A charity prize draw has urged the government not to bring it under the Gambling Commission’s regulatory remit, after a minister announced talks with the sector.
Unlike society lotteries, prize draws that raise money for charities such as Omaze and Raffle House are not currently regulated by the Gambling Commission.
Addressing the crowd at GambleAware’s annual conference yesterday, gambling minister Fiona Twycross said she would meet the prize draw sector to discuss its regulation and efforts to protect customers.
Twycross said: “It is not just the regulated gambling sector that needs to do more to protect consumers though. Large scale prize draws, like Omaze, are a significant and growing market.
“Whilst not regulated under the Gambling Act, I want the people who participate in draws with these companies to be confident that proportionate protections are in place.
“I am grateful for the voluntary action taken so far by the sector to act transparently and apply player protection measures.
“I want to ensure high standards in this area and will be meeting the sector to discuss this work.”
Regulation ‘completely unnecessary’
Twycross said the incoming statutory levy on gambling operators is about balance, creating an environment that allows those who want to gamble to do it safely while protecting those who are vulnerable and at risk of harm.
Benno Spencer, Raffle House chief executive, said: “We hope this balanced approach will also be applied to the prize draw sector as the proposal in the last government’s white paper to explore the potential to regulate these was completely unnecessary, in our view.
“Along with the minister, we also want to ensure high standards in this area and would welcome the opportunity to meet with her and discuss the best way to ensure players are protected.
“However, we do not feel bringing prize draws under the remit of the Gambling Commission’s regulatory regime would be the best way forward.
“The Gambling Act 2005 allows organisers to arrange prize draws outside the legal definition of a lottery or gambling by offering people the chance to enter for free and we do not believe there is any need to change this.
“It provides the opportunity for companies to hold prize draws without falling under a licensing system that is designed for much higher-volatility products than those operated by companies such as ours.
“If it does feel the need for a different approach to the one that currently exists, we hope that it will take a sensible approach and opt for a code of practice or self-regulation system rather than bringing prize draws into the gambling licensing system.
“This would allow players to distinguish between good and bad actors but without the unnecessary burden regulation would impose.”
Raffle House gives 10% of its ticket proceeds to charities, net of costs.
Civil Society has asked Omaze to comment.
Statutory levy
The levy on gambling operators will come into effect in April 2025.
It is set to raise around £84m a year and allocate the fund to research, prevention and treatment of harms caused by the industry.
Society lotteries, like the People’s Postcode Lottery, is set to pay 0.1% of their gross yield when the legislation come into force.
It has previously warned the government that the levy could divert up to £1m per year from going to good causes.
