Organisation of promotional and phone lotteries
The principles of organising lotteries are outlined in the Polish Gambling Act. It is an administrative process which involves proceedings before the Director of the Tax Administration Chamber, the Head of the Fiscal and Customs Office and the Heads of Tax Offices.
Watch an interview on the YouTube channel “About Loyalty programmes at Night” about lotteries supporting loyalty programmes.
Organisation of promotional and phone lotteries
Promotional lotteries are short-term actions which boost sales. Lotteries target final purchasers or trade agents, offering attractive prizes in exchange for purchasing products.
To organise a lottery,
it is necessary to prepare its terms and conditions. Along with an application and a bank guarantee for paying out or handing over prizes, and terms and conditions have to be filed with a public administration body to obtain a lottery permit.
Promotional or phone lottery
Moreover, organising a promotional or phone lottery entails the obligation to have a certified gaming device to pick out the winners and numerous records to write down the handover of prizes of a specific value. Finally, you need to file a report on the course of the lottery.
The main advantages of promotional and phone lotteries organised by an external company
You can organise a lottery on your own or entrust this task to a professional entity. The main advantages of entrusting the organisation of a promotional lottery to experts in this field are that you save time and money and spare your nerves. Most importantly, you can be sure that everything will be organised in accordance with the law. At the same time, the consequences of potential mistakes will be faced by an external company.
Organising a lottery is similar to a dentist appointment: we can (technically) pull a tooth out on our own, but nobody questions the need to go to an expert. The same arguments apply to lotteries. Working with an experienced company that has organised hundreds of lotteries has no disadvantages and eliminates risk.
What requirements have to be met to organise a lottery?
Apart from preparing the relevant documents, to organise a lottery, the entity applying for a lottery permit (which is issued by the Director of the Tax Administration Chamber) cannot be in arrears with taxes, customs duties or social insurance contributions, has to provide a bank guarantee for handing over or paying out prizes and provide documentary evidence that the resources allocated to organise the lottery comes from a legal source. Moreover, it is necessary to train employees involved in the organisation of the lottery. They need to know the terms and conditions of the lottery and the provisions of the Polish Gambling Act. When the permit is issued, the terms and conditions have to be followed with no exceptions.
How can a company benefit from a promotional lottery in terms of PR and sales?
Lotteries are organised to boost sales to final purchasers and increase the market share within a short period.
When we organise a lottery, we promise purchasers that they will participate in the drawing of attractive prizes in exchange for buying our products, which is a requirement set forth in the terms and conditions. Of course, prizes will be given only to the lucky ones randomly picked out, but attractive prizes encourage many participants to buy the promoted product. And it boosts sales. Lotteries impact customers in different ways. First of all, they encourage participants to buy more. For example, I used to buy one bar of chocolate a week, but because I want to win the car prize, I would buy two bars to increase the odds. For me, as a participant, it is hardly a large expense, but from the manufacturer’s point of view, I doubled my shopping cart value. Moreover, lotteries boost sales because people start to shop more often. For example, I used to fill my tank at a petrol station of a given brand half the time, but now I want to win the lottery, so I will stop there every time I need fuel.
The most important determinant of demand, which makes promotional lotteries increase sales, is encouraging customers to choose a different brand. Let’s assume that I used to buy the washing powder of a specific brand. If its competitor organises a lottery and I have a chance to win attractive prizes, I am willing to buy a product of a different brand than the one I regularly buy. This final factor of demand corresponds to almost half of cases when sales increase as a result of a lottery.
Examples of our lotteries
At i360, we have organised hundreds of lotteries. Our biggest achievements included a lottery for E washing powder, which consisted of putting suitably packed coins and banknotes inside washing powder boxes.
When consumers bought the washing powder, they did not know whether it contained a prize or not. The total prize budget was PLN 1 million, and the campaign led to a significant increase in sales and market share. Moreover, it created a very positive image for the brand.
Promotional and phone lotteries FAQ – Frequently Asked Questions
AML. When is a lottery organizer required to apply financial security measures?
Lottery organizers are required to apply financial security measures when: establishing a business relationship; conducting an occasional transaction of the equivalent of €15,000 or more...
AML. What do financial security measures include?
Identifying the customer and verifying its identity;identifying the beneficial owner and taking reasonable steps to verify its identity and establish ownership and control – in...
AML. AML Act – what are the obligations of lottery organizers?
The most important of these are the obligation to apply financial security measures to their clients, to identify and document the risks of money laundering...
AML. What is the AML Act?
The Anti-Money Laundering and Countering the Financing of Terrorism Act (abbreviated as AML from the English term anti-money laundering) on July 13, 2018 came into...