| Practice area: | Consumer markets and protection |
|---|---|
| Client: | Department for Culture, Media and Sport |
| Published: | 26 June, 2025 |
| Keywords: | behavioural consumer Public Policy Regulation |
Link to the research
To better understand the prize draws and competitions (PDC) market in the UK, the Department for Culture, Media and Sport (DCMS) commissioned London Economics to conduct some of the first comprehensive research into the sector. We examined the size and scale of the sector; possible negative consequences such as gambling harm; competitive dynamics between PDCs and lotteries; and potential policy interventions. We estimate that 7.4 million adults in the UK have participated in a PDC in the last 12 months, with the sector having grown rapidly in recent years. However, little research into this sector had been conducted previously.
Our research took a multifaceted approach and employed innovative tools. Firstly, an AI web crawl was used to identify operators of PDCs, including hundreds of operators previously unknown to DCMS. Subsequently, surveys, stakeholder interviews, and desk research were used to build a comprehensive picture of the sector. We collected and analysed data from operators and players of PDCs; charities receiving donations from PDCs; gambling harm charities; and regulators such as the Gambling Commission and the Advertising Standards Authority (ASA), among others.
Our report provides novel evidence on the PDC sector. It also sets out a roadmap for potential future government intervention in the market. We assess the case for intervention and consider several forms this could take, including changes to gambling regulation; greater enforcement of consumer protection rules; and the implementation of a voluntary code of conduct for the sector.