The UK’s fast-growing prize draws and competitions sector is entering a new phase as operators begin adopting a voluntary code of conduct introduced by the Department for Culture, Media and Sport (DCMS). With 23 signatories already on board, the government aims to strengthen consumer protection in a market that reached an estimated value of £1.3 billion in 2023 and attracted 7.4 million adult participants across more than 400 providers.
Although hugely popular, prize draws are not covered by the Gambling Act 2005. The UK Lotteries Council has long argued that the competitions should be regulated like gambling products, citing concerns about fairness and competition. Instead of immediately pursuing formal regulation, the government chose to launch a voluntary code as a first step, giving the sector a structured set of standards to follow.
A Focus on New Safeguards
The code introduces a wide range of responsibilities for operators, all designed to promote safer play and clearer consumer information. One of the most notable measures is a monthly cap of £250 on credit card use for prize draw entries, alongside a complete ban on using credit cards to purchase instant-win competition entries. These limits aim to curb risky spending behaviours and provide stronger financial protections.
It also requires operators to ensure their free-entry options are clearly displayed and genuinely easy for participants to use. Age-verification checks must be strengthened to confirm all participants are 18 or older, reflecting standard practice in other gambling-adjacent industries.
Another important requirement focuses on player wellbeing. Operators adopting the code must monitor participation patterns for signs of financial distress, excessive engagement, or harmful behaviour. When concerns arise, customers must be offered support or guided toward appropriate services. Alongside these safeguards, operators are expected to meet all ASA, CAP, and BCAP advertising rules to ensure responsible, transparent marketing.
Strong Initial Industry Support
Signatories have committed to implementing the code in full by 20 May 2026. Any operator joining after that date will be expected to comply immediately. Since the prize draw industry does not currently have a formal trade body, the DCMS encourages existing signatories to engage with non-signatory firms to promote wider adoption. Regular compliance reviews, assessments of partnership contracts, and ongoing collaboration with the DCMS are built into the expectations.
The introduction of the code follows research showing that individuals experiencing gambling harm tend to enter prize draws more frequently and spend considerably more than the general population. Findings suggested significant potential for the sector to strengthen its commitment to safer play, from improving clarity around free-entry routes to ensuring support systems are easily accessible.
Early responses from major operators appear positive. Omaze, one of the UK’s best-known prize draw providers, expressed support for the initiative and highlighted its long-standing focus on customer protection while raising substantial funds for charities nationwide. It is worth noting that the new code does not replace existing regulations. Instead, it provides the sector with a strong framework to raise standards and protect participants.
