South Australia updates its rules with new Lotteries Regulations – How this will impact Trade Promotion Lotteries?

Posted on: 2nd November, 2021

By Matt Hansen, Senior Associate | 

From 10 December 2021 the Lotteries Regulations (SA) 2021 will come into force in South Australia, replacing the current regulations which have been in force since 2008. In terms of the conduct of trade promotion lotteries, very few material changes are being made to the regulations. That said, there will be a relaxation of some key compliance requirements regarding draws, winner publication and advertising that will result in trade promotions running being able to run more smoothly, with less administrative burden.

What has changed?

From 10 December 2021, the following changes will apply in terms of trade promotion lotteries in South Australia:

Advertising Requirements

  1. For minor trade promotion lotteries (i.e. trade promotion lotteries with a total prize pool of $5000 or less), the advertising requirements are now simplified so all that is required to be included is the name of the promoter, location of the full terms and conditions, information on how to enter and the nature and value of all prizes.
  2. For major trade promotion lotteries (i.e. trade promotion lotteries with a total prize pool of over $5000), the advertising requirements are now simplified so all that is required to be included is the permit number, location of the full terms and conditions, information on how to enter and the nature and value of all prizes.
  3. For instant win trade promotions, the advertising requirements are now simplified so all that is required to be included is the permit number, duration of the promotion, location of the full terms and conditions, information on how to enter, the nature and value of all prizes, and details of the promoter.

Importantly, the requirement to include all details of the draws and publication requirements has been removed.

Draw Requirements

  1. The requirement to have a prize draw independently scrutinised remains but the threshold value has been increased to $30,000 (formerly $20,000). Practically speaking, however, where a promotion includes NSW, NSW’s requirement to scrutinise any draw valued at over $10,000 will still apply, meaning this particular change may have minimal impact.
  2. Most notably, the requirement to have an electronic draw system approved by the South Australia lottery authority has been scrapped. In all cases, all that is required now is that an electronic system include a random number generator.

Winner Notification and Publication

  1. For all promotions, the requirement to notify winners within 14 days has now been reduced to 7 days.
  2. For minor trade promotion lotteries, winners of all prizes must be displayed or published in a place that is appropriate to where the lottery was promoted or conducted for at least 7 days after the day on which the lottery was drawn.
  3. For both major trade promotion lotteries and instant win trade promotions, winners of prizes valued at over $250 must be published in a place that is appropriate to where the lottery was promoted or conducted and where winners would reasonably expect such information to be located.

Notably, the dreaded and outdated requirement to publish in a newspaper in some specific circumstances has now been removed entirely.

What has NOT changed?

Permits themselves are still required for any trade promotion lottery involving instant win prizes, or with a total prize pool of over $5000. The requirements of all other relevant trade promotion lottery regulators in other States and Territories of Australia are still in force as well, including ACT and NSW.

Entry into a trade promotion lottery must still remain free, and lotteries must still not exceed 12 months in duration.

Winners must be granted a reasonable amount of time to claim a prize before any unclaimed prize draw can take place.

Record keeping requirements still apply for up to 3 months after the close of a promotion.

Lastly, other relevant laws such as consumer protection laws, fundraising, privacy and intellectual property laws will of course continue to apply.

If you would like further information on the above and how it impacts on your business or your client’s business, please contact one of our experts below.