You need a licence to run an online lottery. If you are considering running a lottery on Facebook, make sure it is lawful. This is because participants of such lotteries do not benefit from consumer and gambling protection rules in Great Britain as these lotteries are not licensed by us. Unfortunately, many of the lotteries we see promoted on Facebook are illegal and pose a serious risk to the consumer. The number of reports the Gambling Commission has received about social media lotteries has been on the rise in recent years. It is illegal to offer a lottery without the correct licence or legal permission, even where it is intended to raise funds for a good cause. These include charities, hospices, air-ambulance services, sporting or cultural clubs or other not-for-profit causes. Lotteries cannot be run for private or commercial gain and most can only be run for good causes. This includes raffles and tombolas, making them a form of gambling too.
The Gambling Act 2005 defines a lottery as a game of chance where the player pays to enter for a prize.