Running a competition with guaranteed prize

I would like to run a competition with the sole purpose of generating revenue.

I would have a skill-based question. Perhaps even two or three to deter some from entering as per the ‘not lottery’ compliance.

There would be a prize of x value for each entrant that suceeds the question stage. 10 larger prizes.

Is this acceptable to limit the amount of entries to say 500,000? Have you heard of any other competition that guarantees a prize of near to equal value to the competition entry fee?  Can you see any issues with what I am proposing?

Many thanks for your assistance.


49 viewscommercial law

Alasdair Taylor's Answer

Yes it is acceptable to limit the number of prizes, even if the limit is rather high. You should of course inform entrants of the limits.

I’m not aware of any competition along the lines you describe, but TBH I never enter prize competitions myself and so don’t pay much attention to them.

It is difficult to advise more generally without knowing a lot more about the competition and taking time to research the issues.

You should in any case review the CAP rules:

If you are looking for a template set of rules, we have a new online editor which might help:

Ask a question

Question in one sentence
Select a topic that best fits your question.

Search questions


Using this legal Q&A, users can get guidance on business-related legal questions from our legal experts.

The guidance is not legal advice; no lawyer-client or similar relationship is created by the Q&A.

By using the Q&A, you agree to the limitations and exclusions of liability set out in our terms and conditions.

SEQ Legal
Copyright © 2021 Docular Limited All rights reserved