In Short
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You may need a permit to run a trade promotion in South Australia, depending on the type and value of the prize.
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Generally, games of chance with prizes over $5,000 require a permit, while games of skill do not.
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You must notify winners within 14 days and publish their details using the relevant media.
Tips for Businesses
Plan your trade promotion well in advance to avoid delays. Ensure your application is complete and accurate before submission. Always check the South Australian regulations for the most current requirements, as compliance is crucial. Keep thorough records of all promotion details for at least three months after the draw.
Are you running a trade promotion in South Australia? You will need to first consider whether your competition meets the definition of a trade promotion lottery under the Lotteries Regulations 2021 (SA) (‘Lotteries Laws’) and whether you are required to have a licence in place. Lotteries laws are regulated by Consumer and Business Services (CBS), which administers applications for lottery licences on behalf of the Liquor and Gambling Commissioner in South Australia. This article covers the legal requirements of running a trade promotion in SA.
Do I Need a Permit?
You must apply for a major trade promotions licence if you intend to conduct a:
- major trade promotion; or
- instant prize trade promotion.
A major trade promotion is defined as a trade promotion lottery where the total value of all the available prizes exceeds $5000. In contrast, if you are running a minor trade promotion, you are not likely to require a licence under the Lotteries Laws.
Types of Permits
Under the Lottery Laws, trade promotion lotteries are divided into Major Trade Promotion, Minor Trade Promotion and Instant Prize Lottery.
| 1. A Major Trade Promotion Lottery | A trade promotion that has a total prize value of over $5,000 requires a permit. You will then need to apply for a licence under the Lotteries Laws. |
| 2. A Minor Trade Promotion Lottery | A trade promotion which has a total prize value of under $5,000 does not require a licence, but you must still comply with the minor trade promotion lottery conditions. This type of trade promotion must not include any instant prizes. |
| 3. Instant Prize Trade Promotion Lottery | These lotteries have instant prizes only and may also have an unclaimed prize draw or a second chance or major draw in the terms and conditions. Regardless of the prize amount, you must apply for an instant prize trade promotion licence. |
If you are a gaming operator or wish to operate trade promotions in licensed gaming venues, different legislation and rules apply. Please see the South Australian government website linked here for more information. You can also call the Consumer and Business Services on 131 882 (select option 6) or email them at gamblingadministration@sa.gov.au.
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Running the Competition if a Permit is Required
There are limitations as to who can enter a competition, and these are usually set out in your terms and conditions. If there are prizes that usually only persons over the age of 18 can purchase (for example, alcohol), then the prize should also be limited to people of that age group.
Every entry must have a fair and equal chance of winning. You must set out the date and time of the draw, and notify the prize winner within 14 days of drawing the prize. Under SA regulations, a number of prizes cannot be given, including:
- tobacco products;
- firearms;
- dangerous items;
- cosmetic or similar procedures; and
- other illegal goods and services.
Although you can offer alcohol as a prize, it cannot be given as an inducement to enter.
After the Competition Ends
After the competition ends, you should publish the winner’s name in any of the following media:
- a national newspaper;
- on the original media platform your business advertised the lottery; or
- where the individual prize is over $250, a website on which the lottery is run.
You should also keep records relating to conducting the trade promotion lottery for at least three months after drawing the prize. If the Minister requires, you must also supply any documents.
Non-Compliance With Legislation
If you conduct or assist in conducting an unlawful lottery, you are likely to have committed an offence against the Lotteries Act 2019. This carries a maximum penalty of $10,000. Participating in an unlawful lottery (by purchasing a ticket or obtaining a share in the lottery) is also an offence and carries a maximum penalty of $2,500.
Someone who acts in a dishonest, deceptive or misleading manner (whether as principal, agent or employee) in the conduct or promotion of the lottery will be guilty of an offence. This offence carries a maximum penalty of $50,000 or 2 years imprisonment.
Key Takeaways
You will need a licence in SA if your promotion has a total prize pool of over $5,000 or involves instant scratch or break-open tickets. Each state regulates trade promotion lotteries differently, and as the trend leans towards fewer regulations, it is crucial to be aware of frequent changes. This article does not cover all issues related to trade promotions, and there are other rules that have not been addressed in this article.
If your business is running competitions, our experienced competition lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
SA requires a separate permit for each trade promotion, even if they are similar or part of the same campaign. Each application must detail the specific competition, prizes and entry requirements. Combining multiple promotions under one permit is not permitted under current regulations.
If you make significant changes to your trade promotion, you may need to apply for a permit amendment. This includes changes to prize details, entry requirements or draw dates. Failing to update your permit could result in non-compliance and potential penalties. It is best to consult with a lawyer in this situation.
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