The Gambling Act came into force on 19 November 2009. An amendment to the Act was then introduced on 1 April 2017. It was then that the concept of ‘online gambling’ was first introduced. This gave rise to numerous questions and uncertainties. What criteria, then, must be met for a lottery to be recognised as being organised online?
When does a promotional lottery become a promotional lottery organised via the internet? Concerns regarding the amendment to the Act
The concept of online gambling has been with us for three years now. We also include promotional lotteries within this category, as set out in Article 1(1) of the Gambling Act.
However, to this day, the organisers still have many doubts regarding specific cases. Does the mere fact that the internet is used to run a lottery mean that it is „organised via the internet”?
This raises many unanswered questions, particularly in cases where the lottery organiser uses a website to publish information or the rules of the game. It is also not uncommon for the internet to be used for the actual registration for the lottery via an online form.
Let’s not forget, either, the aspect of communication with the customer itself. The internet is the most common way to contact a lottery participant and notify them that they have entered the draw. It is also used to publish information about prizes, sent, for example, via email. The internet has, in fact, become an integral part of many initiatives, including competitions and lotteries.
Online lotteries in practice
Most of the doubts were cleared up by the statement issued by the Minister for Development and Finance himself in December 2017, when a letter was issued regarding the refusal to approve the responsible gambling regulations for online gambling.
In it, the Minister for Development and Finance made it clear that when the Director of the Tax Administration Chamber authorised the promotional lottery, he did not at the same time grant permission for the lottery to be organised online. This therefore means that the organiser does not need to approve specific responsible gambling terms and conditions, which are required for an online lottery, if the authorisation was not issued for an online lottery.
The Ministry has thus introduced a standardised approach. If a licence issued for the organisation of a lottery does not relate to the internet, we are not required to approve the responsible gambling terms and conditions. This requirement does not apply, regardless of the extent to which the internet is used to organise the lottery. Consequently, publishing information or collecting forms via a website does not oblige us to approve new terms and conditions, unless the Tax Administration issues a different decision.
When, then, can we apply for permission to organise a lottery via the internet? Unfortunately, the amendment to the Act does not provide for such a procedure. However, the ruling of December 2017 itself indicates that the decision of the Director of the Tax Administration Chamber is the determining factor.
