The Department for Digital, Culture, Media and Sport (DCMS) has launched a voluntary code of good practice for prize draw operators following sustained growth in the UK market.
Prize draws now attract an estimated 7.4 million adult participants each year and generate around £1.3bn ($1.69bn) in annual market activity. Because draws must offer a free entry route, they are not currently regulated under the Gambling Act 2005.
The Government said the new code is intended to create consistent baseline protections across the industry, addressing concerns about transparency, credit card use and the potential for financial harm.
The measures include a £250 monthly limit on credit card spend for prize draws and a full prohibition on credit card entries for instant-win competitions.
Operators will also be required to publicise free entry methods prominently and ensure they remain genuinely accessible.
Additional expectations focus on harm mitigation, including signposting towards support services and implementing internal processes to identify at-risk participants.
More than 20 prize draw providers have agreed to adopt the new code, with a six-month window for implementation.
The announcement comes amid wider developments in the prize draw sector, including consolidation and international expansion.
In October 2025, Australian lottery provider Jumbo Interactive completed its acquisition of US prize draw brand Dream Giveaway USA for AU$55.4m (US$35.9m), marking its formal entry into the American draw market.
The business recorded AU$21.6m in revenue during the 12 months to July 2025 and has retained its existing management team under Jumbo's ownership.
DCMS said the initiative aims to raise industry standards while maintaining the accessibility of prize draws for participants across the country.
Jumbo Interactive recently entered the UK prize draw market through its acquisition of Dream Car Giveaways in a deal valued at AU$109.9m
