Are you running a trade promotion in South Australia? You will need first to consider whether your competition meets the definition of a trade promotion lottery under the Lottery and Gaming Regulations 2009 (SA) and whether you are required to have a permit in place. Games of skill do not require a permit under South Australia’s regulations. When applying for a permit, you should follow the guidelines provided by the Minister. Unlike NSW and ACT, you cannot apply for a ‘blanket’ permit. Rather, you need to apply for a permit for each competition.
South Australian Permits
Under the South Australian regulations, trade promotion lotteries are divided into Major Trade Promotion and Instant Prize Lottery. A Major Trade Promotion Lottery is a trade promotion that has a total prize value of over $5,000. If your competition satisfies the criteria for either lottery, you will then need to apply for a permit under the Lottery and Gaming Regulations 2009. A minor trade promotion (under $5000) does not require a permit, but you must still comply with the minor trade promotion lottery conditions.
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,
- 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 mediums:
- a national newspaper,
- on the original media platform your business advertised the lottery, or
- Where the individual prize is over $250, a website in 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.
Each state regulates trade promotion lotteries differently, and as the trend leans towards fewer regulations, it is important to keep apprised of frequent changes.
If you have concerns about trade promotion lotteries and how your business is currently running competitions, speak to one of our competition lawyers. We can also assist you with other legal needs that you might have including drafting your competition terms and conditions.
Questions? Get in touch with us on 1300 544 755.
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