U-turn on Swedish ban for prize draws linked to purchase.

Abi Roman

Prize draws, also known as games of chance, linked to purchase have traditionally been outlawed in Sweden but regulators now consider them acceptable for prize promotions. Amy Powell, Compliance Manager at PromoVeritas explains the situation.

Historically prize draws in Sweden, whether linked to purchase or not, have long been prohibited in Sweden because of their links to gambling. Change started back in January 2019 when Swedish law began to permit free prize draws however those linked to purchase were still banned. They were deemed to be a Lottery, something that is heavily regulated in Sweden where permits are only issued to charities and not commercial businesses.

However latest guidance from the Swedish Regulator now makes it clear that if an entrant is paying for a product or service rather than to enter a lottery it is not regarded as a “bet for entry”. As such, typical purchase-linked games of chance in Sweden are now considered extremely low risk, based on a couple of conditions:

  1. The value of the product or service is not increased during the promotional period; or
  2. The quality of the product or service is not reduced during the promotional period; and
  3. The promotion is a temporary one, preferably with less than six months in duration.

This is great news and essentially aligning Swedish promotional law with the UK’s gambling laws and making it much simpler to run promotions there now. To find out more about running compliant and effective prize draws, competitions and instant wins in Sweden or anywhere else in the world contact PromoVeritas now.