Gambling Commission's Andrew Rhodes Suggests Free Prize Draws May Impact Lottery Sales

  • 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, covering the three months leading up to the end of October. The GSGB noted that 48% of respondents engaged in some form of gambling in the previous four weeks, a figure consistent with Q1 and Q2.

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

“We’ve observed substantial growth in large-scale prize draws,” Rhodes informed BGC members. “We’ve also seen society lottery sales surpass the £1 billion mark for the first time.”

Prize draw products are seeing participation levels far exceeding those of other gambling products, or those regulated as gambling. “It’s close to matching betting in terms of participation and average spending,” Rhodes commented.

Rhodes emphasized the value of the GSGB data, mentioning that these surveys, which began in 2023, offer insights into consumer engagement with various products. “The frequency of the gambling survey for Great Britain allows us to monitor these trends more closely than before,” he added.

There is ongoing debate within the industry about whether free prize draws should fall under the Gambling Commission’s regulation. Some argue that these products gain an unfair advantage by not adhering to charity funding rules, while others believe they pose a lower risk and should not be categorized as gambling.

## Lottery Still Dominant in the UK

Data for Q3, released on 27 February, indicated that 20% of respondents only participated in lottery draws. This figure, encompassing both the National Lottery and other licensed charity lottery draws, remains steady with Q2. 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 participants, the most active group shifted to males aged 25 to 34.

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

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

## Decline in Non-Lottery Online Gambling in Q3

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

In-person gambling decreased from 29% in wave two to 28%. When excluding all lottery-only players, this rate was 18%, consistent with wave two.

## Players Continue to Pursue Big Wins

The primary reasons people gambled remained consistent. Among those who gambled in the past four weeks, the most popular reason was the “chance to win big money.” Others cited gambling as “fun.”

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

The UK gambling rate remained at 48% during Q3, but Gambling Commission CEO Andrew Rhodes suggests that the increase in free prize draws may be impacting the licensed lottery sector.

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