Play Smart or Get Regulated: UK’s New Rules for Prize Draw Operators

_{A lady selling raffle tickets for the cash prize draw. (Image: Linda Kennedyy/Alamy)}

The UK government is cracking down on prize draw operators, demanding higher standards or risk regulation. (Image: Omaze)

The UK government is drawing a line in the sand for prize draw operators, unveiling a revised Voluntary Code of Good Practice that raises consumer protections and brings the £1.3 billion sector closer to gambling regulation.

Effective 20 May 2026, the updated code outlines new obligations for age verification, spending caps, and transparency standards. While still voluntary, the Department for Culture, Media and Sport (DCMS) warned that non-compliance could force statutory intervention.

Why Prize Draws Are in the Crosshairs

Free-to-enter prize draws operate outside the Gambling Act 2005 by offering a no-purchase entry route. But a 2024 DCMS-commissioned report found that these draws often mimic gambling products like online casinos, and attract many of the same players, especially those experiencing gambling harm.

According to the study, 88% of prize draw users also gamble, and participants with gambling issues tend to enter more often and spend more money. The findings positioned the sector as a growing risk and triggered calls for reform .

What’s Changing Under the New Code

The code requires operators to verify all participants are over 18. Credit card use is banned for instant win draws, and players will face a £250 monthly limit on credit card-linked entries across platforms.

Operators must provide safer play tools, like account suspensions, spend limits, and account closures, and actively monitor behaviour for signs of harm. They are also expected to offer prominent links to support services for debt, mental health, and financial issues.

Instant win draws, often seen as the riskiest format, face stricter rules. Operators must offer free entry options that are genuinely equal to paid routes, not hidden behind confusing instructions or additional steps.

_{Ai was used to generate this image.} 

Closing Loopholes Around Fairness

Transparency is a major theme. All entries must have the same chance of winning, and draws must be independently verified or use auditable randomisation software. Prize downgrades or delays due to low ticket sales are now prohibited.

One of the biggest shifts: the free entry method must be shown clearly before any purchase is made and can’t be less accessible than the paid option. If it is, the draw could be considered an illegal lottery under UK law.

Are Prizes Really Guaranteed?

Consumers are often unclear on whether grand prizes, such as luxury cars, holidays, or homes, are actually guaranteed. The code now mandates operators specify when a prize is conditional (such as hitting a ticket sales threshold) versus guaranteed. Without clear terms, players could be left with a partial refund or a lesser prize.

_{A £4.5 million house in Yorkshire offered in prize draw by Omaze. (Image: Omaze)}

Oversight and What Comes Next

Operators are expected to audit their compliance and enforce the code with all affiliates and vendors. DCMS has not yet appointed a dedicated regulator but hinted that if industry self-regulation fails, the Gambling Commission may step in.

While not legally binding, the government’s language is pointed. DCMS has stated it will “consider all available options” if the voluntary approach falls short, code for “regulation is next.”

What It Means for Operators and Players

The code sets a new bar for companies like Omaze, BOTB, Win a Million, Raffolux, and Raffle House. Omaze remains the highest-profile operator in the UK, known for its celebrity-endorsed property giveaways. BOTB is a long-standing brand with a strong TV presence. Raffolux and Raffle House both focus on high-value digital raffles, while Win a Million leans heavily into cash prizes.

The updated code is a warning shot. Play fair now, or face regulation later.