New code launched for UK prize draw operators

Research has found the UK market for prize draws is now worth more than £1 billion a year, with more than 7.4 million adults taking part.

Although the prize draw sector does not require a gambling licence, a new voluntary set of guidelines for operators in the field has been launched by the Department for Culture, Media and Sport to bring greater transparency and protection for consumers and strengthen the integrity of the industry.

Scott Oxley, a prize competition expert with Pinsent Masons, said the introduction of the voluntary code marked a pivotal moment for prize draw operators.

“While not legally binding, it sets a clear benchmark for transparency, consumer protection, and accountability,” he explained. “Operators who ignore it risk reputational harm and may accelerate the move towards statutory regulation”.

“From a commercial perspective, early adoption will give operators a competitive advantage. Clear disclosure of entry routes, robust age verification, and responsible play messaging will become the norm. Those who lead on these standards will build consumer trust and reduce regulatory risk.”

The DCMS guidance, which is due to come into effect from May 2026, calls for signatories to introduce spending limits and suspensions for players to reduce gambling risks, with research showing 88% of prize draw participants also took part in gambling activities and lotteries – compared to 60% of adults in the general population.

The guidelines call for credit card transactions to be capped at £250 a month, and for clear complaints and harm intervention procedures to be established by operators.

Greater transparency around the rules for entering, and how prizes are won, are among the inclusions in the guidance, which also calls on operators to outline clearly how charity-supporting draws support their causes in line with fundraising regulations.

It also calls for greater cooperation across the industry for developing best practice approaches to the prize draw sector.

The timeline for the guidance to come into effect offered operators a chance to establish their integrity and help shape regulation before it became mandatory, added Oxley.

“Operators of these draws should act now to review their promotional mechanics, advertising practices, and charitable contribution disclosures to ensure alignment,” he said.

“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. “