The best example of a free draw is a circular or mailshot offering the chance to win a prize without having to send any money or make a purchase. Although a complex area, the view that has been taken through court rulings is that to qualify as a lawful free draw, a promotion must be totally free and open to any member of the public. A scheme may constitute a lottery if the prizes are distributed by chance and persons are induced to make a money payment, or to give some other valuable consideration, in order to obtain a chance of winning a prize. Free draws do not fall within the ambit of the legislation. There is, therefore, no registration requirement.
Any scheme is, however, subject to the laws relating to fraud and dishonesty.
In a free draw , there can be no requirement to make a payment in order to participate in the draw. The use of a premium rate telephone line in such a promotion may be deemed to be a payment for a chance in a draw. It does not, however, have any powers of prosecution. Scratchcards There have been a number of concerns raised about scratchcard lotteries. Many attempt to circumvent the law by claiming that entry is free and that all entries will win a prize.