The United Kingdom is positioning itself as a leader 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 represents businesses engaged in prize draws, raffles, and similar promotional activities, aiming to provide a unified voice for the industry.
In an interview, Banks elaborated on the PCC's goals to support the growing sector amid ongoing regulatory changes, emphasizing the importance of collaboration with government bodies and HM Revenue & Customs (HMRC) for better clarity and guidelines.
He underscored the significance of the Voluntary Code of Good Practice for Prize Draw Operators, introduced by the Department of Culture Media and Sport (DCMS) in May. This code outlines fundamental principles to safeguard players from potential harm, though it is not legally binding. A report released in August indicated that merely 20% of UK operators have opted into the voluntary code so far. Banks stated, "I think it provides a really important foundation to build on."
Describing the UK prize draw market as a successful endeavor driven by innovative technology companies, Banks highlighted the nation's leading position in the global competition landscape. He champions the industry's contributions to the economy, asserting that the PCC will help facilitate responsible growth and represent the sector’s value.
Recent mergers and acquisitions (M&A) have become prevalent, as seen with the London-listed operator Winvia, which has acquired several smaller companies to enhance its market share. Banks believes that compliance with the DCMS' code will increasingly serve as a quality standard for potential investors.
The Code aims to tackle player protection issues and ethical marketing practices. It also offers players the option to set monthly spending limits, while operators can impose their own limits. Banks encouraged any non-compliant operators to join the code, stating, "It’s clearly going to be a kite mark for operators."
German lottery brokerage Zeal Network's acquisition of the UK prize draw operator SevenCanyon in July reflected the importance of the DCMS’ Voluntary Code. CEO Dr. Stefan Tweraser noted that they expect the UK market to evolve towards more standardized regulations, benefiting from Zeal’s substantial experience in Germany's regulated market.
The PCC, still in its early stages, has rapidly expanded, with Banks estimating it represents about 90% to 95% of the market through its roughly 70 members. The membership includes a diverse range of operators such as Elite Competitions, Winvia Entertainment, and McKinney Competitions.
Banks pointed out that the board’s diversity ensures all voices within the membership are acknowledged. The Voluntary Code is seen as a crucial step in establishing minimum standards and promoting professionalism in the sector. Banks expressed his surprise at how seriously businesses have embraced the changes since the code's inception.
The PCC is also working towards a closer relationship with the DCMS and HMRC, particularly concerning the latter's recent decision to backdate VAT receipts for the industry. Banks highlighted the importance of clear regulatory guidance for smaller operators to support their planning and investment decisions.
Under his leadership, the PCC will prioritize compliance with the DCMS code and address emerging regulatory issues. Banks emphasized engaging directly with HMRC to ensure the industry's views are understood. He aims to provide practical guidance, share best practices, and act as a bridge for compliance concerns between members and policymakers.
He reiterated the need for transparency in discussions with government officials, stating, "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 plans to enhance its visibility and amplify the industry’s collective voice, focusing on evolving standards in line with the DCMS code. While specific market predictions are elusive, Banks expressed optimism about the sector's ongoing development. He noted that the significant changes experienced over the last year indicate that predicting its future could be complex. "The PCC will be the voice of the sector," he concluded, expressing excitement about participating in the industry's journey.
