In our previous article covering both free draws and prize competitions, we gave a heads-up on an impending voluntary code to govern this sector.
This voluntary code has now been published by the UK’s Department for Culture, Media and Sport (see this link). The Voluntary Code only applies to free draws, in other words, prize draws which can be entered into for free, notwithstanding that there may also be a paid entry route.
It provides for a transition period of 6 months (i.e. 20 May 2026) to be implemented by its signatories. As the voluntary code was a joint effort between the DCMS and the sector, those participating in the discussion are already listed as signatories. The expectation is that this core set of initial signatories will spread the word and encourage others in the sector to sign up.
There’s a veiled threat that failure of the sector to fully sign up to and implement the Voluntary Code will result in more stringent measures such as new regulation, making compliance compulsory for all. In practice it may be the supply chain who will encourage operator participation in the Voluntary Code. These suppliers can sign up as “Relevant Signatories”, no doubt requiring that their operator customers be compliant signatories as a condition of their supply.
As mentioned above the scope of the Voluntary Code is limited to free draws only and specifically does not cover skill-based prize competitions, unless free draws are combined with them. Skill competitions will continue to be subject to provisions of Section 339 of the 2005 Gambling Act, when read in conjunction with Section 14(5). Please refer to our initial article covering this in more detail.
The Voluntary Code focuses on 3 main areas, namely: Player Protection; Transparency; and Accountability. Taking each in turn.
Player Protection
This amounts to a watered-down version of safer gambling requirements set out in the Gambling Commission’s Licence Conditions and Codes of Practice. More specifically:
- There’s an 18 year old minimum age requirement, also subject to verification. This goes hand in hand with obligations to ensure under 18s are not exposed to advertising
- Credit card usage limited to £250 per month
- Facilities for setting operator or player imposed monthly spend limits
- Facilities for temporary or permanent self-exclusion with associated marketing freezes.
- Monitoring indictors of harm, making inventions to encourage responsible play and signposting to resources that can help
- Advertising aligns with CAP and BCAP codes
Transparency
This is a key, as it deals with the most contentious area in free draws, namely prejudicing free entry participation versus paid entry. The main theme is to ensure that participation via free and paid entry routes should give an equal chance of winning. More specifically:
- Clear and easily located rules, terms and information on: participation; mechanism for winner selection; and likelihood of winning.
- Free entry routes should not be more inconvenient, expensive or time constricting when it comes meeting entry deadlines, than paid entry routes
- The operator has to stand by the original prize offered and cannot reduce it due to low ticket sales.
Accountability
This ensure compliance processes are in place and the Voluntary Code requirements filters through the operator’s sales and marketing channels.
In summary the Voluntary Code will be a major step up for many smaller operators who do not have the resources to implement the player protection requirements. However the transparency provisions will hit hardest, as any form of disadvantaged free entry participation will fall foul of the code. It remains to be seen if product and service type promotions linked to free entry draws as an incentive to purchase (products and services) will be caught by the provisions of the Voluntary Code. Probably unlikely as these are technically free entry only participation and not dual entry as anticipated in the Voluntary Code.