Lottery Regulations & Promotional Draws | Legal.ge

LotteryRegulations

When is a permit not required?

If the draw does not involve randomness (e.g., prize given to the most active user or jury's choice), a permit is not needed.

How much is the permit fee?

The permit fee for a promotional draw is 10% of the prize fund value.

Can I draw cash prizes?

Yes, the prize fund can be both material items and cash. In both cases, taxes must be paid.

How early should I apply?

Review takes 20 working days, so it is recommended to start the process at least 1 month before the draw.

Lottery Regulations and Promotional Draws

Lottery Regulations cover not only classic lotteries but any activity involving prize draws based on chance. This is particularly important for companies conducting marketing campaigns, promotional draws, or contests to attract customers. In Georgia, organizing a promotional draw is allowed only based on a special permit issued by the Revenue Service. Conducting such activity without a permit (including online) is considered illegal entrepreneurial activity and is subject to substantial fines. Lawyer assistance is needed to plan the marketing campaign correctly and avoid violating the law.

What Does This Service Cover?

Specialists on Legal.ge offer full legal support:

Obtaining Permit: Managing the procedure for obtaining a promotional draw permit (application, fee).
Drafting Terms: Creating the draw regulation (rules), which must be public and transparent.
Prize Fund: Documenting the prize fund and resolving taxation issues.
SMS Draws: Legal audit of telephone and SMS draw organization.
Social Media: Legal check of Facebook and Instagram contests to avoid classification as an "illegal lottery."
Reporting: Submitting a mandatory report to the Revenue Service after the draw completion.

Common Situations When You Need a Lawyer

Marketing activities can become problematic:

Illegal Draw: A company conducted a draw without a permit and was fined.
Consumer Claim: A participant disputes the draw results and demands the prize through court.
Tax Liability: The company forgot to tax the prize fund and incurred penalties.
Regulation Flaw: The rules did not cover force majeure, causing confusion when postponing the draw.
Online Fraud: Someone conducted a fake draw in your name, and you need legal response.

Georgian Legal Framework

The field is regulated by the Law "On Organization of Lotteries, Games of Chance and other Prize Games" and the Law "On Licenses and Permits."

Process: How Collaboration with a Specialist Works

The process includes:

Consultation: Defining activity type.
Documentation: Preparing regulation.
Permit: Obtaining permit.
Monitoring: Overseeing the draw process.
Completion: Processing winners.

Why Choose Legal.ge?

Promotional draws are effective marketing tools but require strict legal compliance. Legal.ge connects you with lawyers who will help you conduct the campaign legally. Find a specialist on Legal.ge.