More than 20 UK prize draw operators have signed up to a government-led, voluntary code of conduct aimed at improving transparency and player protections.

Spearheaded by the Department for Culture, Media and Sport (DCMS), the code introduces new guidelines including a £250 monthly cap on credit card entries for prize draws and a complete ban on credit card entries for all instant-win competitions.

Prize draws offer opportunities for players to make free, as well as paid, entries to win prizes such as cars, luxury items and houses, and do not currently require a gambling licence in the UK.

The sector continues to grow in popularity, with government figures suggesting some 7.4 million adults participate each year in a market worth £1.3bn annually.

The new measures also include a commitment to ensure methods for entering prize draws for free are “sufficiently publicised and accessible to all,” as well as new requirements for operators to identify and mitigate against harm, including signposting to support where needed.

 

Code brings three focus areas

The code of conduct is broken down into three key focus areas: Player protections, transparency, and accountability.

In addition to the limits on credit card use for prize draw entries, operators are expected to set “suitable and proportionate maximum monthly total spend limits for all players,” or provide the facility for players to set their own limits.

Operators must also offer players the chance to suspend their account temporarily or close their account permanently, similar to the self-exclusion facilities offered by licensed gambling operators.

“Where technology is available,” the guidelines add, “operators are also encouraged to provide a ‘pause’ option for players where the player can set a shorter period (such as a week) in which they are unable to take part in its prize draws.”

Operators should also make “reasonable efforts” to monitor player activity to identify harm or potential harm, and should take a tailored and proportionate approach to intervention where these are identified, including signposting players to available support.

In terms of transparency, operators are expected to provide clear summaries of how prize draws will be conducted, and should ensure prizes are awarded fairly in accordance with the rules and terms displayed to players.

To ensure accountability among operators, the code adds that they should have processes and systems to monitor and regularly review compliance with the new rules. They are also expected to ensure all relevant requirements are followed by any related third parties, and to engage with other operators across the sector to share best practices.

Operators are expected to publish all the measures they have in place regarding player protection, transparency and accountability, and are encouraged to work with DCMS to ensure the code remains fit for purpose into the future.

 

Code of Conduct gets broad backing

More than 20 leading prize draw operators, including increasingly popular names such as Omaze, Best of the Best, and Raffle House, have agreed to sign up to the code.

DCMS said the guidelines were reached following “extensive consultation” with the sector, with signatories given a six-month period to implement the provisions.

“Millions of people enjoy entering prize draw competitions every year, and they should be confident that reasonable protections are in place,” commented Gambling Minister Baroness Twycross. 

“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.”

James Oakes, president of one of the UK’s most popular prize draw operators Omaze, added: “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 £100m 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.”

 

 

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