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Omaze

Omaze is a for-profit social impact company and online fundraising platform founded in 2012 by Matthew Pohlson and Ryan Cummins in , that allows individuals to support nonprofits by making tax-deductible donations to enter for once-in-a-lifetime prizes, such as celebrity experiences, luxury vehicles, dream homes, and cash awards. The platform reimagines charitable giving by combining entertainment with , enabling participants to "dream big" while directing proceeds to vetted causes, with Omaze covering all marketing, technology, and operational costs to ensure charities receive the maximum benefit. Following a pause in US operations in 2023, Omaze now operates primarily in the and , having expanded globally since its inception and launching in the UK in to offer house draws and similar promotions tailored to local markets. As of 2025, the company has raised over $200 million for more than 600 charities worldwide, including high-profile organizations like , the ACLU, and After-School All-Stars, with its UK arm surpassing £105 million in s to partners such as and the . In its model, for celebrity-endorsed experiences, 60% of net s go directly to the beneficiary charity, while non-celebrity draws allocate 15%, and each campaign includes a guaranteed minimum to ensure impact regardless of participation levels. Omaze's innovative approach has been credited with generating up to 40 times more funds than traditional auctions or galas for similar prizes, fostering a new generation of donors through accessible, exciting .

History

Founding

Omaze was founded in September 2012 in , , by Ryan Cummins and Matthew Pohlson, two entertainment industry professionals with backgrounds in . The company's inaugural launched in public beta in July 2012, marking the start of its operations as an innovative fundraising platform. Cummins and Pohlson were driven to create Omaze by their frustration with conventional fundraising events, such as galas where auctions for meet-and-greets and exclusive experiences favored wealthy bidders and left everyday supporters sidelined. After attending such an event—where a prize like spending time with went to a bidder who already knew him—they sought a more inclusive model that would engage broader audiences in . The initial concept centered on blending legal with high-profile, celebrity-backed prizes to make once-in-a-lifetime opportunities accessible to anyone via affordable entries, thereby generating substantial donations for nonprofits without relying on elite auctions or galas. Omaze established its original headquarters in , serving as the base for developing and launching these campaigns.

Early development and funding

Following its launch in 2012, Omaze secured its first major funding round in July 2015, raising $9 million in a Series A led by FirstMark Capital, with participation from early backers including , Vayner/RSE, and CrossCut Ventures. This investment aimed to scale the platform's technology, expand its team, and develop a self-serve tool allowing any nonprofit to create campaigns independently, marking a pivotal step in professionalizing operations beyond founder-led initiatives. Early focused on celebrity-tied experiences to drive engagement, such as a 2013 campaign featuring star , which offered winners a set visit and raised over $300,000 for the National Center for Missing & Exploited Children, followed by a season finale draw that generated $1.8 million for the . Another landmark effort was the 2014 Star Wars: Force for Change partnership with and , providing chances to appear in the film and raising $4.26 million for and other children's charities. These initial U.S.-based campaigns, often involving trips, meet-and-greets, or on-set access, demonstrated the model's potential by leveraging content from stars like for After-School All-Stars. The platform transitioned from a niche online raffle site to a significant force, amassing over $60 million for more than 100 nonprofits by 2017 through over 150 experiences that drew entries from 160 countries. This growth reflected Omaze's evolution into a structured for-profit entity, where revenue from $10 online entry sales funded both prize fulfillment and a portion of proceeds to charities, while enabling scalable and partnerships. By the mid-2010s, the company had expanded its staff from four to dozens, solidifying its role as an innovative bridge between entertainment and in the U.S. market.

