Tom Banks, the newly appointed executive director of the Prize Competition Council (PCC), has declared that the United Kingdom is emerging as a global leader in the prize competition sector. Established earlier this year, the PCC aims to unite businesses engaged in prize draws, raffles, and other promotional activities, providing a collective industry voice.
In an interview with iGB, Banks articulated the council's mission to help navigate the industry's rapid growth and upcoming regulatory changes. He emphasized the importance of collaboration with government entities and HM Revenue & Customs (HMRC) to ensure that businesses can operate with clarity as the market evolves.
The Voluntary Code of Good Practice for Prize Draw Operators, introduced by the Department of Culture Media and Sport (DCMS) in May, has been deemed a vital development for the industry. This code is designed to establish key standards to protect players from potential risks. Although adherence to the code is voluntary and not enforced by law, a report from Rokker published in August revealed that only 20% of UK operators have signed on so far. Banks noted, “I think it provides a really important foundation to build on.”
The prize draw market in the UK is flourishing, with Banks calling it a “British success story,” driven by innovative technology firms. He highlighted the nation's pioneering role in this sector, praising British entrepreneurs for creating successful gaming businesses. The PCC's function, according to Banks, is to advocate for the economic contributions of this sector while promoting responsible growth.
The mergers and acquisitions (M&A) landscape within the prize draw vertical has been active, exemplified by London-listed Winvia acquiring several smaller operators to increase its market presence. Banks pointed out that involvement in the DCMS's code could serve as a significant quality marker for potential investors and buyers.
The code aims to address player safety and ethical marketing concerns, allowing players to set monthly spending limits and enabling operators to set their own restrictions. Banks encouraged all operators not yet participating in the code to consider joining, stating, “It’s clearly going to be a kite mark for operators.”
In July, German lottery broker Zeal Network recognized the significance of the DCMS's Voluntary Code during its acquisition of UK operator SevenCanyon. CEO Dr. Stefan Tweraser mentioned that increased regulation in the UK was a driving factor behind their entry into the market, expressing optimism that stricter standards would play in favor of their experience in Germany.
Despite being newly formed, the PCC has rapidly expanded, now representing about 90%-95% of the market with approximately 70 members. Its membership includes companies such as Elite Competitions, Winvia Entertainment, and Raffolux among others. Banks remarked that the board’s structure reflects the sector's diversity, ensuring all perspectives are represented.
The creation of the voluntary code marks a pivotal moment for professionalization within the sector. Banks expressed satisfaction at how seriously operators have been approaching the code since its inception, suggesting that this commitment will foster further development.
Strengthening ties with the DCMS and HMRC is pivotal for the PCC, especially in light of HMRC's recent decision to backdate VAT receipts in the industry. Banks acknowledged the criticality of VAT for members, particularly smaller operators, and the need for a definitive regulatory framework to help them plan for the future.
Under Banks's leadership, the PCC intends to address compliance with the DCMS code and clarify emerging regulatory issues. He assured that the council would engage constructively with HMRC to ensure a firm understanding of the industry's needs.
“Our engagement with HMRC is crucial to ensuring that the industry’s viewpoint is adequately recognized,” he explained. The PCC aims to provide practical support and share best practices among its members, acting as a liaison for compliance-related concerns raised with policymakers. Banks emphasized the need for transparency in dialogue, assuring that the PCC will maintain open communication with DCMS. He articulated, “What we need at this point is clarity for businesses across the sector.”
Looking forward, the PCC plans to enhance its presence and amplify the industry’s voice, aiming to elevate standards that build upon the existing DCMS code. While Banks refrained from making specific market predictions, he is optimistic about the continued maturity of the sector. “There’s been so much change even in the last six to 12 months… anyone who claims to know the future might not be telling the full story,” he said. “The PCC will be the voice of the sector, and it’s exciting to be part of this evolving journey.”
