UK Government Intends to Ban Third-Party Powerball Lottery Bets

UK Gambling Minister Vicky Foxcroft has proposed a ban on operators being able to offer third-party bets on the National Lottery’s Powerball game, and has launched a consultation on the matter which will run until November.

UK-based players have been able to participate in Powerball since July, following an agreement between UK National Lottery operator Allwyn UK and the Multi-State Lottery Association that was announced in April.

What is Powerball?

Powerball is played in 45 US states, combining 48 jurisdictions, with the UK becoming the 49th to be added to the game; this is the first time a jurisdiction outside the US has been able to take part.

The combined US and UK lotteries pool funds only for the Powerball jackpot, and not for lower-tier prizes. Players choose five white ball numbers from 1–69 and one red Powerball number from 1–26, with tickets costing $2 in the US and £4 in the UK.

Section 95 of the Gambling Act 2005 prohibits operators from offering bets on the outcome of a lottery which forms part of the National Lottery. This applies to National Lottery draw-based games such as EuroMillions, Lotto and Thunderball.

However, operators are currently not prohibited from taking bets on the outcome of the Powerball draw in the US. This can be offered by operators such as Lottomart and Lottoland. The National Lottery sits in a unique position, as it is not actually governed by the Gambling Act.

What’s the government’s issue?

The government argues the current framework can create confusion among players, as they may not be able to differentiate between the official National Lottery game and the betting product.

The government has also expressed concern for funds generated for good causes if players choose to bet on the outcome of a lottery game rather than the lottery itself; about 23% of funds from National Lottery sales currently fund good causes.

Foxcroft, whose official title is Parliamentary Under-Secretary of State (Minister for Youth, Gambling, Digital Inclusion, Civil Society and Loneliness), wrote:

“With Powerball now offered as a National Lottery game in the UK, betting on these draws is contrary to the spirit and intention of Section 95, which seeks to preserve the distinction between betting and the National Lottery.

“Without intervention, there are risks of potential customer confusion and threats to the additional good causes expected to be raised from Powerball. The government therefore proposes to prohibit licensed operators in Great Britain from offering third-party bets on the National Lottery’s Powerball game draws. This will aim to remove risks of customer confusion for players, and ensure National Lottery good causes are maximised.”

The consultation will be open for six weeks and will close at 23:59 on Wednesday, 4 November. The consultation covers all of the UK and the government is seeking a wide range of responses from both organisations and individuals across the betting and lottery sectors.

There is history here

In 2018, the government introduced legislation to prohibit betting on the outcome of the outcome of non-UK EuroMillions draws. These types of bets had previously been offered to players in Great Britain on EuroMillions games offered in other participating European countries.

Allwyn UK took over the running of the National Lottery license in February 2024. In January, Allwyn announced a major upgrade to the National Lottery’s digital platforms, allowing the operator to offer the largest ever range of National Lottery games.