UK Sets Voluntary Prize Draw Code
People entering prize draws in the UK will face clearer rules and stronger safeguards after the government introduced a voluntary code for operators. The framework sets limits on credit card spending, tightens rules around free entry routes and requires new measures to identify at-risk players. It targets a fast-growing part of the market that currently sits outside mainstream gambling regulation.
New Rules For Prize Draw Firms
eapplies to prize draw and competition operators across the UK. It targets promotions that offer a free entry route and therefore sit outside the Gambling Act licensing regime. Under the code, operators must cap monthly credit card spend on prize draws at £250 per customer.
They must also stop taking credit cards for instant win products, where risks can escalate more quickly. Companies have to display free entry options clearly and ensure that these routes remain practical and genuinely accessible. The government expects operators to monitor behaviour, identify potential harm, and signpost support services to vulnerable or distressed customers. Ministers note that about 7.4 million adults enter prize draws each year in a £1.3 billion market.
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.”
Industry Response And Next Steps
More than twenty prize draw operators have already signed the code, including Omaze, Best of the Best and Raffle House. They now have six months to update terms, payment systems and customer journeys to match the new standards. Companies are expected to improve how they explain rules, prize structures and odds of winning to participants.
The code also requires clear complaints procedures, giving players straightforward routes to raise concerns or disputes. Officials view the initiative as a way to lift standards without bringing prize draws fully under Gambling Commission control. They will track how operators apply the rules and assess whether participation remains high across the sector. If the voluntary approach fails, ministers have signalled that they may consider tighter regulation in future.
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 £100 million 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.”
