Gov’t moves to ban betting firms from offering Powerball UK bets
Government Proposes to Ban Betting on Powerball UK: A Comprehensive Guide
Overview of the Proposed Ban
The UK government, through the Department for Digital, Culture, Media and Sport (DCMS), has announced plans to prohibit British betting companies from accepting wagers on the newly introduced Powerball UK lottery format. The proposal seeks to align Powerball UK with other National Lottery products, which are already excluded from third-party betting under current law. A public consultation on the matter is open until midnight on 4 November 2026.
This move comes after Allwyn UK – the current operator of the National Lottery – launched Powerball UK in June 2025. The format is a domestic adaptation of the hugely popular US Powerball, where jackpots can reach billions of dollars. The record US win of $2 billion was claimed in November 2022. By extending the existing ban to cover Powerball UK, the government aims to prevent what it sees as a regulatory loophole that could confuse players and reduce funds for good causes.
Background: The Gambling Act 2005 and Section 95
Under Section 95 of the Gambling Act 2005, licensed betting firms are allowed to take bets on the outcomes of overseas lotteries – such as the original US Powerball – but not on National Lottery products. This distinction was originally designed to maintain a clear separation between betting (on chance events) and the National Lottery (which raises money for charitable and public projects).
However, because Powerball UK is a new product, it is not explicitly covered by the existing legislation. The 2005 Act only references the original suite of lottery games (e.g., Lotto, EuroMillions). This gap has allowed some bookmakers to offer bets on the draws of Powerball UK, treating them similarly to bets on the US version. The government now wants to close this gap.
Why the Government Is Taking Action
Vicky Foxcroft, Undersecretary of State at DCMS, stated that Section 95 “seeks to preserve the distinction between betting and the National Lottery.” She explained that the proposed ban is intended to prevent:
- Customer confusion: Players might not clearly distinguish between buying a lottery ticket (which directly supports good causes) and placing a bet on the same draw (which does not).
- Threats to good causes: The National Lottery generates significant revenue for arts, sports, heritage, and community projects. If players switch to betting on the draw instead of buying tickets, the contributions to these causes could drop.
“This will aim to remove risks of customer confusion for players, and ensure National Lottery good causes are maximised,” Foxcroft added.
The Consultation Process
The DCMS has opened a formal consultation on the proposal. Key details:
- Duration: Open until midnight on 4 November 2026.
- Scope: The consultation invites views from betting operators, lottery operators, consumer groups, and the general public.
- Outcome: Based on responses, the government may amend Section 95 or introduce new regulations specifically covering Powerball UK.
Stakeholders can submit feedback via the DCMS website. The outcome is expected to influence not only the Powerball UK situation but also future definitions of lottery products in UK gambling law.
Wider Regulatory Context
This proposal is part of a broader tightening of gambling regulations under Prime Minister Andy Burnham’s government. Recent and upcoming actions include:
- Aim to Permit rule: The government has already taken aim at this rule for retail gaming licensing, potentially restricting the number of gaming machines in venues.
- Increased taxes on gaming machines: Reports suggest the government is considering raising taxes on fixed-odds betting terminals (FOBTs) and other machines.
These moves signal a more cautious approach to gambling, with a focus on protecting consumers and preserving the integrity of the National Lottery. The Powerball UK ban would be another step in that direction.
What This Means for Betting Firms and Players
For betting operators: Firms that currently offer bets on Powerball UK draws will need to cease those offerings if the ban is enacted. This could affect revenue streams, though many operators already avoid UK lottery bets due to the existing Section 95 restrictions.
For players: The change would mean that betting on the outcome of Powerball UK draws becomes illegal (via licensed bookmakers). Players who want to participate would need to buy lottery tickets directly from the National Lottery. This ensures their money goes to good causes rather than to betting profits.
Examples and Comparisons
- US Powerball bets: Since US Powerball is an overseas lottery, betting on its draws remains legal under Section 95. The proposed change applies only to the UK version.
- Other National Lottery games: Lotto, EuroMillions, and Scratchcards are already excluded from betting. The ban on Powerball UK would bring consistency.
- Potential loophole: Without the ban, a player could bet on the same numbers as a lottery ticket but at a betting shop, effectively side-stepping lottery rules. The government sees this as a risk.
Conclusion
The government’s proposal to ban betting on Powerball UK is a logical extension of existing law, aiming to preserve the distinction between lottery and betting while protecting lottery-funded good causes. The consultation period gives stakeholders a chance to voice concerns, but the trend toward stricter regulation suggests the ban is likely to be implemented. For now, players and operators should monitor the DCMS consultation and prepare for changes that could come into effect after November 2026.
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