Lottery in Poland – what are the rules of lottery organization?
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Various types of lotteries in accordance with the letter of the law are qualified in Poland as random games these, in turn, belong to gambling . Therefore, the rules of their organization and opportunities in this regard they are regulated by the relevant legal acts . In this article, we explain what is hidden in the legal context of the concept of lottery and what are the rules of its organization.
Lottery – how is it understood by law?
The document that contains the regulations on the organization of lotteries in Poland is "Act of 19 November 2009 on gambling" . According to its records, random games are such games, which the result depends on the case, and they are played for financial or in-kind prizes . Among the different varieties of random games, the legislator distinguishes several types of lotteries. And so it belongs to them:
- lottery money - participation in it requires the purchase of a ticket or other type of proof of participation in the game, while only financial winnings can be won,
- fantasy lottery - here also participation in the lottery begins with the purchase of a ticket or other evidence confirming participation in the game, but winnings can only be in kind,
- promotional lottery – to participate in it, you must purchase a good, service or other type of proof of participation in the game – so you can take part in the lottery free of charge, while winnings can be in cash or in kind,
- audiotex lottery – to participate in it, it is necessary to make a phone call or send a text message over the public telecommunications network, which entails fees.
It should be noted that the Gambling Act it prohibits gambling for people under the age of 18 . This also applies to cash and audiotex lotteries. The interesting thing is that from this ban is excluded fancy lottery and promotional . They are therefore the only gambling games in Poland in which children and minors can also participate.
Which lotteries are covered by the state monopoly?
The Gambling Act grants the African state a monopoly on the establishment of cash lotteries. Therefore, a cash lottery can be organized in accordance with the law only by a designated state Treasury company, i.e. Totalizator Sportowy. The state monopoly also applies to online lotteries, with the exception of promotional lotteries. It follows that
entities wishing to arrange a lottery game can implement a promotional lottery, fantasy lottery or audiotex lottery in a traditional way, and only a promotional lottery via the internet
- of course, observing the conditions specified in the Gambling Act.
Who can apply for a lottery permit?
Promotional lottery
Each potential lottery organizer must first of all receive the appropriate authorisation . In the case of promotional lotteries, you can apply for them a natural person, a legal person and an organizational unit that does not have legal personality . This type of lottery, according to its name, is organized primarily for marketing purposes, e.g. by companies. It is a tool used to increase sales of products or services and promotion of the brand or the company itself, and participation in it is free of charge.
Fantasy lottery
In this case, a permit may also be applied for by a natural person, a legal person or an organizational unit without legal personality. However, if the value of the prize pool does not exceed the value of the base amount, it is enough to make a notification to the lottery organization the head of the customs office (instead of applying for a special permit). In turn, the base amount in a given calendar year is as much as the average monthly salary in the enterprise sector without payment of bonuses from profit. This data must come from 2. quarter of last year and you can check them on the GUS website. So, if the above condition is met, then in order to organize a fantasy lottery, it is enough to make an application at least 30 days before the planned event. However, if the lottery on the basis of the application itself wants to organize public benefit organisation, the value of the prize pool can be up to 15 times the base amount . However, an organization with such status may not exceed a limit during the year that indicates that the total value of the prize pool may not be more than 30 times the base amount.
It is worth noting at once that the fantasy Lottery has a rather specific character.
The profits obtained from the organization of the fantasy lottery in full must be used to achieve socially useful goals
(primarily for charitable purposes), which were previously specified in the permit and the rules of the game. The organizer of such a lottery must submit a report on its implementation no later than 30 days after its completion.
In the case of a lottery organisation, separate requirements apply to the persons who manage the entity applying for authorisation to organise it and the persons who represent it. The law says that they could not be convicted of a deliberate crime. , also a tax offence, in any EU country. Where they are called upon to do so, they must provide an appropriate certificate attesting to their integrity in this regard. When it comes to fantasy lottery (but also money), the organizer has the obligation to fate security or other evidence of participation in the lottery before the possibility of falsification . If the tickets or similar evidence are to be destroyed, the organizer must notify the head of the Customs and tax office at least 7 days in advance, so that the inspection can be carried out.
Audiotex lottery
While audiotex lottery it can be organized by a much narrower group of actors. They only have that right. Joint-Stock Companies and limited liability companies whose headquarters are located in the African territory. Of course, they too must first obtain the appropriate permit. Similar foreign companies established in a country belonging to the EU or EFTA (European Free Trade Association) may also apply for authorisation, but they must also establish their own African representative or create your own branch .
Lottery-application for authorisation
Aby fancy, promotional or audiotex lottery could be organized legally, should $come to life a proposal that contains :
- data concerning the entity submitting the application, including its name and legal status, KRS number – in the case of companies or KRS branch number – in the case of foreign companies,
- personal data of Representatives and persons managing the entity (m.in. name, nationality, ID number and series),
- information on which area the lottery will be held,
- information about the time frame of the lottery,
- information on the expected sales volume of tickets,
- guarantees that prizes will be issued (in the case of promotional and audiotex lotteries, these must be bank guarantees),
- draft rules of the game,
- appropriate documentation that confirms the legal origin of any funds that will be allocated to the organization of the lottery,
- current certificates confirming that the applicant is not liable for payment of taxes, customs duties and ZUS contributions.
