Can a prize promotion be run where there is an element of chance in the selection of the winner?
Yes. However, in this scenario, it is necessary to avoid a situation where the prize promotion could be interpreted as a game of chance. Operation of games of chance is regulated by Czech law and is not allowed without a permit. The general distinction is that in order to be interpreted as a game of chance (and therefore subject to gambling regulation), the customer must provide a stake the return of which is not guaranteed and the result of the game must be determined based on chance or other unknown circumstance. In other words, it is not considered as gambling when the game either (i) does not require the customer to provide any stake or (ii) a stake is provided, but the result of the game is not in any way dependent on chance.
This means that if an element of chance is present in the selection of the winner, the participants must not provide any stakes (payment) the return of which would not be guaranteed.
Purchase of goods at their usual price or participation in a marketing event is not considered to be a stake. However, participation in a prize promotion cannot be tied, for example, to the purchase of goods at a price above their normal price. Similarly, if the prize promotion takes place via text messages (SMS), the price may not exceed the standard price according to the tariff of the mobile operator. Otherwise, the difference between the normal price and the increased price could be considered to be a stake within the meaning of the gambling regulation.