UK Prize Draws Face Tougher-Regulation Calls as 177 Operators Race to Meet May 20 Code
Updated
Updated · BBC.com · May 13
UK Prize Draws Face Tougher-Regulation Calls as 177 Operators Race to Meet May 20 Code
1 articles · Updated · BBC.com · May 13
At least 177 prize-draw and competition operators have signed a voluntary code due by May 20, but clinicians and lawmakers say the fast-growing sector still lacks enforceable safeguards.
Lisa, a 33-year-old single mother, said instant-win draws left her £5,000 in debt; in one week she spent her entire £1,200 monthly disability benefit, and on one day made 90 transactions totaling £400.
Experts say the products mimic gambling through 24/7 instant wins, repeated low-cost entries and aggressive marketing; a BBC reporter received seven promotional emails from one firm in a day.
Government research based on 764 players found participants were significantly more likely to experience gambling harm, with over a fifth strongly agreeing the products were addictive and 46% agreeing.
The code adds age limits, a credit-card ban for instant-win draws and proportionate spending limits, but Sir Iain Duncan Smith said self-regulation has repeatedly failed and urged a binding regulatory framework.
With a voluntary code already faltering, are stricter government regulations for prize draws now inevitable?
These prize draws look like games, but are they just a new, unregulated form of online gambling?