When a Promotion Is Not Gambling
When a non-gambling business plans a prize campaign, the first question is whether the planned game is an object of regulation at all. Article 4 gives the way out: games conducted using machines, devices, the internet, the telephone, specially equipped electronic means and other means, in which no element of chance is provided, are not attributed to lotteries, gambling or promotional games. The purpose of such games is the testing or demonstration of the participants’ special knowledge, intellect, dexterity, adroitness or other special ability.
Thus, if the outcome of a competition depends on the participant’s knowledge or skill and chance is excluded, the law does not treat the game as gambling business, and the gaming permit regime does not apply to it. This is the point that settles the legal boundary between a competition and a draw: even a single element of chance transfers the game into the regime of promotional games.
The Regime of Promotional Draws
If the winning in a campaign depends on chance, it falls within the concept of a promotional draw. Article 3 defines it: a promotional draw is a game during which the organiser plays out a prize fund under a publicly published, established rule and conditions. It is conducted for the purpose of the fast and effective sale of a specific type of product or service, and also in the case determined by the Government. The occurrence of a win is a matter of chance and cannot be specially arranged.
For promotional draws the law establishes three characteristic rules: the ticket is issued free of charge; the permit for organising one is issued to the manufacturer of the specific product or service, or to its representative, except in the case determined by the Government; and it is prohibited to impose a fee for participation in the draw in any form. This last rule is violated most often in practice: the “buy and receive a code” model is legitimate, because the price attaches to the product and not to participation, but a direct charge for participation is unlawful.