Key Moments:
- Twenty-three operators have already committed to the new UK voluntary code of conduct for prize draws and competitions.
- The PDC sector reached £1.3bn in 2023, attracting 7.4 million adult participants with offerings from over 400 providers.
- Signatories are required to fully implement the code by May 20 2026, including new measures for consumer protection and industry collaboration.
Strengthening Oversight in an Emerging Market
A newly introduced voluntary code of conduct aims to improve standards for UK prize draws and competitions, a segment not currently regulated by UK gambling legislation. The initiative is backed by twenty-three operators who have agreed to adopt additional consumer safeguards, following concerns raised by lottery organizations and the Gambling Commission.
Sector Growth and Ongoing Concerns
According to figures from the Department for Culture, Media and Sport (DCMS), the prize draws and competitions sector was valued at £1.3bn in 2023, engaging 7.4 million adult entrants across more than 400 provider organizations. While momentum has increased, the format remains outside the scope of the British Gambling Act of 2005. Calls for regulatory oversight initiated by the UK Lotteries Council, citing competition concerns for regulated lotteries, led to the development of this voluntary code, as articulated by gambling minister Baroness Fiona Twycross in July.
Key Elements of the New Code
| Provision | Details |
|---|---|
| Credit Card Limits | Monthly transactions via credit cards are capped at £250, with a total ban on instant-win competitions. |
| Free Entry Accessibility | Clear promotion and easy access to free entry for all eligible players are mandatory. |
| Age Verification | Strict age checks ensure only individuals aged 18 and above can participate. |
| Harm Prevention | Operators must monitor participant behavior for financial distress or excessive play and direct at-risk players to support resources. |
| Marketing Compliance | All marketing must adhere to Advertising Standards Authority (ASA), CAP, and BCAP advertising requirements. |
| Industry Cooperation | Regular compliance reviews, third-party contract assessments, best practice sharing, and engagement with DCMS are required. |
Implementation Timeline and Wider Sector Engagement
Signatories are bound to enact the measures by May 20 2026, and must collaborate with operators who have yet to join the initiative, encouraging sector-wide adoption. The code stipulates that any new signatory after the implementation date must achieve full compliance immediately. The DCMS emphasized that the code supplements, rather than replaces, existing regulation.
Research Findings and Industry Voices
Research referenced by the DCMS highlighted that individuals experiencing gambling harm tend to engage more frequently and spend substantially more in prize draws than the average participant. The findings recommend further steps to enhance player safety and transparency, particularly in clarifying free entry processes and providing better support for those affected by gambling-related harm.
Baroness Twycross said: “Millions of people enjoy entering prize draw competitions every year, and they should be confident that reasonable protections are in place. Thanks to the introduction of this code, that will be the case. I want to thank all of the operators who have already signed up, both for their cooperation in developing the code, and their commitment to following it moving forwards.”
Omaze, one of the largest operators in the sector, is among the founding signatories. Its president James Oakes said: “Omaze is proud to be a founding signatory of the new Code of Conduct. As the UK’s largest prize draw operator, we’ve consistently set industry-leading customer safeguards, whilst raising over £100m for charities across the country.
“As more and more companies offer prize draws, we welcome DCMS’s introduction of this Code and look forward to all operators committing to the same high standards.”
- Author
Daniel Williams
