Contests, Giveaways and Promotions Laws in Denmark

Prize contests and promotions in Denmark: regulations and how to organize them

In Denmark, prize contests and promotional campaigns are regulated by the Danish Lottery Act and the Marketing Practices Act.

In the past, chance-based contests were considered lotteries, and commercial companies were not allowed to organize them. However, in November 2016, the guidelines issued by the Danish Gambling Authority clarified that promotional contests are no longer classified as lotteries, provided that no participation fee is required.

Purchase-to-enter promotions are also permitted, as long as the retail price of the products is not increased to encourage participation. Nevertheless, this type of promotional campaign can be more complex to manage and requires careful attention to ensure full legal compliance.

Tax obligations for prize contests in Denmark

Prize taxes are generally paid by the winner.

For chance-based contests, the promoter must pay a 17.5% tax on prizes exceeding 200 DKK in value. This obligation also applies to non-Danish companies, which may need to register for tax purposes in Denmark.

Safe and compliant management of contests in Denmark

These regulations require a precise and well-structured approach to avoid legal and tax-related issues when organizing contests and promotions in Denmark.

👉 Did you know? According to the Danish State Income Tax Act, income derived from prizes won through promotional contests is considered taxable income for participants.

Thanks to a network of local consultants specialized in international promotions, our company provides complete assistance for organizing prize contests in Denmark.

We offer tailored consultancy services to ensure the success and compliance of your promotional activities through the expertise of our international team and local partners.

Companies interested in promoting products and services in Denmark can benefit from our full support for:

Prize contests
Sales promotions
Trade incentive programs
Loyalty programs

Our services for managing prize contests in Denmark and worldwide include:

Preliminary feasibility analysis
Consultancy on promotional mechanics in compliance with local regulations
Handling of administrative and legal procedures
Review of promotional communication materials according to legal requirements
Tax consultancy related to prize promotions
Privacy and data protection consultancy

Promosfera supports companies in organizing and managing international contests and promotions in more than 85 countries worldwide.

We provide legal assistance, know-how, and Terms & Conditions fully compliant with local laws and regulations.