Operators sign up to new UK prize draws code of conduct
The new voluntary code of conduct establishes standards for a sector that remains uncovered by UK gambling legislation.
UK.- Some 23 signatories have already signed up to the new UK prize draws code of conduct announced by the government’s Department for Culture, Media and Sport (DCMS). The voluntary code of conduct is intended to bolster consumer safeguards in the prize draw and competitions (PDC) sector amid concerns among lottery operators and the Gambling Commission.
The prize draws and competitions (PDC) sector has been growing in popularity. DCMS figures show that it was worth £1.3bn in 2023, with 7.4 million adult participants entering draws and competitions run by over 400 providers.
However, the format is not covered by the British Gambling Act of 2005. The UK Lotteries Council has lobbied for the sector be regulated as a form of gambling since it sees it as unfair competition for regulated lotteries. However, UK gambling minister Baroness Fiona Twycross announced in July that she would first opt for a voluntary code of conduct for prize draw operators.
Key Provisions of the UK prize draws code of conduct
- Credit card use limited to £250 per month, with a complete ban for instant-win competitions.
- Free entry access must be clearly promoted and easily accessible to all eligible players.
- Age verification to ensure that only people aged 18 and over can participate.
- Harm prevention: Companies are required to monitor for signs of financial distress, excessive play, or harmful behavioural patterns, and provide signposting to support services when needed.
- Marketing must comply with the Advertising Standards Authority (ASA) rules, as well as CAP and BCAP codes.
- Operators must regularly review compliance, assess third-party contracts, share best practices, and maintain close collaboration with the DCMS.
Signatories have agreed to implement the code fully by May 20 2026. In the absence of an established industry trade body, signatories are also expected to work with other operators who are not yet signatories to adopt the measures and subsequently sign the code. Any operator who becomes a signatory following the implementation date must ensure full compliance from the outset.
The DCMS noted that the new code does not replace any existing regulation. It also stressed that research had presented evidence of gambling harm amongst people who play prize draws. The research found that players experiencing gambling harm participate in prize draws with greater frequency and spend much more than the general population.
Research also concluded that there was scope for the prize draw sector to go further in order to reduce the risk of potential harm to players, and improve integrity and transparency, ranging from ensuring the free entry route is clear to all players, to ensuring support is available for players who are experiencing 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, a major prize draws operator, was among the first 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.”
