The United Kingdom is positioning itself as a leading player in the prize competition industry, according to Tom Banks, the newly appointed executive director of the Prize Competition Council (PCC). Established earlier this year, the PCC serves to represent businesses involved in prize draws, raffles, and similar promotional activities, providing a consolidated voice for the industry.
In an interview with iGB, Banks shared the council’s goals to navigate the fast-evolving sector through regulatory shifts, emphasizing the importance of collaboration with government institutions and HM Revenue & Customs (HMRC) to offer clarity to businesses amid the market's maturation.
Banks highlighted the significance of the Department of Culture Media and Sport (DCMS)’s Voluntary Code of Good Practice for Prize Draw Operators, describing it as a "real significant moment for the industry." Introduced in May, this code outlines fundamental principles for operators, aimed at safeguarding participants from potential risks.
Although the code is not legally binding and compliance is not mandatory, a report by Rokker in August indicated that only 20% of UK operators had opted into it thus far. "I think it provides a really important foundation to build on," remarked Banks.
He referred to the UK’s prize-draw sector as a "British success story" driven by entrepreneurial tech companies, emphasizing the country’s pioneering role in the global market for prize draws. Banks sees the PCC’s mission as not only advocating for the sector's economic impact but also facilitating responsible growth within the evolving market.
Mergers and acquisitions activity in this space has been on the rise, with London-listed operator Winvia acquiring several smaller entities to boost its UK market presence. Banks suggested that adherence to the DCMS code could serve as a crucial quality benchmark for prospective investors and acquirers.
The code also aims to tackle issues surrounding player protection and ethical marketing, providing frameworks allowing players to set monthly spending limits. Banks voiced a strong encouragement for operators not yet signed up to join, citing the code as a potential "kite mark" for quality operators.
German lottery brokerage Zeal Network recognized the significance of the DCMS Voluntary Code during its acquisition of UK prize draw operator SevenCanyon in July. CEO Dr. Stefan Tweraser emphasized the anticipated progression towards more structured regulations in the UK market, which he believes will favor their extensive experience in Germany’s rigorous regulatory environment.
Despite being newly formed, the PCC has rapidly expanded, with Banks estimating that its approximately 70 members account for 90%-95% of the market. The membership structure is designed to encompass a diverse array of operators, including notable names such as Elite Competitions, Winvia Entertainment, That Prize Guy, Giveaway Guys, McKinney Competitions, Raffolux, and Daymade.
Banks stressed that the composition of the board reflects the sector's diversity, ensuring all voices are represented. The code is seen as a pivotal step in professionalizing the industry, aimed at establishing minimum standards and fostering professionalism. "I’ve been really surprised, in a positive way, at how seriously businesses are taking this and the proactive measures they have already implemented since the code’s inception," he stated.
The PCC is focused on building a strong relationship with the DCMS and HMRC, particularly in light of HMRC's recent decision to backdate VAT receipts for the sector. Banks noted that VAT is a crucial issue for members, particularly smaller operators, and underlined the need for regulatory certainty to facilitate planning and investment.
As part of his leadership, Banks aims to assist members with compliance concerning the DCMS code while also addressing emerging regulatory challenges. "We as the PCC are engaging directly and constructively with HMRC," he explained. The PCC intends to provide practical guidance and share best practices while acting as an intermediary for compliance issues with policymakers.
Emphasizing transparency, Banks stated that the PCC will maintain an open dialogue with government officials, stressing the importance of clarity for businesses to effectively strategize and drive growth.
Looking ahead, the PCC plans to continue building its profile and amplifying the sector's voice while striving to enhance standards in alignment with the existing DCMS code. Despite not providing precise market forecasts, Banks expressed optimism about the sector's ongoing maturation. He noted, "There’s been so much change even in the last six to 12 months, and anyone who thinks they fully understand what the future holds may not be telling the whole story. The PCC will represent the sector, and it is exciting to be part of this journey."
