Jumbo Interactive has completed the acquisition of digital prize draw competition platform Dream Car Giveaways (DCG) in a deal that marks its entrance into the UK prize draw market.
Under the agreement, Australian operator Jumbo Interactive will pay AU$109.9 million (US$71.6 million) to secure ownership of the DCG business. This includes $75.2 million up front, $10.2 million in equity and $24.5 million in earn-out payments.
B2C-facing brand DCG offers players the chance to win prizes, such as cars, cash, property and lifestyle products. Jumbo Interactive said the addition of DCG to its business fits in with its wider growth and diversification strategy.
Jumbo Interactive targets ‘internet savvy’ players
The acquisition establishes a B2C footprint for Jumbo Interactive in the UK. The group noted DCG appeals to “younger, digitally native customers”. It also referenced a “proven business model, a strong growth trajectory and attractive financial returns”.
It added that the deal provides the opportunity to leverage its technology, marketing and operational capabilities to accelerate DCG’s growth.
“DCG has become a trusted leader in the UK’s B2C prize draw sector, which is meeting the rising demand from younger, internet savvy consumers seeking unique products in an engaging digital format,” Jumbo Managing Director, CEO and Founder Mike Veverka said.
“Jumbo’s two decades of B2C success in Australia and its world-class software, marketing and customer management expertise, provides DCG with the foundation to continue its already impressive growth.”
DCG Director Marcus Hickling also welcomed the deal. He said Jumbo Interactive’s systems and technologies will support DCG as it adapts to changing demands.
“With ongoing changes in technology and increased competition in the prize draw space, I’m pleased that DCG will be part of Jumbo,” he said. “I look forward to working closely with the Jumbo team in the next phase of growth for our business.”
DCG’s current management team will remain in place. Its three directors and founders will continue to lead the business through the earn-out period to 31 December 2026. DCG management will report into Tam Watson, head of UK operations at Jumbo.
Jumbo Interactive added that its 2025 full-year results will remain largely unchanged despite the acquisition.
Questions remain over UK prize draws
The acquisition comes at time of change for prize draws in the UK. Earlier this year, Baroness Fiona Twycross, minister of state for the Department for Culture, Media and Sport, set out plans for a voluntary code for prize draws and competitions (PDCs) operators to unify regulations across the emerging vertical.
Lottery stakeholders have called for stricter regulations for prize draws in the UK, as they claim the vertical is in direct competition with traditional lotteries. The UK’s Lotteries Council called for unified regulations across lottery verticals last year. Today prize draws are not governed by the Lottery Act.
Under the voluntary code, prize draw operators will not need to secure a licence from the Gambling Commission.
Further concerns over the impact of prize draws on traditional lotteries have been raised by the UK regulator. A Q3 gambling activity update from the commission showed that these offerings could be cannibalising traditional lotteries in the UK.
“We’ve seen the growth of large-scale prize draws and that growth has been very significant,” commission CEO Andrew Rhodes told attendees of the Betting and Gaming Council’s AGM in February.
The deal could see Jumbo Interactive pay up to AU$109.9 million.