UK Prize Draw Sector Adopts First Voluntary Protection Code

A rapidly expanding UK prize draws sector long operating without dedicated regulation is now moving toward clearer safeguards as 23 companies adopt a newly introduced code of conduct.

The competitions and prize draws industry has surged in recent years, generating £1.3bn in 2023 and drawing participation from more than 7.4 million people. Despite its scale, the activity sits outside the Gambling Act, prompting repeated warnings from lotteries, regulators and operators about a lack of consumer protections. The voluntary code marks the government’s first formal attempt to address these concerns without overhauling existing law.

A booming market with minimal oversight

More than 400 prize draw operators are active nationwide, expanding at a pace outstripping traditional safeguards. Licensed lotteries have argued that this creates an uneven market, as they are bound by strict rules covering payments, age checks and player protection, while prize draw operators face few equivalent obligations. The Department for Culture, Media and Sport describes the new framework as an initial step toward raising standards ahead of any consideration of mandatory statutory regulation.

What the voluntary code introduces

For the first time, operators face unified consumer protection requirements. The new code sets out several core obligations, including:

• A £250 monthly cap on credit card spending, with instant-win draws barred from accepting credit cards entirely

• Clear and genuinely accessible free-entry methods

• Mandatory age checks to ensure all entrants are 18 or older

• Monitoring to identify signs of harm or financial difficulty

• Marketing rules brought into line with ASA, CAP and BCAP standards

• Ongoing reviews and cooperation with DCMS

Existing operators must meet the full requirements by 20 May 2026, while new entrants must comply from launch.

Industry reaction and government concerns

Leading operators have framed the code as a stabilising force amid calls for tighter oversight. Omaze, one of the sector’s most visible brands, was an early adopter. Its president, James Oakes, said shared standards would help the market mature responsibly. Many firms view voluntary alignment as a preferable alternative to being brought under the Gambling Act through legislative reform.

Baroness Fiona Twycross, the UK’s gambling minister, highlighted that millions take part in prize draws each year and should receive “reasonable protections”. Government research has raised particular concerns after showing that individuals already affected by gambling harm are more likely to enter prize draws frequently and spend above-average amounts.

A pivotal moment for a lightly governed industry

The code marks a shift in how prize draws are viewed no longer simply promotional entertainment, but a commercial activity with real financial risks requiring proportionate oversight. With 23 operators already signed up and more expected, the coming year will test whether a voluntary structure can meaningfully improve consumer safety or whether mandatory regulation will ultimately be required.