License holders’ sales promotion measures
The Danish Gambling Authority’s previous guidance regarding sales promotion measures sets out certain restrictions on the license holders use of sales promotion measures when providing gambling in Denmark.
License holders, offering betting or online casino, cannot in accordance with the guidance take sales promotion measure in the form of a game, which is not covered by the license holders’ license. A license holder providing online casino can therefore in accordance with the guidance not take a sales promotion measure, while this is a lottery.
In connection with the preparation of the guidance it was considered to what extent the directive on unfair commercial practices (2005/29/EC) applies to the provision of gambling. At the time it was deemed that gambling was not covered by the unfair commercial practices directive.
The Danish Gambling Authority has continuously had a number of cases regarding the license holders’ sales promotion measures, specifically competitions with a purchase condition, which were in violation with the Danish Gambling Authority’s guidance on sales promotion measures. These cases have given the Danish Gambling Authority the opportunity to assess again, whether the directive on unfair commercial practices applies to gambling.
Following the renewed assessment, it is the Danish Gambling Authority’s assessment that gambling is not exempted from the directive on unfair commercial practices.
This means that general restrictions on sales promotion measures cannot be implemented, which are not evident from the directive’s annex I, the so called black list. The Danish Gambling Authority’s guidance on sales promotion measures has therefore as of today, 18 May 2015, been removed and the guidance no longer applies to the license holders’ sales promotion measures.
License holders can prospectively take sales promotion measures in the form of games, which are not covered by the license holders’ license with certain restrictions:
- It must be a sales promotion measure and not an integral part of the license holders’ provision of gambling
- In connection with a competition containing a purchase condition, the purchase condition must not equate to a stake.
The Danish Gambling Authority will in the near future provide further guidance as to the understanding of sales promotion measures in connection with gambling, including an elaboration on when a purchase condition equates to a stake in connection with a sales promotion measure and when something must be considered an integral part of the license holders’ provision of gambling.