Consumers taking part in illegal lotteries and raffles promoted through social media are often more concerned with whether a draw appears genuine than whether it is legally operated, according to research commissioned by the UK Gambling Commission.
The regulator commissioned Yonder Consulting after its intelligence team recorded an increase in reports of suspected illegal lotteries and raffles on TikTok during 2025. The study examined how consumers encounter and participate in the draws, why they take part and how operators conduct them.
Researchers found limited understanding of licensing requirements. No participant in the qualitative research clearly understood when paying for a chance to win a prize could require a license in Great Britain. Awareness of the Gambling Commission was also generally low, while participants struggled to distinguish regulated gambling businesses from illegal operators.
Formal licensing checks were uncommon. Only around one in five participants using TikTok said they checked whether providers appeared on the Commission’s business register, were registered with GAMSTOP, or displayed gambling-related logos or account details.
Instead, consumers relied on informal signals including familiar hosts, visible winners, comments, repeat exposure and live draws. Lower ticket prices, familiar payment methods and casual presentation also reduced perceptions of risk.
Researchers found that hosts frequently described lotteries using terms such as giveaway, competition or live draw, which could make the activity appear less closely associated with gambling. Some operators also moved payments off-platform or asked participants to use PayPal’s family and friends option.
Host understanding of the law varied. Some appeared confused about licensing requirements, while evidence suggested others may have used ambiguous terminology and payment practices to reduce scrutiny.
Reporting was also limited. Consumers generally viewed losses of only a few pounds as insufficient reason to complain, while some who reported suspected illegal activity expressed frustration over a lack of visible enforcement.
The Commission said consumers aged 18 to 24 were more likely to encounter illegal operations on TikTok, although difficulties recruiting younger participants prevented researchers from developing a comprehensive picture of their behavior. The age group will therefore be a priority for future research.
Over the past 12 months, Commission enforcement activity resulted in 252 illegal lotteries being removed from social media platforms. The regulator said it would continue working with website providers, social media companies and payment providers to remove illegal activity.
“This research has provided us with insight into an aspect of the illegal gambling market that is relatively new,” Commission Research and Impact Manager Rupam Jagota said.
“Our aim is to continue strengthening the evidence base using innovative approaches so that we can better understand consumer experiences, identify emerging risks and target regulatory action where it can have the greatest impact in a digital ecosystem that’s rapidly changing.”
Original article: https://www.yogonet.com/international/news/2026/08/17/125905-uk-gambling-commission-warns-consumers-struggle-to-spot-illegal-social-media-lotteries
