When you are running a trade promotion lottery, also known as an online competition, to promote your business, you should first decide whether your competition is a game of skill or luck.

A game of luck is one where the winner is chosen at random. A game of skill is where the winner is chosen on the basis of the skill demonstrated in their submission.

This is important, as it is the basis of determining whether or not you will need to apply for a permit to run the competition.

A trade promotion lottery is a competition run to promote a business or product and the winner is chosen at random. It is generally a game of luck.

Depending on what state your business is located in and from which state you are running your trade promotion, separate permits may be required. Unfortunately, at this stage, there is no uniform regulatory body for the whole of Australia in relation to trade promotion lotteries.

If you are unsure of your legal obligations, we recommend you speak to an experienced commercial solicitor.

New South Wales

ACT

  • The relevant regulatory body is the ACT Gambling and Racing Commission.
  • You must apply for a permit for any trade promotion lottery. 

Victoria

Queensland

South Australia

  • The relevant regulatory body is the Victorian Government: https://www.cbs.sa.gov.au/liquor-and-gambling-licenses/
  • For trade promotions under $5,000 you must comply with the small trade promotion regulations but you do not need to apply for a licence.
  • You are required to apply for a permit where the prize winnings are above $5,000.

Western Australia

  • The relevant regulatory body is the Western Gaming and Wagering Commission.
  • You do not need to apply for a permit for trade promotion lotteries if you comply with the regulations.

Northern Territory

  • The relevant regulatory body is the Gambling and Licensing Services.
  • If you are running trade promotion lottery, you are required to apply for permit if the prize value is above $5000.

Tasmania

  • The relevant regulatory body is the Tasmanian Gaming Commission.
  • You do not need to apply for a permit to run a trade promotion lottery.

Conclusion

Even if the online competition you are running does not require you to apply for a permit, you are required to comply with the relevant state legislation and other regulations, as set out by the regulatory bodies.

If you are planning on running a trade promotion lottery and are unsure about what regulations apply in your state, you should speak to a commercial solicitor who has experience with online competitions. The lawyers at LegalVision regularly work with businesses that run trade promotion lotteries and can advise you on the related legal issues. So if you’re in need of legal advice, contact us on 1300 544 755 to speak with one of our commercial solicitors.

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