* Last Edit on this Article – Do I need a Competition Permit in Australia – March 2016.
Running a competition in Australia can be a daunting task – especially when you consider that Australian states tend to operate independently of each other when it comes to competition permit. Well, we’re here to clear the air a little!
When searching the web for rules regarding running a trade promotion in Australia, there seem to be few sources that aggregate State’s positions on trade promotions and applying for a competition permit so we went called and emailed each state (August 2012) and put together this handy guide.
Competition/Trade Promotions
Competitions aimed at promoting a brand or business are classified in most Australian States as trade promotions. For instance – if you’re a marketing manager or an advertiser and you’re looking to promote a brand through a competition, you need to be assessing how you’re going to be running your competition as it impacts on whether or not you’ll be needing to apply for a trade promotion permit.
Raffles, club competitions or charitable competitions may be subject to different rules.
Game of Skill vs. Game of Chance
As a rule of thumb, Games of Skill – competitions that require a user to answer a question or submit something (Showing ‘Skill’ in order to win) – don’t require Trade Permits within Australia. These competitions are selected by a judge through a selection process where the best or most skilful entry decides the winner.
Games of Chance are competitions where chance or probability is taken into account following an entry will require a trade permit pending what State the promotion is open to and the total value of the prize. These trade promotions have an element of chance – like a lottery.
Trade Promotion Permit in VICTORIA:
- From 20 June 2015, businesses, charities and community organisations no longer need to apply to the Victorian Commission for Gambling and Liquor Regulation (VCGLR) for a permit to conduct a trade promotion lottery.
- More information can be found at the VCGLR
Trade Promotion Permit in NSW:
- Games of Skill do not require a permit
- The NSW OLGR requires a permit for ALL Games of Chance regardless of total prize pool value and strict guidelines must be met (open PDF) Including potentially submitting for audit your the Draw Procedure Report and Appraisal Report (yes we can assist with these).
- Exceptions : Games of Chance for a Christmas Party or Office Draw do not require a permit.
Trade Promotion Permit in SOUTH AUSTRALIA:
- Games of Skill are not considered a lottery under the Lottery and Gaming Act 1936
- A permit is required where promotions have an element of chance and the total prize pool exceeds $5000 OR the competition offers an Instant Prize
- Competitions where you answer a simple question and the FIRST person is the winner also require a permit.
- More information can be found at the SA OLGC
Trade Promotion Permit in the ACT:
- Games of Skill do not require a permit
- Promotions that have any element of chance are required to apply for a permit regardless of prize pool size (Check out Permit prices can be found)
- More information at the ACT Gambling and Racing Commission
Trade Promotion Permit in the NT:
- Games of Skill do not require a permit
- Promotions that have an element of chance and a prize pool of a value greater than $5000 will require a permit
- More information can be found via the NT Department of Justice
Trade Promotions in QUEENSLAND :
- Trade Promotions do not require a permit, but there are special conditions on some formats to be met under $2,000 and under $50,000. See : QLD’s competitions-raffles-bingo etc information page for a complete summary. In short, if you meet the criteria, you will only need a permit above $50,000.
- Businesses conducting Trade Promotions do not require a permit if there is no entry fee.
Trade Promotions in WESTERN AUSTRALIA :
- A permit is not needed if the entry is free or the promotion entry is gained by the purchase of a product at its usual price, eg. If the cost of your butter product at retail is usually $2, and remains at $2 during the course of the promotion.
- However you need to conduct the promotion based on the WA gaming guidelines. For more information please visit the RGL site
Currently, Trade Promotion Permits for Tasmania are not required, although certain conditions may apply.
What if I’m conducting a National Draw Online or Offline ?
So in summary, if you are conducting a national draw online or offline and there is an element of chance, you’ll need a permit in the ACT and NSW regardless of Prize Pool. If your trade promotion offers and Instant Prize (not drawn later or at the end of a competition period) you’ll also need a permit in SA. If there is No Element of Chance you do not need a permit in Australia. Note: We recommend seeking up to date legal advice and publishing clear terms and conditions to every promotion if it is a consumer (non-internal office draw) competition.
If you have any questions regarding running a trade promotion within Australia, please contact the respective Government bodies accordingly.
If you would to run a trade promotion as a digital campaign online, as either a random draw or game of skill you can contact us. More information on using AndMine for your campaign and our Competition / Random Draw Permit can be found here.
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