The questions and answers in this section help provide a general understanding of humraz and how we operate.
Please select a question to view it's answer.
humraz auctions are on-line, live, highly interactive and without precedence.
Bidders book a seat to enter our virtual auction room and place their bids using our custom-designed auction console.
The bidder who has the lowest unmatched bid at auction close is offered the lot at their successful bid price. During an auction all bid values are confidential but bidders are given sufficient information to plan their bidding strategy.
You will need a humraz account, which means you will need to register.
Registered users can participate as a bidder by booking a seat in an auction or simply spectate an auction by selecting its console once it is live.
No
The lowest bid that no one else has placed.
lowest unique bid example
You have the opportunity to purchase the auctioned lot at the value of your successful bid.
Bidders pay to reserve a seat in a on-line interactive auction.
Our auctions are events and the charge allows the seat-holder to be part of the event.
We use the revenue from the seats to subsidise the lots full value, which means the successful bidder can buy it at a greatly reduced price.
No.
There is no randomness or element of chance in our auction model!
You apply strategy and skill to succeed and you do not wager on your success.
Additionally, your costs cannot escalate as our terms and conditions do not allow more than one account per user, and no more than one seat per account.
You may also find it useful to read Reverse Auctions, Frequently Asked Questions, June 2008, which explains the UK Gambling Commission's view of lowest unique bid auctions and compliance to the Gambling Act 2005.
You can roughly gauge the number of competitors you have bidding against you based on the pre-booking seat price and value of the item being auctioned. For example,an item worth £1000 and a pre-booking seat price of £10 (£8.51 net of VAT), would mean at least 118 competing bidders.
With each bidder placing multiple bids these are highly competitive interactive auctions. Your chances of success is very much down to the skill you apply, which is why we regularly run training auctions allowing our users to practice and develop their skills.
Although it is not possible to draw direct comparisons between Humraz auctions and games of chance, we believe our auctions compare very favourably when you consider the odds and typical prizes offered by the UK National Lottery or the Euromillion Euro Lottery.
UK National Lottery
Numbers Matched Odds Typical Prize
6 main numbers 1:13,983,816 £2,000,000
5 main numbers + bonus number 1:2,330,636 £100,000
5 main numbers 1:55,492 £1,500
4 main numbers 1:1,033 £62
3 main numbers 1:57 £10
  • Odds above are based on ONE £1 ticket. If multiple tickets are purchased you simply divide the odds by the number of tickets purchased to calculate the new odds, e.g. for 5 main numbers, if ten £1 tickets are bought the odds reduce from 1 in 55,492 to 1 in 5,550
  • The exact value of the prize will depend on the number of tickets sold and the number of people who match the same numbers. Three matching numbers will always win £10, except in the extremely unlikely event that the prize fund is insufficient to give all winners £10 each. If this happens, the prize fund will be split equally between all prize winners.
EUROMILLION Euro Lottery
Numbers Matched Odds Typical Prize
5 main numbers + 2 lucky stars 1:76,275,360 £6,000,000
5 main numbers + 1 lucky star 1:5,448,240 £200,000
5 main numbers 1:3,632,160 £50,000
4 main numbers + 2 lucky stars 1:339,002 £3,500
4 main numbers + 1 lucky star 1:24,215 £140
4 main numbers 1:16,143 £85
3 main numbers + 2 lucky stars 1:7,705 £55
3 main numbers + 1 lucky star 1:551 £17
2 main numbers + 2 lucky stars 1:538 £17
3 main numbers 1:367 £13
1 main numbers + 2 lucky stars 1:103 £8
2 main numbers + 1 lucky star 1: 39 £6
  • Odds above are based on ONE £1.50 ticket. If multiple tickets are purchased you simply divide the odds by the number of tickets purchased to calculate the new odds, e.g. for 5 main numbers, if ten £1.50 tickets are bought the odds reduce from 1 in 3,632,160 to 1 in 363,216
  • The exact value of the prize depends on how many tickets are sold, how many people match the same quantity of numbers as you and the European exchange rates.
There is nothing illegal about the humraz auction format.
The design and development of our auction model and the underpinning software is the result of extensive research and a great deal of creative thinking.
  • auction seat prices are based on an in-built market research phase (preview);
  • the seat charge is for entry to the virtual auction room, represented by our auction console;
  • for most people participating in our auctions should be an exhilarating experience;
  • there is no seat charge if there is no auction;
  • lots are auctioned without a reserve;
  • there is a restriction on the number of seats that can be sold for each auction;
  • bidders can book only one seat in each auction;
  • all bidders can place up to the same number of bids;
  • bids are not binding, therefore bidders can change their mind right up to the point of purchase without risking penalties
    • and most importantly from the perspective of legality
  • there is no per bid charge;
  • and although bids are still confidential, our auction console provides live information to each bidder about the status and relative direction of successful bidding, therefore success is based on the skill of the bidder and not on lucky guesses.
