Trade promotion lotteries

Conditions for the conduct of trade promotion lotteries include:

• The expense per entry must not exceed the gazetted amount (currently $1)
• It must not be a precondition for entry that an entrant has played a gaming machine, or participated in a loyalty scheme that requires an entrant to play a gaming machine
• Written consent must be obtained from the person whose trade or business is to be promoted by the lottery
• The lottery must be conducted to benefit primarily the trade or business being promoted
• Information used to promote the lottery and any scratch and win cards must include:
  1. the closing date of the lottery
  2. if applicable, where and when the lottery will be drawn
  3. the name and date of the publication in which winners' names will be published
  4. the entry requirements, if any.

• The names of winners of all prizes over $1000 must be published by one of the following methods:
  1. in a newspaper circulating generally in Victoria
  2. on the internet, for a minimum period of 28 days
  3. if the lottery was advertised solely through a trade journal, promotional magazine or similar publication, in that publication.

• Certain records must be kept for a period of three years after finalisation of the lottery that provide an: 
  1. accurate financial accounting of the lottery
  2. accurate accounting for all entries
  3. accurate report of the distribution of prizes. 
• The winners of prizes must be advised in writing of the prize
• If the trade promotion lottery is to be drawn, the method of the draw must allow each ticket in the draw a random and equal chance of being drawn
• The winner of a prize must not incur a cost to accept a prize (other than a trivial cost)
• If information about entrants is to be used for a purpose other than the conduct of the lottery, this must be stated in the conditions of entry
• A person who conducts a trade promotion must not use entrants' information except in accordance with the purposes stated in the condition of entry
• A person who conducts a trade promotion lottery must obtain written agreement from the business, that the business will not use the entrants' information except in accordance with the purposes stated in the conditions of entry
• An entrant is not required to be present at the drawing of the lottery to be eligible to win a prize (unless the entry and draw are to occur on the same day and in the same place)
• The prize must be paid or transferred to the winner within 28 days after the draw
• The winner of a prize may only be substituted via a second draw, and only if the conditions of entry allow it and if reasonable efforts were made to identify the winner that were unsuccessful
• If a trade promotion lottery is conducted with scratch and win cards, the conditions of entry must disclose the maximum number of scratch and win cards to be distributed and the total number and individual value of the prizes. There must also be a condition that printing errors and other quality control matters are not to be used as a reason for refusing payment of prizes
• A trade promotion lottery must be conducted in a manner that is not offensive and that is not contrary to the public interest
• A prize may only be substituted if the substituted prize is of the same or greater value than the original prize and the winner either agrees in writing, or the original prize is unavailable due to circumstances beyond the control of the person conducting the trade promotion lottery and reasonable attempts are made to reach agreement with the winner that are unsuccessful.

Who can conduct a trade promotion lottery?

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 their organisation. 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, visit Community and charitable gaming

Members' draws

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 occur on the same day.

If a member enters the draw through buying goods or services throughout the week, then they don’t need to be present at the time of the members' draw.

What's a 'game of skill'?

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’s considered a lottery and will need to satisfy the requirements under the Gambling Regulation Act 2003 and related regulations.

Using a 1900 number or SMS in my promotion

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 also includes postage costs. This restriction must be considered for any trade promotion lottery that might require a participant to call more than once.

Entry fees for a trade promotion lottery?

An entry fee can’t be charged for a trade promotion lottery. This doesn’t prevent a person from being required to purchase a genuine product or service to be eligible to enter.