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A giveaway on social media is great for your reach, but it is subject to rules. It often involves a promotional game of chance, for which a code of conduct applies with requirements regarding transparency and game conditions. Furthermore, gambling tax applies above a certain prize value, and you must comply with platform rules and the GDPR.
When is your giveaway a game of chance?
If the participant wins by chance — for example, a draw among everyone who shares and likes — then it is a (promotional) game of chance. If winning depends on a performance, such as the best entry, then it is a contest with different rules. The distinction determines which rules apply.
The code of conduct for promotional games of chance
Promotional games of chance are subject to a code of conduct with requirements: clear, pre-published terms and conditions, transparency regarding the promotion and the draw, and limits on value and duration. State, among other things, who the organizer is, how and when the draw takes place, and what the prize is. Unclear promotions lead to complaints.
Gambling tax and costs
Gambling tax may be payable above a certain prize value, which the organizer often covers. Calculate this in advance. (Thresholds and rates may change; check the current rules with the Tax and Customs Administration.)
Platform rules and privacy
Social media platforms such as Facebook and Instagram set their own terms and conditions for giveaways — for example, regarding how you may ask participants to share or tag. Adhere to these to prevent removal. If you collect participant data, the GDPR applies: be transparent and ask for consent where necessary.
Frequently Asked Questions
Am I allowed to just organize a giveaway?
Yes, provided you follow the rules: clear promotional terms and conditions, the code of conduct for promotional games of chance, any applicable gambling tax, the platform rules, and the GDPR.
Do I have to pay gambling tax?
This is possible above a certain price value. The thresholds change; check the current rules and consider paying the tax yourself.
Do I need the terms and conditions?
Yes. Clear, pre-published promotional terms and conditions are mandatory and prevent disputes regarding the draw and the prize.
Is your giveaway legally in order?
Our legal experts draft watertight promotional terms and conditions and review your campaign. View our marketing and advertising lawteam, have your terms drafted, or schedule a free consultation.
