Voluntary Code of Practice for prize draw and competition (PDC) operators banner with large question mark

Voluntary Code of Practice for prize draw and competition (PDC) operators

The UK’s prize competition industry is growing fast and is now worth an estimated £1.3 billion per year, with more than 7 million people entering draws and hundreds of promoters running competitions nationwide.

But with that growth has come confusion and inconsistency. To tackle that, the government has announced plans for a Voluntary Code of Practice for online prize draws and competitions (PDCs), expected to launch later in 2025.

 

The Big Study

In August 2023, the The Department for Culture, Media and Sport (DCMS) commissioned London Economics to conduct a market-wide study. The goal was to:

  • Understand how large and how active the PDC industry has become.

  • Assess whether players were being misled or harmed.

  • Examine how effectively existing rules were protecting consumers.

  • Explore whether new interventions (like regulation or a voluntary code) might be needed.

After nearly two years of data collection, surveys, and consultations with operators, players, regulators, and consumer bodies, the findings were compiled and published in June 2025.

What Is the Voluntary Code of Practice?

The findings of this study have led to The Department for Culture, Media and Sport releasing the report in June 2025 because of growing concern, from both the public and regulators, about the rapid rise of online prize draws and competitions since around 2020. 

According to the DCMS, the goal of a voluntary code of practice is simple:

“To strengthen player protections, increase transparency and improve accountability across the prize competition sector.”

In other words, it’s a set of agreed standards designed to make online prize draws and competitions fairer, safer, and more transparent, without the need for new gambling legislation (at least for now).

The Code will apply to all Online Raffle/Prize Draw/Competition (PDC) operators that rely on the “skill” exemption under the Gambling Act 2005.

Why is this happening?

Its fair to say that online raffles in the UK currently sit in a grey area of the Gambling Act 2005. If a raffle/prize competition business includes a genuine skill element or offers a free entry route within the entry process, it’s not classed as gambling and therefore doesn’t need a Gambling Commission licence. This is because by adding a skill based question, the winner is decided by skill and not pure chance.

This flexibility within the rules have helped the prize competition industry grow, but its also created inconsistent standards between operators, confusion among entrants about what’s legal and what isn’t, and reputational risks for legitimate businesses

The Voluntary Code is intended to fix this by creating a clear, uniform framework that good operators can follow and promote proudly.

What the Code Is Likely to Include

While the full details haven’t yet been published, government research and consultations suggest the Code will focus on several key areas:

Transparency

Operators will need to clearly explain:

  • How winners are selected
  • The odds of winning
  • How the free entry route works
  • The full terms and conditions of each competition

Fairness & Accountability

Prize draws must be conducted fairly, and results should be verifiable.
Promoters will likely need to keep clear records and ensure prizes are awarded as advertised.

Free Entry Route Integrity

The free entry option can’t just be a token gesture. It must be easy, accessible, and genuinely free — or the competition risks being classed as an illegal lottery.

Marketing Standards

No misleading claims, fake scarcity, or “everyone wins” language.
All promotions should be honest, clear, and accurate.

Player Protection

The Code may include guidelines on responsible marketing, age restrictions, and spending awareness to reduce potential harm.

Charity Transparency

For competitions claiming to support charities, promoters will likely need to show exactly which charity benefits, and how much money is donated.

When Will the Code Be Introduced?

DCMS has confirmed the Code will be introduced later in 2025, following the release of its official research report and industry consultation.

It’s being developed as a first step, and the government has said it will review the success of the Code before deciding if full legislation is needed in the future.

What This Means for Prize Competition Businesses

For genuine, responsible operators — this is good news.

The Code will help set apart trustworthy businesses from those cutting corners.
By aligning with it early, you can show entrants that your competition is legal, transparent, and professionally run.

At Rafflers, we already use a strict vetting system based on the Gambling Act 2005 and industry best practice. Once the Voluntary Code is published, we’ll update our standards to align with it fully, so all Rafflers Members stay ahead of the curve.

