Penalties for non-compliance
What are the penalties for non-compliance?
If the prize promotion is considered to be a lottery, the party that organizes it without a permit must pay a penalty equal to 5 times the amount of a permit fee, which equals in total 50% value of the prize pool. In addition to the penalties imposed on the entity organizing the lottery, the Gambling Act provides for sanctions for individuals holding managerial positions – the relevant authority (head of the customs and tax office) may impose a fine up to approximately EUR 23,000.00 (approx. US$25,800) for organising gambling games (including lotteries) without a concession, permit or required registration. Furthermore, under the Fiscal Penal Code, running or organizing a lottery contrary to the law or a permit is subject to a fine (maximum fine = approximately EUR 1,636,363.6 (approx. US$1,833,000) – according to the current regulations and fine amounts applicable in 2019).
Finally, there is the possibility that the personal data processing aspects of the promotion could breach GDPR, which has maximum fines of up to the higher of:
- €20 million (approx. US$22.4m); or
- 4% of the promoter’s worldwide annual revenue