The UK prize draw market has consolidated through M&A deals worth more than £220m, but fewer than 20% of operators have signed up to voluntary self-regulation, according to an updated white paper from consultancy Rokker.
The market is now valued at £1.3bn in annual revenue with 7.4 million active players and over 1,000 operators — three times the figure in a 2023 government report. By the end of July 2026, the voluntary Code of Good Practice launched by DCMS in May had been signed by 195 operators and 31 suppliers, representing less than a fifth of active businesses.
The code was introduced as a self-regulatory measure because prize draws remain outside the Gambling Act 2005 and are not supervised by the Gambling Commission. Legal advisers note that compliance improves reputation and prepares operators for M&A, since buyers conduct due diligence and favour companies with ready-made infrastructure.
The largest transactions include Winvia's acquisitions of Best of the Best (£45.3m, 2023), Click Competitions (£16.4m, 2025) and Rev Comps (£11.8m, 2026); Jumbo Interactive's purchases of Dream Car Giveaways (£65.8m) and Dream Giveaway USA (£28.3m) in October 2025; and ZEAL Network's £38.6m deal for SevenCanyon and its portfolio of sites including Redline Competitions in July.
HMRC clarified in February 2026 that competitions with both paid and free entry are not exempt from VAT, with the 20% rate applied retrospectively. Platform DrawHouse estimates this could cut margins by 25–30% and trigger backdated assessments. At least one major operator is challenging HMRC's position at a tax tribunal, with a ruling expected in spring 2027. ZEAL reduced the multiple and insured against tax exposure when acquiring SevenCanyon.
Trade body Prize Competition Council has introduced membership fees ranging from £250 to £24,000 a year based on turnover. Rokker expects further consolidation, with smaller operators lacking compliance infrastructure forced to seek an exit.
