Stakeholders in the increasingly popular prize draw sector have come together to form the industry’s first trade body.
The Prize Competition Council (PCC) has officially launched to provide what it describes as a ‘unified voice’ for the industry, which is now estimated to be worth over £1bn each year.
According to the new body, its focus will centre on driving standards among prize draw operators, representing operators in discussions with the UK government and regulators and helping operators comply with the Department for Culture, Media and Sport-issued Voluntary Code of Conduct for Prize Draw Operators.
The PCC has also elected its first Board of Directors, which consists of nine members from operators across the sector.
Independent Chair of the PCC, George McGregor, commented: “The prize competition sector has grown rapidly in recent years. The establishment of the PCC reflects its growing maturity and the recognition that every successful industry benefits from strong representation and clear standards. Our focus now is on building an organisation that members value, and that provides constructive leadership for the sector.”
Increasing scrutiny
Prize draws will be familiar to many in the UK given the volume of advertisements across television and social media offering the chance to enter draws to win prizes such as houses, cars, and other luxury items for as little as a few pence.
However, due to offering a free entry route, prize draw operators are not required to apply for a gambling licence.
It is estimated that over 7 million adults take part in prize draws annually in the UK, and as a result of the popularity, the DCMS published a voluntary code last year.
The voluntary guidelines require operators to implement robust age verification checks, introduce spending limits and suspensions for players to reduce gambling risks and adhere to a £250 per month cap on credit card transactions.
There must also be greater transparency around the rules for entering and how prizes are won, as well as clear guidelines on how charity-supporting draws support their causes in line with fundraising regulations.
Though not classified as gambling, DCMS noted that there are significant similarities between the two sectors, as 88% of prize draw participants also participate in gambling or lottery activities.
The PCC emphasised its commitment to ensuring that its members deliver an ‘enjoyable, safe experience’ for players.
The upwards trajectory of prize draws shows no signs of slowing down, meaning a strong trade body is a necessity to ensure that the industry is represented as scrutiny on the sector will inevitably continue.
Making comparisons to the gambling sector, the Betting and Gaming Council has been forced to repeatedly battle on behalf of gaming operators in the face of repeated calls for greater regulation and taxation on the industry.
Jo Bucci, outgoing Director of the PCC and Chair of Winvia Entertainment PLC, said: “This is a strong Board to address the challenges the sector faces in the years ahead.
“Representing a diverse group of operators and opinions, it will be up to this Board to steer the newly created body through areas like compliance with the new Voluntary Code of Conduct for Prize Draw Operators.”
