Sectors
Trade Promotion Lotteries
Regulated trade promotion lotteries operate to promote Australian businesses in the gambling sector and beyond.
A trade promotion lottery is a free-entry lottery used by a business to promote its products or services.
Trade promotion lotteries involve activities or events where prizes are given away through any means that include an element of chance at any stage.
Trade promotion lotteries are regulated on a state and territory basis in Australia and requirements in each jurisdiction vary (including in relation to permissible prizes and matters that need to be addressed in terms and conditions). It may be necessary to obtain a permit or permits to operate a trade promotion lottery depending on where entries will be accepted from and the total value of the available prize pool.
In recent times, membership-style businesses have entered the market seeking to promote the ability to participate in cash and prize draws. Regulators in at least two states have identified that they are considering the legalities of these businesses and their consistency with the existing regulatory regime.
Due to trade promotions being regulated on a state and territory basis, we recommend obtaining legal advice early in the campaign planning process to ensure you have the correct structure and advice from the outset.
How We Can Assist Businesses Run a Trade Promotion Lottery
We can provide legal and regulatory support with the end-to-end trade promotion lottery planning, application, documentation and compliance processes.
Our team, who are ranked in Chambers & Partners Global and Asia Pacific as leading authorities in gambling law and regulation, have led some of the most significant lottery transactions in Australia.
Our services include:
Licence applications
Terms and conditions
Responsible gambling policy
Advertising and marketing approvals
Compliance frameworks and obligation registers
Policies and procedures
Privacy policy
Data protection
Staff training
Gambling compliance training
Through Senet Compliance Academy, we offer comprehensive gambling compliance training, ensuring your staff are compliant with Australia’s legal and regulatory standards. Our courses are designed to help businesses cultivate a compliance culture, protect against financial crime and reduce gambling-related harm.
Get in touch for a complete range of gambling law and advisory services
FAQ
Trade Promotion Lotteries Knowledge
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Trade promotion lotteries (TPLs) are free entry games of chance (e.g. random prize giveaways) or games of mixed chance and skill (e.g. correctly answer a question and go into the draw to win) that are conducted by a business and are designed to promote that business. Examples include competitions that require a person to place a bet during a certain month to go into the draw to win a prize (e.g. a holiday to the races in Japan).
A TPL is different from an offer whereby the distribution of the gift / prize in an offer is not by chance. The distribution of a gift / prize in an offer is conditional on the consumer taking certain steps to be eligible to receive the offer. Competitions that are purely skill-based (e.g. a sports trivia competition) are not TPLs and do not require trade permits.
Depending on the size of the prizes available to participants (requirements differ between the states and territories), it may be necessary to obtain a permit before the TPL can be advertised or commence. A summary of TPL permit requirements is set out in this table.