DCMS confirms society lottery sales cap and announces voluntary code for prize draws

The Department for Digital, Culture, Media and Sport (DCMS) has confirmed that the current £50 million annual sales limit for society lotteries will remain unchanged, following a review initiated in the 2023 Gambling White Paper. The announcement was made in a written statement to the House of Lords on 26 June 2025 by Baroness Twycross, Minister of State at DCMS.

Society Lotteries: No Further Changes to Sales Limit

Baroness Twycross reaffirmed the Government’s support for society lotteries, which play a vital role in raising funds for charitable and community causes. Under current legislation, society lotteries must allocate a minimum of 20% of proceeds to good causes.

The annual sales cap was increased from £10 million to £50 million in 2020 to address operational challenges faced by lottery operators. In line with the commitment made in the December 2023 White Paper, the Government commissioned research to assess whether further changes were necessary. The findings have led to a decision to maintain the existing £50 million threshold.

Prize Draws: Voluntary Code to Enhance Sector Standards

In a parallel development, DCMS announced plans to introduce a voluntary code of conduct for prize draw operators later this year. While free draws and prize competitions are exempt from licensing under the Gambling Act 2005—provided they meet statutory criteria—the sector has seen rapid growth, now valued at approximately £1.3 billion annually.

The forthcoming code aims to establish consistent standards across the industry, focusing on:

• Strengthening player protections

• Enhancing transparency

• Improving operator accountability

The initiative reflects growing concerns about consumer safeguards in an increasingly commercialised prize draw market.

DCMS is expected to publish the voluntary code later in 2025. Stakeholders are encouraged to review the supporting research and prepare for potential changes in best practice expectations.