Prize promotion rules in Europe, market by market
The same promotion can be routine in one market and a licensing offence in the next. This overview summarises, market by market, how prize draws, instant wins and purchase-linked promotions are treated, as of mid-2026, all information without warranty. It is orientation, not legal advice: every campaign we run is verified for its specific mechanics by the licensed local lawyers of our network before launch.
28 markets summarised, 12 with a full profile. 41 covered.
28 summarised, 12 full profiles, 41 covered
- Orange markets have a published rule summary. Click one.
- Dimmed markets are covered operationally; detailed rules on request.
- Everything on this page: status mid-2026, verified per campaign before launch.
These are all 41 markets we operate in: the 28 below carry detailed rules; a further 13 are in the second table lower down.
| Market | Purchase-tied prize draw | Permit / registration | Prize taxation | Watch out |
|---|---|---|---|---|
| Poland | Regulated as a promotional lottery unless skill-based or free entry offered | Permit from the regional tax administration (KAS); filing takes weeks, budget for it in the timeline | Flat tax above set exemption thresholds | Unlicensed lotteries risk substantial fines; 2025 reforms added electronic registration |
| Lithuania | Allowed, including purchase-linked draws; a purchase at normal price is not a stake, so no free-entry route is required | Gaming Control Authority approval for large lotteries | Modest promotional prizes generally exempt up to a ceiling; above that, taxable | 2025 reforms tightened gambling-adjacent advertising |
| Estonia | Allowed without a free-entry route; small games run permit-free | Registration with the Tax and Customs Board above a set prize-fund threshold | Gambling tax on the prize fund above the threshold | Digital skill games: individual prizes capped |
| Germany | Permitted, including purchase-linked draws, under UWG transparency rules; no free-entry route required | No permit, registration or notary | No prize taxes; winnings are generally tax-free for private individuals | An active cease-and-desist environment (Abmahnungen); unclear terms or badly structured marketing consent can trigger injunctions mid-campaign |
| France | Promotional prize draws (jeux-concours) are permitted and may be purchase-linked; lawful as long as not an unfair commercial practice. The mandatory free-entry route was dropped in 2014 | No permit; the règlement is filed; DGCCRF oversight, plus CNIL and ARPP obligations | High-value prizes can trigger organiser obligations | Be transparent about the random draw; no misleading or aggressive practices; heavy fines for unfair practices |
| Spain | Allowed, including purchase-linked draws; no free-entry route required | No licence or prior notification for advertising prize draws; a gaming-activities tax applies instead | Withholding above a threshold; in-kind prizes shift the winner tax to the promoter | Market practice: legal bases and final draw notarially handled |
| Italy | Prize competitions run under DPR 430/2001, the heaviest regime in Europe; purchase-linked mechanics are standard but fully regulated | Ministry filing ahead of launch; bank guarantee for the full prize value; draw before a notary or Chamber of Commerce official | High combined burden in practice (prize withholding plus substitute tax on goods) | Cash prizes prohibited; data on servers in Italy; foreign promoters use a locally mandated representative |
| United Kingdom | Paid-entry chance draws are illegal lotteries without a licence; free-entry route legalises | No permit for CAP-Code-compliant promotions | Winnings generally untaxed for individuals; promoter accounts for VAT on goods prizes | Post-White-Paper reforms are closing gaps around online prize draws |
| Ireland | Allowed with free-entry route | District court permit for lotteries; low-value marketing campaigns simplified since 2019 | Non-cash prizes may be taxable for winners | Reform may bring licensing for online chance competitions |
| Austria | Sensitive: chance plus a stake can be gambling; a free-entry route is strongly advised | Generally none with a clean free-entry route | A fee question can arise for prize competitions (Gebührengesetz); check it | Free entry as standard |
| Belgium | Pure games of chance are problematic; a skill element (a tiebreak question) is usually required | No general licence for advertising contests | Confirmed per campaign | A skill question is standard practice |
| Bulgaria | Promotional games under exemptions in the gambling act | Confirmed per campaign, depending on the mechanic | Tax on prizes above an exemption | Check the exemption framework |
