Andrew Rhodes from the Gambling Commission: The Potential Impact of Free Prize Draws on Lotteries

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

Some 4,675 adults participated in the third wave of the GC’s GSGB survey, which covered the three months ending in October. The GSGB revealed that 48% of respondents had gambled at least once in the previous four weeks, consistent with both Q1 and Q2.

Commenting on the findings during the Betting and Gaming Council’s AGM on February 27, Gambling Commission CEO Andrew Rhodes highlighted a notable increase in activity on free prize draws. These draws are not regulated under the Lotteries Act and are not considered gambling by law.

“We’ve observed significant growth in large-scale prize draws,” Rhodes told BGC members. “Society lottery sales have also surpassed the £1 billion mark for the first time.”

He pointed out that participation in prize draw products is much higher than in other gambling products or products regulated as gambling. “It’s approaching the level of betting in terms of participation, as well as average spending,” Rhodes said.

Regarding the GSGB data’s value, Rhodes remarked that these surveys, which have been collecting data since 2023, offer insights into consumer engagement with various products. “The frequency of the gambling survey for Great Britain allows us to observe these trends with much greater detail and frequency than before,” he added.

There has been ongoing debate within the industry on whether free prize draws, such as those offered by Omaze and Raffle House, should be regulated by the Gambling Commission. Licensed lottery proponents argue that these products have an unfair advantage due to different charity funding rules, while free prize draw advocates believe their products are lower-risk and should not be classified as gambling.

## Lottery still king in the UK

Data for Q3, released yesterday (February 27), indicates 20% of respondents only participated in lottery draws. This includes both the National Lottery and other licensed charity lottery draws and remains consistent with Q2. Excluding lottery-only players, the overall gambling participation rate was 28%, the same as in Q2.

During Q3, male players aged 45 to 54 were the most active group. However, after removing lottery-only players, the largest group was males aged 25 to 34. Overall, women were more likely to have gambled, making up 56% of active players in the past four weeks compared to 44% being men.

The National Lottery was the most popular form of gambling at 31%, followed by charity lotteries at 16%. Scratch cards came next at 22%, then sports betting at 10%, and online instant win games at 7%.

## Non-lottery online gambling down in Q3

As for gambling methods, the percentage of online players was 38%, slightly up from 37% in the preceding period. However, this figure drops to 15% when excluding all lottery-only players. The GSGB described this as a “significant decline” from the 17% reported in wave two, covering Q2.

For in-person activity, the participation rate decreased from 29% in wave two to 28%. After removing all lottery-only players, the rate stood at 18%, consistent with wave two.

## Players continue to chase big wins

Examining the motivations for gambling, the main reasons remain unchanged among active players. The most popular reason was the “chance to win big money,” with others indicating they gambled because it is considered “fun.”

The next quarterly publication—wave four covering the three months to December—will be released on May 22. The gambling participation rate in the UK remained steady during Q3 at 48%, but Gambling Commission CEO Andrew Rhodes suggests there could be a significant rise in free prize draws potentially affecting the licensed lottery sector.

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