What You Can Do Now

Stay informed – follow updates from Rafflers and DCMS.

Review your current practices – ensure your terms, entry routes, and winner selection methods are transparent and fair.

Prepare for greater scrutiny – entrants and payment platforms will increasingly expect compliance with the new Code.

Get certified – joining Rafflers helps you demonstrate that you already meet or exceed the standards likely to appear in the Code.

Final Thoughts..

The Voluntary Code of Practice represents the next step in legitimising the prize competition industry. It’s a clear sign that the government recognises the sector’s growth, but also expects higher standards from everyone involved.

For ethical operators, it’s a massive opportunity to build trust and credibility. For entrants, it’s a welcome layer of protection. And for Rafflers Members, it’s another reason to stand proud as leaders in a trusted, transparent industry.

Lets hope, despite it being a voluntary code of practice, that all online raffle businesses get on board with this! Its still not full proof as no official regulation is still in place, but the fact the government have a much closer eye is a good start in deterring those out to scam innocent ticket buyers.

FAQ's - Voluntary Code of Practice for prize draw and competition (PDC) operators

The report studied the UK online prize draws and competitions (PDC) market, including how it operates, who participates, and whether there is any risk of harm. It also explored whether government intervention might be needed and, if so, what form that could take.

 

The government commissioned London Economics in August 2023 to carry out the study. They collected data from operators, entrants, regulators, charities, and other stakeholders.

 

Online prize competitions have grown rapidly in recent years. While most are legitimate, some practices were unclear or potentially misleading. The DCMS wanted evidence-based insight into the market to ensure consumer protection and consider if further regulation or guidance was needed.

The study estimates that around 7.4 million UK adults entered online prize draws in the past 12 months. Operators vary widely in size, with most offering smaller prizes (<£10,000), but some offering larger prizes of over £100,000.

Yes, the report highlighted some potential risks:

  • Lack of transparency on odds, winner selection, and competition rules.

  • Weak safer-gambling measures (few self-exclusion tools, limited responsible play messaging).

  • A small proportion of participants reporting negative consequences, such as overspending or loss of control.

Certain groups were more at risk: younger adults (18–34), men, ethnic minorities, and lower-income participants.

 

The report did not find definitive evidence that participating in PDCs directly causes gambling harm. However, it noted that many participants also engage in other forms of gambling, which may increase overall risk.

 

 

Common problems included:

  • Free entry routes being difficult to access or less clear than paid options.

  • Prize draw terms not fully disclosed or sometimes changed after promotion.

  • Limited transparency about charitable donations for competitions claiming to support charities.

 

 

The study considered three options:

  1. Full regulatory intervention — bring PDCs under Gambling Commission regulation (licensing, prize limits, mandatory charitable donations).

  2. Better enforcement of existing consumer protection rules — via Advertising Standards Authority or Trading Standards.

  3. Voluntary Code of Conduct — a lighter-touch approach setting industry standards around transparency, player protection, and fairness.

The report suggested starting with a voluntary code as the most proportionate first step.

 

 

Operators are encouraged to:

  • Be transparent about odds, rules, and winner selection.

  • Offer easy and genuinely free entry routes.

  • Adopt responsible play measures and support for vulnerable players.

  • Show transparency for charitable donations, if applicable.

Operators who do this are more likely to comply with future voluntary codes and build trust with entrants.

 

 

Participants should:

  • Only enter competitions with clear terms and conditions.

  • Check for free entry routes that are easy to access.

  • Prefer competitions where operators are transparent about winner selection, prizes, and charitable contributions.

 

 

At Rafflers, we already vet operators against the Gambling Act 2005 and industry best practice. The DCMS report reinforces the value of:

  • Ensuring transparency and fair play.

  • Protecting players.

  • Certifying operators that meet high standards.

Rafflers Members will be well-placed to comply with the forthcoming voluntary code, demonstrating credibility and trust to entrants.