| Croatia | Prize games (nagradna igra) | Finance-ministry approval plus a fee (a share goes to the Red Cross); rules published | Confirmed per campaign | Budget for approval and fee |
| Czechia | Consumer contests (spotřebitelská soutěž): a normal-price purchase is not a stake under the Gambling Act (186/2016), so purchase-linked chance is allowed; it is gambling only with an extra stake beyond the normal price | None as long as it is not gambling | Winnings may be taxable | Rules relaxed versus the old lottery act; no free-entry route required |
| Denmark | Chance plus purchase can require authorisation; a skill element or free-entry route avoids it | Authorisation possible; marketing law applies | Winnings levy (gevinstafgift) on certain prizes, borne by the organiser | Skill or free entry is the route |
| Finland | Purchase-required, customers-only promotional games are permitted (since 2011); not lotteries as long as the product is not priced higher for participants | No permit; clear terms required (Consumer Protection Act) | Confirmed per campaign | No free-entry route required; minors cannot be targeted with purchase-required promotions |
| Hungary | Promotional prize games (nyereményjáték) | Since 1 Jan 2023 outside the Gambling Act: no notification, registration or notary; a licence (SZTFH) is only needed if the game qualifies as gambling (stake + prize + chance) | Personal income tax (SZJA) on prizes, borne by the organiser | 2023 reform; the regulator is the SZTFH, not the tax authority |
| Latvia | Goods and promotional lotteries are allowed | Approval from the lotteries and gambling supervisor plus a fee | Confirmed per campaign | Approval and fee apply |
| Malta | Trade-promotion lotteries are permitted | MGA: permit or notification duty for commercial communications and trade promotions | Confirmed per campaign | Check the permit requirement |
| Netherlands | Small promotional games of chance are allowed under the Gedragscode Promotionele Kansspelen | No licence, but a code of conduct sets limits on frequency and value | Gaming tax (kansspelbelasting) on prizes above an exemption, remitted by the organiser | Stay within the code limits |
| Norway | Lotteries are restricted (monopoly); advertising contests without a purchase requirement; skill or free-entry route | None with free participation | Confirmed per campaign | No purchase requirement |
| Portugal | Promotional draws (sorteios) are allowed | Authorisation from the competent municipality (câmara municipal): application, the regulation and a municipal fee; requirements vary by council (not the SRIJ, which regulates gambling) | Stamp duty (Imposto do Selo) on prizes | Municipal competence means requirements are fragmented; mind the stamp duty |
| Romania | Promotional campaigns (campanie promotionala); no purchase requirement for certain types | Official rules, notarised | Withholding tax on prizes above an exemption | Notarised rules plus tax |
| Serbia | Prize games (nagradna igra) | Finance-ministry approval plus a fee; published rules | Confirmed per campaign | Approval required; cashback via SEPA since 2025 |
| Slovakia | Promotional lottery (propagacna sutaz) | Notification or registration may apply | Tax on prizes | Check the notification requirement |
| Slovenia | Prize games (nagradna igra) | Approval or notification | Tax applies | Check the approval path |
| Sweden | Lotteries require a licence (Spelinspektionen); a skill contest (pristävling) or a free-entry route is allowed | None with a skill or free-entry route | No specific prize tax noted | The skill-versus-chance line is decisive |
| Switzerland | Short-term sales-promotion games are exempt from the Gambling Act (BGS Art. 1(2)(d), since 2019) when entry is only via purchase at market-conforming prices; no free-entry route required | No permit when the exemption applies | Withholding tax can apply to higher cash winnings | Not a blank cheque: fair-trading law (UWG) still applies; the exemption is for short campaigns |
Status: mid-2026. Rules and thresholds change; specifics are confirmed per campaign by licensed local counsel before launch.
Chance plus purchase equals a licensed lottery
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Poland's Gambling Act treats any promotion that combines a chance outcome with a purchase condition as a promotional lottery requiring a prior permit from the regional tax administration, and running one unlicensed risks substantial fines. Marketers stay outside the regime with skill-based mechanics or a genuine free-entry route, and prizes carry a flat tax above set exemption thresholds. The regulatory framework is public. What isn't is the sequencing that keeps the permit window inside the campaign timeline instead of derailing it, which is the part we handle. Status: mid-2026. The applicable requirements are re-checked before each campaign.
