Promosfera responds: a new round of questions on prize-draws and competitions in Italy

More useful information for organising prize-draws and competitions in Italy

We return again to Italy to answer new questions about the rules on prize-draws and -competitions. Danja Mantovani, Senior Account & Sales Manager of Promosfera, responds this time.


What are the legal requirements for starting a prize-draw or -competition?

The procedure required by the regulations relating to prize competitions or draws does not depend on the method of identifying the winners (random, chance or skill): all types fall within the same category and therefore follow the same procedure. 

For all prize draws or -contests, it will therefore be necessary to take out a prize bond insurance equal to 100% of the prize pool that will be forwarded, together with the regulations of the event, to the Ministry of Economic Development through the Prema Online system. Such submission shall be made at least fifteen days prior to the date of commencement of the prize draw or competition. 


Are there specific technical obligations for WEB draws or competitions?

With regard to competitions held on the web, there is an obligation to provide that the details of the participants are collected on a server located on the national territory with the possibility, in cases where there are no instant assignments, to activate a mirroring system if the server is located abroad. Another technical requirement that must be fulfilled is the preparation of an IT expert report, in the form of a declaration in lieu of a notarial deed with a description of its operation, and which certifies the conformity of the software and the impossibility of it being tampered with by external third parties. 

The IT expert report must be drawn up by the person who created the software system and must also contain, in the case of Instant Win competitions, the specifications regarding the winnings awarded and the randomness criteria of the assignment of winnings.


What rules should be followed for awarding and delivering prizes? 

In Italy there is a process, regulated by the law on prize promotions, to fulfil the delivery of prizes. At the end of the initiative, it is necessary to organise a meeting with an Officer responsible for the protection of public confidence (or a Notary) to identify the winners and then proceed with the delivery of the prizes. Only in the case of draws or wins in Instant Win mode it is possible to immediately deliver the prizes and record everything at the end of the draw or competition with the competent official. 

The prizes must be delivered, by law, no later than six months from the date of assignment of prizes and, in compliance with tax regulations, the Promoter of the draw or competition must pay the taxes on the prizes awarded by the 16th of the month following the month in which the winners were identified.

As part of the awarding of prizes, Italian legislation provides for a final step regarding the possible donation of prizes to a NGO. The NGO must be designated in the regulations and the donation takes place only in the event that the prizes are not assigned or requested by the winners. 

If you want to know more or you want to organise a prize draw or competition in Italy and you are looking for a partner who knows this country perfectly, contact us!