Your Free Guide To Trade Promotions
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Trade promotions or competitions require licences or permits in certain circumstances. These circumstances are set out below.
What is a trade promotion lottery? It’s a contest, a raffle, a sweepstakes, or any other promotion that has prizes and winners determined by chance. Businesses run trade promotions to encourage sales and increase engagement.
Which rules do you need to comply with?
In short, you need to comply with all the laws of all the states and territories in which you are running a competition, even if you draw the winner in the one location. If you have a permit from any of the below you won’t need a further permit from the NT and in WA there is a deemed permit. Trade promotion permits are not required in Tas, VIC, or in QLD.
Every state and territory has its own set of obligations when it comes to trade promotions. If you are running a national competition, your competition terms and conditions must be compliant on a national basis.
NSW
If you want to run a sweepstake or contest and the total prize value is over $10,000, you’ll have to obtain a trade promotion gaming authority first. You can do that online.
To be eligible for a gaming authority, your competition must:
- have free entry;
- be running a competition based on chance not skill;
- must genuinely promote the goods or services of your business; and
- must take place on the date nominated.
If you want to run a competition under your authority, you’ll need to provide Fair Trading a copy of the rules of the gaming activity at least 10 working days before it takes place.
If you change your rules, you must tell Fair Trading as soon as possible. If you do make changes, you must make sure they do not disadvantage existing entrants.
ACT
If you run or advertise a trade promotion lottery in the ACT and give away more than $3000 worth of prizes, you have to get a permit from the government.
You can expect to receive a permit within 5 days of applying. If you need to change your competition after it has been approved, you will need to submit an amendment request to the ACT gaming regulator.
SA
You will need trade promotion permit from the regulator in SA if your total prize pool is over $5,000 or if you are running an instant win competition.
If you are using an electronic drawing system, it will need approval as well.
It can take up to 14 days for a permit to be issued in SA. If you need a permit sooner, you can pay a premium fee.
Again, if you have been issued a permit and then amend your competition terms and conditions, you will need to get the approval of the SA gaming regulator.
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