Glass.AI Uncovers a Larger-Than-Expected Online Prize Draw and Competitions Sector.
The Department for Culture, Media and Sport (DCMS) recently published a comprehensive market study into the booming world of online prize draws and competitions (PDCs) in the UK. PDCs are online games—often offering big-ticket prizes (cars, holidays, cash)—that differ from lotteries.
Carried out by London Economics, the research delved into the scale, player experience, and the growing debate on whether tighter rules are needed.
Using AI to Tackle a Sector Data Challenge
This novel study, the first of its kind, had to provide evidence on the size of the PDC market in the UK and recommendations to enhance protection for players.
At Glass.AI, we have collaborated with London Economics and DCMS on previous sector mapping studies. We were asked to apply our AI technology that scans the digital universe to identify prize draws and competitions (PDCs) operators active in the UK. The initial assumption at DCMS was that there were 40-50 operators active in the UK. However, after crawling multiple sources, our AI discovered a market ten times bigger than originally thought. Overall, 401 different PDC operators were identified in the market, with one operator (Omaze) estimated to account for more than 60% of the player base. Although there are also several other relatively large operators, each accounted for at most a 5% share of the player base.
Subsequently, surveys, stakeholder interviews, and desk research were used to build a comprehensive picture of the sector. The study 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.
The following insights were revealed:
Market scale: Millions are spent annually on online prize draws, especially “big-ticket” schemes offering high-value prizes like luxury cars or homes.
User demographics & motivations: Draw players span a wide age range, often lured by low access barriers, the allure of big wins, and the convenience of free entry options.
Operator models: Some draws tie into charities, but lack transparency about actual donation amounts—a concern flagged in earlier reports.
Potential Harms Identified
Many individuals enter multiple PDCs monthly. The motives include excitement, support for charities, hope of winning life‑changing prizes. The research also uncovered the following:
Cost concerns: Some participants spend modestly; others spend tens or hundreds of pounds monthly, with a minority spending over £300.
Transparency issues: Participants often misunderstand odds, entry costs, rules, or charity donations. Free-entry options are sometimes hard to navigate.
Gambling-type harm: Evidence indicates that PDCs can exhibit addictive patterns: chasing losses, increased spending for thrill, or playing beyond means. Certain groups (low-income, mental health issues) may be more vulnerable.
Is Government Intervention Necessary?
The report examined several policy routes:
Regulation under the Gambling Act, potentially by treating large-scale draws like lotteries.
Voluntary codes of practice, backed by industry self-regulation.
New protections, such as spending caps, clearer charity donation rules, and transparent terms.
Online prize draws walk a fine line between fun and potentially exploitative. This report mapped the sector and underscored the need for more robust protections, whether via smarter regulation, industry standards, or mandatory transparency around entry costs and charity donations. As draws continue to evolve, regulators may finally step in to ensure players can enjoy the thrill without the harm.
You can read the full study here.