International expansion

Omaze initiated its international expansion in 2020 by launching operations in the , marking its first venture beyond the . The company established its UK headquarters in to oversee regional activities, with a at 3rd Floor, 1 Ashley Road, , , WA14 2DT. To comply with UK laws, Omaze adapted its model as a regulated prize promotion rather than a , incorporating features such as a free entry option and a £500 monthly entry limit per account to ensure it fell outside regulations. The expansion placed an initial emphasis on the UK market within Europe, centering on house raffles that aligned with local demand for high-value property prizes. By November 2025, Omaze UK had conducted over 40 such house draws, raffling properties across various regions including London, the Cotswolds, and Cornwall. Supporting this growth, co-founder and CEO Matt Pohlson secured $85 million in Series C funding in September 2021, aimed at accelerating international efforts, including replicating the UK model across Europe. In June 2025, Omaze launched operations in Germany, further expanding its European presence. In 2025, Omaze announced plans to construct custom luxury homes for future raffles, driven by a shortage of suitable existing properties and challenges posed by local opposition, often termed "Nimbyism," which has complicated property acquisitions and developments in desirable UK locations.

Business model

Fundraising mechanism

Omaze's fundraising mechanism centers on a sweepstakes model where participants make donations to enter prize draws, blending charitable giving with the excitement of potential winnings. In the United States, donations start at $10, typically providing multiple entries (such as 100 or more) into the draw depending on the campaign, while in the United Kingdom, £10 secures 15 entries. These donations are framed as contributions to partnered charities, with an alternative no-purchase-necessary entry method available to comply with sweepstakes regulations, allowing participants to enter for free by mail or online form without affecting their chances. Prizes are sourced through strategic partnerships with celebrities, brands, and developers, enabling Omaze to offer high-value items such as luxury houses, cars, and exclusive experiences like set visits or dinners with stars. These collaborations often involve donated or sponsored assets, reducing costs while enhancing appeal, as seen in celebrity-backed campaigns featuring figures like or . The marketing strategy relies heavily on digital channels to promote the "win a dream" alongside impact, utilizing advertisements, email newsletters, and targeted content to engage a broad audience. Campaigns highlight aspirational prizes and beneficiary stories to drive participation, fostering a and urgency around limited-time draws. Entry mechanics involve generating unique codes for each donation, which are securely logged in a database to track participation. Winners are selected through random software-generated draws from all eligible entries, ensuring fairness, with a portion of net proceeds (varying by campaign, typically 15-80%) directed to the partnered charities after costs, while Omaze retains the remainder as a for-profit .

Revenue and profit distribution

Omaze operates as a for-profit company, retaining approximately 12-20% of entry proceeds to cover its operational and marketing expenses, with the remaining net proceeds—after deducting prize costs—allocated to partnered charities according to campaign type: 60% for celebrity experiences in the , 15% for non-celebrity draws, and approximately 80% for house draws, with Omaze netting around 20% overall. This profit-sharing model ensures that charities receive a substantial portion of the funds raised through each campaign, typically structured as a division of net profits at the campaign's conclusion. Key cost components include the acquisition of prizes, particularly high-value properties in the UK, where Omaze has spent £180 million on purchasing over 40 homes by 2025, with each house costing between £3 million and £6 million. Additional expenses encompass taxes, such as VAT on entries and property-related duties, as well as overheads like marketing, legal compliance, and administrative fees. These elements reduce the net amount available for distribution, though processing fees for entries are minimal, often limited to payment handling charges. Omaze provides transparency through annual impact reports and required financial disclosures filed with regulatory bodies, detailing net donations to charities after all deductions. For instance, these reports outline how the full entry price, excluding negligible processing costs, contributes to the overall pool before allocation. In the UK, operational costs are notably higher than in the due to the direct purchase of properties, contrasting with some campaigns that historically involved sponsored or experiential prizes with lower upfront expenditures. Omaze, Inc., the parent company, is a headquartered in , and operates as a professional entity registered in multiple U.S. states. Its UK operations are conducted through Omaze UK Limited, a wholly owned private limited incorporated under the laws of in 2019. This structure allows Omaze to function as a commercial fundraiser while partnering with registered charities, ensuring compliance with both U.S. and UK regulations on promotional activities. To avoid classification as or lotteries, Omaze provides a free postal entry option alongside paid entries, enabling participants to enter without purchase and thereby registering draws as lawful promotions rather than regulated lotteries. In the UK, this approach aligns with the , exempting such free draws from licensing requirements, as they do not constitute for commercial gain under the law. In the U.S., similar alternative entry methods ensure compliance with state laws, as affirmed in a 2022 federal court ruling dismissing claims of illegal lotteries against Omaze. Regarding tax implications, U.S. winners must report the of prizes as on their federal and potentially state returns, with Omaze issuing for winnings exceeding $600. In the UK, competition prizes are generally exempt from , and Omaze covers stamp duty land tax and reasonable legal fees for house winners irrespective of their circumstances, deducting these operational costs before allocating net proceeds to charities. This pre-donation deduction model supports the company's for-profit status while facilitating charitable contributions. As of 2025, Omaze maintains ongoing compliance with UK data protection requirements under the UK GDPR and , including provisions from the Data (Use and Access) Act 2025, which refines and research processing rules. The company's policies outline for entry processing and prize fulfillment, with commitments to user rights such as access and deletion, while adhering to EU adequacy standards for cross-border transfers where applicable.

