Late last week, our principal consultant Neal Luke spoke with a panel on the now released ‘Voluntary Code of Good Practice for Prize Draw Operators’ (link to webinar below).

The voluntary code will be utilised to encourage good practice and evidence efficient self-regulation. This will also be a pre-requisite for operators who wish to join the industry group (name pending) who will be responsible for reviewing compliance and giving clear status to those operators who uphold the code.

The code of course intends to work alongside existing regulation. As prize draws are still governed by GDPR, Codes of Advertising Practice, the Proceeds of Crime act and other pieces of UK legislation. So although the code is voluntary, they do overlap with certain legal obligations the industry should already be compliant too.

Regardless of the code, prize draw operators must;

• Ensure compliance to GDPR
• Ensure paid entry has no advantages of free entry routes. Any added incentives for paid routes will mean you are likely operating an illegal lottery.
• Ensure a clear, valid free entry route is advertised with equal prominence
• Have a clear complaints process for customers.

Further requirements at a high level include;

• Having procedures for account suspension, similar to self-exclusion with the regulated gambling sector.
• Capping credit card spend at £250 per month.
• The need to identify markers of harm where vulnerable consumers may be affected due to addiction etc.
• Instant win prizes not accounting for the majority of an operators offerings.

The full code includes 22 requirements split between player protections, transparency and accountability.

OUR RECOMMENDATIONS

• Watch the webinar if you haven’t seen it, link below.
• Read over the voluntary code, identify areas of improvement if necessary and consider whether membership of the industry group is beneficial .
• Be wary of opportunists looking to give any accreditation against the code. Compliance to the code will be reviewed by the industry group which is currently being formed for those looking to join the industry group. Always check providers background and credentials.

If you have any questions regarding your Policies and Procedures for prize draw compliance, please do not hesitate to Contact Us for a r free consultation.

LINKS TO FULL DETAILS

Watch the recent webinar Link HERE and passcode is: tUaL#s85
Read the voluntary code – You can request a copy by emailing Info@LukeARC.com from your company email.