The Dutch Gambling Authority (Ksa) has imposed a penalty order for the illegal organization of a promotional game of chance. Companies are allowed to give away prizes to promote their products, but such actions are subject to several restrictions.
For example, a company, service, or product may only be promoted in this way once per year, participation must be free of charge, and the company must publish the terms and conditions of participation on its website.
The Ksa received several reports about a company that regularly raffled cars. Customers who purchased a minimum amount of services or products had the chance to win a car. Following these complaints, the Ksa entered into discussions with the company’s owner. During this conversation, the rules for promotional games of chance were clearly explained, along with the consequences of organizing another draw.
Since the company continued to hold raffles even after this discussion, a penalty order has now been imposed. The owner has been instructed to stop immediately, otherwise a fine of €150,000 per violation will be levied, up to a maximum of €450,000.
