The UK Government has intervened in the surge of engagement within prize draws and published a voluntary code for the sector.
Those in the UK will be increasingly familiar with the increasing number 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.
In response to the growing popularity – 7.4 million adults take part in prize draws annually in the UK – the Department for Culture, Media and Sport (DCMS) has published a new voluntary code of conduct for the sector. The government is making significant efforts to strengthen player protections and increase transparency and accountability around the vertical.
Gambling adjacent
Although not licensed by the UK Gambling Commission, DCMS points to the significant similarities between the two sectors, noting that 88% of prize draw participants also participate in gambling or lottery activities.
For comparison, this figure is just 60% for the wider population.
Given the similarities, many of the proposed measures are akin to those found within the gambling industry.
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.
Pivotal moment
The new rules, due to come into effect from May 2026, represent a “pivotal moment” for the industry, according to Pinsent Masons’ prize competition expert, Scott Oxley.
“While not legally binding, it sets a clear benchmark for transparency, consumer protection, and accountability,” he said. “Operators who ignore it risk reputational harm and may accelerate the move towards statutory regulation.”
So far, the code has 46 signatories from operators, including the industry leader Omaze, as well as 11 from other relevant parties, such as web developers.
Although voluntary, it’s clear that the flourishing nature of prize draws means that the sector will continue to garner greater attention and scrutiny from lawmakers.
As a result, Oxley added, early adoption of the rules will gain a competitive advantage as standards such as clear disclosure of routes and responsible play messaging become the norm.
“Those who lead on these standards will build consumer trust and reduce regulatory risk,” he explained.
“The code is voluntary today, but its principles will shape tomorrow’s regulatory landscape. Proactive engagement positions operators ahead of the curve and demonstrates a commitment to integrity in a fast-growing market. Those who do not adopt it are likely to face greater scrutiny from the regulators.”
