Over 20 UK Prize Draw Operators Commit to New Code of Conduct

Introduction to the New Code of Conduct

More than 20 leading prize draw companies in the United Kingdom, including notable names like Omaze, Best of the Best, and Raffle House, have pledged to follow a new voluntary code of conduct. This initiative, driven by the Department for Culture, Media and Sport (DCMS), aims to increase transparency and protect participants in prize draws.

Key Provisions of the DCMS Code of Conduct

The recently introduced code sets out several important rules. Among these is a monthly cap of 250 (approximately $327) on credit card spending for prize draw entries. Additionally, the use of credit cards is completely prohibited for all instant-win games. The DCMS developed these guidelines after thorough consultations with industry stakeholders, and operators who sign the code have six months to implement its requirements.

Gambling Minister Baroness Twycross highlighted that millions of people in the UK participate in prize draws annually and deserve assurance that adequate safeguards are in place. She praised the operators who have already committed to the code for their cooperation and dedication to maintaining these high standards.

James Oakes, president of Omaze, one of the UK17;s largest prize draw companies, expressed pride in being an original signatory of the code. Omaze, having raised over 100 million (close to $130 million) for various charities nationwide, has long implemented top-tier customer protection measures. Oakes welcomed the DCMS17 introduction of the code and hopes the entire industry will uphold the same standards.

Requirements and Responsibilities for Prize Draw Operators

According to the DCMS, prize draws have seen a significant rise in popularity, with about 7.4 million adults in the UK taking part each year. The prize draw market is valued at around 1.3 billion ($1.7 billion). Despite their popularity, prize draws that offer a free entry method currently fall outside the licensing requirements of the Gambling Act 2005.

To address this rapid growth, the new code establishes clear and consistent standards across the industry aimed at enhancing player protection, increasing transparency, and improving operator accountability.

Beyond the credit card restrictions, the code requires operators to impose reasonable monthly spending limits for participants or provide options for players to set their own limits. Operators must also offer tools for players to temporarily pause or permanently close their accounts, similar to self-exclusion options found in licensed gambling platforms.

Furthermore, prize draw companies are expected to publicly disclose the measures they have put in place related to player safety, transparency, and accountability. They are also responsible for ensuring that any associated third parties comply with these standards. The code encourages collaboration among operators to share best practices and continuously improve the sector’s integrity.