Essentially, the auction model operated by humraz is unlike any other known auction format, unique bid or otherwise. Our auctions were designed specifically to allow bidders to place informed, strategically positioned and progressively higher bids in values that are precise to the penny (two decimal places).
Even though our auctions have very little in common with other auctions that sell to the lowest unique bidder, we have tried to find official information about unique bid auctions to help our users. Here are three useful links we have found.
ONE
The UK Gambling Commission's pdf document Reverse Auctions, Frequently Asked Questions (June 2008) explains their view of lowest unique bid auctions and compliance to the Gambling Act 2005.
Extracts: -
“To ensure that reverse auctions are compliant with the requirements in respect of prize competitions in the Gambling Act 2005 success must be dependent on the skill, judgement and knowledge of participants rather than chance.”
“Examples of factors that may enable operators of reverse auctions to ensure they are compliant include time limits for the submission of bids, the provision of information to participants about previous winning bids (for similar items) and updates on the status of their current bid(s). Operating reverse auctions of this type may make it possible for participants to apply a strategy to their bidding (demonstrating a requirement for a level of skill or application of knowledge).”
TWO
In the UK, the Committee of Advertising Practice (CAP), published an AdviceOnline (Sep. 2007) entry on their website.
Extract: -
“significant ‘prizes’ are either given or sold to the participant who guesses the lowest (or highest) unique number. Sometimes the marketers will give an upfront indication of the ‘price’ similar prizes have gone for in the past; sometimes they go back to the bidder and say the bid is not unique and often very little, if any, information is given.”
This is not true of humraz auctions, bids are placed via our custom designed auction console and bid information is provided interactively and as it is happening. No charge is made per bid and each bidder has the ability to place numerous bids. Even matched bids are dynamically updated to point in the direction of the latest successful bid. Bidders do not need to guess, they can use the data provided to position each bid.
Extract: -
“that many of that type of promotion are likely to be illegal lotteries because the outcome depends more on chance than on skill”
Again this does not apply to humraz as there is no randomness in our auction model. There is no escalating cost associated with placing numerous bids. Each bid remains informative throughout the auction, allowing skilled bidders to develop bidding strategies and bids can be placed based on knowledge rather than guesswork.
In short, planning, skill and speed form the basis of success in our auctions.
THREE
Strangely, the advice from CAP doesn't seem to align to an earlier ruling by Ofcom, the UK's Office of Communications (the regulator for all things related to communications in the United Kingdom) of September 4th, 2006, in which lowest unique bid auctions were described as
“genuine auctions, rather than auction-based prize competitions, as callers bid, although in a competitive manner, to secure the purchase of a product. The goods were therefore for sale, not prizes.”
auction (n.)
“a sale by increase of bids," 1595, from L. auctionem (nom. auctio)
"an increasing sale," from aug-, stem of augere
"to increase," from PIE base
*aug- "to increase" (see augment).
In northern England and Scotland, called a roup.
The verb is attested from 1807.
In the U.S., something is sold at auction; in England, by auction.
Auctioneer (n.) is attested from 1708.
humraz auctions conform to this etymological definition of the word auction. In that, even though the successful bid is defined as being the lowest unmatched bid at auction close, bid values increase, albeit in very small increments, during the course of the auction as competing bids are gradually matched.
Additionally, in an Ofcom ruling of September 4th, 2006, lowest unique bid auctions were described as
“genuine auctions, rather than auction-based prize competitions, as callers bid, although in a competitive manner, to secure the purchase of a product. The goods were therefore for sale, not prizes.”
In an Ofcom ruling of September 4th, 2006, lowest unique bid auctions were described as
“genuine auctions, rather than auction-based prize competitions, as callers bid, although in a competitive manner, to secure the purchase of a product. The goods were therefore for sale, not prizes.”
However, it could be argued that all auctions, by definition, are competitive…
Your bids are not binding; you may change your mind and choose not to purchase the lot.
Only that you will need to be able to grasp the concept, think quickly and use skill to succeed.
Conditions apply to participating.
Key conditions are that you must be over 18 years of age; be legally capable of entering into a contract and also be a registered user with us.
Additionally, there may be lot specific constraints and conditions.
Please read our terms and conditions carefully when registering with us and ensure you fully understand any auction specific constraints before booking auction seats.
Please refer to our terms and conditions.
We do not offer advertising on our site.
However, should you wish to promote your organisation through us, we may consider running a sponsored 'Charity' auction on your behalf.
Please contact us if this is of interest.
Not without risking litigation.
We reserve the right to take legal action against any party that infringes our copyright; design rights or our trademark or attempts to pass off their auctions or business as humraz.