A trade promotion lottery is a lottery designed to promote a trade or business.
This page contains FAQs, conditions and transitional arrangments for trade promotion lotteries. Businesses, charities and community organisations don't need to apply to the VCGLR for a permit to conduct a trade promotion lottery.
A Trade Promotion Lottery includes any scheme that gives away prizes by any means that include an element of chance at any stage. Even if partially skills-based, the scheme will still have to be conducted in accordance with the regulations.
While a permit is not required, all trade promotion lotteries conducted in Victoria must continue to comply with the conditions provided for in the Gambling Regulation Act 2003 and Gambling Regulations 2015.
A full list of the conditions that currently apply to trade promotion lotteries can be found at the trade promotion lotteries FAQs page.
The VCGLR will continue to regulate trade promotion lotteries by ensuring compliance with the mandatory conditions. If a business conducts a trade promotion lottery in contravention of the mandatory conditions, a penalty exceeding $9,100 may apply on 1 July 2015.
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 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.
You aren't 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.
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:
Businesses, charities and community organisations don't need to apply to the VCGLR for a permit to conduct a trade promotion lottery.