The United Kingdom is positioning itself as a leader in the prize competition sector, according to Tom Banks, the new executive director of the Prize Competition Council (PCC). Established earlier this year, the PCC aims to represent businesses involved in prize draws, raffles, and similar promotional activities, creating a unified voice for the industry.
In an interview, Banks detailed the council's aspirations to guide the growing sector through shifts in regulations while fostering partnerships with government entities and HM Revenue & Customs (HMRC) to clarify the market landscape for businesses.
He noted 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." Implemented in May, the code outlines fundamental principles designed to protect players from potential harm. Although it is a guideline rather than a formal regulation, and operators are not legally obligated to comply, a report from Rokker revealed that only 20% of UK operators had formally adopted it as of August.
"I think it provides a really important foundation to build on," Banks stated.
Highlighting the UK's prize-draw market as "a British success story" driven by innovative tech firms, Banks emphasized the global leadership of UK entrepreneurs in developing creative gaming enterprises. He sees the PCC's mission as championing the sector's economic contributions and facilitating responsible growth.
Recent merger and acquisition activity indicates increasing momentum in the prize draw sector, exemplified by London-listed operator Winvia, which has acquired several smaller companies to enhance its market presence. Banks believes that compliance with the DCMS code will serve as a reliability signal for prospective investors and acquirers.
The code seeks to tackle issues concerning player protection and ethical marketing, offering players the choice to set monthly spending limits while allowing operators to impose their own restrictions. Banks called on operators not yet on board to join; "It’s clearly going to be a kite mark for operators," he asserted.
Notably, German lottery brokerage Zeal Network acknowledged the DCMS Voluntary Code's importance when it purchased UK prize draw operator SevenCanyon in July. CEO Dr. Stefan Tweraser pointed to the trend towards more formalized regulations in the UK market as a driving factor for their entry, stating, "We expect the UK prize draw to continue moving towards more formalized rules and higher regulated standards."
Though still new, the PCC has expanded swiftly, with Banks estimating its nearly 70 members represent about 90%-95% of the market. Membership is structured in a four-tier model that includes diverse operators like Elite Competitions, Winvia Entertainment, and Raffolux. Banks emphasized that the board reflects the varied nature of its membership to ensure all voices are represented.
The code is seen as a critical milestone in the sector’s development, meant to set minimum standards and promote professionalism. "I’ve been really surprised, and in a good way, at just how seriously the businesses are taking this and the steps they’ve already made since the code was launched to improve and evolve," Banks said.
The PCC is focusing on establishing strong ties with the DCMS and HMRC, especially after HMRC's recent decision to backdate VAT receipts for the sector. "VAT is clearly an important issue for the members, and it’s one that we are taking incredibly seriously," Banks stated, highlighting the need for regulatory certainty, particularly for smaller operators.
Under Banks’ leadership, the PCC aims to assist its members in complying with the DCMS code while addressing emerging regulatory concerns. "We as the PCC are engaging directly and constructively with HMRC. It’s about ensuring that the industry’s perspective is properly understood," he noted.
The PCC plans to provide practical guidance, share best practices, and serve as a platform for members to voice compliance issues to policymakers. Transparency in communication with government officials is crucial, Banks remarked, emphasizing a commitment to openness: "What the DCMS will get from the PCC will always be an openness and transparency to share the good and the bad."
Looking ahead, the PCC intends to raise its profile and amplify the industry’s voice, focusing on enhancing standards to expand beyond the current DCMS code. While avoiding specific market forecasts, Banks is optimistic about the sector’s progression. He added, "There's been so much change even in the last six to 12 months…anybody that fully thinks they know what it will look like in the next few years might not be telling the full story. 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."
