The UK’s game of skill, competition and raffle sector market is evolving fast. While there is a lack of research in this industry,
UK Government research, estimates that 14% of the adult UK population spent a total of £1.3 billion in a year, compared with 44% of the adult UK population spending approximately £8.2 billion annually on the National Lottery.
Moreover, the same report found that more operators expect an increase in ticket sales (60%) than anticipate a decrease in sales (5%) over the next three years, and more players (22%) have increased their spending than have decreased their spending over
the last year (17%). With such dynamic growth, the importance lies in fair access to payment solutions to help foster competition among merchants.
The Payments Layer of Trust and Scale
As these businesses mature, they face a twin challenge: building player trust while scaling operations responsibly. Unlike casual games or entertainment apps, game of skill competitions frequently involve real money, whether that’s through entry fees or
payouts. This raises the stakes for security, compliance and protection both for merchants and consumers.
This is where payments plays a vital role in the front line of trust, performing critical roles such as Strong Customer Authentication (SCA) and two-factor authentication (2FA) protect both users and merchants from fraud, account takeover, and unauthorised
transactions.
Pre-populated payment forms and stored card credentials enable faster repeat purchases while reducing error rates and checkout abandonment. While Click to Pay and network tokenisation streamline the user experience with secure, one-click checkout options
improving conversion while maintaining PCI compliance.
Real-time fraud monitoring and transaction velocity controls help platforms flag suspicious activity without adding friction to legitimate users. Dynamic transaction routing ensures optimal approval rates, which directly impacts revenue and user satisfaction.
From Backend Function to Brand Differentiator
What might have been seen as a silent, backend function is now central to user experience and growth. Payments represent both the first and last touchpoints in a player’s journey. Frictionless entry and instant payouts don’t just create operational efficiency
but build loyalty, can reduce drop-off rates and give platforms a competitive edge in a crowded market.
This is especially relevant for microtransaction-heavy models, where volume is high and user expectations are unforgiving. A single delayed payout or failed deposit can erode trust quickly. Conversely, fast, transparent, and secure payment experiences become
a reason to stay. And could also be a reason to recommend and refer.
Powering a New Kind of Platform Economy
The broader creator and competition economy is only just getting started with new formats constantly emerging. What they all share is a need for scalable, compliant, and user-centric payment systems. They are the invisible engine behind these business models
that help determine if innovation can translate into monetisation and whether trust can be sustained at scale.
As investment continues to flow into the space, the platforms that thrive will be those that treat payments not as plumbing, but as product and not just a cost centre, but a strategic growth lever.
