A trade promotion lottery is a free competition that is run to promote a business’ services. Previously, ACT legislation required a permit for trade promotion lotteries irrespective of the total prize value. Amendments to the Lotteries Act 1964 which regulates gambling and lotteries in the ACT, came into effect in November 2015. This is amidst the ACT government’s overarching changes to bureaucracy.
Some of the major changes of these new exemptions include that a trade promotion lottery no longer requires a permit where the prize value is below $3,000. Some of the other exempt lotteries include, private lotteries and promotions where discounts or other allowances are the prize. Overall, the exemption that games of skill do not require a permit remains. However, if your competition is a combination of both skill and chance, then you will be likely considered a trade promotion lottery for the purposes of the Lotteries Act 1964 (ACT).
Conditions for Exempt Lotteries in ACT
Even if your trade promotion lottery is below the $3,000 threshold, there are still a number of conditions you need to meet under s6A of the Lotteries Act 1964. We will discuss each exemption and what it involves in turn below.
During the Running of the Trade Promotion Lottery
- You must allow equal and fair chance of every participant being able to win.
- You must record the winning ticket or if possible the name of the winner.
- You cannot conduct the lottery in an offensive manner or offer prizes in a manner that would offend the entrants.
- The major prize must be drawn before the minor prize if there is more than one prize.
After the Trade Promotion Lottery is Complete
- When conducting the lottery, you must make the results known to the entrants. This can include publishing the winner on your website or through your email list.
- You must also notify the winner that they have won, and attempt to find out who they are.
- The winner should not be charged a fee (for example, an administrative or delivery fee) when they receive the prize.
- You must do “everything reasonably necessary” to make sure the prize winner is given the prize.
- If the prize is not claimed, then you must redraw the prize, taking into consideration the type of prize you are giving (if there are any time constraints) and a reasonable period to wait to redraw the prize.
Even if your competition or lottery does not require a permit in ACT, there are still a number of regulations that you are required to meet. If you are running another type of lottery, it is a good idea seek advice as to what permits or regulations you may be required to meet.
LegalVision’s experienced lawyers can speak with you about trade promotion and lotteries and explain to you how these changes can impact promoting your business.
Questions? Get in touch on 1300 544 755.