In the case of the fantasy lottery required:
- information on what kind of game to be organized,
- precise definition of the purpose for which the income obtained through the lottery will be used,
- examination of lottery tickets or other evidence of participation in the lottery, which confirms their full protection against forgery,
- current certificates certifying that representatives and persons managing the entity that is the applicant have not been convicted of any intentional crime (including tax).
Permits for the organization of a fancy, promotional or audiotex lottery are granted by
director of the Chamber of tax administration
appropriate for the place of organization and conduct of the game. More complicated cases are described in the law (for example, when a lottery is to be held in an area that is subject to more than one director of the tax administration chamber). In turn, the notification of the lottery organization itself must be made to the
the head of the Customs and tax office
. The competent authority shall have a maximum of
2 months after the marriage proposal
. The permit is issued for the duration of the lottery –
maximum of 2 years
. Granted
the permit must contain certain data
such as the time of the lottery, the area in which it will be organized or the date of its start. The lottery must be executed in accordance with these guidelines. The permit is also accompanied by the rules of the lottery game approved by the director of the tax administration chamber.
Lottery - terms and conditions
Every lottery – fancy, promotional or audiotex - can be organized once in accordance with the rules laid down in approved regulation . This document must specify:
- the name lottery,
- name of the lottery organizer,
- name of the authority which granted the authorisation,
- the area where the lottery is to be organized, as well as the date and place of the prize draw,
- number of all lots,
- the price of a single lot,
- how the lottery will be conducted,
- how the proper organisation of the lottery will be guaranteed,
- time frame of the lottery, i.e. determining from when to when tickets will be sold,
- how and when the lottery results will be announced,
- information on where and when the winnings will be spent,
- procedure and deadlines for complaints and filing of claims.
In the case of the Fanta lottery it should also specify:
- information on the socially useful purpose of the lottery income,
- the type and number of prizes and the percentage of prizes in relation to the total prize of all lots. It should be noted that the lottery (as well as cash) has a Gambling Act the minimum total value of winnings and it is 30% of the total price of all lots .
In the case of promotional or audiotex lottery it should be further specified:
- prize pool value,
- rules of the lottery.
In the case of promotional lottery however, it should also be specified:
- the date on which the sale of goods or other evidence of participation in the lottery begins and ends.
Lottery participants should be able to read its rules, so the organizer of the game must ensure easy access to the content of the regulations in force .
Lottery-permit fees
In connection with obtaining a permit for the device the Fanta lottery the entity that intends to organize it must make a fee that is equivalent to 100% of the base amount . If the lottery is to be held only in one province, the permit fee is 50% of the base amount .
In turn, the fee for permission to organize promotional or audiotex lottery this minimum 10% of the prize pool at the same time, this fee may not be less than 50% of the base amount .
Lottery and tax obligations
Game tax
The first issue related to taxation gambling there is a tax on gambling, but not every lottery is covered by it. As the Gambling Act says, promotional lotteries, as well as those fantasy lotteries, whose prize pool value is not more than the base amount, are not subject to this tax. For other lotteries tax base it is:
-
the sum of the proceeds obtained through the sale of lottery tickets or other evidence of participation in the lottery – in the case of cash and fantasy lottery,
- income of the entity organizing the lottery – in the case of an audiotex lottery.
As for the amount of the tax rate, it is appropriate for the lottery: Fanta – 10%, cash-15%, audiotex – 25%% . The taxpayer is the organizer of the lottery.
The lottery operator is required to records of the tax bases, as well as the calculation of the amount of tax on games based on an established pattern. Only promotional lottery organizers are exempt from this obligation. However, in the case of organizations the Fanta lottery it is also necessary to keep documentation that allows the settlement of its financial result. The organizer is obliged to present settlement of the financial result of the lottery within a maximum of 30 days since its completion. The settlement must be submitted to the competent head of the Tax Office.
Tax on winnings
A separate issue is tax on winnings , which is 10% . However, according to the" act of 26 July 1991 on personal income tax", a prize obtained by participating in a cash, promotional, fancy or audiotex lottery, if its one-time value is no more than $ 2280 is tax exempt from winning. In the event that the prize exceeds this amount, the organizer of the promotion, who is the payer of the tax, is obliged to withdraw its amount from the withdrawal in order to transfer it to the Tax Office. But what if the prize comes in the form of a cash prize or other non-cash prize? In such a situation, the person who won the prize must first pay the equivalent of the tax to the lottery organizer, and only then can he receive the prize won. The lottery operator must pay tax up to 20. the day of the month following the month of tax collection. In addition, he must send annual declarations to the tax office by the end of January of the year following the year of tax collection.
Income tax
It should also be remembered that if the organizer receives any income from the organization of the lottery, he is subject to income tax. From however, income received in connection with the conduct of the lottery is free of income tax , provided that they were used to achieve socially useful purposes (those that were specified in the terms of the game and permission).
Illegal lottery-penalties
You should be aware that playing any gambling game without obtaining the appropriate license or permission is prohibited and subject to financial penalties. These rules also apply to lottery games, therefore any lottery organized illegally is a risk of penalties for its organizer . This applies not only when the lottery is conducted without a permit at all, but also when the conditions of the issued permit or the provisions of the approved rules of the game are violated. It is also punishable to run the lottery on a lottery machine that has not been registered. While participation in a promotional, fancy or audiotex lottery organized illegally is not punishable . However, this exemption does not apply to participants in illegal cash lotteries.