Voluntary Code to become a ‘kite mark’ for prize draw M&A, says new PCC chief 

The United Kingdom is increasingly establishing itself as a global frontrunner in the prize competition industry, according to Tom Banks, the newly appointed executive director of the Prize Competition Council (PCC). 

The PCC, formed earlier this year, aims to represent businesses operating prize draws, raffles and similar promotional activities, offering a unified industry voice.

Speaking to iGB, Banks outlines the council’s ambitions to guide the rapidly expanding sector through regulatory changes, fostering collaboration with government departments and HM Revenue & Customs (HMRC) to offer clarity for businesses amid maturation of the market.

Banks also emphasises the integrity of the Department of Culture Media and Sport (DCMS)’s Voluntary Code of Good Practice for Prize Draw Operators’ as a “real significant moment for the industry”.

The code, implemented in May this year, sets out core principles for the sector to adhere to, to protect players effectively from potential harm.

The Code is not a formal piece of regulation, and operators are not required by law to adhere to it. A report by Rokker in August revealed only 20% of UK operators had signed up to it so far.

“I think it provides a really important foundation to build on,” Banks notes.

A sector on the rise

Banks describes the UK’s prize-draw market as ‘a British success story’ fuelled by entrepreneurial technology companies. 

He highlights the UK’s global leadership in prize draw competitions, citing the ingenuity of British entrepreneurs in building innovative and successful gaming enterprises.

The PCC’s role in this progressively expanding sector, he says, is to act as a champion for the sector’s economic contribution and a facilitator for responsible market growth.

“The sector definitely has a positive contribution to make to UK PLCs and we should be really ambitious about that, and part of my role at the PCC is to champion that contribution,” he says.

M&A activity across the prize draw vertical has increased, with London-listed operator Winvia snapping up several small players to grow its market share in the UK. Banks suggests that adhering to the DCMS’ code will be a key indicator of quality and due diligence for potential investors and acquirers. 

Joining the voluntary code as best practice

The Code has sought to address concerns around player protection and ethical marketing. It also set out a framework for players to have an option to set monthly spend limits – while operators can enforce their own spending limits to users.  

“I would urge any operator that isn’t already signed up to the code to sign up to it because you know it’s clearly going to be a kite mark for operators,” Banks urges.

“For the PCC that’s why our engagement with the government and others and our work to support high standards and provide a strong collective voice are so important as that surge in M&A continues.”

German lottery brokerage Zeal Network highlighted the value of the DCMS’ Voluntary Code in its acquisition of UK prize draw operator SevenCanyon in July. CEO Dr Stefan Tweraser cited the increased formalisation of regulation as a reason for it entering the UK market.

“We expect the UK price draw to continue moving towards more formalised rules and higher regulated standards. This should really favour us with strong experience over the last 20 years in a highly regulated market like Germany,” he told analysts at the time.

The role and reach of the PCC

Although still in its infancy, the PCC has grown rapidly, Banks notes. He estimates that its roughly 70 members represent approximately 90%-95% of the market.

Membership spans a four-tier model designed to reflect the sector’s diverse operators, including names such as Elite Competitions, Winvia Entertainment, That Prize Guy, Giveaway Guys, McKinney Competitions, Raffolux and Daymade.

“The makeup of the board is representative of the varying diverse nature of the membership,  so everybody’s voice is heard at board level,” Banks says.

The code itself is viewed as a milestone in the sector’s maturation, intended to set minimum standards and foster professionalism.

“I’ve been really surprised, and in a good way, at just how seriously the businesses are taking this and the steps they’ve done already even since the code was formed to develop and evolve.

“Long may that continue and we’ll do more to support that.”

Working with DCMS 

The PCC is prioritising building a close relationship with the DCMS and HMRC, especially regarding the latter’s recent move to backdate VAT receipts for the sector.

“VAT is clearly an important issue for the members and it’s one that we are taking incredibly seriously,” says Banks, adding that businesses, particularly smaller operators, need regulatory certainty to plan and invest confidently.

A key focus for the PCC under his leadership will be supporting its members with compliance related to the DCMS code and clarifying emerging regulatory concerns. 

“We as the PCC are engaging directly and constructively with HMRC,” Banks explains. “It’s about ensuring that the industry’s perspective is properly understood.”

The PCC plans to offer practical guidance, share best practices among members and serve as a conduit for raising compliance-related challenges with policy makers. 

Banks stresses the importance of transparency and openness in dialogue with government officials: “What the DCMS will get from the PCC will always be an openness and transparency to share the good and the bad.

“What we need at this point is clarity for businesses across the sector because, like any sort of growing industry, businesses need that clarity and certainty to plan and invest and continue to drive their businesses forward.” 

He refers to his earlier experience within the regulated gaming space, citing his work on the 2023 UK white paper to aid him with this sort of engagement. 

Looking forward

The PCC will continue to raise its profile and amplify the industry’s voice in the coming months, focusing on advancing standards that build upon the existing DCMS code.

While not wanting to give specific market forecasts, Banks is optimistic about the sector’s continuing maturity.

“There’s been so much change even in the last six to 12 months … anybody that fully thinks they know what it will look like in the next few years might not be telling the full story,” he says.

“The PCC will be the voice of the sector and it’s really exciting that we’re going to be on the journey alongside the sector and really bang the drum for it.”