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New guidelines for UK sweepstakes released, voluntary code of conduct to take effect next May.

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·Mars

Recently, the UK Department for Digital, Culture, Media and Sport (DCMS) launched a voluntary code of conduct for lottery activities, essentially setting rules for operators, requiring them to keep pace by May 20, 2026. This code is not law, but focuses on protecting player rights and enhancing industry transparency, and has already received support from some major companies, although the Lottery Commission is quite worried about insufficient regulation.

Background and Implementation Timeline of the Code

This voluntary code, officially named "Good Practice Voluntary Code for Lottery Activity Operators," was released by DCMS on November 20, with a six-month grace period, so the deadline is May 20 next year. It's quite straightforward: those who want to join need to act quickly. The code does not replace existing regulations, such as consumer rights or advertising laws, but DCMS will monitor its effectiveness and evaluate it regularly.

Player Protection Measures Explained

The core of the code is to protect players, for example, only allowing users over the age of 18 to participate. Operators must monitor player behavior and provide timely assistance if problems are detected. Players can set their own monthly spending limits, with a minimum of 0 pounds, and a maximum of 250 pounds per month for credit card spending, but instant win games cannot be played with cards. Additionally, users can suspend their accounts for at least six months during which they will not receive marketing messages, and there must be a clear complaint process.

Transparency and Industry Reaction

In terms of transparency, lottery activities must disclose their operational methods and the probability of winning. Prize distribution must be fair and ideally independently verified. Free entry methods must be clear and not more cumbersome than paid ones. Once prizes are issued, they cannot be reduced, and if charitable donations are involved, the amount and calculation method must be clearly stated. The industry's reaction is polarized, with companies like Omaze signing in support, but Lottery Commission Chairman George Collins directly calling out, saying the code is not fair enough, limiting public lotteries while commercial lotteries have huge prizes, and calling for stronger government regulation.

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