Occasional raffles

Raffle: A raffle is a gambling competition in which people purchase physical, computer-related, telematic or interactive tickets for a chance to win a prize in a draw set for a particular date.

Raffles may be held on a permanent or occasional basis. The law does not regulate on permanent raffles; therefore, they cannot be held or marketed, for they are considered illegal in accordance with article 5.3 of the Gambling Act, Law 13/2011 of 27 May.

Currently only occasional or sporadic raffles may be held; that is, those which are not conducted periodically or permanently or, if conducted periodically, take place once a year or less frequently. Likewise, occasional or sporadic gambling shall not form part of the ordinary activity of the organising entity.

Raffle prizes include movable or fixed assets, livestock or rights linked to the same, but never money.

The following documentation will be required when requesting authorisation to run an occasional raffle:

Requests to run raffles must include the following details:

  1. name of the requesting person and, where applicable, their representative.
  2. Spanish address for notifications;
  3. place, date and signature of the applicant;
  4. where applicable, request for authorisation to conduct advertising, promotion or sponsorship activities.

The application must include the following documents:

  1. applicant's national identification document or passport, if an individual. Legal persons must provide the articles of association or modification, registered at the Spanish Commercial Register or, if a foreign legal person, at the equivalent registry of the country where the company has its legal seat, together with the credentials and capacity of their representative in Spain.
  2. proof of having met in full their tax and Social Security obligations; and
  3. Affidavit that the company does not fall under any of the cases given by article 13.2 of the Gambling Act, Law 13/2011 of 27 May, relating to persons who are unable to hold gambling activity licences or authorisations.
  4. Proof of payment of the fee laid down in article 49.2.d) of Law 13/2011. Said fee currently amounts to €100. Fee payment form
  5. Proof of ownership and availability of the offered prize(s) in the form of an invoice, contract, deed or notarial certificate. Based on the value or nature of the offered prize(s), the DGOJ may request from the applicant as much documentation and additional information as it deems necessary to show proof of ownership and availability.
  6. Terms of the raffle. If granted authorisation, these must be published and available to potential participants throughout the raffle and until the prize claiming period has expired. The terms shall include at least the following details:
  • name of the individual or legal person organising the raffle;
  • Prohibition against participation by minors and legally incapacitated persons.
  • Description of the offered prize(s) and its/their value. Where applicable, express statement that the prize will be awarded free from taxes and costs or, otherwise, a list of the costs and taxes to be incurred by the winner of the raffle. The value of the offered prizes must be at least 20% greater than the issuing price of the tickets.
  • If the prize of the raffle is property, its description must include at least the following details:
  • General characteristics.
  • Address.
  • Extension.
  • Value of the property.
  • Where applicable, description of the charges and encumbrances of the property, explaining whether these will be cleared before delivery or must be borne by the winner upon receiving the property.
  • Acknowledgment of the person obliged to pay the expenses (notary, deeds, registry fees, etc.) and fees derived from the delivery of the prize, specifying that the prize is subject to taxes and fees in accordance with what is laid down in current legislation regarding Income Tax.
  • Beginning and end date of the ticket sale. Under no circumstance shall the time elapsed from the beginning of the ticket sale to the date of the draw exceed one year.
  • Date and place of the draw. Draws shall be held either before a notary or coinciding with another draw organised by Sociedad Estatal Loterías y Apuestas del Estado, S.A. or Organización Nacional de Ciegos Espa?oles. In the latter case, applicants must attach to their application a document showing the organising entity's acceptance.
  • Support and place where the result of the draw will be published.
  • Territorial scope of the ticket sale.
  • Number of tickets being sold.
  • Price per ticket.
  • Where applicable, detailed description of the telematic ticket selling procedure and of how the buyer will be guaranteed participation.
  • Expiry date of the prize(s) obtained, which shall not be less than one year.
  • Means for granting the prizes.
  • Statement by the individual or legal person organising the raffle that he or she is the sole guarantor of the prize(s) and the only one required to deliver the asset to the winner of the raffle.
  1. Raffle ticket template stating at least the following details:
  • Date of authorisation to run the raffle.
  • Total number of tickets and individual ticket number.
  • Price per ticket.
  • Expiry date of the prize obtained.
  • Details and signature of the raffle organiser or his or her representative.
  • Value of the prize.
  • Where applicable, specification that the prize is subject to Income Tax.
  • Date and place of the draw.
  • Support and publication of the result.
  • Location of the published terms.

From 2 October 2016 and the entry into force of article 14.2 of Law 39/2015 on the Common Administrative Procedure of Public Authorities, legal entities will be obliged to interact with Public Authorities through electronic means to carry out any administrative procedures.

In compliance with the stated provision and related provisions, any request and accompanying documentation addressed to the Directorate-General for the Regulation of Gambling (DGOJ) will, from the aforementioned date, have to be submitted through the body's electronic office. Any applications submitted by any other means will not be admitted and will require the interested party to make subsequent redress through electronic submission.

The electronic form for making said electronic submission can be found in the Directorate General's electronic office.

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FINANCIAL REQUIREMENTS

Proof of payment of the fee, which currently amounts to €100. Fee payment form

In the case of paying the fee online, the receipt may be included with the electronic application. If payment is made in person at a bank, a scanned image of the receipt should be attached to the electronic application and the original submitted to the registry office of the Directorate-General for the Regulation of Gambling (c/ Atocha 3, Madrid 28012) or to a registry office enabled by any Public Authority.

More information on the gambling duty

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OTHER REQUIREMENTS

The Directorate General for Gambling Regulation may set special requirements ― including the provision of securities― in cases where the value of the offered prize(s) or the special conditions of the requested raffle require it.

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TAX ARRANGEMENTS

Individuals and legal persons who run raffles are subject to Gambling Tax, under the conditions and rate laid down in article 48 of Law 13/2011. Said rate stands at 20% of the gross income obtained by taking part in the game, as well as from any other income that may be directly obtained by organising or running the raffle. The rate for charity raffles is 7%.

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

Likewise, all legal persons and individuals who take part in raffles are subject to the Treasury deposits which derive from current regulations on the tax at a given time, as on-account payment of the Income Tax corresponding to the receiver.