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Description of the
Lotteries are characterised by the fact that only cash prizes are raffled off. On the other hand, raffles are characterised by non-cash prizes or non-cash and cash prizes. A tombola is when the draw takes place in closed rooms. The information on small lotteries applies accordingly to small draws and raffles, unless specifically stated otherwise.
Small lotteries exist if the planned playing capital (number of planned tickets x ticket price) does not exceed EUR 40,000.
Incidentally, lotteries with a playing capital of more than EUR 40,000 are subject to much stricter requirements. In this case, please first seek advice from the government in whose administrative district the lottery is to be organised.
Small lotteries are subject to authorisation if a stake is required and, in principle, anyone can take part in the draw. This is the case if the opportunity to participate is not limited to a specific, closed group of people. If small lotteries are habitually organised in clubs or other closed societies, they are also considered public games of chance. In addition to the payment of a ticket price, the stake can be, for example, the purchase of a product or similar as a condition for participation in the lottery; this is referred to as a so-called hidden stake.
Small lotteries can be authorised in two ways. Either a so-called general licence has already been issued (Option 1), or the competent authority will issue a formal licence decision for the specific individual case upon your application (Option 2).
Option 1: Small lotteries are deemed to be permitted in cases where the conditions for a general licence are met; an individual licence is then no longer required. However, they are generally subject to a notification requirement (see ‘Deadlines’). Another advantage is that you do not incur any administrative costs.All governments have issued general licences for their area of responsibility (see "Further links"). If you are not sure whether the small lottery you are planning is generally authorised, please contact the municipality or government.
Option 2: If the small lottery you are planning is not covered by a general licence, you must submit an application to the relevant authority (see ‘Procedure’). This must include at least the following information:
- Exact designation of the organiser (name, legal form, registered office, authorised representatives and persons responsible for the lottery with address, e-mail address and telephone number),
- Type, location or area and time or period of the lottery applied for,
- Purpose of the lottery; information on the utilisation of the net proceeds,
- Information on the sale of lottery tickets; list of lottery ticket sales outlets with address and respective sales times,
- Game plan (number of tickets, ticket price, type, number and sequence of prizes including the respective value, procedure for determining prizes, notification of winners),
- Event costing:
intended revenue (= planned prize fund, i.e. number of planned tickets × ticket price)
minus estimated costs (e.g. expenditure on prizes, printing costs for tickets, etc.)
minus the prize pool (at least 25% of the prize fund)
= net proceeds (at least 25% of the prize fund; the net proceeds must be used in full for the specified purpose.), - Rules in the event that winnings are not collected.
Prerequisites
- The organiser of the small lottery must generally be a non-profit, charitable or ecclesiastical organisation and therefore exempt from paying corporation tax. Exceptions can be made for social organisations without legal capacity, such as parents' councils at schools. Private individuals and tradespeople are excluded as organisers.
- No commercial purposes may be pursued with the event. References to the provision of profits by companies are permitted.
- The Organiser's net income, the players' winnings and the costs of the small lottery must be in reasonable proportion to each other. Net proceeds and total winnings must each amount to at least 25% of the playing capital; sponsored prizes must be taken into account at an estimated value when determining the total winnings if their actual value is not known.
- The net proceeds must be used promptly for charitable, benevolent or ecclesiastical purposes.
- At least 1 % of the lots must have a prize. The prizes must be staggered appropriately in terms of their value.
Deadlines
If a small lottery or raffle is generally permitted, you must:
- small draws or raffles with prize money
- up to EUR 650;
- over EUR 650 up to and including EUR 5,000 to the municipality of the event location at least one week in advance;
- over EUR 5,000 to the government in whose administrative district the venue is located.
- always display small lotteries. They are available with a playing capital of up to
- including EUR 5,000 must be notified to the municipality of the event location at least one week in advance;
- over EUR 5,000 must be notified in advance to the government in whose administrative district the venue is located.
If you require an individual licence for a small lottery or raffle, there are no deadlines. However, you should submit the application in good time so that the competent authority has sufficient time to examine the application; no lottery tickets may be sold before the licence is granted. It is therefore advisable to contact the competent authority as early as possible (see "Procedure").
- small draws or raffles with prize money
Required documents
Decision by the tax office pursuant to Section 60a(1) of the German Fiscal Code (AO) regarding the separate determination of compliance with the statutory requirements under Sections 51, 59, 60 and 61 AO
(formerly known as the tax office’s certificate of the organiser’s charitable status [exemption notice])
for associations: Articles of AssociationForms
- Joint form for notification/registration of a lottery or draw with the gambling supervisory and financial authorities
- Joint form for the settlement of a lottery or draw for submission to the gambling supervisory and financial authorities
- Informal application (with signature)
This wizard helps you to create an informal letter if the responsible office does not provide an application form.
Costs
- 1 per thousand of the authorised gaming capital, but at least EUR 30
- if a lottery is generally authorised, no administrative costs are incurred
Legal basis
Legal remedy
Administrative court actionFurther links
- Information sheet on the taxation of lotteries and lottery games
- General licence for the organisation of public lotteries and draws in the administrative district of Lower Bavaria
- General licence for the organisation of public lotteries and draws in the administrative district of Upper Palatinate
- General licence for the organisation of public lotteries and draws in the administrative district of Upper Franconia
- General licence for the organisation of public lotteries and draws in the administrative district of Middle Franconia
- General licence for public lotteries and draws - Government of Lower Franconia
- General licence for the organisation of public lotteries and draws in the administrative district of Swabia
- General licence for the organisation of public lotteries and draws in the administrative district of Upper Bavaria
Procedure
To register a small lottery that is generally permitted, please use the registration form provided for this purpose (see ‘Forms’) by the relevant authority (local council or government). You will find information about the authority responsible for registration in the ‘Deadlines’ section. In some local councils, you can already register your small lottery via an online procedure.
If the planned small-scale lottery is not covered by a general licence, an informal application must be submitted to the relevant authority.
The authorities responsible for issuing a licence for small lotteries are
- Municipalities or administrative communities for all lotteries that do not extend beyond the municipal area in terms of ticket sales outlets.
- Governments for all lotteries that do not extend beyond the administrative district, unless the municipality or administrative community is responsible.
- Government of the Upper Palatinate for all lotteries that extend beyond one administrative district.
Here, too, the governments and some municipalities already offer an online procedure.
Notes
Lotteries and draws must also be registered in good time before the start at the centrally responsible tax office in Munich, Department III (Katharina-von-Bora-Str. 4, 80333 Munich) if the total price of the tickets exceeds EUR 1,000. Please clarify with the responsible tax office whether lottery tax is payable.
For further information on the taxation of lotteries, please refer to the information sheet of the Bavarian State Tax Office (see "Further links").