UK Introduces New Voluntary Player-Protection Code for Prize Draws

_{The fast-growing prize-draw sector faces new rules to improve transparency, safety and spending controls. (Image: AI Generated)}

Prize-draw companies across the UK will face tougher standards under a new voluntary code designed to bring them closer to the rules traditional gambling operators already follow. For years, thousands of prize-draw businesses have operated in a grey zone due to their legally required free-entry routes, allowing them to avoid the licensing, oversight and player-protection measures imposed on both land based and online casinos, bookmakers and lottery operators. With the sector now expanding rapidly, the Government says the gap in regulation is no longer sustainable.

The Department for Culture, Media & Sport (DCMS) published the new code on 20 November 2025, targeting a market that attracts 7.4 million adult participants and generates £1.3 billion a year. Although prize draws can look and feel like gambling, they fall outside the Gambling Act 2005. Officials say the new framework is intended to improve safety and transparency while bringing expectations more in line with the rest of the gambling industry.

A Push for Clearer Standards

The Voluntary Code for Prize Competitions and Free Draws introduces rules around age checks, spending limits, transparency, advertising standards and harm prevention. Operators who sign up have until 20 May 2026 to fully implement the requirements. DCMS says the intention is to ensure that players know how each draw works, understand their rights and are protected from unfair or misleading practices.

Gambling Minister 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.” 

She added, “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.”

Operators Sign On Early

More than 20 operators, including Omaze, Best of the Best and Raffle House, have already committed to the new standards. Their obligations include demonstrating how they meet the code, applying the rules consistently across all promotions and ensuring third-party partners comply.

Omaze president 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.” 

He added that the company “welcome[s] DCMS’s introduction of this Code and look[s] forward to all operators committing to the same high standards.”

What the Code Requires

Under the new rules, operators must apply reasonable age-verification checks and ensure advertising is aimed only at adults. They are also expected to introduce stricter spending controls, including a monthly £250 cap on credit-card payments and a full ban on using credit cards for instant-win draws. Players must be able to set their own spending limits, including the option to reduce their limit to zero, and companies must monitor play for signs of harm and intervene where appropriate.

Fairness and transparency are central to the new framework. Companies must explain clearly how each draw works, confirm that prizes are “awarded in accordance with the laws of chance” and ensure that free entries carry the exact same odds as paid ones. Draws must be run under independent supervision or through auditable computer systems, with those processes published in a way players can understand. Operators must also provide prizes promptly or offer a reasonable cash equivalent, publish a clear complaints procedure and set suitable opening and closing windows for each draw.

The code also requires operators to take responsibility for their wider ecosystem. Affiliates and third-party partners must follow the same standards, and operators must demonstrate publicly how they maintain compliance. Advertising must follow CAP and BCAP rules and remain socially responsible at all times.

What Comes Next

DCMS will monitor adoption of the code over the six-month implementation period. Ministers have indicated that statutory regulation remains a possibility if the industry fails to engage or if harmful practices persist. For players, the changes promise clearer information, stronger protections and more consistent treatment across different types of competitions. For operators, the code offers an opportunity to show they can raise standards voluntarily and operate on a level playing field with regulated gambling businesses.