If you have ever thought about entering a lottery for the chance to win exciting prizes, you may have come across Omaze. Many people in the UK play Omaze, but how does it make money?
Whether you are considering entering Omaze or simply curious, it helps to understand how Omaze makes money. Read on to understand how Omaze works and how it makes money to fund its prize draws.
What Is Omaze and How Do Its Prize Draws Work?
Omaze is an online platform that runs prize draws for potential high-value rewards such as homes, cars and cash. It highlights fundraising for UK charities, although it operates as a for-profit business.
Entries are bought on the Omaze website. Buying more entries increases your number of chances in the draw; however, winners are selected at random and outcomes cannot be influenced.
Omaze often partners with charities, and a portion of entry revenue from each draw is donated to the named cause. The platform states the donation details for every draw so you can see how your entry supports the charity. All draws are regulated and follow rules to ensure processes are fair and transparent.
How Does Omaze Make Money?
Omaze generates revenue by selling entries to its prize draws. That income is used to fund the prize, pay for marketing and operations, cover platform and payment costs, and meet legal obligations. After expenses and the charity donation are accounted for, Omaze retains a share as profit.
The company publishes the donation arrangements for each draw, including any guaranteed minimums or percentages. Because every draw is structured differently, the exact split varies; however, if you want to see how a specific promotion works, the small print for that draw sets it out in simple terms.
Where Does The Entry Revenue Go?
When you buy an entry, the money is divided between three areas. A stated portion goes to the featured charity, a share covers the full cost of running the draw, including the prize, and any remainder is profit for Omaze.
The exact breakdown changes from one promotion to the next, and Omaze publishes the figures for each draw in its terms. That way, you can see both the guaranteed donation and how the rest of your payment is used.
How Much Does Omaze Give To Charities?
Omaze supports charities by allocating a portion of entry revenue to the named partner for each draw. The donation model is not fixed, which is why the platform lists the specifics for every promotion.
You will usually see a guaranteed minimum donation, sometimes alongside a percentage of net profits or revenue. For example, a minimum of £100,000 might be pledged to ensure the charity receives a meaningful amount, regardless of how many entries are sold.
You can check the donation commitment on the draw page before you enter. It shows how your payment supports the cause and how the remaining funds are apportioned.
What Costs Does Omaze Cover From Each Draw?
Omaze uses a significant share of entry revenue to pay for the prize and the wide range of expenses associated with Omaze.
The prize is the largest single cost. For a house, this can include the purchase price, legal conveyancing, stamp duty, and insurance. For a car, it may cover the vehicle cost, delivery and registration. Cash prizes are simpler, but still need to be fully funded.
Beyond the prize, there are marketing and advertising campaigns across TV, online and social channels. There are also platform and payment processing fees, staff salaries, customer support, compliance and audit costs, and legal work to ensure each draw complies with UK rules. These are the practical costs that allow Omaze to run high-profile promotions at scale.
Once the prize and operating costs are covered, the agreed charity donation is paid, and any remaining amount becomes profit for the business.
Is Omaze Worth Entering?
Whether Omaze is worth entering depends on your preferences. The draws offer large potential prizes, but the odds of winning are low, and winners are chosen at random, meaning there is no method that can improve your chances.
If you value the charitable angle, each draw includes a donation to the named cause, although only a portion of your entry fee is passed on. If your priority is maximising support for a charity, donating directly gives you certainty over where your full amount goes.
If the model makes sense to you and you are comfortable with the odds and the donation structure, entering can be a straightforward way to take part in a prize draw that also supports a charity. Either way, making an informed choice puts you in control.
All outcomes in the prize draws are down to chance, so ensure that you never spend more than you can afford. Always remember to gamble responsibly by sticking to a strict budget within your means and make use of any safer gambling tools available.
*All values (Bet Levels, Maximum Wins, etc.) mentioned in relation to these games are subject to change at any time. Game features mentioned may not be available in some jurisdictions.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.