| Name | Law or Code? |
|---|---|
| The Danish Marketing Practices Act | Law |
| The Danish Gambling Act | Law |
| The Danish Gambling Duty Act | Law |
Last modified 14 Jan 2019
The Danish Gambling Act generally applies to all games that are offered or arranged in Denmark. However, games that are solely based on skills are not governed by the Act.
Online games are offered in Denmark if the game provider receives stakes (i.e. payment) from persons in Denmark. This means that a game provider must comply with the Danish Gambling Act even if the game provider is not situated in Denmark as long as the game provider receives stakes from persons in Denmark.
According to the Danish Gambling Act games that involve payment of stakes require a license from the Danish Gambling Authority, unless specifically exempt.
If a prize promotion is linked to the purchase of certain goods or a service, the payment for that good or service is not considered a stake, if the value of the good or service equals the price paid for the good or service. However, if participation in a prize promotion requires payment of an extra amount besides what is already paid for the good or service, that amount is considered payment of a stake. Likewise, if the price of the good or service is higher than the usual price to finance a prize promotion.
The Danish Marketing Practices Act follows the so-called effect principle meaning that it applies to all prize promotions targeting the Danish market. The Danish Marketing Practices Act thus applies even if the promoter is not based in Denmark.
Last modified 14 Jan 2019
Yes, a prize promotion based on skill can be run. If the prize promotion is purely based on skill it is not covered by the Danish Gambling Act. However, it must be ensured that:
Last modified 14 Jan 2019
Yes, a prize promotion can be run, where there is an element of chance in the selection of the winners. However, see the other local requirements section.
Payment of a stake includes payments for goods and/or services, where the prices have been inflated to pay for the participation in the prize promotion. If, however, the price of the good and/or service corresponds with the value of the good or the service, the payment will not be considered a stake.
Last modified 14 Jan 2019
The selection of winners is not regulated as such. However, the winners of a competition must always be chosen in accordance with the criteria listed when the consumer entered the competition.
Last modified 14 Jan 2019
No.
Last modified 14 Jan 2019
Certain prizes such as guns, explosives, dangerous chemicals and the like will most likely be considered contrary to good marketing practice.
The prize itself must also actually exist. It is considered a misleading commercial practice if a prize competition is held, but the prizes promoted or other reasonable equivalents are in fact not available.
Last modified 14 Jan 2019
Generally, companies must register their game activities with the Danish tax authorities, if the game involves the payment of duties.
The tax consequences must always be considered and specialist advice should be sought.
In terms of payable taxes, payable taxes depend on whether the prize promotion is based on skill or chance.
Where winning the prize is based on skill, the prize is considered income for the winner and the winner must pay income taxes.
Where winning the prize is based on chance and where the prize promotion is without stakes and available to the public the prize is not considered an income for the winner, and as such the prize does not result in income tax for the winner. The promoter is, however, obliged to pay a gain duty.
Where winning the prize is based on a combination of chance and skill and where the prize promotion is with stakes the prize is also subject to a gain duty, and such duty must be paid by the person holding the license.
Last modified 14 Jan 2019
The marketing of prize promotions is subject to quite strict rules. As such the terms and conditions for the prize promotions must generally be clear, unambiguous and easily accessible for the consumer.
The consumer must receive all necessary significant information to be able to assess the value of the prize promotion.
The marketing materials for a prize competition must include the following information:
Prize promotions on social media are in general subject to the same conditions as mentioned above.
A consumer can only by contacted by phone, e-mail or text if the consumer has given his/her clear consent hereto. Promoters are allowed to use prize promotions to achieve such a consent. However, where this is an intention, the consumer must be clearly informed hereof before the consumer provides his/her contact information. Further the consumer must actively choose to give the consent (i.e. consent hidden in the term and conditions or the data policy is not allowed).
Last modified 14 Jan 2019
If the company is subject to a license or payment of duties time must be allowed in order to ensure compliance with local Danish law.
Last modified 14 Jan 2019
Translation is not required by law, but terms and conditions for participation in the prize promotion must be clear, unambiguous and easily accessible. We therefore highly recommend that the terms and conditions are in Danish or English.
Last modified 14 Jan 2019
Non-compliance with specific sections in the Danish Marketing Practices Act is punishable by a fine. When deciding on the penalty, emphasis is placed on the gravity, extent and the intended economic gain of the infringement.
Non-compliance with the Danish Marketing Practices Act can further result in an injunction from either the Danish Courts or in some cases the Danish Consumer Ombudsman. Non-compliance with such an injunction is punishable by a fine or a prison term of up to 4 months. Non-compliance can also lead to the payment of damages.
In cases where a prize promotion amounts to a lottery, a combination game or gambling a number of different criminal sanctions apply, e.g., non-compliance with the Danish Gambling Act by intentional or grossly negligent arrangement of games without a license is punishable by a fine or a prison term of up to 6 months. However, for repeated non-compliances or non-compliances of particularly extensive character the punishment is a prison term of up to 1 year. The Danish Gambling Act further sanctions the promotion of games that do not have the required license.
Non-compliance with tax legislation may result in fines and criminal liability.
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 (i) €20 million, or (ii) 4% of the promoter’s worldwide annual revenue.
Last modified 14 Jan 2019
The rules relating to prize promotions are not very extensive if no stake is paid for participation in the prize promotion. However, prize promotions do have a formal requirement of registration (see above in the Registration Requirements section) and quite strict requirements in regard to marketing towards consumers. Also, GDPR has introduced various obligations around processing personal data which have significant application to prize promotions (eg. use of submissions including personal data, winner publicity, etc.).
Last modified 14 Jan 2019
The regulators of the Danish Marketing Practices Act, the Danish Gambling Act and the Danish tax laws can potentially impose fines. Prison sentences are very rarely imposed.
Last modified 14 Jan 2019
Are the terms required to be translated by law?
Translation is not required by law, but terms and conditions for participation in the prize promotion must be clear, unambiguous and easily accessible. We therefore highly recommend that the terms and conditions are in Danish or English.
Last modified 14 Jan 2019
