Tom Banks, the newly appointed executive director of the Prize Competition Council (PCC), highlights the United Kingdom's growing dominance in the prize competition sector. Established earlier this year, the PCC seeks to unify businesses involved in prize draws, raffles, and similar promotional activities, ensuring a collective voice for the industry.
In a recent interview, Banks elaborated on the council’s objectives, emphasizing its role in navigating the evolving regulatory landscape. He aims to foster collaboration with government bodies, including HM Revenue & Customs (HMRC), to provide essential clarity for companies amid market growth.
Central to the PCC’s mission is the Voluntary Code of Good Practice for Prize Draw Operators instituted by the Department of Culture Media and Sport (DCMS) in May. Banks considers the code a pivotal moment for the industry, as it outlines fundamental principles designed to protect players from potential risks. Though not legally binding, the code serves as a guideline; however, as of August, only 20% of UK operators had formally committed to it.
Describing the UK’s prize draw market as a “British success story,” Banks credits innovative technology firms for its rise. He asserts that the PCC’s role extends to championing the sector's economic contributions and ensuring responsible growth. “The sector definitely has a positive contribution to make to UK PLCs and we should be really ambitious about that,” he stated.
A noticeable trend in the sector is the uptick in mergers and acquisitions (M&A). London-listed company Winvia has aggressively acquired smaller competitors to enhance its market presence. Banks believes compliance with the DCMS code could signal quality and diligence for prospective investors.
The Voluntary Code aims to enhance player safety and ethical marketing practices. It also allows players to set monthly spending limits while giving operators the authority to enforce stricter controls. Banks urged operators who have yet to join the code to do so, foreseeing it become a hallmark of credibility in the industry.
The benefits of the DCMS code were echoed by the German lottery brokerage Zeal Network, which acquired UK operator SevenCanyon. CEO Dr. Stefan Tweraser pointed to the increased regulatory framework as a motivating factor for entering the UK market, indicating expectations for more structured rules in the future.
Despite being in its early stages, Banks noted that the PCC has swiftly grown to represent around 90%-95% of the market through its approximately 70 members, which include prominent names like Elite Competitions and Winvia Entertainment. He emphasized the board's diverse makeup ensures all voices are heard at high levels.
The code signifies a step forward in the sector’s evolution, aiming to establish minimum standards and promote professionalism among operators. Banks expressed his admiration for how seriously the businesses have embraced the code since its inception, noting positive steps taken towards development and enhancement.
On the regulatory front, the PCC is focusing on forging strong ties with both DCMS and HMRC, particularly following HMRC’s decision to backtrack VAT receipts for the industry — a significant issue for members. Banks points out that smaller operators, in particular, require regulatory certainty to plan and invest effectively.
He indicated that under his leadership, the PCC will assist members in navigating compliance with the DCMS code and clarifying regulatory concerns. The organization aims to provide practical guidance, exchange best practices, and serve as a link between its members and policymakers. Banks is committed to maintaining transparency in communications with government officials, aiming for a clear understanding of the industry’s needs.
Looking ahead, the PCC plans to bolster its visibility and amplify the industry’s voice while supporting the advancement of standards aligned with the DCMS code. Although Banks refrained from making specific predictions, he is optimistic about the sector's continued maturation, highlighting the rapid developments over the past year. "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," he said.
