The UK prize draw competitions market is witnessing a significant shift from a landscape dominated by many small operators to a more organized and professionally governed sector, according to a recent white paper published by consultancy Rokker.
The report indicates that mergers and acquisitions in this sector have already surpassed £220 million. Earlier in April, Rokker had valued the UK prize draw market at £1.3 billion in annual revenue, noting that it was supported by 7.4 million active players and over 400 active operators.
The white paper highlighted 14 key B2B platform providers that are vital for this industry and estimated the total number of operators engaged in running prize draw competitions to exceed 1,000. This figure represents a notable increase compared to the 401 operators identified in a government study earlier this year.
As of late July 2026, only about 195 prize draw operators had signed a newly instituted Voluntary Code of Good Practice. This number includes an additional 31 service providers recognized as “other relevant signatories”. With these signatories accounting for less than 20% of the estimated active operators in the market, it reflects a partial uptake of the code.
The Voluntary Code launched on May 20, 2026, initiated by the government’s Department for Digital, Culture, Media and Sport (DCMS), aims to encourage self-regulation in the sector, especially since prize draws are not currently regulated under the Gambling Act 2005 and are not monitored by the Gambling Commission.
Legal experts have touted the code as a proactive measure for operators, helping them enhance their reputations and prepare for potential mergers and acquisitions, as prospective buyers would likely conduct rigorous regulatory due diligence. Rokker noted that operators compliant with the code are considered more appealing acquisition targets due to their established compliance frameworks.
The cost to join the voluntary code varies based on turnover, with annual fees set at £24,000 for operators exceeding £50 million in UK revenue, scaling down to £250 for those earning under £2 million, while associate service providers contribute £2,500.
Key acquisitions fueling consolidation in this field comprise Winvia's purchases of Best of the Best (£45.3 million, 2023), Click Competitions (£16.4 million, 2025), and Rev Comps (£11.8 million, 2026). Additionally, Jumbo Interactive has acquired Dream Car Giveaways (£65.8 million) and Dream Giveaway USA (£28.3 million) in October 2025. More recently, ZEAL Network bought SevenCanyon and affiliated businesses for £38.6 million in July, marking its entry into the UK market, recognized as the largest in Europe for digital prize draw products. SevenCanyon manages a collection of well-known UK digital prize draw websites, including 7days Performance, Redline Competitions, and UK Carp Competitions.
The growth of affiliate and directory sites that channel players to prize draw operators has also been observed. These tracker sites compile data on operators, ticket sales, and odds; however, this affiliate segment is still in its infancy compared to regulated iGaming, lacking clarity about operator relationships and payment arrangements.
Rokker anticipates continued consolidation in the market, driven by well-capitalized entities employing both acquisition strategies and organic growth approaches. Smaller operators that neglect investment in compliance measures or tax strategies may find it necessary to consider exit plans, given the mounting regulatory and commercial pressures.
Ben Gale, a partner at Qualstels, remarked that the establishment of the code has created a benchmark for buyers assessing regulatory preparedness. "Buyers are using the voluntary code as a ready-made framework to assess whether a business is genuinely prepared for greater scrutiny,” he stated in a recent opinion piece in iGB.
Operators are also contemplating positions against HMRC's recent clarification regarding VAT obligations. In February 2026, HMRC announced that paid-entry prize draws accompanied by a free-entry option would not qualify for a VAT exemption that applies to certain games of chance, insisting that these paid entries incur VAT at the standard 20% rate while mandating backpayment of historic VAT in upcoming tax bills.
Rokker has indicated that HMRC has urged operators to review their historic VAT positions, with at least one major operator intending to challenge HMRC’s stance in a tax tribunal. This hearing is scheduled for autumn 2026, with an outcome anticipated by spring 2027.
DrawHouse, a B2B prize draw platform, estimates that the reinterpretation of VAT regulations could shrink operator margins significantly, by as much as 25% to 30%, and could lead to substantial retrospective tax liabilities. This uncertainty around taxation, combined with the prospect of future regulations, is affecting how deals are valued and structured.
For instance, reports suggest that ZEAL Network agreed to pay a diminished multiple for SevenCanyon after considering potential VAT liabilities and acquiring insurance-backed protections for historic tax obligations. Rokker posits that companies with strong legal, tax, and technological acumen are well-positioned to thrive in this climate, as they can effectively manage regulatory risks and pursue “buy and build” strategies in the market.
