Audiotext lotteries These are promotions you can join by paying a small fee to take part in a prize draw for a prize or cash. Find out how audiotext lotteries work and how to organise one for your company.

Organising an audiotext lottery – what you need to know What are audiotext lotteries?

Audiotext lotteries are games of chance aimed at adults. You can usually take part by sending a paid text message, which allows you to enter a draw for a prize in kind or a cash prize. Under the provisions of the Gambling Act, it is also possible to take part in such a promotion by telephone, but lotteries of this kind are less common.

It is worth beginning by discussing the very concept of an audiotext lottery. The organisation of such a scheme in Poland is governed by the Act of 19 November 2009 on games of chance (Journal of Laws of 2020, item 2094). An audiotext lottery is one of three types of lottery that may be organised in Poland under the law. The organisation of the fourth type of lottery – cash lotteries – is subject to a state monopoly. Together with a number of other activities listed in Article 2 of the Act, they are classified as games of chance. These, in turn, together with betting, card games and slot machines, constitute games of chance.

The audiotext nature of the lottery. First and foremost, it is worth noting that the word „audiotext” is spelled correctly. Most people mistakenly use the term „audiotekstowa”. However, the wording in the Act is clear and consistent. The definition can be found in Article 2(1)(11) of the Act and reads as follows: „Audiotext lotteries in which participation is subject to a charge for: a) a telephone call, b) sending text messages via a public telecommunications network”.

Who are audiotext lotteries aimed at?

Audiotext lotteries are intended for natural persons of legal age. This provision is set out in Article 27(2) of the Act, which states that: „Only persons aged 18 or over may take part in games of chance, with the exception of raffles and promotional lotteries”.

The aims of audiotext lotteries

Objectives: what the organisers of audiotext lotteries aim to achieve. Audiotext lotteries are organised by organisations that wish to make a tangible profit simply from the act of organising the lottery. This profit comes from the fees paid by people wishing to take part, who must send an SMS (usually a premium-rate message costing at least 50 groszy net) or make a phone call.

The interpretation of the law has evolved. Previously, all lotteries that involved an obligation or the option to send an SMS were considered to be ‘audiotext’ lotteries. Currently, in accordance with Article 2(1)(11), campaigns in which participation is conditional upon the purchase of goods or services and the submission of proof via text message are classified not as audiotex campaigns but as promotional campaigns.

How do you organise an audiotext lottery?

Organisation of an audiotext lottery It is a long and complicated process. The organiser must carry out a series of administrative tasks in consultation with the Director of the Tax Administration Chamber, the Head of the Customs and Tax Office and the Head of the Tax Office. The main stages in organising an audiotex lottery include:

1. Drafting the terms and conditions of the lottery.
2. Obtaining a bank guarantee for the payment of prizes.
3. Submission of an application for a licence to organise a lottery (no later than 2 months before the start of the lottery).
4. Payment of the relevant fee for the issue of a licence to organise a lottery into the account of the Tax Office in Nowy Targ.
5. Notification of the commencement of operations to the Director of the Tax Administration Chamber who issued the decision authorising the organisation of the lottery.
6. Notifying the relevant Head of the Customs and Tax Office of all activities subject to customs and tax inspection, and ensuring that the appropriate conditions and resources are in place for such inspections to be carried out.
7. The provision of records of prizes awarded with a value of at least 2,280 zł and records of certificates confirming winnings, for the purpose of certifying the records by affixing an official seal.
8. The provision of records showing the calculation of gaming tax and records of the tax bases, for the purpose of certifying the records by affixing an official seal.
9. To provide the necessary training on gambling legislation and the rules of the lottery being organised, with regard to carrying out activities relating to its supervision and operation.
10. Obtaining printed copies of the certificates confirming the prize won.
11. Maintaining a register of staff certificates, which includes: the employee’s details, the date of the training, the details of the issuing body, and the certificate number, to which a certified copy is attached (the original is kept in the employee’s personnel file).
12. Notification to the Head of the Customs and Tax Office of the start of the lottery (on the day it begins).
13. The appointment of the Lottery Supervisory Commission, the publication of its rules of procedure, and the archiving of members’ declarations of consent to participate in its work.
14. The registration number must be displayed in a prominent position on the gaming machine, in such a way as to prevent its removal, and information must be displayed indicating the licence or authorisation under which the business is operated at the location where the machine is currently in use.
15. Drawing up the minutes of the draw after each one.
16. Issuing a personalised certificate confirming the prize won, at the Participant’s request.
17. At the end of each calendar year, the register of certificates must be submitted to the relevant Head of the Tax Office for certification of the closure of the register. The same procedure applies to the register of prizes awarded.
18. To prepare and submit to the Head of the Customs and Tax Office, within 30 days of the date on which the prize draw ended, information regarding the prize draw that has taken place.
19. Submission of reports containing economic and financial data by the 21st day of the month following each quarter.
20. Submission of the POG 5/5A gambling tax return, and calculation and payment of the relevant amount into the Tax Office’s account.

The above list of tasks applies to an organiser who uses a gaming machine in accordance with the provisions of the Regulation of the Minister of Development and Finance of 8 June 2017 on lottery machines, gaming machines and slot machines, the protection of information relating to the lottery being organised, and the collection, calculation and payment of winnings (Journal of Laws 2017, item 1171), to which paragraph 7(2) of the Regulation of the Minister of Finance of 22June 2010 on certificates of winnings and the records of such certificates and of winnings paid out (issued) (Journal of Laws 2017, item 1723). It therefore applies to a situation where, after completing the work involved in organising a lottery, the organiser does not cease its gambling activities and plans to run further lotteries in the near future.

Please note that this text is not intended to serve as legal advice, but we believe that the steps we have outlined will help you to organise an audiotext lottery efficiently. These steps form the basis of the procedures that have been successfully implemented by i360 Sp. z o.o. for many years.

The list does not include tasks of a strictly administrative nature (relating to the circulation of internal documentation), as these are too dependent on the rules in force within a given company. Other important tasks not listed here include, amongst others: drawing up records of prize awards or passing on information regarding the amount of tax due between the relevant organisational units.

Promotional lotteries versus audiotex lotteries. What are the differences?

Participation in promotional lotteries is free of charge or involves the purchase of the promoted product, service or other so-called proof of entry. Audiotext lotteries, on the other hand, require participants to pay a fee by sending an SMS or making a phone call. What these two types of games have in common is that winners are selected at random, and the organiser awards cash or non-cash prizes to the lucky winners.