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Free lottery, is this legit?

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You don't have to use your actual postcode, if that's your concern.
Pick My Postcode used to be Free Postcode Lottery, but I think they had to change their name, with it being similar to the actual payable Postcode Lottery.
They are able to give away lots of money, as they are funded by advertising and they encourage you to check every day, which gives the advertisers more traffic. Plus a lot of people sign up and forget to check, which means if they missed that day, they can no longer claim the cash.
Check each draw every day. Between 6pm-2am if you scroll to the bottom of their page, there is also a mini draw, don't forget to scroll down!
To maximise your chances it needs checking 9 am, 6 pm and 9 pm -
the 9 am and 9 pm for the stackpot draws and the 6pm for the mini draw - these are all first come first served - the other draws are shared prizes if necessary so can be checked anytime from midday each day when they change
(if you have checked and you have the only entry for a postcode then you just need to check when the draws are live so twice a day will do if you time it right but the more entries per postcode the more chance of it being drawn as a winner)