Prizes and contests

House draws

Omaze's house draws represent its flagship raffles, offering participants the opportunity to win while supporting charitable causes. These contests feature high-end homes typically valued between £1 million and £6 million, fully furnished with , , and interiors as showcased in promotional materials. By November 2025, Omaze had conducted over 40 such house draws in the UK, creating 43 grand prize winners and raising substantial funds for partner organizations. The draw process operates through time-limited campaigns, with multiple active draws annually—often around 10 to 12 in the UK—to maintain engagement and momentum. Participants purchase entries starting at £10 for 15 chances, with additional entries boosting odds; postal entries are also accepted without purchase. Campaigns include prizes, such as luxury vehicles like a or cash awards up to £250,000, drawn periodically to incentivize timely participation. Runner-up prizes, including £100,000 cash or £1 million cash alternatives, are awarded alongside the grand prize to further enhance the appeal. Winners are announced at 5 p.m. on designated dates, verifiable via personal accounts or the official winners page, with grand prize recipients contacted in person for verification. Upon winning, recipients receive comprehensive support to facilitate the transition. Omaze covers , reasonable legal and fees, and moving costs, ensuring a smooth handover of the freehold property. Winners have the flexibility to occupy, , or sell the home, with many opting to sell due to location or maintenance considerations; a guaranteed £1 million donation to the partnered is secured per draw regardless of the winner's decision. Notable examples illustrate the scale and impact of these draws. In early 2025, the Norfolk II House Draw featured a £6 million coastal in Blakeney, fully furnished and including £250,000 cash, which raised over £4 million for to support youth homelessness programs. Another 2025 campaign, the III House Draw, launched in October and offering a £4.5 million property with £500,000 cash, is set to benefit Refuge with its draw in late November. These raffles not only deliver life-changing prizes but also underscore Omaze's role in rapid charitable fundraising.

