House raffle scams are on the rise: How to spot a prize draw that could cost you

The chance to win a dream home for the price of a takeaway can be difficult to resist. House raffles and property prize draws have become increasingly visible online, helped by glossy social media adverts, influencer promotions and pictures of previous winners collecting their keys.

Plenty of genuine businesses run house draws, but the boom has also created opportunities for misleading operators and outright scammers. Before you buy a ticket, you need to know exactly what you are entering,  and whether the advertised house will actually be awarded.

Why are you seeing more house raffles?

High property prices make house raffles an attractive proposition. You may feel that a £10 or £20 ticket offers a rare opportunity to own a home that would otherwise be completely out of reach. Social media has also made these draws much easier to promote. Countdown clocks, limited ticket claims, livestreams and winner videos can all create excitement and urgency. A recent  Gambling Commission study into online raffles found that you are often encouraged to trust visible winners, familiar hosts and social media recommendations rather than formal checks. That can leave you vulnerable. A professional looking website, verified social media account or busy comments section does not prove that a draw is legal or that the house exists.

Are house raffles legal?

A genuine house raffle will usually operate as either a free draw or a prize competition. If you can pay to enter a free draw, you should also have a genuine free entry route. That option should be clearly displayed and should not be significantly less convenient than paying online.

If you enter a prize competition, the question or task should require enough skill, knowledge or judgement to prevent some entries from qualifying. A very easy multiple-choice question may not meet that test.

If a paid draw relies entirely on chance and does not meet the legal requirements, its organiser may be running an illegal lottery. You do not commit an offence simply by entering, but you may receive fewer protections if something goes wrong. You can read the  Gambling Commission’s explanation of free draws and prize competitions before entering.

You should also remember that the Gambling Commission does not approve or license every prize competition or free draw. A company cannot prove that its draw is legitimate simply by displaying gambling related wording or logos.

Warning signs to watch for

You should pause before buying a ticket if:

• You cannot find the organiser’s full business name, address or contact details.
• You cannot verify the company through Companies House.
• You are asked to pay by bank transfer, cryptocurrency, gift card or a personal payment account.
• The house address, ownership or valuation cannot be checked.
• The free entry route is hidden, unclear or practically impossible to use.
• The closing date keeps changing without a convincing explanation.
• The terms allow the organiser to substitute a much smaller cash prize if too few tickets sell.
• You cannot see how or when the winner will be selected.
• You are pressured by claims that only a few tickets remain.
• You are contacted unexpectedly and told you have won a draw you do not remember entering.
• You are asked to pay a tax, legal fee, insurance charge or “release fee” before receiving a prize.

You should never assume that photographs, testimonials or winner videos are genuine. Scammers can copy property listings, steal content from legitimate competitions and create fake social media accounts that closely resemble real brands.

Check what you would actually win

Even where the competition itself is genuine, the headline can hide important conditions. Read the terms before you pay and check whether you would receive the advertised house or only a cash alternative. Some draws reserve the right to offer a lower cash prize when ticket sales fall short.

You should also check whether the property comes mortgage free, whether stamp duty and legal fees are covered and whether you would become responsible for service charges, maintenance or other ongoing costs.

Look for the closing date, maximum number of entries and method used to select the winner. The Advertising Standards Authority’s guidance on “win a house” promotions says significant conditions should appear clearly in the advertising, not remain buried in lengthy terms.

What can you do if something goes wrong?

Keep evidence of what you were promised, including:

• The advert and property description.
• Your entry and payment confirmations.
• The terms and conditions.
• Messages and other correspondence.
• Any changes to the prize, closing date or rules.

Complain directly to the organiser if it fails to run the draw as advertised, changes the prize or refuses a promised refund. You can use Resolver to organise your evidence, keep a record of your correspondence and manage your complaint.

You should report misleading advertising to the ASA, a potentially illegal lottery to the Gambling Commission and a suspected deliberate scam to Action Fraud, or Police Scotland if you live in Scotland. You can also report suspicious adverts and accounts to the social media platform where you found them.

Contact your bank or payment provider immediately if you have lost money. If you paid by card, ask whether you can make a chargeback claim. If a scammer persuaded you to send money to a UK account by bank transfer, you may qualify for reimbursement under the authorised push payment scam rules.

Your bank will need to decide whether you were the victim of fraud or whether you are involved in a civil dispute with a genuine business. That distinction can affect whether the reimbursement rules apply, so provide clear evidence that you were deliberately deceived.

If entering raffles is becoming a problem

The low price of individual tickets can make house raffles feel harmless, but your spending can quickly add up if you enter regularly or feel pressured to keep trying.nIf you are worried about how much you are spending, feel unable to stop or think gambling is affecting your finances or wellbeing, support is available. Read Resolver’s gambling support and consumer rights guide to find out where you can get help and what you can do if you have a problem with a gambling company.

A cheap ticket can still be risky

You may only risk a few pounds on one house raffle, but regular entries can quickly add up. Entering through an untrustworthy website could also expose your card details and personal information. Take a few minutes to check the organiser, read the terms and confirm what happens if the house is not awarded. If the promotion relies on pressure, vague promises or trust alone, the safest decision is to keep your money.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk 

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