Giveaways and the law — an overview
Running a public raffle or competition online isn't just a fun activity — it comes with legal responsibilities. The most important question upfront: Is it gambling, a lottery, or a prize competition? The answer determines which law applies — and whether you need a permit.
Winbase is designed so that raffles and competitions each operate within the correct legal framework. The underlying concept has been reviewed and approved by legal counsel. But as a Creator, you remain responsible for your own event.
The three legal frameworks at a glance
1. Gambling — Interstate Treaty on Gambling (GlüStV 2021)
Germany's Glücksspielstaatsvertrag 2021 (in force since 1 July 2021) regulates commercial gambling: online casinos, sports betting, online poker and lotteries. Something qualifies as gambling when:
- a financial stake (money or equivalent) is required to participate,
- the outcome depends primarily on chance, and
- a fee is charged for participation.
For Winbase raffles and competitions: The GlüStV 2021 does not apply as long as participation is free and no financial stake is required. If participants don't pay to enter — not even indirectly via premium SMS, paid registration, or similar — you are not running gambling under the GlüStV.
The line: The moment you require any form of payment as an entry condition (e.g. "purchase required to participate"), the GlüStV may come into play. The "free alternative" principle — offering a free entry route alongside a purchase — can mitigate this, but is legally ambiguous and should be checked with a lawyer if in doubt.
2. Raffles — § 33d Trade Regulation Act (GewO)
For free draws where chance alone determines the winner, § 33d GewO applies. It permits so-called "small lotteries" without an official licence — under these conditions:
Permitted (without authorisation):
- Free participation for all (no purchase required)
- Draw among a defined group of participants
- Digital draws with a reproducible, verifiable random process
- No predominantly commercial character
Not straightforwardly permitted:
- Purchase as a prerequisite for participation
- Hidden fees (e.g. premium SMS to enter)
- Misleading prize descriptions
- Advertising that implies false winning odds
Winbase raffles are built so participation is always free. Entry conditions (follows, shares, watching a video, etc.) must not create a monetary barrier.
3. Competitions — § 661 BGB and no gambling classification
This is where competitions differ fundamentally from raffles, and it matters legally.
A Winbase Competition is a prize competition (Preisausschreiben) under § 661 BGB — not gambling, not a lottery. The winner is not determined by chance but by knowledge and skill: only participants who answer all questions correctly qualify for the prize. The tiebreaker (speed) only applies among those who answered correctly.
The legally relevant criterion is the primary decision: since the first filter is knowledge (right/wrong answers), this is a skill-based contest — not gambling. The time-based tiebreaker is a secondary, neutral criterion that applies equally to all participants (time runs from each individual's entry start, not from a global clock).
What this means for you:
- Competitions are not subject to the GlüStV 2021
- Competitions are not subject to § 33d GewO (which only covers pure chance draws)
- Competitions are generally permit-free — provided they are free to enter and questions have unambiguous correct answers
Important: If you deliberately write ambiguous questions to enable arbitrary outcomes, you leave legally safe ground. Questions must have clear, definitive correct answers.
Required information in your terms and conditions
For both raffles and competitions: clear, complete terms protect you legally and build trust. Required elements:
- Who can participate? (age, country — e.g. "Open to participants aged 18+ residing in Germany")
- How long does the event run? (clear start and end date)
- How is the winner determined?
- Raffle: "Random draw with published seed (Winbase transparency protocol)"
- Competition: "Fully correct answers, tiebreaker: shortest elapsed time from individual entry start"
- What happens to participant data? (privacy notice)
- How will the prize be delivered? (shipping, digital delivery, in-person pickup)
- What if the winner doesn't respond? (e.g. "No response within 14 days = new draw / next-best participant")
- Exclusion of employees and relatives (best practice)
Winbase provides a free-text field for terms — use it consistently.
Data protection (GDPR)
When participants enter your raffle or competition, you are collecting personal data. Key obligations:
- Consent: By entering, participants agree to data processing for running the contest (Winbase handles this at the platform level)
- Purpose limitation: Participant data may only be used for running the contest — do not add them to marketing lists without separate explicit consent
- Deletion: Once the prize is delivered, don't retain data beyond what's necessary
If you use social media follows as an entry condition, Winbase does not pass follower data to you — this is intentional.
Advertising and disclosure
When promoting a raffle or competition on social media:
- Disclosure requirements: Commercial giveaways run as part of a brand partnership must be labelled as advertising or sponsored content
- No misleading claims: "100% win rate" or "everyone wins" is not acceptable for a genuine raffle or competition
- Realistic odds: Winning chances depend on the number of (qualifying) entries — direct people to Winbase for the transparent result
Age restrictions and geography
If you're giving away age-restricted products (alcohol, tobacco, etc.), age verification is required. Winbase does not currently offer built-in age verification — handle this through your terms and manual verification when contacting the winner.
For events limited to specific countries: explicitly restrict participation in your terms and enforce this during winner notification.
What Winbase handles for you
As a platform, Winbase ensures:
- Reproducible draws (Raffle): The seed is published after the draw — the result is independently verifiable at any time
- Fair evaluation (Competition): Answer correctness and elapsed time are calculated server-side and cannot be manipulated
- No post-hoc changes: Neither creators nor admins can alter a result after the fact
- Transparent participant list: Every entrant can confirm their registration
- Server-side timestamping: Entry times are recorded server-side — no late entries possible
These measures protect you as a Creator from accusations of manipulation — for both raffles and competitions.
Summary: Raffle vs. Competition — legal comparison
| Aspect | Raffle | Competition |
|---|---|---|
| Legal basis | § 33d GewO | § 661 BGB |
| GlüStV applicable? | No (no financial stake) | No (skill-based) |
| Winner determined by | Chance (seed draw) | Knowledge + tiebreaker |
| Permit required? | No (if free to enter) | No |
| Risk if payment required | Yes (GlüStV proximity) | Yes (GlüStV proximity) |
The platform is designed to run both formats in a legally sound way. Your job as a Creator: write clear terms, respect data protection, and communicate transparently.
Note: This article is not legal advice and does not replace individual legal consultation. For specific questions — especially involving brand partnerships, high prize values, or cross-border events — consult a qualified lawyer specialising in competition or commercial law.