Gambling Commission's Andrew Rhodes Warns Free Prize Draws May Weaken Lotteries

  • UM News
  • Posted 12 months ago
00:00 / 00:00

In the third wave of the Gambling Commission’s (GC) Great Britain Gambling Survey (GSGB), 4,675 adults were surveyed, covering the three months ending in October. The GSGB highlights that 48% of respondents gambled within the previous four weeks, consistent with both Q1 and Q2.

During the Betting and Gaming Council’s AGM on February 27, Gambling Commission CEO Andrew Rhodes commented on the data, noting a significant rise in free prize draw activities. These draws are not regulated under the Lotteries Act and are not considered gambling by law.

“We’ve seen a considerable growth in large-scale prize draws,” Rhodes explained to BGC members. “Society lottery sales have also surpassed £1 billion for the first time.”

Rhodes mentioned that participation in prize draw products is much higher than in other gambling products, or those regulated as such. “Participation levels are nearing those of betting,” he stated.

On the value of the GSGB data, Rhodes remarked that the surveys, initiated in 2023, offer insights into consumer engagement with different products. “The frequency of the gambling survey for Great Britain allows us a closer look at these trends,” he added.

There is ongoing debate within the industry about whether free prize draws, such as those provided by Omaze and Raffle House, should fall under the Gambling Commission’s regulations.

Licensed lottery advocates argue that these products have an unfair advantage because they don’t adhere to the same charity funding rules, while free prize draw proponents argue their products pose less risk and thus should not be regulated as gambling.

## Lottery Still Dominant in the UK

Data for Q3, published on February 27, shows 20% of respondents participated only in lottery draws. This includes both the National Lottery and licensed charity lottery draws, consistent with Q2 figures. Excluding lottery-only players, overall gambling participation was 28%, unchanged from Q2.

Male players aged 45 to 54 were the most active group during Q3. However, excluding lottery-only players, the most active demographic was men aged 25 to 34.

Overall, women were more likely to have gambled, accounting for 56% of total players active in the past four weeks, compared to 44% men.

The National Lottery was the most popular gambling form by a significant margin at 31%, followed by charity lotteries at 16%. Scratch cards accounted for 22%, sports betting was at 10%, and online instant win games at 7%.

## Non-Lottery Online Gambling Decline in Q3

Regarding gambling methods, 38% of participants gambled online, slightly up from 37% in the previous period.

However, this figure drops to 15% after excluding lottery-only players. The GSGB noted this as a “significant decline” from the 17% reported in wave two, which covered Q2.

In-person participation decreased from 29% in wave two to 28%. Removing lottery-only players, the rate was 18%, steady with wave two.

## Players Continue to Pursue Big Wins

The reasons for gambling remained largely consistent among active players. The main motivation was the “chance to win big money,” although many also considered gambling “fun.”

The next quarterly report, covering the three months to December (wave four), will be released on May 22.

The percentage of people gambling in the UK remained stable during Q3 at 48%. However, GC CEO Andrew Rhodes suggests that the significant increase in free prize draws might be affecting the licensed lottery sector.

Get in touch

Let's have a chat