Key Moments:
- New Voluntary Code for online prize draws requires operators to prove free entry routes and consumer protections work as intended.
- Operators must implement the Code by 20 May 2026 or risk regulatory escalation.
- Industry experts note a shift from policy statements to evidence-based, daily operational compliance.
Code Spurs Operators to Prove Real-World Compliance
Britain’s online prize draw industry is undergoing a transformation. The voluntary government Code now prompts operators to show that free-entry options are accessible and that consumer protections function effectively. According to Robert Penfold, an internal audit specialist, companies that treat the standards as a formality may face ministerial scrutiny if substantive changes are not in place by 20 May.
Rapid Growth and Regulatory Response
The online prize draw sector has grown significantly, reaching an estimated £1.3bn annually with participation from 7.4 million adults, according to research commissioned by the Department for Culture, Media and Sport (DCMS). At the same time, the study shows that 88% of prize draw participants also engage in commercial gambling or lotteries, compared with 60% of adults overall.
As a result, the government introduced the Voluntary Code of Good Practice in November 2025. The Code sets expectations for age verification, spending limits, complaint processes, and transparency in draw operations. Operators must fully implement measures by 20 May 2026.
Detailed Requirements and Implications
While the Code does not create new legal obligations, its language signals serious intent. The DCMS has stated it may amend the Code and explore other options if progress on implementation is insufficient.
| Requirement | Details |
|---|---|
| Age Verification | Operators must limit participation to adults and carry out reasonable age checks. Marketing cannot target those under 18. |
| Spending Controls | Operators should cap credit card payments at £250 per month per player and block credit card use for instant-win draws. Players must be able to set their own monthly limits, including £0. |
| Free Entry Route | Genuine free-entry options must be available. Participation cannot be restricted to paying players only. |
Evidence-Based Oversight Versus Policy
Penfold emphasized that the real challenge is shifting operators from informal to structured control systems. He told SiGMA News that self-certification is no longer sufficient for age and identity checks. Instead, companies may need to redesign customer journeys, invest in technology, and enhance staff training, while still maintaining customer satisfaction.
He also noted that draw integrity now faces heightened scrutiny. Proof of fairness and randomization, backed by independent oversight, may reveal weaknesses in outdated processes. Penfold explained, “Demonstrable compliance means showing how something works in practice, not just claiming it does.” This requires structured records, audit trails, and logs when safeguards are activated.
Moreover, independent third-party assurance is becoming more important. External validation of randomization tools, platform controls, and age verification systems increases confidence in operational safeguards.
Raising the Stakes for Voluntary Compliance
In late January 2026, eGaming Integrity launched a new advisory service to help operators meet the May deadline. This acknowledges that the Code now expects real-world demonstration of compliance.
The effectiveness of voluntary adherence is a key test. Penfold said broad adoption of the Code could address government concerns. However, superficial implementation or minimal participation could undermine its credibility. The DCMS plans to review the Code periodically and may consider stricter measures if compliance is insufficient.
Penfold warned, “The writing is on the wall. This is voluntary for now, but that could change quickly. Operators who build real oversight systems today won’t be scrambling if this becomes statutory tomorrow.”
Looking Ahead
The industry faces a pivotal moment as the DCMS deadline approaches. Operators’ ability to meet the new evidentiary standards will likely shape the sector and determine whether voluntary self-regulation can prevent stricter government intervention.
From 02 to 05 November 2026, the global iGaming community will gather at SiGMA World in Rome, with 30,000 delegates, over 1,200 sponsors and exhibitors, and more than 550 speakers expected to attend.
- Author
Daniel Williams
