skip to Main Content

Competition and Game of Chance

Competitions and contestsare a very popular means of marketing actions. Thanks to the Internet, and in particular to social services, that is an easy and cheap way of reaching a large number of prospective clients.  Contest or competition participants do not find their competitive task most important. It is the prize that counts. Even the smallest in-kind prize attracts and participants flock in abundance. It often occurs that such is also the way contest and competition organisers think. They focus on the prize, neglecting the competition or contest mechanism, and in particular what contestants may win the prize for. Organisers trapped in such thinking may incur far-reaching consequences.

According to the Act of 19 November 2009 (Official Journal of Laws from 2009, No. 201 item 1540), games of chance are such games with cash or in-kind prizes whose outcome particularly depends on randomness and whose terms and conditions are stipulated in respective regulations. If at least one element of the competition or contest mechanism is structured on a random basis, such competition or contest constitutes a game of chance, the organization of which may require permit obtaining from or notification making to the Head of the Customs Chamber. In case such requirements are not complied with, the organiser risks being subjected to penal fiscal liability, with a penalty fine and even up to 3-year imprisonment punishment being possibly ruled. In view of that, it is advisable that competition or contest organizers should pay more attention to the planned competition or contest undertaking.

Tomasz Korolko

Partner

Back To Top