A purchase at normal price is not a stake
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A purchase of the product at its normal price is not treated as a stake, so a purchase-linked chance draw is lawful without a free-entry route. Large lotteries need Gaming Control Authority approval, and modest promotional prizes are generally treated as de minimis up to a set ceiling before becoming taxable income. Recent reforms tightened anything resembling gambling, including advertising, so the mechanic and terms are set with that boundary in mind. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Small stays simple, by design
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Estonia separates commercial lotteries by prize-fund value: below a set threshold the registration requirements of the Gambling Act do not apply; above it, the lottery is registered with the Tax and Customs Board before launch and the prize fund carries gambling tax, up to an overall cap measured at market value. For modest FMCG promotions this makes Estonia one of the most predictable markets, provided the thresholds are respected and Estonian-language terms are published. The exact figures, and which side of them a promotion should sit, are what we assess before each launch. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Nobody checks upfront, competitors check afterwards
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No permit, no registration, no notary, and purchase-linked draws are permitted, which makes Germany look like the easiest market on this page. Read it as the least forgiving instead: because nothing is checked before launch, mistakes can surface later as legal disputes or competitor challenges (Abmahnungen). Unclear participation conditions, transparency gaps or badly structured marketing consent can trigger injunctions in the middle of a running campaign. The protection is craft: precise Teilnahmebedingungen, a clean consent architecture, and a witnessed, documented draw protocol, because here the paperwork is not a filing, it is the defence. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Permitted if it is not an unfair practice
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Since the 2014 reform, promotional prize draws (loteries publicitaires / jeux-concours) are permitted and may be reserved to purchasers; they are lawful as long as they are not an unfair commercial practice (pratique commerciale déloyale). The old mandatory free-entry route is no longer the general rule. What matters is the fairness test: transparency about the random-draw mechanism, no misleading or aggressive practices, with heavy fines when a practice is unfair. DGCCRF oversees promotional practice, CNIL the data side, ARPP advertising. The separate gambling-lottery regime under the Code de la sécurité intérieure is not this. Status: mid-2026. The applicable requirements are re-checked before each campaign.
No permit, but the tax office collects twice
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Advertising prize draws are explicitly excluded from the gaming-licence regime: no licence, no authorisation, no prior notification to the DGOJ. The price of that freedom is fiscal, and it lands in two places: a gaming-activities tax on the market value of the prizes, self-assessed by the organiser, plus withholding on higher-value prizes, which for in-kind prizes ends up carried by the promoter. Market practice adds notarial steps around the legal bases and the draw. DGOJ guards the gambling boundary, AEPD the data side. The exact rates and how the in-kind burden is calculated are what we model per campaign. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Filed, guaranteed, drawn before an official
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Prize competitions run under DPR 430/2001, the most demanding regime on this page: the campaign is filed with the ministry ahead of launch, a bank guarantee covering the full prize value is posted, and the draw takes place in Italy before a notary or a Chamber of Commerce official. Cash prizes are prohibited, participation data sits on or is mirrored to servers in Italy, and unclaimed prizes are donated to charity. Foreign promoters operate through a locally mandated representative. The combined tax burden is high but entirely plannable, which is exactly the point. The filing sequence, guarantee timing and mandate structure are what turn "heavy" into "handled". Status: mid-2026. The applicable requirements are re-checked before each campaign.
The CAP Code replaces the permit
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Paid-entry games of chance are illegal lotteries without a Gambling Commission licence; a free-entry route or skill mechanic keeps promotions legal without any permit, governed by the CAP Code (Committee of Advertising Practice) with published terms, auditable draws and #Ad disclosure. Winnings are generally untaxed for individuals; the promoter accounts to HMRC for VAT on goods given as prizes. Reforms following the 2023 Gambling White Paper are closing gaps around online prize draws and high-value skill competitions. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Simplified since 2019, tightening ahead
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The Gaming and Lotteries (Amendment) Act 2019 simplified low-value marketing campaigns; purchase-linked chance draws still need a free-entry route, and genuine lotteries a district court permit. Non-cash prizes can be taxable for winners, and VAT can apply to prize goods. Gambling reform under discussion may bring new licensing obligations for online chance competitions, worth watching for always-on mechanics. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Purchase-only promotions sit outside the gambling law
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Since 2019 the Gambling Act (BGS) expressly exempts short-term sales-promotion games where entry is only through buying a product or service at market-conforming prices and there is no risk of excessive gambling (Art. 1(2)(d)). A free-entry route is not required, which reverses the pre-2019 position. The exemption is not a blank cheque: the promotion still has to satisfy fair-trading law (UWG), and it is meant for short campaigns. Confirming that a mechanic sits inside the exemption is the part we handle. Status: mid-2026. The applicable requirements are re-checked before each campaign.
