What is the difference between a raffle and a prize draw?

Even though a raffle and a prize draw are very similar in concept, there is one fundamental difference between them: the cost. If we are talking about prize draws, then we are talking about free entries, meaning it does not cost you nothing in order to participate. Drawings are normally entry-based, meaning you could have a limit of one entry per person or have rewards of entries based on a variety of things (how many times you attend a meeting, how much money you raised in a fundraiser, etc.). On the other hand, if you must make a ticket purchase or any other type of monetary exchange, then you are participating in a raffle. In conclusion, what distinguishes a raffle from a prize draw is the fact that the first implies a ticket purchase, and the second one should be entry-free.

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