Andrew Rhodes of the GC Suggests Free Prize Draws Might Undermine Lotteries

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

**Survey Insights from the Gambling Commission’s Latest Report**

A survey involving 4,675 adults was conducted as part of the third wave of the Gambling Commission’s (GC) Gambling Survey for Great Britain (GSGB), covering the three months leading up to the end of October. The GSGB findings indicate that 48% of respondents participated in gambling activities at least once in the preceding four weeks, maintaining the same level as in the first and second quarters.

During the Betting and Gaming Council’s AGM on February 27, Gambling Commission CEO Andrew Rhodes highlighted a notable increase in activity related to free prize draws. These draws are not regulated under the Lotteries Act and thus are not included in the data or legally considered gambling.

“We’ve witnessed significant growth in large-scale prize draws,” Rhodes mentioned to BGC members. “Additionally, society lottery sales have surpassed the £1 billion mark for the first time.”

Rhodes noted that participation in prize draw products is considerably higher than other gambling products. “It’s reaching a level comparable to betting in terms of participation and average spending,” Rhodes added.

Regarding the value of the GSGB data, Rhodes emphasized that these surveys, which began in 2023, offer insights into consumer engagement with various products. “The frequency of the gambling survey in Great Britain allows us to observe these trends with greater clarity and regularity,” he said.

There is ongoing debate within the industry about whether free prize draws, such as those offered by Omaze and Raffle House, should be regulated by the Gambling Commission. Licensed lottery advocates argue that these products have an unfair advantage by not adhering to the same charity funding regulations, while proponents of free prize draws claim their products present lower risk and should not be classified as gambling.

## Lottery Still Dominates in the UK

Data for Q3, released on February 27, reveals that 20% of respondents participated exclusively in lottery draws. This includes both the National Lottery and licensed charity lottery draws, consistent with Q2 figures. Excluding lottery-only participants, overall gambling participation stood at 28%, unchanged from Q2.

Once again, male players aged 45 to 54 were the most active group in Q3. However, excluding lottery-only participants, the most active group shifted to males aged 25 to 34.

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

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

## Decrease in Non-Lottery Online Gambling in Q3

Regarding gambling methods, 38% played online, slightly higher than the previous period’s 37%. However, this figure drops to 15% when removing all lottery-only players. The GSGB termed this a “significant decline” from the 17% reported in wave two, covering Q2.

In terms of in-person gambling, participation decreased from 29% in wave two to 28%. After excluding all lottery-only players, the rate remained at 18%, consistent with wave two.

## Motivations for Gambling

Examining the motivations for gambling, active players’ reasons have remained largely unchanged. The most popular reason for gambling was the “chance to win big money.” Others stated that they gambled because it was seen as “fun.”

The next quarterly publication—wave four, covering the three months to December—will be available on May 22.

Despite the gambling participation rate in the UK remaining steady at 48% during Q3, Gambling Commission CEO Andrew Rhodes suggests that the rise in free prize draws might be impacting the licensed lottery sector.

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