A code, not a licence, sets the limits
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Small promotional games of chance are permitted under the Gedragscode Promotionele Kansspelen, a code of conduct rather than a licensing regime, which caps how often and how richly they can run. Gaming tax (kansspelbelasting) applies to prizes above an exemption and is remitted by the organiser. That makes the Netherlands a predictable market as long as a campaign stays inside the code frequency and value limits, which is exactly what we check before launch. Status: mid-2026. The applicable requirements are re-checked before each campaign.
Skill and chance sit on opposite sides of a line
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Lotteries need a licence from Spelinspektionen, but a genuine skill contest (pristävling) or a free-entry route keeps a promotion outside that regime. The whole question is where a mechanic falls on the skill-versus-chance line, because that decides whether a licence is needed at all. Getting a campaign cleanly on the right side of that line is the work, and it is the part we handle before launch. Status: mid-2026. The applicable requirements are re-checked before each campaign.
This page is the map. The Guarantee is the vehicle.
Inside FIBRE®, this market knowledge becomes FIBRE Guarantee: terms drafted per market by the licensed lawyers of our network, filings submitted, prize taxation and winner obligations organised before launch. To our knowledge, no campaign we have coordinated has been prohibited by a regulator or court in 16 years. Ask us about your market list.
Common questions about prize promotions in Europe
Which European markets require a free-entry route for prize draws?
It is the exception, not the rule. In much of Europe a purchase-linked chance draw is lawful without a free-entry route. A genuine free-entry route or a skill element is needed mainly in Sweden, Denmark, Norway, Belgium, Austria and Luxembourg, and some markets require a permit instead. The per-market position is set out in the table above, which governs. The United Kingdom and Ireland treat a free-entry route as one lawful path alongside skill-based or low-value routes (status: mid-2026).
Can you pay cashback to bank accounts across Europe?
In most markets, yes. Cashback is a purchase refund with no randomly chosen winner, so it is a sales rebate rather than gambling and is broadly permitted. The practical limit is the payment rail: bank payouts run across the SEPA area, which as of mid-2026 covers the EU plus the United Kingdom, Switzerland and, newly since 2025, Albania, Moldova, Montenegro, North Macedonia and Serbia. Only Bosnia and Herzegovina, Kosovo, Ukraine and Turkey remain outside SEPA, where an alternative rail or vouchers are used (status: mid-2026).
In which European markets are cash prizes not allowed for prize draws?
A few markets require non-cash prizes for draws with randomly chosen winners: Croatia, where the prize fund is in goods or services, Iceland, where prizes must be non-cash, and Turkey, where cash is reserved to the state lottery so prizes must be goods, services or vouchers. This applies to prizes won by chance, not to cashback, which is a guaranteed refund (status: mid-2026).
Do you need a permit to run a prize draw in the EU?
It depends on the market and the mechanic. Many markets need no permit for a purchase-linked draw, for example Germany, France, Spain and Finland. Others require a permit or a filing, notably Poland with a permit from the tax administration, Italy with a ministry filing plus a bank guarantee and a notary, and Croatia, Malta and North Macedonia. A skill-based mechanic often avoids the licensing regime entirely (status: mid-2026).
Do prize draws need a permit in the United Kingdom?
No. A free-entry route or a genuine skill element keeps a promotion outside the Gambling Act 2005, with no licence required; a paid-entry chance draw would be an illegal lottery. Promotions follow the CAP Code (Committee of Advertising Practice) with published terms and clear ad disclosure, and winnings are generally tax-free for individuals (status: mid-2026).
