UK Proposes Ban On Third-Party Powerball Betting
Gambling operators have been offering markets on non-National Lottery lotteries for years, but regulators would like that to stop with Powerball
1 min
Mere months after Powerball debuted in the U.K., the government there wants to stop gambling operators from taking bets on Powerball results on the basis it could both confuse lottery players and siphon money away from the National Lottery.
The proposal, outlined in a consultation published Sept. 23, follows National Lottery operator Allwyn UK’s July 21 launch of Powerball. The government is accepting comments through Nov. 4, and no ban has been adopted in the meantime.
Before Powerball came to the U.K., some gambling operators offered bets on the outcome of the draw, according to the note from the government, and those same operators are still offering the wagers. Those bets do not enter customers into the lottery itself.
At issue is where the money eventually lands, as roughly 23% of National Lottery sales support arts, heritage, and sports and community projects, the government said. Third-party betting operators aren’t required to give any of their take to the good causes above, and they typically don’t. Additionally, their bets frequently cost less than official tickets.
There is a legal loophole that currently allows third-party operators to offer Powerball bets. Section 95 of the Gambling Act 2005 prohibits licensed betting operators from accepting bets on lotteries that form part of the National Lottery, but the U.S. Powerball draw still falls outside that protection even though British customers can now play Powerball through the National Lottery.
Other lotteries safe
The proposed fix is a new license condition barring operators from offering bets on Powerball draws to consumers in Great Britain. Bets on other lotteries outside the National Lottery, such as the Irish Lotto, would remain permitted.
The government points to a similar restriction introduced in 2018 for non-U.K. EuroMillions games. Operators had offered bets on games in other countries that used the same underlying draw. Officials also point to earlier EuroMillions evidence suggesting customers sometimes confused a betting product with an official lottery ticket.
Officials considered voluntary steps to clarify the products, requiring betting operators to contribute to good causes and banning all lottery betting. They rejected those approaches.
The six-week consultation invites responses from operators, players, and other interested parties. Participants must be at least 18, and submissions close at 11:59 p.m. U.K. time on Nov. 4.
