How to start a UK online competition business

Understand what keeps you out of gambling law

In Great Britain, a prize competition that is paid to enter needs to avoid being an unlawful lottery under the Gambling Act 2005. Operators normally do this with a genuine skill element (a question that deters a significant number of people from entering or winning), a free entry route (usually postal) that is genuinely available and promoted, or both.

Rules and guidance change, so read the Gambling Commission's current guidance on prize competitions and free draws and take legal advice before launch.

Decide: rent software or commission a platform

Rented competition software is quick to start. Published UK pricing often combines a monthly fee with a fixed pence-per-order charge; some providers instead charge a percentage of sales. A bespoke platform costs more up front and has its own setup, monthly and platform fees. Model both using your actual order numbers before you commit.

Set up payments properly

You need a payment provider that accepts prize competitions in your country and pays directly into your account. Keep clear records of entries, refunds and winners from day one.

Plan prizes and cash flow

Choose prizes your audience wants, set a realistic ticket cap and price, and know your position if a competition doesn't sell out. Clear terms on what happens then protect you and your entrants.

Build trust, then grow

Entrants buy from brands they trust: publish winners, run verifiable draws, answer messages fast and make the free entry route easy to find. Social media, especially short video and live draws, is where most competition brands grow.