diff --git a/test/api/unit/libs/payments/payments.test.js b/test/api/unit/libs/payments/payments.test.js
index 79c41995eb..2ae60aad00 100644
--- a/test/api/unit/libs/payments/payments.test.js
+++ b/test/api/unit/libs/payments/payments.test.js
@@ -209,17 +209,6 @@ describe('payments/index', () => {
         expect(user.purchased.txnCount).to.eql(1);
       });
 
-      it('sends a private message about the gift', async () => {
-        await api.createSubscription(data);
-        const msg = '`Hello recipient, sender has sent you 3 months of subscription!`';
-
-        expect(user.sendMessage).to.be.calledOnce;
-        expect(user.sendMessage).to.be.calledWith(
-          recipient,
-          { receiverMsg: msg, senderMsg: msg, save: false },
-        );
-      });
-
       it('sends an email about the gift', async () => {
         await api.createSubscription(data);
 
@@ -255,6 +244,109 @@ describe('payments/index', () => {
           },
         });
       });
+
+      context('No Active Promotion', () => {
+        beforeEach(() => {
+          sinon.stub(worldState, 'getCurrentEvent').returns(null);
+        });
+
+        afterEach(() => {
+          worldState.getCurrentEvent.restore();
+        });
+
+        it('sends a private message about the gift', async () => {
+          await api.createSubscription(data);
+          const msg = '`Hello recipient, sender has sent you 3 months of subscription!`';
+
+          expect(user.sendMessage).to.be.calledOnce;
+          expect(user.sendMessage).to.be.calledWith(
+            recipient,
+            { receiverMsg: msg, senderMsg: msg, save: false },
+          );
+        });
+      });
+
+      context('Active Promotion', () => {
+        beforeEach(() => {
+          sinon.stub(worldState, 'getCurrentEvent').returns({
+            ...common.content.events.winter2021,
+            event: 'winter2021',
+          });
+        });
+
+        afterEach(() => {
+          worldState.getCurrentEvent.restore();
+        });
+
+        it('creates a gift subscription for purchaser and recipient if none exist', async () => {
+          await api.createSubscription(data);
+
+          expect(user.items.pets['Jackalope-RoyalPurple']).to.eql(5);
+          expect(user.purchased.plan.customerId).to.eql('Gift');
+          expect(user.purchased.plan.dateTerminated).to.exist;
+          expect(user.purchased.plan.dateUpdated).to.exist;
+          expect(user.purchased.plan.dateCreated).to.exist;
+
+          expect(recipient.items.pets['Jackalope-RoyalPurple']).to.eql(5);
+          expect(recipient.purchased.plan.customerId).to.eql('Gift');
+          expect(recipient.purchased.plan.dateTerminated).to.exist;
+          expect(recipient.purchased.plan.dateUpdated).to.exist;
+          expect(recipient.purchased.plan.dateCreated).to.exist;
+        });
+
+        it('adds extraMonths to existing subscription for purchaser and creates a gift subscription for recipient without sub', async () => {
+          user.purchased.plan = plan;
+
+          expect(user.purchased.plan.extraMonths).to.eql(0);
+
+          await api.createSubscription(data);
+
+          expect(user.purchased.plan.extraMonths).to.eql(3);
+
+          expect(recipient.items.pets['Jackalope-RoyalPurple']).to.eql(5);
+          expect(recipient.purchased.plan.customerId).to.eql('Gift');
+          expect(recipient.purchased.plan.dateTerminated).to.exist;
+          expect(recipient.purchased.plan.dateUpdated).to.exist;
+          expect(recipient.purchased.plan.dateCreated).to.exist;
+        });
+
+        it('adds extraMonths to existing subscription for recipient and creates a gift subscription for purchaser without sub', async () => {
+          recipient.purchased.plan = plan;
+
+          expect(recipient.purchased.plan.extraMonths).to.eql(0);
+
+          await api.createSubscription(data);
+
+          expect(recipient.purchased.plan.extraMonths).to.eql(3);
+
+          expect(user.items.pets['Jackalope-RoyalPurple']).to.eql(5);
+          expect(user.purchased.plan.customerId).to.eql('Gift');
+          expect(user.purchased.plan.dateTerminated).to.exist;
+          expect(user.purchased.plan.dateUpdated).to.exist;
+          expect(user.purchased.plan.dateCreated).to.exist;
+        });
+
+        it('adds extraMonths to existing subscriptions for purchaser and recipient', async () => {
+          user.purchased.plan = plan;
+          recipient.purchased.plan = plan;
+
+          expect(user.purchased.plan.extraMonths).to.eql(0);
+          expect(recipient.purchased.plan.extraMonths).to.eql(0);
+
+          await api.createSubscription(data);
+
+          expect(user.purchased.plan.extraMonths).to.eql(3);
+          expect(recipient.purchased.plan.extraMonths).to.eql(3);
+        });
+
+        it('sends a private message about the promotion', async () => {
+          await api.createSubscription(data);
+          const msg = '`Hello sender, you received 3 months of subscription as part of our holiday gift-giving promotion!`';
+
+          expect(user.sendMessage).to.be.calledTwice;
+          expect(user.sendMessage).to.be.calledWith(user, { senderMsg: msg });
+        });
+      });
     });
 
     context('Purchasing a subscription for self', () => {