Lottery betting in the UK after Powerball: why the door keeps closing
The UK is consulting on banning third-party bets on Powerball, following the 2018 EuroMillions ban. A Lottoland co-founder explains what it means for secondary lottery operators.
By Andrew Lindley · · 3 min read
The UK government has consulted on banning licensed operators from taking bets on Powerball draws. The consultation, published by DCMS on 23 September 2026, closed on 4 November 2026 (GOV.UK).
I co-founded Lottoland in 2011 to bring lottery betting, also called secondary lottery, to a wider market. So I have watched this area of law closely for a long time.
How lottery betting works
A lottery betting operator does not sell lottery tickets. It takes a bet on the result of an official draw, under a betting licence, and pays out as if the customer had a ticket. The operator manages its liability through insurance and hedging, including buying official tickets in some cases.
For players, it means access to big international draws. For the official lotteries, it can look like competition that pays nothing to good causes.
Why Powerball, and why now
Allwyn launched Powerball as a National Lottery game in the UK on 21 July 2026. Section 95 of the Gambling Act 2005 already bans betting on National Lottery games, but it does not cover the underlying US Powerball draw. That gap is what the proposal closes.
The government's reasons are familiar: customers confusing a bet with playing the lottery, a possible hit to good-cause returns, and consistency across National Lottery products. The National Lottery raises around £1.8bn a year for good causes (GOV.UK).
The EuroMillions precedent
This has happened before. From 6 April 2018, UK licensed betting operators were barred from offering bets on non-UK EuroMillions draws. Three betting operators challenged the decision in the High Court and lost: the court found the ban pursued legitimate aims and the consultation was lawful (CMS).
That case makes a legal challenge to a Powerball ban much harder. The proposed mechanism is also a licence condition under section 78 of the Act, applied to betting licences, rather than new primary legislation.
What still stays open
The proposal is targeted. Bets on lotteries that are not part of the National Lottery, such as the Irish Lotto, would remain permitted, and the government rejected a blanket ban on all lottery betting as too broad.
What this means for operators
- UK revenue from US draws is at risk. If you take Powerball bets from UK customers, plan for that line to end.
- Product design matters more than ever. The safest lottery betting products are those that cannot be confused with an official National Lottery game.
- The growth is elsewhere. Lottery betting and i-lottery are growing fastest in markets that are building regulation now, especially in Latin America. I wrote about that in lottery and i-lottery in Latin America.
The lesson from 15 years of lottery betting is simple. In a market with a strong national lottery, the regulator will protect the good-cause model. Build your business where the rules invite you in, not where they are about to close the door.
If you run or are planning a lottery or lottery betting business and want a view on where to focus, get in touch.
Sources
Gambling industry business adviser. Holds a solicitor's practising certificate but does not give legal advice through this business. Co-founder of Lottoland and Lot.to, former CEO of Sportech plc and former General Counsel of the Tote. More about Andrew