Gambling Commission's Andrew Rhodes Cautions Against Free Prize Draws Impacting the Lottery

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

In the third wave of the GC’s GSGB survey, 4,675 adults were surveyed over the three months leading up to the end of October. The report indicates that 48% of respondents engaged in gambling activities at some point in the previous four weeks, consistent with the figures from both Q1 and Q2.

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

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

Rhodes pointed out that participation in prize draw products is significantly higher than in other gambling products or those regulated as gambling. “Participation levels are nearing those of betting, both in terms of participation and average spending,” Rhodes noted.

Regarding the value of GSGB data, Rhodes emphasized that these surveys, which have been collecting data since 2023, provide valuable insight into consumer engagement with different products. “The frequency of the gambling survey for Great Britain allows us to track these trends with greater accuracy and regularity than before,” he added.

There has been discussion within the industry regarding whether free prize draws, like those from Omaze and Raffle House, should be regulated by the Gambling Commission. Those advocating for licensed lottery believe these draws have an unfair advantage, not having to follow the same rules for funding charities, while proponents of free prize draws argue their products are lower risk and should not be classified as gambling.

**Lottery Still Dominant in the UK**

Data for Q3, released yesterday (February 27), shows that 20% of respondents participated only in lottery draws, including both the National Lottery and other licensed charity lotteries, maintaining the level from Q2. Excluding lottery-only participants, overall gambling participation stood at 28%, consistent with Q2 figures.

Male participants aged 45 to 54 were the most active group during Q3. However, excluding lottery-only participants, the largest group consisted of males aged 25 to 34.

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

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

**Reduction in Non-lottery Online Gambling in Q3**

Regarding how people gambled, 38% participated online, slightly above the 37% in the preceding period. However, this figure drops to 15% when excluding all lottery-only participants, described by the GSGB 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 all lottery-only players, the rate was 18%, consistent with wave two.

**Players Continue to Seek Big Wins**

The primary motivation for gambling among active players in the past four weeks remained the “chance to win big money,” with others describing it as “fun.”

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

Overall, the percentage of people gambling in the UK remained unchanged during Q3 at 48%. However, Andrew Rhodes of the Gambling Commission suggests that the notable increase in free prize draws could be affecting the more traditional lottery sector.

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