From 20 June 2015, businesses, charities and community organisations will no longer need to apply to the Victorian Commission for Gambling and Liquor Regulation (VCGLR) for a permit to conduct a trade promotion lottery no matter how much the total prizes are worth.
Currently a person must hold a permit to conduct a trade promotion lottery where the total value of the prizes for the lottery exceeds $5,000.
A trade promotion lottery is a free-entry lottery designed to promote a trade or business. A person cannot be required to pay a fee to participate in a trade promotion lottery, but they may be required to have purchased a particular product or service.
It includes any competition that gives away prizes by any means that include an element of chance at any stage. Skills-based competitions are generally unregulated. But if the promotion is partially skills-based, for example a random draw with “first correct answer wins”, the scheme will still have to be conducted in accordance with the regulations.
While a permit is no longer required, all trade promotion lotteries conducted in Victoria must comply with the mandatory conditions provided for in the Gambling Regulation Act 2015.
Competitions should have written terms and conditions which comply with the regulations so that the prizes are awarded fairly and as advertised and that there are no hidden costs.
Other States and Territories
States and Territories in Australia have different requirements for approvals and permits and standard terms and conditions. Permits for trade promotion lotteries are not required in Queensland, Western Australia and Tasmania. In New South Wales and the Australian Capital Territory a licence identification is required for all trade promotion lotteries and South Australia and the Northern Territory require a permit for a trade promotion lottery with prizes valued above $5,000.