In the "Promosfera responds" section this week, we review the regulations in force in Portugal together with Rossella Adriatico, International Senior Project Manager of Promosfera.
What are the legal requirements for starting a prize-draw or -competition?
Promotions based on chance, such as draws, and those based on skill or merit, fall under two different regulations and are subject to different obligations.
For draws and chance based promotions, the rules must include specific clauses and the application must be submitted to the authorities at least 2 weeks in advance, accompanied by a surety guaranteeing the prize pool. In addition, it is mandatory to pay a 500 euros fixed fee for the organisation of each draw and wait for the permission of the authorities who can request further changes and/or additions with possible slippage of the. timeframe
Are there specific technical obligations for WEB draws or competitions?
In Portugal there is no obligation to use local servers, but in the case of Instant Win promotions, the procedures to follow are strictly enforced. In this country, it is not enough to show IT expertise, it is necessary to make the randomising software physically accessible to the authorities for technical validation.
What rules should be followed for awarding and delivering prizes?
In Portugal, the physical presence of an official is only necessary for draws. The presence of the official is not required in the case of a jury-based award or in the case of Instant Win draws or competitions.
It is also necessary to pay taxes on the prizes following a specific procedure: taxes are due only after the prizes are delivered. Also, Promoters must keep in mind that prizes should be delivered within a maximum of 90 days from the date of extraction and the successful delivery must be strictly proven getting a releasing letter from each winner signed. signature. In the event that it is not possible to obtain a signature on such releasing letter, the prize will be considered "not delivered" – even in the presence of other proofs of delivery - and the Promoter must pay the equivalent of the cash value of the prize to the Authorities to close the contest.