A skill question only protects a paid prize competition if it is hard enough to stop a significant proportion of people from winning or entering. An easy question does not turn a lottery into a competition.
Why the skill question exists
Under section 14 of the Gambling Act 2005, an arrangement is a lottery if people pay to take part and prizes are allocated wholly by chance. Lotteries need a licence or registration. A prize competition avoids that by making the outcome depend on skill, judgement or knowledge.
The Gambling Commission describes a prize competition as one where the outcome is determined by the participant's skill, judgement or knowledge. The skill question is the part that does the work. Get it wrong and you may be running an unlicensed lottery.
This is general information, not legal advice. Take advice from a solicitor before you launch.
The legal test in section 14(5)
Section 14(5) of the Act says a process that requires skill, judgement or knowledge is treated as relying wholly on chance if the requirement:
- cannot reasonably be expected to prevent a significant proportion of people from winning a prize; and
- cannot reasonably be expected to prevent a significant proportion of the people who want to take part from doing so.
The Act does not say what a "significant proportion" is, and we have not found a figure from the ASA or the Commission either. There is no magic percentage. The Commission says organisers must be able to show the skill needed is enough to put people off entering or to stop some entrants winning. That puts the burden on you to explain why your question screens people out.
The ASA uses the same test in its guidance on prize promotions.
What the Commission says about multiple choice
The Commission's guidance on free draws and prize competitions says that multiple choice questions, and questions that allow a second chance after a wrong answer, rarely meet the criteria.
The reasoning is simple. A multiple choice question with two or three options can be guessed. A question that lets you try again lets everyone through in the end. Neither stops a significant proportion of people.
That does not make multiple choice illegal in every case. It means you carry more risk and need more evidence that the question is hard. If you are unsure, use an open answer.
How to set a question that holds up
Good skill questions for prize competitions have a few things in common.
- Make it genuinely hard. Pick something a large share of your audience would not know or could not work out. A trivia answer anyone can find in one search is weak.
- Prefer an open answer. Ask the entrant to type the answer, rather than pick from a short list.
- One attempt only. Do not let people retry after a wrong answer.
- Change it. Use a different question for each competition. A reused question gets shared and answered by everyone.
- Keep it fair and clear. It should have one correct answer, a fair reading of the wording, and no trick.
- Keep a record. Write down why the question is hard, who you tested it on and what share got it right. If anyone asks, you can show your reasoning.
- Get it checked. Ask a solicitor to review the question and the evidence.
Do not rely on a figure you have not tested. Pilot the question on a small group first, and be honest about the result. If nearly everyone gets it right, rewrite it.
Skill tests and judging
Some competitions rank entries rather than score a right answer, for example "write a slogan" or "pick the best photo". The ASA says that where picking a winner involves subjective judgement, there should always be an independent judge. If you have a panel, at least one member must be independent. This is rule 8.26 of the CAP Code. Take advice on how it applies to your format.
Most paid-ticket competitions use a right-or-wrong question instead. That is simpler to run and to defend.
Why many operators also add a free entry route
Nobody can promise a regulator or a court will agree that your question is hard enough. The ASA says that prize competitions that require real skill are unlikely to need a free entry route. But a free route means a challenge to your skill test does not turn into an illegal lottery, because no one has to pay.
Niche runs competitions as skill-question competitions with a free postal entry route. Read the free entry route explained for the rules, and are online prize competitions legal in the UK for the wider legal picture.
The DCMS voluntary code covers chance-based draws that have both a paid and a free route. Operators that run those draws as well as skill competitions should sign up to cover the free-entry side, while operators that run only skill competitions fall outside it. See the DCMS code explained.
To set up the full site, start with our guide to starting a competition website. Pricing starts at £49 a month plus 5p per paid order,.
Frequently asked questions
Can I use a multiple choice question in a prize competition?
You can, but the Gambling Commission says multiple choice questions rarely meet the skill test. An open answer with one attempt is safer. Take legal advice on your specific question.
How hard does a skill question have to be?
The Gambling Act 2005 says it must be able to reasonably prevent a significant proportion of people from winning or from entering. The law gives no fixed percentage, so you need to be able to explain why yours does.
Do I need a free entry route if I have a skill question?
Not as a rule, according to the ASA. But many operators add one as protection in case the skill test is challenged. If you also run free-route draws, the DCMS voluntary code covers that side of your business.
Can I use the same question for every competition?
It is risky. A reused question is easy to look up or share, which makes it easier for everyone to answer. Use a new question for each competition.
This is general information, not legal advice. Rules can change: check the Gambling Act 2005 and guidance from the Gambling Commission, or speak to a solicitor, before you launch.