Penalty payment order for illegal promotional game of chance

(PRESS RELEASE) -- The Dutch Gaming Authority has imposed a penalty payment order for the illegal organization of a promotional game of chance. Companies are allowed to give away prizes to promote their products, but various conditions apply to such promotions. For instance, a company, service, or product may only be promoted in this way once a year, participation must be free, and the company must publish the terms and conditions of participation on its website.

The Ksa received several reports regarding a company that raffled off cars with some regularity. Customers of the company who purchased services or products for a minimum amount had a chance to win a car. Following these complaints, the Ksa entered into discussions with the owner of the company. During this meeting, the rules regarding promotional activities were clearly explained, as well as the potential consequences of organizing a subsequent draw.

Because the company continued to organize draws even after this conversation, an order subject to a penalty payment is now being imposed. This calls upon the owner to cease operations immediately, as otherwise a penalty of €150,000 per violation will be imposed, with a maximum of €450,000.