Browse topics

  • Governing law
    NameLaw or Code?
    Spanish Gambling Act 13/2011 ('LJU') of 27 May 2011 and additional regional laws Law
    Spanish Consumers' Protection Act RDL1/2007 ('LPCU') and additional regional laws Law
    Spanish Publicity Act 34/1988 ('LGP') and additional sectorial and regional laws Law
    Spanish Fundamental Act on Data Protection LO15/1999 ('LOPD') Law
    Spanish Retail Trade Act 7/1996 ('LOCM') and additional regional laws Law

    Last modified 10 Feb 2017

  • Extra-territoriality

    Yes. LJU and LOPD are explicitly drafted to prevent parties based abroad from failing to comply with Spanish regulations in this regard. Same applies to LPCU when the promotional competition is addressed towards Spain ie carried out physically in Spain or the addressee is a consumer based in Spain.

    Last modified 10 Feb 2017

  • Skills competitions

    Yes, but ensure the winner is picked only on the basis of skill not chance.

    For example, if winners are selected by providing the right answer to a questionnaire this would qualify as a skill game but if a draw is carried out to decide, among them, who shall be the final winner, then it would automatically become a chance based game. Sometimes, games allocating prizes to the first 100 entrants are considered to be based on chance because there is no or little skill involved.

    Last modified 10 Feb 2017

  • Prize draws

    Unlawful, unless:

    • Participants do not make an additional payment to become eligible. Examples of additional payment are premium SMS or premium calls. (Standard postage, SMS or call charges would generally not be regarded as additional payments except if the call takes too long or several standard SMSs are required). Purchases of products without extra charges or requiring the condition of being a client are not considered as an additional payment.

      and

    • The promotion is intended exclusively for promotional or marketing purposes.

    Last modified 10 Feb 2017

  • Selection of winners

    For prize draws, it is best practice to file the terms and conditions with a Notary Public and for them to conduct the draw (although it is not required by the applicable regulations). Prizes may be awarded either by direct allocation (every entrant receives a prize in which case it is not a skills competition and there must be no payment to enter beyond what is set out in the Prize draws section), skill (the most successful entrants receives a prize) or randomly (for example through a draw; this applies even if there was a pre-selection of winners based on skill ie it would still be classified as a game of chance).

    Last modified 10 Feb 2017

  • Judges

    No. Judges can even be employees of the sponsor. However, appointing judges with at least a minimum knowledge of the matters to be assessed is strongly recommended. This is because otherwise the authorities could find that the competition is based on chance.

    Last modified 10 Feb 2017

  • Prizes

    None (except that the goods restricted in circulation eg weapons obviously cannot be part of any award).

    Last modified 10 Feb 2017

  • Registration requirements and fees

    Registration Requirements

    No authorization or prior communication to Spanish Gambling Authorities is required* when the prize draw has a national scope (ie the promotion is addressed to residents in more than one Spanish region (comunidad autónoma).

    In the case of promotions with regional scope (ie those promotions only addressed to residents in one Spanish region – comunidad autónoma), regional regulations would apply and in some cases, prior communication to the corresponding regional authorities is required.

    Fees/Taxes payable

    Prize draws organizers with national scope must pay a gambling tax of 10% of the total value of prizes on offer.

    Prize winners shall be subject to Spanish Personal Income Tax in connection with prize awarded.

    * Note: Genuine gambling activities do require authorization from the gambling authorities.

    Last modified 10 Feb 2017

  • Other local requirements

    Supporting terms and conditions must appear in Spanish and must be available to the participants before entering the competition.

    Filing the terms of the Competition with a Notary Public before the start date is advisable, although it is not required by law.

    Last modified 10 Feb 2017

  • Timing

    Yes. In the case of prize draws (or any other competition where a random element is involved), it is necessary to pay the 10% promotional tax. Preparing and filing the related tax forms with the tax authorities may take a week. Should the sponsor of the competition be based abroad, a Spanish Tax ID for non-residents shall be obtained. The formalities attached to it may take one to two weeks.

    Last modified 10 Feb 2017

  • Translations

    Spanish law requires the terms of the competition be drafted at least in the Spanish language. In regional promotions, regional language translations may be mandatory as well (or strongly recommended).

    Last modified 10 Feb 2017

  • Penalties for non-compliance

    The LJU establishes that for the infringements that sponsors could typically be liable for, fines ranging from €100,000 to €1,000,000 could be imposed. Higher fines could be imposed, however, depending on the specific circumstances of the case.

    Sanctions under LOPD for infringing data protection law can be very high (€600,000 per individual infringement, with fines for independent infringements being combined to form higher fines).

    Last modified 10 Feb 2017

  • Restrictiveness of regulations

    There are significant and fairly onerous obligations, for example relating to taxation. However, the requirements relating to the contents of terms and conditions are not very extensive.

    Last modified 10 Feb 2017

  • Regularity of sanctions

    Fines are imposed from time to time.

    Last modified 10 Feb 2017

  • Key contacts
    Diego Ramos
    Diego Ramos
    Partner DLA Piper Spain S.L.U. [email protected] T +34 91 790 1658 View bio
    Paula González de Castejón
    Paula González de Castejón
    Legal Director DLA Piper Spain S.L.U. [email protected] T +34 91 788 7374 View bio
    Bartolomé Martín
    Bartolomé Martín
    Senior Associate DLA Piper Spain S.L.U. [email protected] T +34 91 790 1664 View bio

Governing law

What are the applicable governing laws or codes for prize promotions?

Spain

Spain

NameLaw or Code?
Spanish Gambling Act 13/2011 ('LJU') of 27 May 2011 and additional regional laws Law
Spanish Consumers' Protection Act RDL1/2007 ('LPCU') and additional regional laws Law
Spanish Publicity Act 34/1988 ('LGP') and additional sectorial and regional laws Law
Spanish Fundamental Act on Data Protection LO15/1999 ('LOPD') Law
Spanish Retail Trade Act 7/1996 ('LOCM') and additional regional laws Law