How does Omaze work and is it legit?

The fundraising platform offers luxurious homes across the country as prizes for entering its draws. So is it legit and how much does it cost to enter?

Nestled in the rural Somerset countryside lies a furnished six bedroom home. It’s a short drive from the historical city of Bath and is accompanied by a tennis court, Italianate garden, and a snug drawing room.

While this opulent home is worth over £3 million it isn’t owned by a multi-millionaire. Instead it’s currently lying vacant, waiting to be won through an Omaze prize draw.*

Omaze, an American founded company, has become famous over recent years for offering up extravagant homes across the country as prizes in its raffle-style draw. So is it legit and what are your odds of winning? 

Below we explain:                                                                                    

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*This article contains affiliate links which earns us revenue

Is Omaze legit?

Omaze launched in the UK in 2020, but was previously founded in the US. It is a legitimate “for-profit” fundraising company which runs these draws to make money for itself and a chosen charity.

Compared to the US, its business model works differently in the UK. In its latest Somerset House draw it guarantees 17% of sales will go towards the RSPCA. Irrespective of its entry sales, Omaze has also promised the animal charity a minimum donation of £1 million. In other words, even if the draw makes a loss, the RSPCA will still need to budget in a £1 million donation.

This means after accounting for other expenses the rest is kept as profit. Expenses include budgeting for its prize money, purchasing the prize-winning home, salaries and running a mass-marketing campaign to promote its draw.

Has anyone ever won an Omaze draw?

Yes, earlier this year Omaze offered up a £3.5 million house in Scotland as its prize. According to Omaze, this was won by a man called Jon.

“It’s such an easy way to give to charity. It’s an absolute dream come true,” the Berkshire based winner told the fundraising company.

This is one of seven house draws which have taken place over 2023. All house draws have been won, with the winner of the London III House yet to be disclosed.

How does Omaze work?

To enter Omaze’s prize draw you’ll need to buy an “entry” into the draw. Each entry comes with a code – a unique 13 digit number which you’ll need to claim your prize.

These codes can be found online, or via the confirmation you’ll get once you purchase your entry.

Each person is limited to £500 worth of entries each month which can’t be amended or removed.

What can I do with the winning home?

Winners of one of Omaze’s homes usually have three options.

Firstly, they can live in the home. Given that costs of running these properties are higher than the average UK property, Omaze gives the winner a cash prize to help with maintenance costs.

For the Somerset draw this sits at £100,000.

Secondly, they can rent the home out. For the Somerset home, it’s estimated this will bring in between £6,000 and £8,000 a month while the previous London III House was estimated to bring in £12,350 in the same period.

But remember that this money won’t be pure profit. Rental income is subject to income tax, so if you ever win one of these homes you’ll need to factor this into your decision.

Finally, these winners can sell the home and walk away with the cash.

Read more: Buy-to-let mortgages: what you need to know

How much does it cost to enter Omaze?

There are several ways to enter the Omaze draw.

The first is a traditional lottery style entry where you buy a set of tickets. The cheapest batch you can buy is £10 for 15 entries, which works out to around 66p per entry.

Below we’ve listed the value of all their packages:

Alternatively, postal entries are free – but there is a catch. You’ll be limited to one entry per postcard, so you can’t send out a number of entries in bulk. Each entry needs to be in a separate envelope and contain:

• Your full legal name
• Address
• Postcode
• Email
• And the prize draw you wish to enter

While these entries are free, you’ll need to pay for postage for each submission. With 2^nd class stamps costing 75p each it works out to be more cost effective to buy stamps online.

The final means of entering is to take out an Omaze subscription. This will buy you a set amount of entries each month and has the added benefit of guaranteeing your entry into its early bird competitions. These are additional competitions to the main prize draw where you often stand the chance of earning a cash prize.

You can cancel your subscription at any time, and the packages are ordered as follows:

Remember, the limit you can spend each month is £500. So in theory you can buy the £30 monthly subscription 16 times.

But just because this is possible doesn’t mean you should do it, and you should always spend within your means.

What are your odds of winning?

When writing this piece, the Times Money Mentor reached out to Omaze to find out how many people entered their last prize draw.

Omaze are yet to respond at the time of publication, which means it is unclear what the previous odds are of winning a luxurious home.

Instead, a current listing on their website says the odds for the Somerset House draw varies on the number of entries it receives. So the more entries it receives lessens your chance of being the lucky winner.

If you would prefer to enter a draw where you know the odds of winning the grand prize consider other options, like the NS&I’s Premium Bonds. It hosts a monthly prize draw where you have a 21,000 to one chance of winning £1 million.

In addition, you could win a range of other prizes ranging from £25 to £100,000. And since it’s considered a savings account you can withdraw your money at any time.

Read more: Are NS&I Premium Bonds worth it?

FAQs

When is the Omaze draw?

Omaze’s Somerset House draw result will be known on 5 January. However, you have until Boxing Day to complete your entries.  

How will I know if I’ve won?

Omaze will contact the winners to let them know they’ve won. If you’re a winner you’ll have 96 hours to claim your prize or else it’ll be forfeited. Alternatively, Omaze and the Times Money Mentor will both publish the winning code on their website on the day of the announced draw. So make sure to visit their website or return to this page to see if you’ve won. 

Do I need to pay for conveyancing costs or stamp duty?

No, Omaze covers these fees if you’re a winner.

What other prizes can I win?

In addition to the Grand Prize, Omaze holds an “Early Bird” draw to entice early entrants. This is usually a cash prize, with the current “Early Bird” prize sitting at £250,000. To ensure you’ve entered, make sure you buy an entry before Sunday.