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Trade promotion lotteries are designed to promote a trade or business.
A trade promotion lottery involves activities or events where prizes are given away through any means that include an element of chance at any stage. Trade promotion lotteries must be conducted in accordance with the regulations even if they include some skill based activities.
Businesses, charities and community organisations don't need to apply for a permit to conduct a trade promotion lottery in Victoria. If your trade promotion lottery will be conducted in other jurisdictions, it’s best to check directly with the relevant regulatory authorities to ensure you meet their conditions.
While a permit isn't required, all trade promotion lotteries conducted in Victoria must comply with the conditions in the Gambling Regulation Act 2003 and Gambling Regulations 2015.
Conditions for the conduct of trade promotion lotteries include:
A business that produces or sells a product or service other than a lottery may conduct a trade promotion lottery to promote their products or services.
Community and charitable organisations can conduct trade promotion lotteries to promote their organisation. All requirements for a trade promotion lottery also apply to community or charitable organisations running this type of lottery.
For more information about how to become a declared organisation, visit Community and charitable gaming
A members' draw is considered a trade promotion lottery, and is usually conducted by clubs. It involves the drawing of a member's number from a pool of numbers.
Terms and conditions should be available at the place of entry and to all members. The conditions of entry only require the member to be present at the draw if the entry and draw occur on the same day.
If a member enters the draw through buying goods or services throughout the week, then they don’t need to be present at the time of the members' draw.
A 'game of skill' is when there is no element of chance at any point in the competition.
If the game contains a random selection of entrants at any point in the activity, then it’s considered a lottery and will need to satisfy the requirements under the Gambling Regulation Act 2003 and related regulations.
A 1900 number or SMS can be used in a trade promotion lottery, but the telephone call or SMS cannot cost more than $1 per entry (including GST). This also includes postage costs. This restriction must be considered for any trade promotion lottery that might require a participant to call more than once.
An entry fee can’t be charged for a trade promotion lottery. This doesn’t prevent a person from being required to purchase a genuine product or service to be eligible to enter.