GC's Andrew Rhodes Cautions Against the Potential Impact of Free Prize Draws on Lotteries

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

Approximately 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 revealed that 48% of respondents engaged in gambling at some point during the previous four weeks, consistent with figures from both Q1 and Q2.

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

“We’ve seen the growth of large-scale prize draws, and that growth has been very significant,” Rhodes informed BGC members.

“We’ve also seen society lottery sales surpass the £1 billion mark for the first time,” he added.

Rhodes highlighted that participation in prize draw products is significantly higher compared to other gambling products or those regulated as gambling.

“It’s getting close to being on par with betting 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, offer valuable insights into the products engaging consumers.

“The frequency of the gambling survey for Great Britain provides us a much more detailed view of these movements than we had before,” he stated.

There is ongoing debate within the industry about whether free prize draws, similar to those offered by Omaze and Raffle House, should fall under Gambling Commission regulation.

Advocates for licensed lotteries argue these products have an unfair advantage due to exemption from rules on funding charities, whereas proponents of free prize draws argue that such products are less high-risk and should thus not be categorized as gambling.

## Lottery Still Dominates in the UK

Data for Q3, published on 27 February, indicates that 20% of respondents participated only in lottery draws, including both the National Lottery and licensed charity lottery draws, consistent with Q2 numbers. Excluding lottery-only players, overall gambling participation stood at 28%, the same as in Q2.

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

Overall, women showed a higher likelihood of having gambled, with 56% of total players active in the past four weeks being women, compared to 44% men.

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

## Decline in Non-Lottery Online Gambling in Q3

In terms of gambling methods, 38% of participants gambled online, which is slightly up from 37% in the previous period.

However, when excluding all lottery-only players, this figure declines to 15%, marking a “significant decline” from the 17% reported in wave two, covering the Q2 period.

For in-person activity, the participation rate fell from 29% in wave two to 28%. When removing all lottery-only players, the rate was 18%, consistent with wave two.

## Players Continue to Chase Big Wins

The main motivations for gambling among active players remained consistent, with the most popular reason being the “chance to win big money.” Many also cited gambling as “fun.”

The next quarterly report, wave four covering the three months to December, is scheduled for release on 22 May.

The percentage of people gambling in the UK remained steady during Q3 at 48%. However, Gambling Commission (GC) CEO Andrew Rhodes speculates that the significant rise in free prize draws might be impacting the licensed lottery sector.

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