Study Suggests UKGC Should Regulate Online Draws and Prizes

A report by London Economics has deduced that this area of online gambling could benefit from regulation to reduce harm, increase transparency, and provide support to charitable organisations. The report stated, “Changes to gambling regulation offer a more comprehensive solution to address a wider range of issues in the market…”, meaning that the authors of the proposal believe it can solve a wide range of issues within the gambling industry.

These competitions are labelled as PDCs because they bypass regulation under the Gambling Act 2005. Due to their nature, they offer free entry or feature skill-based questions – they are not regulated by the UKGC.

The DCMS has stated that participants of PDCs have experienced higher levels of gambling harm, with 12% having experienced adverse effects, when compared to 3% of the population. The Problem Gambling Severity Index states that, “These products can be more addictive to consumers and pose heightened risks of gambling harm as highlighted by Gambling Aware.” Currently, PDCs are offered by 40% of all gambling providers.

This may be because a lot of PDC operators do not offer proper responsible gambling tools on their sites, such as self-exclusion tools, age checks, or links to support networks for those struggling with their gambling habits. Many free entry options are unclear about how prizes are won and do not provide that information, which can be confusing for players who want to participate. This can lead to more harm for gamblers.

However, the proposal has been met with criticism as it has been acknowledged that with full regulation, there could be reduced competition in the market, and smaller casino operators will struggle. It will also not come into effect straightaway and will take some time to be implemented. A solution suggested that, if the implementation is phased out by starting with a voluntary code of conduct, full regulation will be needed.

It will be interesting to see if the government acts on the study and what measures, if any, will be implemented.