Danish Lottery Crackdown Stops Pubs Giving Away Free Beer

The Danish Gambling Authority (DGA) has been on a burner the last few weeks specifically targeting infractions of its state-run monopoly on Lotteries and lottery-like games of chance. Most recently we reported on their stance that crowdfunding projects offering the chance to win access to features or offering prizes could require a lottery licence.

The Danes kept silent when they came for their Kickstarter projects and now the Danish Gambling Authority is going after their free beer.

 Pub Lotteries Banned?

The Authority claims to have observed a number of pubs and similar establishments hosting free beer giveaways using scratch cards and other random draw mechanics. In addition to winning free beer and other alcohol giveaways, these venues have also been found to sell “numbers” which are used to draw prizes. Prizes in these draws range anywhere from €70 up to €700 per draw.

“The Danish Gambling Authority assess that several of the lotteries at pubs are open for the public to participate in, and consequently, the game is covered by the requirement of a licence pursuant to the Danish Gambling Act. Due to the monopoly on lottery, a licence to offer lottery cannot be issued unless the lottery is a charity lottery.”

Since these draws meet the three core requirements of a lottery (a cash stake, the chance to win a prize and prizes won through chance, not skill) the DGA has found venues offering these giveaways to be in contravention of its state monopoly on lotteries.

This means that these pubs and other venues need to either get a licence or cease giving away free beer and cash prizes.

 Free Beer Is Not A Charity

The only lotteries which are allowed to operate alongside the state-run Lottery are those which qualify as charitable lotteries. However, only associations, institutions, organisations and committees can hold a licence to offer a charitable lottery, and the law also requires that only members of the approved organisation are allowed to participate.

Since private individuals and businesses cannot hold Charity Lottery licences neither pubs nor their owners qualify under any circumstance to offer lottery-style giveaways.

Unless these companies can come up with ways to give away free beers that do not put them at odds with local lottery laws it could mean no more free beer scratchcards at your favourite pub.