Do prize promotions need a licence in Ireland?
Advertising prize draws are allowed. Above certain prize values, additional requirements from gambling law apply. We check the relevant thresholds per campaign (status: mid-2026).
Are purchase-linked prize draws allowed in the Netherlands?
Allowed under the code of conduct for promotional games. Caps apply to the total prize value and to the number of draws per year; above these, further obligations apply. We check the relevant limits per campaign (status: mid-2026).
Do prize promotions need a free-entry route in Sweden?
In practice yes, or a skill element. Commercial lottery licences are not generally available to brands, so a purchase-linked pure-chance draw is treated as an unlicensed lottery; a genuine skill mechanic or an equal free-entry route keeps a promotion lawful (status: mid-2026).
Do prize draws need a free-entry route in Switzerland?
No, not necessarily. Since 2019, short-term sales-promotion games are excluded from the Money Gaming Act (Art. 1 para. 2 lit. d BGS) when participation is only through a purchase at normal market prices and the promotion is short; no free-entry route and no licence are required. Unfair-competition rules still apply (status: mid-2026).
Do prize draws need a free-entry route in Austria?
Restrictions apply to purchase-linked prize draws; depending on prize value and design, a free-entry or skill route is required. We check the relevant thresholds per campaign (status: mid-2026).
Do prize draws need a permit in Poland?
Purchase-tied chance draws are regulated as promotional lotteries in Poland and require a permit from the regional tax administration; skill-based mechanics or a genuine free-entry route keep a promotion outside the licensing regime. Unlicensed lotteries risk substantial fines (status: mid-2026).
Is a free-entry route required for prize promotions in France?
No. Purchase-linked prize draws (jeux-concours) are lawful in France without a free-entry route; the mandatory route was dropped in 2014. What remains prohibited is a paid-entry lottery in the gambling sense. Promotions must not amount to an unfair commercial practice, alongside DGCCRF, CNIL and ARPP obligations (status: mid-2026).
Do prize promotions need a licence in Spain?
No. Advertising prize draws are excluded from the Spanish gaming-licence regime, with no licence or prior notification to the DGOJ. The organiser instead owes a gaming-activities tax on the market value of the prizes, and higher-value prizes carry withholding (status: mid-2026).
What does Italy require for a prize promotion?
Under DPR 430/2001, prize competitions in Italy are filed with the ministry ahead of launch, a bank guarantee for the full prize value is posted, and the draw takes place in Italy before a notary or a Chamber of Commerce official. Cash prizes are prohibited, and foreign promoters operate through a locally mandated representative (status: mid-2026).
Do prize draws need a permit in Germany?
No. Germany requires no permit, registration or notary for prize promotions, and purchase-linked draws are permitted under the transparency rules of the UWG. The risk arrives after launch instead, as competitor cease-and-desist letters (Abmahnungen), so precise terms, clean consent and documented draws are the protection (status: mid-2026).
Note: This page is a general orientation, current as of mid-2026, and not legal advice. Rules, thresholds and enforcement practice change. Competence Alliance is not a law firm; campaign-specific legal advice is provided by the independent, licensed lawyers and law firms of our coordinated partner network, whose review of the specific mechanics precedes every launch.
The further 13 markets we cover
The markets above show the range in detail. Here are the remaining markets at a glance, summarised at a high level. As with everything on this page: without warranty, and verified per campaign before launch by the licensed lawyers of our network for the specific mechanics.
| Market | Regime (high level) |
|---|---|
| Albania | Approval or notification; law evolving |
| Bosnia and Herzegovina | Approval; competence depends on the entity |
| Cyprus | Skill or free entry route |
| Greece | Skill or free entry route; not uniform |
| Iceland | Authorisation required; free entry route |
| Kosovo | Framework developing; clarify early |
| Liechtenstein | Free entry route, aligned with Swiss practice |
| Luxembourg | Free entry route; lightly codified |
| Moldova | Advertising law; approval for certain activities |
| Montenegro | Approval or notification |
| North Macedonia | Approval |
| Turkey | Permit from the national lottery authority (Milli Piyango); own, elaborate regime |
| Ukraine | Advertising law; check current situation |
Planning a promotion in these markets?
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