, or practically unavailable — the Gambling Commission may treat the arrangement as a lottery despite the nominal free entry option.

A genuine free prize draw is a legitimate alternative to a raffle for online promotions. However, it does not raise funds through ticket sales — the society must fund the prizes and any revenue generation happens through other means (sponsorship, donations, or commercial promotion).

External Lottery Managers

An external lottery manager (ELM) is a third party that manages lotteries on behalf of societies. An ELM holds its own remote lottery operating licence, which allows it to sell tickets online on behalf of the societies it works with.

For a society that wants to sell tickets online without obtaining its own remote licence, using an ELM is the compliant route. The ELM handles the online sales platform, payment processing, and regulatory compliance. The society provides the lottery details (prizes, draw date, purpose) and receives the proceeds minus the ELM's fees.

The Gambling Commission maintains a register of licensed operators, including ELMs. Any ELM the society uses must hold a valid operating licence. Using an unlicensed ELM does not relieve the society of its compliance obligations.

ELM fees vary. Some charge a percentage of ticket sales, others a flat fee per draw. The society should factor ELM fees into its budget and ensure that the net amount reaching good causes still meets the 20% minimum (for small society lotteries) after all deductions.

The society must disclose the use of an ELM in its lottery return to the local authority.

Social Media Raffles

Raffles conducted through social media platforms — particularly Facebook — are a frequent source of compliance issues. The Gambling Commission has published specific guidance on fundraising and lotteries on social media.

Facebook raffles

A Facebook raffle where participants pay money (via bank transfer, PayPal, or other means) and are allocated ticket numbers is a remote lottery sale. It requires a remote lottery operating licence. The fact that the raffle is for charity, the amounts are small, or the group is private does not change the legal position.

Facebook raffles operated without a licence are unlawful under the Gambling Act 2005. The Gambling Commission has taken enforcement action against individuals running unlicensed Facebook raffles, and Facebook's own terms of service prohibit unlicensed gambling on the platform.

Instagram, WhatsApp, and other platforms

The same legal position applies to any platform where money is exchanged for entry into a draw. An Instagram competition where participants pay to enter, a WhatsApp group collecting money for a raffle, or a TikTok live where viewers pay for ticket numbers are all remote lottery sales requiring a licence.

Compliant alternatives for social media

Organisations wishing to use social media in connection with a raffle have several compliant options:

Promote online, sell in person. Use social media to publicise the raffle — the prizes, the draw date, where to buy tickets. Direct buyers to purchase tickets in person at the event, at the school gate, at the clubhouse, or from named sellers. The online activity is promotion, not selling.

Run a free prize draw. Structure the arrangement as a free draw with no payment to enter. Use social media as the entry mechanism (e.g. "comment to enter"). No licence is required because it is not a lottery. However, this does not generate ticket sale revenue.

Use a licensed ELM. An external lottery manager with a remote licence can run the online sales on the society's behalf. The society promotes the draw on social media and directs buyers to the ELM's platform.

Platform-Specific Considerations

Several online platforms and tools are marketed to raffle organisers. The legal position of each depends on whether the platform processes ticket sales (requiring a remote licence) or simply facilitates promotion (no licence required).

A platform that collects payments and allocates ticket numbers is facilitating remote lottery sales. Unless the platform operator holds a remote lottery operating licence (as an ELM), both the platform and the society using it may be operating unlawfully.

A platform that displays raffle information, promotes the draw, and directs buyers to in-person sales points is a promotional tool and does not trigger remote licence requirements.

Societies should verify the licensing status of any platform they use for raffle management. The Gambling Commission's public register lists all licensed operators.

Promote Online, Sell Offline

For most community organisations, the practical approach is to separate online promotion from offline sales. The raffle is promoted through the society's website, social media, email newsletters, and online community groups. Tickets are sold in person — at events, at the school gate, at club meetings, through door-to-door or workplace distribution.

This approach complies with the law, avoids the cost and complexity of a remote licence, and still reaches the online audience that generates awareness and attendance at in-person events.

The society's online promotion should clearly state where and how tickets can be purchased — not leave buyers expecting to complete the transaction online. A post stating "Christmas Raffle tickets available from the school office and at the Christmas Fair" directs buyers to compliant sales channels.

Questions about online raffles? See our help centre.

Last reviewed: February 2026