Gambling Commission CEO Warns of Rising Impact of Unregulated Prize Draws

Growth of Prize Draws and Lottery Sales

Rhodes noted that prize draws have expanded rapidly. Meanwhile, society lottery sales surpassed £1 billion for the first time.

He suggested that lottery participation is now approaching betting levels in both engagement and spending.

Gambling Participation Rates Remain Steady

The latest Gambling Survey of Great Britain showed that overall gambling participation held steady at 48% in Q3.

Around 20% of respondents took part in lottery draws, including the National Lottery and charity lotteries, matching Q2 figures.

Non-lottery gambling participation also remained at 28%. However, online gambling showed mixed trends. Overall participation in online gambling rose from 37% in Q2 to 38% in Q3.

Yet, when excluding lottery play, online gambling dropped from 17% to 15%. The Gambling Commission called this a “significant decline.”

Calls for Prize Draw Regulation

The rapid rise of prize draws has sparked calls for regulation. Some argue that competitions from companies like Raffle House and Omaze have an unfair edge. Unlike lotteries, they are not required to meet charity funding rules.

Lottery operators claim this creates an uneven playing field. Meanwhile, prize draw organisers insist their products carry lower risks and should not be classified as gambling.

Debate on Consumer Protection

The Gambling Survey of Great Britain suggests some gambling formats pose higher risks. However, many in the industry argue that prize draws should face regulations to improve consumer awareness.

The debate continues as stakeholders weigh the risks and benefits of stricter oversight.

Upcoming Data Release

The Gambling Commission’s next gambling participation report will cover the period ending December 31. It is set for release on May 22.

Among the expected insights is further research on gambling motivations. Early data suggests financial gain is not the main reason people gamble.