How Does Omaze Make Its Money?
If you’ve ever come across an Omaze advert and wondered how it all works, you’re not alone. Omaze is known for offering prizes like luxury homes and high-value cars, while also raising funds for well-known UK charities.
But how does the business actually make money? Where does your entry fee go? And how much of it supports good causes?
This article explains how Omaze operates in the UK. You’ll learn what happens behind the scenes when you enter a draw, how the money is divided, and why it’s important to understand the difference between charitable fundraising and commercial prize promotions.
If you’re curious about the structure behind these types of draws, this breakdown can help you make more informed decisions.
What Is Omaze?
Omaze is a commercial business that runs online prize draws. In these draws, you can pay for entries in the hope of winning a listed prize. These can include things like property, vehicles, or large cash sums. Omaze is not a charity, but it partners with registered UK charities to raise money through each promotional campaign.
Originally launched in the United States in 2012, Omaze expanded into the UK in 2020. Since then, it has worked with well-established organisations such as Marie Curie, the British Heart Foundation, Alzheimer’s Research UK, Teenage Cancer Trust and the RSPCA. These charity partners receive a donation of at least £1 million from each Omaze Million Pound House Draw.
Omaze’s UK draws have raised over £93 million for a range of charity partners. When you pay to enter, a portion of your entry fee is donated to the featured charity. You must be 18 or over to take part, and it’s important to understand that your entry is a purchase in a game of chance—not a direct donation.
How Does Omaze Work?
Each Omaze draw runs for a set period, during which you can choose to buy entries online. Entry bundles are available in different sizes, and in some cases, buying a larger bundle may include bonus entries. The more entries you purchase, the more individual chances you have—though each entry is treated equally when the winner is selected.
Every draw is connected to a registered UK charity. Omaze guarantees that this charity will receive a minimum donation of £1 million from the campaign. If total entry sales exceed a certain threshold, the charity may receive more. This donation comes from a portion of the money raised through paid entries.
Once the draw closes, all valid entries are entered into a computer-based selection system. This process is random and observed by independent professionals to ensure that it is fair, compliant, and follows all necessary legal standards. Everyone who enters, regardless of how much they spend, has the same chance per entry.
The remaining funds from entry sales cover the cost of running the draw. After these are paid, any surplus goes towards Omaze’s business profit.
If you want to see how money is divided for a particular draw, you should be able to find a breakdown in the terms and conditions published on the Omaze UK website. These vary slightly from one campaign to the next, depending on the prize and overall sales.
Entry is completely optional, and a free postal route is available for anyone who wants to take part without paying. The number of entries submitted overall can be very high, which means the probability of winning is low. As with any prize draw, results are based purely on chance and cannot be predicted or influenced.
How Does Omaze Make Money?
Omaze is a for-profit business that earns money by selling entries to its prize draws. When you enter, you’re paying for the chance to win a prize. Part of that payment supports the chosen charity, while the rest covers the cost of running the draw and generating income for Omaze.
For each UK draw:
- 17% of total entry sales, or £1 million (whichever is higher), is donated to the featured charity.
- The remaining money is used to cover expenses and business profit.
These costs may include:
- Purchasing the prize (such as a house, car, or cash)
- Legal fees, property taxes, and insurance
- Marketing and advertising
- Staff wages and administration
- Website and technology maintenance
Whatever is left after all these costs is kept by Omaze as profit. This amount isn’t fixed and depends on how successful each draw is. A higher number of entries with lower running costs may result in a larger profit, while a less popular draw might leave the business with a smaller share.
Unlike a traditional charity-run lottery, Omaze runs its own prize draws and passes a portion of the money raised to its charity partners. The charities are not responsible for organising the draw themselves.
How Much Does Omaze Make?
Omaze does not publicly release specific profit figures. However, based on available data, reports suggest that Omaze may retain between 17% and 40% of the total money raised per draw after costs and donations are covered.
This range depends on several factors, such as the cost of the property being given away and how much is spent on advertising and running the draw.
The company’s share changes from draw to draw, and so do the costs involved. Some campaigns raise well over £1 million for the chosen charity, while others raise close to that minimum. The exact figures for each campaign may be found in the FAQs and official disclosures on the Omaze UK website.
Does Omaze Make a Profit?
Omaze is set up to earn a profit while running prize draws that support charitable causes. The business model is similar to other prize-based promotions, where customers pay to take part in the hope of winning something of value.
The profit comes from what remains after the guaranteed charity donation, prize costs and overheads are paid. The size of the profit will depend on how many people enter and what the operating costs are for that particular draw.
You won’t find detailed earnings in public reports, but regulatory filings and charity commission updates provide general figures on money raised, which can help you estimate how much Omaze may be earning.
As a customer, it may be worth reading the terms carefully. These explain what your entry supports, how the winner is chosen, and what the financial structure looks like. There are no strategies or systems that can change the outcome of a random draw, so you should not expect any return for taking part.
Is It Worth Entering Omaze?
That depends on what matters to you. Some people enter because they want a chance to win a home or other high-value prize. Others like the idea of contributing to a charitable cause. Some may simply enjoy taking part in competitions like these.
What’s important to understand is that prize draws like Omaze are chance-based. That means the result is unpredictable, and your odds of winning depend entirely on how many valid entries exist. In many draws, the number of total entries reaches into the millions. Because of this, the chance of winning can be very low.
It’s also worth considering how you feel about the donation aspect. While a portion of your entry supports charity, it’s not a direct donation, and most of the money covers costs and profit. If you’re more interested in supporting a specific cause, you might prefer to donate directly.
Ultimately, the decision to enter is yours. If you do choose to take part, try setting a clear spending limit and avoid going over what you’re comfortable with. You can also make use of the free postal entry route if you’d prefer not to pay.
Games of chance like Omaze draws are unpredictable by nature. That’s why it’s important to only spend what you can afford to lose, and to treat your entry as a fun extra, rather than an expectation of a win. If gambling begins to feel stressful, speak to a support service like GamCare or BeGambleAware for confidential advice.
*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.