This frequently asked questions (FAQs) page contains answers to commonly raised questions by trade promotion lotteries.
From 20 June 2015 businesses, charities and community organisations do not need to apply to the Victorian Commission for Gambling and Liquor Regulation (VCGLR) for a permit to conduct a trade promotion lottery. Trade promotion lotteries must continue to meet certain conditions or penalties apply.
A trade promotion lottery is a lottery designed to promote a trade or business. This includes any scheme that gives away prizes by any means, which include an element of chance at any stage of the scheme. Even if a part of the scheme is skills-based, the scheme will still have to be conducted in accordance with the regulations if any part of the scheme process includes an element of chance.
Trade promotion lotteries are free lotteries that may require a person to purchase a product or undertake certain actions to be eligible to participate. An entry fee must not be charged, and any ancillary cost (that is, cost of telephone call, SMS or postage) must not exceed $1 (including GST).
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 the purpose of their organisation. To be able to carry out this activity the organisation must be declared by the Victorian Commission for Gambling and Liquor Regulation (VCGLR). 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, please go to Community and charitable gaming.
Please note: All other requirements for a trade promotion lottery also apply to community or charitable organisations running this type of lottery.
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 are to occur on the same day. If a member enters the draw through buying goods or services throughout the week, then the member does not 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 is 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 restriction must be considered for any trade promotion lottery that might require a participant to call more than once.
An entry fee cannot be charged for a trade promotion lottery. This does not prevent a person from being required to purchase a genuine product or service to be eligible to enter.
In addition, any ancillary costs (for example, telephone call, SMS or postage) must not exceed $1. This restriction must be considered for any trade promotion lottery that might require a participant to call more than once.
As of 20 June 2015, you no longer are required to submit an application for a permit to conduct a trade promotion lottery in Victoria. If your trade promotion lottery will be conducted in other jurisdictions, it is best to check directly with the relevant regulatory authorities to ensure you continue to meet their conditions.
Even though the requirement to obtain a permit to conduct a trade promotion lottery was abolished on 20 June 2015, there are transitional arrangements in the Gambling Regulation Act 2003 that apply to persons who held a permit immediately before that date.
If you held a permit to conduct a trade promotion lottery immediately prior to 20 June 2015, and the trade promotion lottery will run on or after that date, the conduct of the trade promotion lottery must continue to comply with the conditions that were in force immediately before 20 June 2015.
The conditions of a trade promotion lottery are set out in the Gambling Regulation Act 2003 and Gambling Regulations 2015.
As at 20 June 2015, the conditions for the conduct of trade promotion lotteries are as follows: