The Department for Culture, Media and Sport (DCMS) has published a voluntary code for prize draw operators, which encourages those that advertise a charitable contribution to register with the Fundraising Regulator.
Omaze and 19 other operators have signed up to the code, which has been introduced despite calls for stronger regulation of the sector in a government-commissioned study earlier this year.
The new code says operators that provide a charitable contribution as part of a prize draw should “outline clearly the parameters surrounding these contributions”.
“Where possible, operators should ensure information is routinely published on how much is given to charity and the frequency of such contributions,” it reads.
“In addition, where operators use this charitable contribution as part of their promotional activity, operators are expected to meet the requirements set out in the Code of Fundraising Practice and are encouraged to register with the Fundraising Regulator.”
James Oakes, president of Omaze, which is already registered with the Fundraising Regulator, said: “Omaze is proud to be a founding signatory of the new code of conduct.
“As the UK’s largest prize draw operator, we’ve consistently set industry-leading customer safeguards, whilst raising over £100m for charities across the country.
“As more and more companies offer prize draws, we welcome DCMS’s introduction of this code and look forward to all operators committing to the same high standards.”
Gambling minister Baroness Twycross said: “Millions of people enjoy entering prize draw competitions every year, and they should be confident that reasonable protections are in place. Thanks to the introduction of this code, that will be the case.
“I want to thank all of the operators who have already signed up, both for their cooperation in developing the code, and their commitment to following it moving forwards.”
Lotteries Council urges further action
The Lotteries Council has campaigned for prize draws to be regulated by the Gambling Commission, as society lotteries are.
Its chair George Collins said: “The Lotteries Council notes the introduction of the voluntary code of good practice but remains concerned that it does not resolve the regulatory imbalance between free prize draws and society lotteries.
“Free prize draws continue to operate with no meaningful oversight, while society lotteries face strict limits, including a maximum prize of £500,000.
“At the same time, commercial prize draws are still permitted to offer multi-million pound jackpots that were intended to be reserved for the National Lottery.
“This ongoing disparity undermines fair competition and threatens the revenue that charity lotteries and the National Lottery provide to good causes.
“We urge the government to monitor compliance with the code closely and to take further action to ensure a fair and consistent regulatory framework.”
