Occasional or sporadic raffles

Concept of a raffle

1. A raffle is understood as a form of gambling awarding one or more prizes in a draw or random selection on a predetermined date following the purchase of various physical, computer-related, telematic or interactive tickets, coupons or other documents or means of participation, with some form of financial outlay being required to take part.

2. Raffle prizes include movable or fixed assets, livestock or rights linked to them, but never monetary prizes.

Occasional or sporadic raffles

3. Occasional or sporadic raffles are those not held periodically or permanently or, if held regularly, i.e. at least annually, they have the following conditions:

  • By having a minimum annual periodicity, the same natural or legal person can only hold one occasional raffle per year at most.
  • Raffles do not form part of the regular activity of the organising natural or legal person.

4. Therefore, an occasional raffle is that held infrequently or once a year at most whenever it does not form part of the ordinary activity of the organising natural or legal person.

Procedure to request authorisation

5. Holding occasional raffles requires the corresponding prior authorisation.

6. It is prohibited for minors to participate in gambling activities, both in the purchase and the sale of the means of participating. Minors participating in any of the raffle’s phases may give rise to a breach of the rules on gambling which could result in the corresponding administrative penalty.

7. Raffle authorisation requests may be submitted by natural or legal persons whose usual activity does not involve gambling activities.

8. Requests are submitted via the Directorate-General’s Electronic office using the Authorisations for Occasional Gambling (Raffles) procedure. Where requests are submitted by natural persons, the Administration may be notified non-electronically, submitting their applications and attached documentation to the Directorate-General for the Regulation of Gambling, C/ Atocha, 3, 28071, Madrid, in person or by post.

9. Requests must include information related to the person, company, entity or association wishing to hold the raffle, their notification address, and a request to carry out advertising, promotion or sponsorship activities.

10. Requests must be accompanied by supporting documentation on the following points:

  • Documentation accrediting the legal personality of the applicant, or their status as representative when the raffle is requested on behalf of entities, companies or associations.
  • Documentation justifying that the person requesting the raffle is up to date with their tax and Social Security obligations.
  • Documentation proving ownership and availability of the prize or prizes offered.
  • Rules of the raffle which, amongst others, must contain the description of the prize offered with the necessary detail, its value, the sales price of the means of participating and how they are sold, as well as the date of the draw and how it will be held.
  • Means of participating model.

11. The specific documents which must be submitted can be found on the Directorate-General for the Regulation of Gambling website.

Tax regime

12. The submission of authorisation requests for occasional raffles carries a Fee of 100 euros for gambling administration.

13. Natural or legal persons holding raffles are subject to the payment of gambling tax at a tax rate of 20% of net income from organising or holding the raffle. This rate may be 5% for raffles declared charitable or in the public interest.

14. A raffle may be declared as being in the public interest when the applicant is a public interest entity duly declared and registered in the Ministry of the Interior National Associations Register or similar of the Autonomous Regions. Likewise, the declaration of a raffle as a charitable or public interest raffle will be assessed when the applicant is a not-for-profit entity and the intended purpose of the funds is to be one of the activities set out for not-for-profit entities in the Law on tax incentives for patronage.

15. In addition, the natural or legal person holding and marketing the raffle will be obliged to comply with the obligations arising from Personal Income Tax, specifically the obligation on tax withholdings corresponding to the winner of the prize. This withholding is currently 19% of the market value of the prize offered in the raffle.

16. Likewise, the natural or legal person holding and organising the raffle must comply with their own tax obligations resulting from the possible loss or capital gain resulting from the raffle itself.

17. The State Tax Agency is responsible for managing, collecting, settling and inspecting the tax.

More information on Raffles, occasional gambling and sweepstakes for advertising purposes