What is a Lucky Draw
A sweepstake or lucky draw in simple words is a competition or contest in which entrants or participants can win a cash prize or any other reward based on random selection. It is called a lucky draw because the chances of winning are based purely on luck. People usually like to participate in sweepstakes to try and win crazy prizes. Lucky draws are also a great way of promoting a product or brand so more people become aware of it.
Lucky Draw – Luck or Skill
When holding a lucky draw or lottery, you have to make sure it falls within the legal boundaries. Some competitions are based on luck, while others require participants to have the skills to win them. Knowing the difference between the two types of competitions, and how the law regulates each helps you to keep your lottery or draw legal.
People are often confused whether a lottery or any other competition held to win cash prizes comes under regulations. According to the law, entrants do not need to be skilful to participate in a competition, and that includes lucky draws or lotteries and similar games.
For a lucky draw, as long as the winners are based on random selection, it doesn’t matter whether you use an automated system or manual selection process (like numbers in a jar).
To hold a successful lucky draw, an organiser has to:
- Clearly state the terms and conditions of the competition.
- Appoint an unbiased auditor to oversee all the activities of competition and prepare any report in case a discrepancy is identified.
- Keep auditor reports and all the related documentation after the competition to avoid any false claim.
- Let the participants know how the winner will be selected and that the competition is based on luck.
- Clearly state how many winners will win a cash prize or be rewarded – and not make it sound like everybody will win.
- Set the reward system in a way that makes participants eager to enter.
- Abide by all the rules and regulations to avoid any inconvenience before, during or after the competition.
Lucky draws require a minimum number of entrants to begin, or else the waiting time is increased.
On the other hand, skill-based competitions require participants to pass certain tests like answering a series of questions to either participate or win cash prizes. The judging process in this skill-based competition usually involves automated generators to select a winner. These programs select a winner even if there aren’t as many participants as desired.
How to Organise Lucky Draws
Lucky draws are a classic style of competition that gives the participants a chance to win crazy prizes or cash. However, organising a lucky draw is easier said than done: you need to take care of various financial and legal factors. In addition, you need to take care of whether the entrants are participating on their own, without being forced. To organise a successful lucky draw, you need to follow several steps:
The central of attraction for participants entering a lucky draw competition is to win a cash prize or any other reward. Set your reward structure such that there is not just one winner, but several. Have at least three winners in the competition, so that every entrant has more of a chance at winning.
Advertising is the key to spreading the word to the target audience, and lucky draw competitions are no different. Many competitions fail due to a lack of advertising. If potential entrants aren’t aware of when your competition is scheduled, then you can say goodbye to any chances of a successful competition. Use multiple channels of communication to spread the word successfully.
Online lucky draw competitions can take advantage of different software and programs to determine participants and winners. These programs can easily manage every aspect of the competition from start to finish. They can make the draws for people to win cash prizes and notify them of their wins. Using technology can significantly change the success rate of your competition.
Follow Rules and Regulations
Follow the rules and regulations regarding lotteries and lucky draws. Abiding by the laws of such competitions includes the deployment of technology, financial management, and taxation laws if the participants can win cash prizes. The law requires all auditable proof of the whole process of before and after the event and the money trail for what is put up as the reward(s).