The United Kingdom is positioning itself as a leader in the prize competition industry, according to Tom Banks, the new executive director of the Prize Competition Council (PCC).
Established this year, the PCC represents businesses involved in prize draws, raffles, and other promotional activities, aiming to create a unified voice for the industry.
In an interview, Banks described the council's mission to navigate the sector through ongoing regulatory changes while collaborating with government departments and HM Revenue & Customs (HMRC) to ensure clarity for businesses as the market evolves.
He highlighted the significance of the Department of Culture, Media and Sport (DCMS) launching the Voluntary Code of Good Practice for Prize Draw Operators earlier in May. This code outlines key principles that the industry should follow to safeguard players from potential harm. While not legally binding, a report by Rokker in August pointed out that only 20% of UK operators had adopted the code thus far.
Banks believes the code lays a vital groundwork for the industry. He refers to the UK’s prize-draw market as "a British success story," driven by innovative technology firms. He emphasizes the importance of the PCC advocating for the economic impact of this sector while promoting responsible growth.
As mergers and acquisitions (M&A) activity increases, with Winvia, a London-listed operator, acquiring several smaller players to boost its market presence, Banks notes that adherence to the DCMS code will serve as an essential standard of quality for prospective investors.
The Voluntary Code aims to tackle concerns regarding player protection and ethical marketing by providing players options to set monthly spending limits, while operators can impose their own limits on users.
Banks urges operators not yet aligned with the code to get on board, asserting that it will soon become a benchmark for best practices in the industry. He stresses the importance of the PCC’s engagement with the government to address the surge in M&A and the commitment to maintain high standards.
German lottery broker Zeal Network expressed its appreciation for the DCMS code when it acquired UK operator SevenCanyon in July. CEO Dr. Stefan Tweraser highlighted the significance of the code in driving a more structured regulatory environment in the UK market.
As the PCC continues to develop, Banks estimates its membership, which comprises around 70 organizations, represents about 90% to 95% of the UK market. This membership is structured into four tiers to reflect the diversity within the sector, including established entities such as Elite Competitions and Raffolux.
Banks points out that the board reflects the diverse makeup of its membership, ensuring all voices are heard. He sees the code as a pivotal advancement for the industry, serving to set minimum standards and enhance professionalism among operators.
He is pleased with how seriously businesses have taken the code, noting their proactive steps since its introduction.
The PCC is also focusing on strengthening ties with the DCMS and HMRC, particularly regarding HMRC's recent decision to retroactively apply VAT receipts for the sector. Banks acknowledges the importance of VAT for members and insists that smaller operators particularly need regulatory certainty to effectively plan and invest in their businesses.
A primary goal for the PCC under Banks’ leadership is to aid members in complying with the DCMS code and addressing relevant regulatory developments. He emphasizes the need for transparency and direct communication with government entities, stating the PCC aims to represent the industry's perspectives authentically.
In the coming months, the PCC plans to amplify its voice within the industry and further elevate standards based on the existing DCMS code. While Banks refrains from providing specific market forecasts, he expresses optimism for the ongoing maturation of the sector, recognizing the significant shifts in the past year. He believes the PCC will effectively represent the industry and contribute to its growth.