Experience and other prizes

Omaze offers a variety of non-property prizes centered on unique experiences and tangible items, including meet-and-greets, adventures, luxury cars, and occasionally gadgets, all designed to appeal to donors while supporting charitable causes. These prizes emphasize personal encounters and adventures rather than , providing winners with memorable opportunities such as backstage access or exclusive outings. For instance, early U.S. campaigns featured flash prizes like front-row tickets to concerts in , tied to house draws but awarded separately to boost engagement. Campaigns for these experience prizes typically run for shorter durations, often spanning a few weeks to months, and are frequently aligned with timely events to heighten excitement and raise awareness for specific causes. Examples include promotions linked to film releases, such as the 2015 draw offering a meet-and-greet with alongside an , which supported environmental initiatives. Similarly, music-related experiences, like a 2021 drive with in a GT Convertible along the , benefited charities focused on . In the travel category, a 2023 campaign provided a trip to for a date night with actor , promoting preservation. Recent U.S. draws have highlighted electric vehicles as prizes to underscore , with campaigns supporting environmental charities like GivePower, which provides solutions in underserved communities. For example, a Plaid giveaway in the early 2020s raised funds for clean energy projects, offering winners an eco-friendly SUV with over 300 miles of range per charge. Another instance involved a custom electric-converted 1966 , awarded in a benefiting efforts. These vehicle prizes, such as the Sportback paired with VIP event tickets, often include allowances for taxes and maintenance to ensure accessibility. In 2025, a offered a meet-and-greet with actor and a , supporting initiatives through a partnered nonprofit. Gadget prizes, though less common, have included high-tech items like custom Sprinter vans with eco-friendly conversions, awarded in closed experiences supporting children's health research. Overall, these prizes feature lower entry thresholds, starting at $10 per donation for multiple entries, making them more approachable than grand house raffles. They are frequently bundled as secondary or flash prizes within larger house campaigns, allowing participants to win experiences without competing solely for the property. This structure enhances donor participation by offering diverse winning opportunities while directing all net proceeds to the partnered charities.

Selection and operation of draws

Omaze selects prizes based on their appeal to participants, prioritizing high-value, aspirational items such as luxury homes and exclusive experiences that align with broad . Properties and experiences undergo rigorous to ensure and suitability, including checks for with local regulations like planning permissions; for instance, in early 2025, Omaze rejected allegations of planning breaches for a featured house draw, confirming the property met all legal requirements before launch. Draws are executed through a verifiably random selection process managed by certified software, with independent auditors overseeing fairness to prevent bias or manipulation. In the UK, serves as an independent scrutineer to the competitions, while in the , Gaming Laboratories International certifies the draw engine for compliance with industry standards. Potential winners are notified via and must complete eligibility verification within a short timeframe, typically 96 hours, after which live video announcements reveal the confirmed winner, often featuring on-site visits with camera crews. Campaigns operate on defined entry periods specified in the official rules for each , typically lasting 4-6 weeks to build while allowing extensions if needed to maximize participation. For example, the 2025 New Forest House ran from mid-August to late , spanning approximately six weeks. To handle large-scale participation, Omaze employs a robust backend software capable of processing millions of entries securely and efficiently, as demonstrated in campaigns exceeding 10 million entries within days. The generates unique entry codes for each or entry and discloses of winning based on total eligible entries at the time of purchase, ensuring in the process.

Charitable contributions

Partner organizations

Omaze collaborates with a diverse array of nonprofit organizations, primarily through its U.S., U.K., and German operations, selecting partners that align with its fundraising campaigns and prizes. In the United States, key partners include the , which grants life-changing wishes to children with critical illnesses, and , focused on protecting globally through health, education, and emergency aid programs. Environmental organizations such as , which works to safeguard biodiversity and combat , and the , dedicated to conserving wildlife and habitats, have also partnered on campaigns emphasizing nature-themed experiences. In the , Omaze's partnerships feature prominent charities like , which supports initiatives addressing and social injustice, including projects, as seen in the 2025 Norfolk House Draw in Blakeney that benefited the organization's efforts for young people facing . The Royal National Lifeboat Institution (RNLI), a , has collaborated on coastal-themed draws, such as previous Norfolk campaigns, to fund lifesaving equipment and volunteer training. Other U.K. partners include and food insecurity-focused groups like FareShare, which redistributes surplus food to vulnerable communities, and Refuge, which provides safe housing for domestic abuse survivors through targeted housing campaigns. In , following the launch in June 2025, Omaze has partnered with organizations such as SOS-Kinderdörfer to support children's welfare initiatives. Under Omaze's partnership model, selected charities receive a portion of net proceeds (typically 15-60% depending on campaign type, with 100% for guaranteed minimums and matching funds), while Omaze covers all operational, marketing, and prize-related costs from its share to maximize benefits to the nonprofits. This structure also amplifies awareness for partners through high-profile promotions tied to prizes, such as experiences or dream homes, enhancing their visibility and donor engagement. Charities are vetted and selected based on their potential for global or national impact, alignment with the thematic elements of Omaze's prizes—such as adventure for conservation groups or family-oriented draws for children's charities—and their ability to utilize funds effectively, often through a formal submission process. This criteria ensures partnerships support nonprofits with verifiable missions, fostering long-term relationships; for instance, repeated collaborations with Make-A-Wish and demonstrate ongoing alignment and mutual benefits.

