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UK Government proposes ban on third-party Powerball betting

The proposed licence condition follows Powerball's July launch through the National Lottery and would mirror restrictions introduced for non-UK EuroMillions draws in 2018.

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Key Points
DCMS consultation proposes prohibiting licensed operators from offering bets on Powerball draws
Powerball joined the National Lottery in July, while third-party betting on the underlying US draw remains permitted
Consultation runs for six weeks and closes on 4 November

The UK Government has opened a consultation on prohibiting third-party operators licensed under the Gambling Act 2005 from offering bets on Powerball, following the game's addition to the National Lottery in July.

Under Section 95 of the Gambling Act, betting licence holders cannot offer bets on lotteries forming part of the National Lottery, including Lotto, EuroMillions and Thunderball. 

However, the restriction does not currently cover Powerball because third-party bets are settled against the underlying US draw, which is outside the UK National Lottery. 

The Department for Digital, Culture, Media and Sport (DCMS) is proposing a new licence condition covering general betting operating licences, pool betting licences and betting intermediary licences. 

Operators would remain permitted to offer bets on other lotteries outside the National Lottery, such as the Irish Lotto.

The proposal follows Allwyn UK's introduction of Powerball on 21 July, after the Gambling Commission granted a Section 6 licence for the game. It marked the first expansion of Powerball outside the US, with UK players participating in the same underlying jackpot draw.

Third-party lottery betting differs from purchasing a National Lottery entry. Customers instead wager on the result through a betting operator, which is responsible for paying winnings. Lottoland, for example, currently offers UK customers bets based on US Powerball results.

DCMS cited potential customer confusion and the effect on good-cause funding among its reasons for considering intervention. Around 23% of National Lottery product sales goes towards good causes, while third-party betting operators have no equivalent requirement. 

The Government said evidence on how many customers would switch from betting products to the National Lottery remains limited.

The regulatory approach has precedent. Following a consultation, the Government prohibited betting on non-UK EuroMillions draws in 2018 to address similar concerns over the distinction between betting products and National Lottery participation. 

Powerball forms part of Allwyn UK's plans to increase good-cause funding, with DCMS stating that the game is expected to generate an additional £1bn ($1.35bn) over five years. National Lottery payments due to good causes exceeded £1.8bn during the four quarters to March 2026.

The six-week consultation closes at 11:59pm on 4 November and is seeking responses from betting and lottery operators, players and other interested parties. 

In July, the UK Government opened its first major review of National Lottery Good Cause funding since 2002-03, seeking evidence on how funding should be allocated and accessed after more than £53bn has been generated since the lottery's launch. 

Good to know

DCMS considered alternatives including voluntary operator measures, mandatory good-cause contributions and a wider prohibition on betting on lotteries before proceeding with the targeted Powerball proposal

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