According to Tom Banks, the newly appointed executive director of the Prize Competition Council (PCC), the United Kingdom is positioning itself as a global leader in the prize competition market. The PCC, established earlier this year, aims to represent businesses involved in prize draws, raffles, and other promotional activities, providing a unified voice for the industry.
In an interview with iGB, Banks outlined the council's objectives, which include steering the fast-growing sector through regulatory developments and fostering collaboration with various government departments and HM Revenue & Customs (HMRC) to bring clarity to businesses operating in this space.
He highlighted the significance of the Department of Culture Media and Sport (DCMS) Voluntary Code of Good Practice for Prize Draw Operators, calling its implementation in May a “real significant moment for the industry.” This code sets forth key principles aimed at ensuring player protection, though it is not mandatory for operators to comply with it. A report from Rokker in August revealed that only 20% of UK operators have committed to the code up to this point. Banks remarked, "I think it provides a really important foundation to build on."
The UK's prize-draw market is characterized as a “British success story” driven by innovative technology firms. Banks pointed out the country’s leadership in prize competitions, attributing it to the creativity of British entrepreneurs who have developed successful gaming ventures. In his view, the PCC's role is to advocate for the economic contributions of this growing sector while facilitating responsible market expansion. “The sector definitely has a positive contribution to make to UK PLCs…and part of my role at the PCC is to champion that contribution,” he stated.
Mergers and acquisitions (M&A) in the prize draw sector have surged, exemplified by London-listed operator Winvia, which has acquired multiple smaller firms to expand its presence in the UK market. Banks indicated that compliance with the DCMS code will be crucial for potential investors and acquirers looking for quality and due diligence among operators.
The code aims to address player protection and ethical marketing, providing a framework that allows players to set monthly spending limits. Banks encouraged unregistered operators to adopt the code, emphasizing its potential to become a quality mark for the industry. “I would urge any operator that isn’t already signed up to the code to sign up to it because you know it’s clearly going to be a kite mark for operators,” he noted.
Zeal Network, a German lottery brokerage, recognized the DCMS Voluntary Code's importance when it acquired UK prize draw operator SevenCanyon in July. CEO Dr. Stefan Tweraser pointed to the increasing formalization of regulations as a factor in his company's entry into the UK market, asserting, “We expect the UK prize draw to continue moving towards more formalized rules and higher regulated standards.”
Although still developing, the PCC has rapidly expanded, with Banks estimating its membership at around 70 companies that represent approximately 90%-95% of the market. This diverse membership includes notable names like Elite Competitions, Winvia Entertainment, That Prize Guy, Giveaway Guys, McKinney Competitions, Raffolux, and Daymade. Banks expressed that the board's composition is reflective of the varied sector, ensuring all voices are heard.
The code is viewed as a crucial step in professionalizing the sector by establishing minimum standards. Banks noted, "I’ve been really surprised…at just how seriously the businesses have taken this and the steps they’ve done already even since the code was formed. Long may that continue and we’ll do more to support that."
Strengthening ties with the DCMS is a priority for the PCC, particularly in light of HMRC's recent decision to backdate VAT receipts for the sector. Banks emphasized the importance of VAT for members, particularly smaller businesses, which require regulatory clarity to plan their investments confidently.
Under his leadership, the PCC will focus on helping members comply with the DCMS code and addressing emerging regulatory issues. Banks stated, “We as the PCC are engaging directly and constructively with HMRC,” ensuring that the industry’s perspective is understood.
The PCC aims to provide practical guidance, share best practices, and act as a bridge for communicating compliance challenges to policymakers. Emphasizing transparency in interactions with government officials, Banks said that the PCC intends to provide both good and bad feedback: “What we need at this point is clarity for businesses across the sector because…they need that clarity and certainty to plan and invest."
With previously regulated gaming experience, Banks plans to leverage his insights from the 2023 UK white paper to influence productive engagement with government entities.
Looking ahead, the PCC seeks to enhance its visibility and strengthen the industry's voice while advancing standards that build on the existing DCMS code. Though refraining from making specific market predictions, Banks expressed optimism regarding the sector's ongoing maturation. "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," he remarked. He concluded by affirming the PCC’s role as the industry's representative, remarking on the excitement of being part of this evolving journey.