Total funds raised and impact

Omaze has raised over $200 million worldwide for more than 600 charities, with significant operations enabling support for a wide range of causes including environmental conservation, initiatives, and humanitarian efforts. In the , since launching in 2020, Omaze has generated over £105 million for partner charities, funding critical programs in , education, and community support. These funds have delivered tangible impacts on supported causes. For example, a 2025 house draw in partnership with Comic Relief raised £4.1 million, which was allocated to poverty relief initiatives, including support for young people at risk of exploitation and community development projects. In the U.S., Omaze contributions have bolstered disaster aid to various organizations, helping provide immediate relief and long-term rebuilding. Additionally, UK donations have financed specific programs like £3 million toward a new Children's Cancer Centre at Great Ormond Street Hospital and £3.1 million for Alzheimer’s Research UK’s Clinical Accelerator Programme, advancing medical treatments and infrastructure. The allocation and use of these funds are monitored through detailed charity impact reports and regulatory disclosures, ensuring in how proceeds support programmatic outcomes such as medical aid and educational facilities. Independent oversight aligns with prize promotion regulations, which require verifiable tracking of donations to prevent misuse. Over the long term, Omaze's model has boosted donor engagement by blending with exciting prizes, drawing millions of participants annually into charitable giving and amplifying awareness for partner organizations like those focused on health research and .

Controversies and criticisms

Business practices and

Omaze, a for-profit , has faced criticisms for its practices that some observers argue blur the lines between charitable and commercial activities, potentially misleading participants about the organization's status. Critics contend that Omaze's promotional materials emphasize charitable giving without clearly highlighting its profit-driven model, leading to perceptions that donations directly support causes rather than funding a business operation. Regarding financial disclosures, Omaze allocates a significant portion of entry fees—typically 65-75%—to operational costs, including prizes, , content creation, and payment processing, which has drawn scrutiny for reducing the net amount available for charitable donations. This high marketing expenditure, often comprising a substantial share of , has been highlighted as limiting the of efforts compared to traditional nonprofit models. A notable trend among house prize winners in the UK involves rapid resale, dubbed the "Omaze curse" by media reports, with approximately 70% of the first 14 properties either sold or listed for sale within a year of winning (as of ). Reasons cited include the high annual running costs—estimated at around £100,000 for maintenance, staffing, and utilities—which often exceeded the £100,000 cash prize provided in early draws, raising questions about the long-term value and suitability of such prizes for average entrants. Recent draws as of 2025 provide £250,000 in cash, sufficient to cover costs for several years, though reports of quick sales continue, such as a 2025 winner listing a £4.5 million property four months after receiving the keys. Omaze does not officially track resale figures. In response to these concerns, Omaze publishes annual accounts filed with , detailing overall revenues and administrative expenses, and maintains that 80% of net proceeds after costs go to partner charities. However, advocates for greater continue to call for more granular breakdowns of and operational expenditures to better assess the impact on charitable outcomes. Omaze has encountered several regulatory challenges related to property planning permissions in the UK, particularly in 2025. A prominent case involved the £6 million Larkfields mansion in Blakeney, Norfolk, which was offered as a prize in a draw benefiting Comic Relief. The North Norfolk District Council identified breaches of planning regulations, including the addition of a swimming pool, tennis court, garage, and summer house without prior approval, in an Area of Outstanding Natural Beauty subject to strict controls. Omaze responded by submitting a retrospective planning application and guaranteeing that the winner would incur no related costs, ensuring a marketable title transfer. The council approved the application in October 2025, allowing winners Vicky Curtis-Cresswell and Dale to receive the keys shortly thereafter, after months of delays. In another 2025 instance, Omaze rejected a property from its shortlist due to a local quirk requiring annual access for a community carnival, which posed legal and operational risks. Such rejections highlight Omaze's to avoid legal pitfalls, as reviews over 1,000 potential homes annually and excludes those with unresolved issues to prevent disputes post-draw. Regulatory scrutiny has intensified over the classification of Omaze's prize draws as non-lotteries. The Lotteries Council's March 2025 report, "An Unregulated Gamble," argued that operators like Omaze exploit a "free entry" loophole under the Gambling Act 2005 to avoid regulation, unlike charity lotteries which must return at least 20% of proceeds to good causes (averaging 45%). The report, based on public surveys showing 81% support for equal regulation, recommended closing this loophole, imposing prize caps (e.g., £500,000), and minimum charitable returns to ensure fairness and consumer protection. A UK government study in June 2025 echoed these concerns, finding that 12% of prize draw participants experience gambling-like harm and proposing interventions such as Gambling Commission licensing, age verification, and self-exclusion tools. Internationally, Omaze navigates varying legal frameworks. In the , operations comply with laws by offering a free alternative method of entry (AMOE), avoiding classification as an illegal lottery under state statutes like California's Penal Code § 319. A 2022 federal court dismissal of claims in Knuttel v. Omaze, Inc. affirmed this, ruling that adequate AMOE publicity ensures no consideration is required for entry, though it allowed limited survival of misrepresentation allegations. In contrast, prize draws like Omaze's fall outside oversight due to the free entry provision but face growing calls for inclusion, as outlined in the 2025 update, which proposes a voluntary code and potential direct regulation to address unregulated growth.

