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Contests around the European Football Championship: what should you watch out for?

The European Football Championship is approaching again. This means that numerous companies are trying to capture consumer attention with various exciting contests. Frequently, entrepreneurs or marketing agencies they hire do not sufficiently consider the restrictions imposed by the Gambling Act.

This results in companies frequently being reprimanded or confronted with administrative sanctions by the Gaming Authority.[1] [2] You naturally want your campaign, which is intended to create something positive, not to lead to negative consequences. Therefore, this blog highlights several matters you should pay attention to.

Promotional Game of Chance

Giving away, raffling, or otherwise allowing customers to compete for prizes as part of a marketing campaign is a socially accepted form of gambling. Therefore, the Gaming Authority has established guidelines containing conditions that permitted promotional games of chance must meet.

Code of Conduct for promotional games of chance

In the Code of Conduct for promotional games of chance, you will find all conditions that the campaign must meet under the Gambling Act. One of the most important elements of the code of conduct is that it is only permitted to offer a promotional game of chance to promote a product or service, which is only possible once per calendar year. It is therefore important that you properly document what the promotion is organized for.

Several important elements:

  • A promotional game of chance consists of a maximum of 20 drawings, with multiple winners being designated per drawing.

  • It is not permitted to charge participants for participation in a promotional game of chance.

  • The prizes and premiums per promotional game of chance have a maximum value of €100,000. Prior to the promotional game of chance, the provider must clearly specify what the prize package consists of, including the economic value per prize.

  • The prizes and premiums must be awarded in an impartial manner. Many providers use an independent third party such as our firm for this purpose.

  • The call to participate in a promotional game of chance must contain the name of the product, service, or organization being promoted.

  • Numerous restrictions apply regarding participation in promotional games of chance by minors, including restrictions on the possibility of collecting personal data from these minors.

Small promotional game of chance

If you organize a promotional game of chance with prizes and premiums worth less than €4,500, you are exempt from several obligations. The most important exemption is that you are not required to establish game conditions.

How can we support you?

Our firm supports both entrepreneurs and marketers in establishing the legal framework for contests. This includes advising on the campaign, drafting campaign conditions/game conditions, and conducting independent drawings.

If you have questions or would like our support, please contact us.

[1] Gaming Authority news report dated November 22, 2022: KSA intervenes in prohibited World Cup campaigns

 

[2] Gaming Authority news report dated December 7, 2022: Extra attention for unauthorized gambling activities

 

When is something a game of chance?

The Gambling Act clearly states when something constitutes a game of chance. Article 1 of the Gambling Act states the following:

[…] to provide an opportunity to compete for prizes or premiums, if the designation of winners occurs through some chance determination over which participants generally cannot exercise predominant influence, unless a license has been granted for this purpose under this act

What should you take from this provision? Essentially, it concerns the question of whether the participant in the campaign has predominant influence over whether he or she wins the campaign or not. If this is not the case, then it constitutes a game of chance and you must comply with the Gambling Act.

Gambling Act

What many people do not know is that the Gambling Act is prohibitive legislation. All games of chance are prohibited in principle unless you fall under a legal exception or you have a license to offer the game of chance. The starting point is therefore that organizing a game of chance is not permitted.

General Game Conditions

As a starting point, you are required to establish game conditions for offering a promotional game of chance and make them available to participants and potential participants. These game conditions must contain at least the following information:

  • the name and address of the provider;

  • the name of the product, service, or organization being promoted;

  • the period within which participation in the promotional game of chance is possible;

  • the manner in which the participant can participate;

  • the amount of any communication costs, with a maximum of €0.45 per participation;

  • the number of prizes or premiums to be won and a description thereof and their value;

  • the manner in which winners are designated and the number of drawings;

  • the manner of announcing the winner(s);

  • the date of drawing and awarding of prizes or premiums;

  • the statement that participation in the promotional game of chance by a minor under 16 years requires parental consent;

  • the manner of withholding or declaring any gambling tax;

  • the manner in which the general game conditions and any other information regarding the promotional game of chance are available;

  • the manner in which complaints about the promotional game of chance can be submitted and the procedure to be followed; and

  • the statement that the provider acts in accordance with this code of conduct.[2]

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