Prize Competition Council Aims to Guide UK's Growing Prize Draw Sector

The newly appointed executive director of the UK's Prize Competition Council says the organization will champion the sector's economic contribution and guide it through regulatory changes.

Tom Banks told iGB that the PCC, formed earlier this year, aims to represent businesses operating prize draws, raffles and similar promotions.

He highlighted the Department for Culture, Media and Sport's Voluntary Code of Good Practice for Prize Draw Operators as a "real significant moment for the industry."

The code, implemented in May, sets out core principles for the sector to protect players, though a report by Rokker in August revealed only 20% of UK operators had signed up to it so far.

"I think it provides a really important foundation to build on," Banks said.

He described the UK's prize-draw market as "a British success story" fuelled by entrepreneurial technology companies.

"The sector definitely has a positive contribution to make to UK PLCs and we should be really ambitious about that, and part of my role at the PCC is to champion that contribution," he said.

Banks suggested that adhering to the DCMS code will be a key indicator of quality for potential investors and acquirers, as merger and acquisition activity increases.

"I would urge any operator that isn't already signed up to the code to sign up to it because you know it's clearly going to be a kite mark for operators," Banks said.

German lottery brokerage Zeal Network highlighted the value of the code in its July acquisition of UK prize draw operator SevenCanyon.

CEO Dr Stefan Tweraser cited the increased formalisation of regulation as a reason for entering the UK market.

The PCC has grown rapidly to roughly 70 members, which Banks estimates represent approximately 90%-95% of the market.

Membership spans a four-tier model and includes names such as Elite Competitions, Winvia Entertainment, That Prize Guy, Giveaway Guys, McKinney Competitions, Raffolux and Daymade.

"The makeup of the board is representative of the varying diverse nature of the membership, so everybody's voice is heard at board level," Banks said.

A key focus for the PCC will be supporting members with compliance related to the DCMS code and clarifying emerging regulatory concerns, particularly regarding VAT.

"VAT is clearly an important issue for the members and it's one that we are taking incredibly seriously," said Banks, adding that businesses need regulatory certainty to plan and invest.

"We as the PCC are engaging directly and constructively with HMRC," Banks explained. "It's about ensuring that the industry's perspective is properly understood."

The PCC plans to offer practical guidance, share best practices and serve as a conduit for raising compliance challenges with policy makers.

"What the DCMS will get from the PCC will always be an openness and transparency to share the good and the bad," Banks said.

He referred to his earlier experience working on the 2023 UK white paper on gambling reform to aid his engagement.

The PCC will continue to raise its profile and amplify the industry's voice in the coming months, focusing on advancing standards.

"The PCC will be the voice of the sector and it's really exciting that we're going to be on the journey alongside the sector and really bang the drum for it," Banks said.