Social and ethical concerns

Omaze has faced for its potential in normalizing -like behaviors through its entry , which encourage repeated participation via affordable £10 tickets for high-stakes prizes. In September 2025, GambleAware issued a warning highlighting a link between prize draws such as Omaze and increased gambling harm, particularly among children, young people, and vulnerable adults, drawing parallels to the addictive nature of game where participants collect and trade entries in pursuit of rewards. The charity's annual survey data indicated a sharp rise in demand for gambling harm support, attributing part of this trend to the promotional tactics of such draws that foster habitual engagement without overt associations. Ethical debates surrounding Omaze center on its for-profit structure, which some critics argue exploits public goodwill toward charities to generate revenue. A 2024 analysis described Omaze's expansion as controversial, noting that while it raises significant funds for good causes, the model prioritizes ticket sales driven by aspirational prizes, potentially blurring the lines between and commercial exploitation. Detractors contend that tying high-value giveaways to charitable donations creates an illusion of , yet the company's profit margins—derived from a portion of entries—raise questions about whether the primary beneficiary is the cause or the itself. Reports of winner experiences have highlighted psychological and practical stresses associated with sudden wealth, including the "Omaze curse" narrative where recipients sell prizes shortly after winning due to lifestyle disruptions. In a September 2025 interview, co-founder Matt Pohlson addressed these cases, explaining that decisions to sell are personal choices influenced by factors like relocation needs or maintenance burdens, rather than inherent flaws in the prizes, and emphasized that winners receive £250,000 in cash to cover ongoing costs for several years. Despite this, accounts from past winners describe emotional strain from abrupt life changes, such as managing luxury properties ill-suited to their prior circumstances. Broader societal critiques portray Omaze as contributing to a "pay-to-dream" culture that preys on aspirations amid , disproportionately affecting vulnerable groups. A June 2025 UK government study on online prize draws found that low-income individuals, young people, and ethnic minorities are particularly susceptible to harms from these mechanisms, as the low entry cost masks the cumulative financial and psychological risks of chasing improbable wins. This normalization of monetized fantasies is seen as exacerbating vulnerability by promoting a false of accessibility to , potentially deepening disillusionment for non-winners.

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