When are permits required?
Promotions conducted by businesses that contain any element of chance in the determination of winners (e.g., via a draw, instant win, etc.) are known as “trade promotion lotteries” and will require a permit number:
- in the ACT, if the total prize pool value in ACT is more than $3,000;
- in SA if: (i) the winners are determined by a draw and the total prize pool value nationally is more than $5,000; or (ii) if there is an instant win element in the promotion, regardless of the total prize pool.
- in NT only if the total value of prizes exceeds $5,000 and a permit is not being obtained in any other State/Territory.
NSW has a duration based authority system, whereby any organization wishing to conduct trade promotion lotteries with a total prize pool exceeding $10,000 will need to have an authority in force.
VIC no longer has a permit system in force, and QLD, WA and TAS do not currently have permit systems in force, although they do each have legislation which governs the conduct of trade promotion lotteries.
Limited offers where a prize is awarded to the first ‘x’ entries received
Special considerations apply to promotions where the first entries received will receive the same gift until stock of the gift run out, as the various lottery departments have different policies regarding whether these promotions involve chance in determining the winners and therefore whether permits are required.
- Australian Capital Territory: If the prize pool is over $3,000, a permit may be required in the ACT, depending on whether the ACT lottery department considers that there is chance in the order of processing claims, or an element of chance exists due to their being multiple giftsavailable and such gifts are randomly allocated. For example, if consumers are required to post in claims, then a permit will be required in the ACT as the promoter would have no way of determining which claims received in the same day’s mail arrived “first.” Conversely, if consumers submit their claims via a website or the prizes are awarded on the spot at the time of purchase, a permit will not be required in the ACT as the ACT lottery department considers that there is no chance involved in determining the order in which claims are received;
- South Australia: if there is an element of chance as per ACT’s interpretation above, it would be advisable to ensure any such offer is conducted under an SA permit;
- New South Wales: If there is an element of chance as per ACT’s interpretation above, it would be advisable to ensure any such offer is conducted under an authority.
- Northern Territory: A permit will not be required in NT if:
- all gifts are the same (and therefore have the same value), and the number of gifts to be awarded is clearly set out in all advertisingmaterial;
- the total value of gifts is $5,000 or less; or
- a permit is being obtained in any other State/Territory.
Outlet-by-outlet promotions
For promotions where there is a specific prize pool for each individual outlet/store/venue, and no major prize shared across all outlets, it may be possible to treat each outlet as running a separate promotion, provided that the various promotions are not advertised collectively.
Accordingly:
- A permit will not be required in SA if the total prize pool in each outlet is $5,000 or less (unless the promotion is an instant win promotion that would otherwise require a permit in South Australia).
- A permit will not be required in the ACT if the total prize pool in each outlet is $3,000 or less.
- An authority will not be required in NSW if the total prize pool in each outlet is $10,000 or less.
If the promotions across several outlets in the ACT are featured in a single set of Terms and Conditions, and the total prize pool across those outlets exceeds $3,000, then a permit may be required in the ACT.
The usual rules apply in respect of outlet-by-outlet promotions in other States and Territory.
Liquor Promotions in NSW
The NSW lottery department has published guidelines on the conduct of liquor promotions in NSW. Under the guidelines, the following promotions are not allowed to be conducted in NSW:
Competitions, games of skill, challenges, lotteries, games of chance, promotions and similar which involve the following attributes:
- entry, participation or outcome is dependent on the consumption of more than one (1) alcoholic beverage on the premises, (unless approved otherwise); and/or
- prizes of alcoholic beverages are awarded and which involve their consumption on the premises;
- promotions that involve viral marketing.
NB: PLEASE NOTE THE ABOVE DOES NOT APPLY TO OFF-PREMISE ALCOHOL (THAT IS, TAKE-AWAY ALCOHOL PURCHASED FROM A BOTTLESHOP).
The effect of this is that any promotion that involves the awarding of an alcoholic product to be consumed on-premise as a prize, is prohibited in NSW. Further, any promotion that involves the purchase of an alcoholic product on-premise to enter must generally be limited to one (1) entry per person per day in NSW.
The guidelines must also be considered for off-premise alcohol promotions, as they encourage harm minimisation measures for all promotions involving alcohol, to prevent unacceptable outcomes. Accordingly, any off-premise promotion that involves the purchase of an alcoholic product to enter must generally be limited to two (2) entries per person per day in NSW.
With regards to liquor promotions in other States/Territories, please note that each State and Territory has different rules with regards to liquor licensing and some State and Territory authorities may have specific guidelines with regard to liquor promotions. If you would like further advice on this please contact us.
