Can a prize promotion be run where there is an element of chance in the selection of the winner?
Yes, Colombian law specifically regulates prize promotions when there is an element of chance in the selection of a winner.
Article 336 of the Colombian Constitution establishes that all profits from prize promotions and gambling activities where winners are chosen randomly, are considered as a state monopoly; nevertheless, the state might authorize private entities or individuals to perform such activities. In this event, such activities can only be performed with a governmental authorization and by paying the corresponding fee.
For promotional games, providing that they do not require a direct payment to participate, they do not generate “profits”, and so the exploitation rights or fees are calculated based on the value of the award scheme. The value of each prize from the award scheme cannot exceed 160 times the monthly minimum legal wage (approximately US $44,166 [See note 1]), and the prizes shall be delivered within 30 calendar days. Performing the activity without obtaining a governmental authorization is illegal and may be prosecuted under Colombian criminal law.