Directorate General for the Regulation of Gambling

LOTTERIES: Lottery is a form of gambling which involves giving prizes to the holders of a number or combination of numbers and signs on a ticket or electronic equivalent drawn at random on a preset date or prior programme in the case of instant or pre-drawn lottery.

The operation, management and marketing of non-occasional lottery games is reserved to a number of assigned operators:

Sociedad Estatal Loterías y Apuestas del Estado, S.A.  (S.M.E.)	Organización Nacional de Ciegos Españoles (ONCE)
http://www.loteriasyapuestas.es	http://www.once.es

These two entities are therefore the only ones which may operate, manage and market non-occasional lottery games in Spain. No other entities or legal persons may request or obtain a licence for non-occasional lottery games.

Both entities may market the games using tickets or other physical or computer-based, telematic, telephone-based or interactive means for participating, either directly or through any branch of their external commercial network.

Authorisation to market non-occasional lottery games:

The Ministry of Finance is in charge of issuing authorisations to operate, manage, market and, where applicable, modify non-occasional lottery games at the request of the licensed operator.

Authorisation to market lottery games beyond Spain:

Following the licensed operator's request, the Ministry of Finance is in charge of issuing authorisations to operate, manage, market and, where applicable, modify lottery games whose scope goes beyond Spanish territory; namely for:

• Operating, managing and marketing lottery games jointly or in coordination with licensed operators from other states.
• Operating, managing and marketing lottery games marketed in Spain in other states.
• Operating, managing and marketing lottery games of foreign-licensed operators by licensed operators in Spain.

Special authorisation to market occasional lottery games:

The Ministry of Finance may authorise non-profit entities and charities to operate, manage and market occasional lottery games on an exceptional basis .

Non-profit entities and charities wanting to operate, manage and market occasional lottery games must file a request stating:

1. name of the requesting entity and its representative;
2. documentation certifying the legal constitution of the entity presented at the appropriate register;
3. Spanish address for notifications;
4. place, date and signature of the applicant;
5. proof of having met in full their tax and Social Security obligations; and
6. where applicable, request for authorisation to conduct advertising, promotion or sponsorship activities.

Also the following details:

1. proof of non-profit entity or charity status;
2. financial report including an economic forecast and the destination of the funds obtained;
3. proposed specific rules;
4. total worth of the issued lottery tickets;
5. marketing method and channels;
6. prize programme; and
7. place, date and time of the draw.

Lottery game marketing collaborators

All individuals, legal persons and entities involved in the marketing of lottery games such as those listed below who wish to market a particular lottery game require express prior authorisation from the designated operator for that particular game:

• club organisers;
• companies providing advisory, safeguard, payment and collection services, document management and direct or indirect representation of lottery operators at sales points;
• commercial agents of the above; and
• other similar entities.

in order to carry out their activity, they will need the explicit authorisation of the operator established for the development of the comercialisation of the gambling activity in which they participate.

Those who act without said authorisation may be penalised for committing a very serious or serious offence according to the penalty system set out in the Gambling Act.

TAX ARRANGEMENTS

Individuals or legal persons who operate, manage and market lottery games within Spain are not subject to the Gambling Tax.

Individuals, legal persons and entities involved in the operation, management and marketing of lottery games are not subject to the Gambling Tax. Notwithstanding the above, their activity is subject to the general tax obligations of any individual or legal person engaged in an economic activity.