Concerns Rise Over Regulation of Online Prize Draw Companies Amid Gambling Warnings

London, United Kingdom Aug 17, 2026 ALN: There have been calls for increased regulation of online competition and prize giveaway sites amid warnings over gambling harm and a lack of transparency in the industry.

Online competition sites have become increasingly popular in recent years, involving customers buying tickets for online raffles with lucrative prizes, including property in Ireland and abroad, large cash prizes, and luxury vehicles.

However, many sites operate in what has been referred to by Stormont politicians and industry insiders as a “grey area” in legislation.

The activities of some local companies have also come under scrutiny from law enforcement, including as high up as the National Crime Agency.

A property linked to Bear Competitions in Cookstown was the subject of raids involving dozens of officers from the National Crime Agency and the PSNI in May of this year.

Four people were arrested in the Co Tyrone town as part of the probe involving authorities on both sides of the border.

The four were detained as part of an investigation which saw earlier arrests in Newry, in which hundreds of thousands of pounds and euros were seized last November.

The NCA says the investigation centered on an alleged international money laundering gang.

The registered address of the company was later targeted in what police are treating as an arson attack near Stewartstown last month.

The company’s website has now shut down following the cancellation of its most recent prize draw for a Costa Del Sol apartment worth £550,000, with a statement citing “restrictions affecting the business”.

Its sole director, Owen Mallon, has denied any wrongdoing.

Following the cancellation of the Costa Del Sol apartment draw, Mr. Mallon posted on social media that he would “personally absorb the loss on this competition”.

He committed to providing refunds to all those who had entered the draw and said, “the last number of weeks have been incredibly difficult for me and my family.”

“There have been a lot of accusations and speculation, but I remain confident that, in time, my name will be cleared,” he said.

In a separate unconnected case, the company’s other named owner is among 10 people facing trial for alleged fraud and criminal property offenses.

Nichola Elizabeth Heron (37), of Fairhill Grove in Cookstown, is jointly charged alongside her husband Karl Paul Heron (45), of Crancussy Road, with trying to cheat HMRC, conspiracy to conceal and convert criminal property, and fraudulent evasion of VAT in the formation of companies, creation of bank accounts, and falsified business accounts.

The case is expected to be returned for trial later this year.

While the Bear Competitions site is now no longer trading, some have questioned the legality of their practices before the company shut down.

The company operates, like many within the industry, without regulation from the Gambling Commission as they advertise a “free entry” route, not just entry through paid tickets.

While many sites operate this route through a cumbersome postal entry system, most will offer an acknowledgment in their account that the entry has been received and entered into the draw.

Andy Freeman has followed around 500 online competition sites in the last four years and is releasing a tool, known as the Structural Advantage, which provides transparent data for users to decide on which sites are the most legitimate and provide the highest chance of success.

He says he has attempted to enter via the free route on Bear Competitions on at least 10 occasions, but it has never registered in his account. He says multiple attempts to contact the company about this went unanswered.

“In order for these online competition sites to proceed with their business without a gambling license, they have to offer either a free entry route, typically by post, or a skill-based question,” Mr. Freeman said.

“That’s what they should be doing. I’ve been following Bear Competitions for probably about two years now and I’ve never had a postal entry added from them.

“I have attempted to enter via their free entry 10 times and none have ever been acknowledged or added to my account.

“Other sites will send you an email saying your entry has been received and give you a ticket number, and then you can find that in your account, the same as if you had bought a ticket.

“I’ve contacted them a number of times about this and they simply don’t respond. I have bought tickets from them before so I know the account works and I have been registered – just not through the free entry route.

Attempts by the Irish News to contact Bear Competitions via email, phone, and social media regarding the claims by Mr. Freeman have gone unanswered.

Mr. Freeman also explained that many online prize giveaway sites behind the raffling of luxurious properties don’t own the property to give away but can enter into arrangements with estate agents in advance.

“To put half a million euros down plus solicitors’ fees, marketing costs, and everything else to run the competition is a significant outlay for any competition provider,” he said.