Do you need a permit for your promotion or competition?
Promotions are a fantastic way to elevate your marketing and increase your brand exposure. It is important you comply with any state-based permit requirements, to ensure your promotion is compliant.
There are two types of promotions and competitions, which have different requirements:
- Game of skill; and
- Game of chance.
Game of skill vs game of chance
(Hint: the difference is in how you determine the winner)
Game of chance
This means that all entrants have an equal chance of winning the prize and the winner is determined randomly. It is more of a game of ‘luck’.
For example:
- a raffle;
- a lottery;
- where entrants go into the draw to win a holiday by filling in an entry form.
Game of skill
In a game of skill, winners are picked based on the quality
of their entry. Some examples of a game of skill would be where entrants have to:
- write in 25 words of less why they should win a prize; or
- estimate the number of jellybeans in a jar; or
- send in the cutest photo of their pet.
There is no element of luck or chance in determining the winner.
When do I need a permit?
You may need a permit for a game of chance, depending on:
👉 which state the promotion is taking place; and
👉 the total value of the prize pool
Permits can take several weeks to process, so you need to be organised! To avoid permits, you can change your promotion to be a game of skill.
Each state and territory have different requirements for permits and authorities. Application fees may apply. Here is a summary:
|
State |
Permit required? |
Regulating Body |
| Australian Capital Territory | Yes, if the total prize value is over $3,000. | ACT Gambling and Racing Commission
|
| New South Wales | Yes, if the total prize value of the competition is over $10,000. | NSW Fair Trading
|
| Northern Territory | Yes, if the total prize value is over $5,000.*
*You do not need a permit in the NT if you hold a permit in another state or territory. |
Licensing NT
|
| Queensland | No. | Office of Liquor and Gaming Regulation |
| Tasmania | No. | Department of Treasury and Finance |
| Western Australia | No. | Department of Racing, Gaming and Liquor |
| Victoria | No. | Victorian Commission for Gambling and Liquor |
| South Australia | Yes, if:
|
Office of the Liquor Gambling Commissioner
|
Some other things you should know include:
- You should always have terms and conditions for your promotion. The key terms should be on any advertising material (e.g., social media posts). The full terms can be on your website.
- Where you have a permit, list the number in your terms and conditions.
- There are many rules about winner notification and permitted prizes – so it is a good idea to seek specific legal advice before running a promotion.
- Licences can be issued for a given period, such as 12 months, and you must run the competition within the allowed time.