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Gambling has 2 forms of play: for money (most common) and for prizes. The last means a player is rewarded with cash substitutes, such as winning chips, tokens, some material goods etc.
According to the Gambling Commission definition , “prize gaming“ has 2 determining characteristics:
Speaking of bingo in the United Kingdom, the following establishments can run prize bingo games without having operating license:
Meanwhile, these 4 categories should match the following regulations:
Gaming establishments in the UK are allowed to organize prize competitions, as well, without having licence.
According to the Gambling Act 2005, prize competition is one run in such a way that the organisers believe that the requirement for skill, knowledge or judgement will either:
The free draw is similar to prize gaming, however, has a distinguishing lineament - a price for entry. Two types of free draws are determined, hence:
However, these gaming should be organized carefully in order not to take the form of illegal lottery.
See the table with distinguishing features of prize competitions or free draws and lotteries in the UK (consider this is non-exhaustive).
|Prize competition & Free draw||Lottery|
|Purpose||can be organised commercially for private benefit and profit||can only be run for good causes|
|Outcome||depend on the exercise of skill, knowledge, or judgment by the participant||depends on chance|
|Permission (licence)||not required||required|
|Regulatory Institutions||The Gambling Act 2005||
The Gambling Act 2005
The Gambling Commission
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