Trade promotion lotteries

A trade promotion lottery is a free-entry lottery to promote goods or services supplied by a business. It’s sometimes called a sweepstake, competition, contest, or giveaway. If the element of chance determines the winner, the requirements we’ve set out must be met. Unless qualified or expert judges are used and the winner is decided against a set criteria, a competition is not based on skill – it is based on chance.

Permit

Permits can only be issued for business to play an individual trade promotion (single promotion permit) or to play multiple lotteries during a specific period up to 12 months, subject to certain prize value restrictions (multiple promotion permit). A permit is not required for a free-entry lottery played for staff at a Christmas function.

How do I get a permit?

  1. Apply online at onegov.nsw.gov.au. On the homepage, select the ‘Log In’ button. First-time users should register on the site. A valid email address is required. We encourage you to lodge your application online – fees are discounted for online applications. The application fee for online applications can only be paid using a Visa or MasterCard.
  2. Or complete and lodge a paper-based application form, accompanied by the applicable fee. Download trade promotion lottery – application form (PDF, 167.99 KB) to get started.
  3. In order to apply for a trade promotion lottery permit, you must have an ABN number.

Application fees (GST-exempt)

Prize value in NSWFee (dependent on lodgement method)
Single lotterylicence.nsw.gov.auother
$10,000 or less$80$138
$10,001 to $50,000$320$385
$50,001 to $100,000$585$660
$100,001 to 200,000$1,120$1,232
$200,001 or more$2,185$2,400

Multiple lottery Class B

Any one prize cannot exceed $250, and the total value of the prizes is capped at $50,000.

$320$385

Multiple lottery Class C

Any one prize cannot exceed $1,000, and the total value of the prizes is capped at $100,000.

$585$660

Changing the permit

An amendment fee of $100 is charged to amend terms and conditions for permits after they have been approved. Download the trade promotion lottery - amendment form. PDF, 109.78 KB

What information must I supply with my application?

You must give us particulars about entering the promotion; a copy of the rules; and any sample entry form, tickets or advertising material.

Rules are sometimes known as terms and conditions (see example A) and must cover:

  • the conditions of entry (including the minimum age of the participants)
  • the closing date and time for the receipt of entries in the lottery
  • the place, date and time of the lottery draw
  • how prizes will be awarded
  • the method for claiming prizes (including any requirement for entrants to be present at the draw)
  • how prize winners will be notified
  • how the results of the lottery will be published
  • the promoter’s name, address and telephone number
  • details of the prizes and their value (including conditions, if any, relating to receiving, accepting or using the prizes).

Certain prizes require additional information, including:

  • Machinery or electrical appliances – the make, model and accessories.
  • Motor vehicles – the make, model, accessories, and whether registration and other on-road costs are included.
  • Travel – the number of persons entitled to take advantage of the travel prize, what is included (air fares, transfers, other transport, duration, accommodation standard, meals); restrictions on when the travel must be taken; and whether spending money is included.
  • Real estate – the type of dwelling, plans, contract details, easement details, address or other location, what is included (conveyancing and legal costs, fixtures, furniture). For multiple lottery permits, you must also outline the types of contests, promotions, prize giveaways, etc. that are planned or intended to be conducted under the authority of the permit. You should also give us a general description of the type of prizes to be awarded and their approximate value.

Example A - sample terms and conditions

Eligibility

  • Entry is open to ---- (eligible entrants)
  • Employees, immediate family members of employees, employees of any company associated with the Promotion are ineligible to enter

Entry

  • The Promotion commences on 00:00 -- /-- /20-- and entries close on 00:00 -- /-- /20-- (promotion period)
  • To enter, Eligible Entrants must (insert what entrants must do to enter the competition) during the Promotion Period and enter via (insert publication, website or URL)

Prizes and winning

  • The random prize draw will take place at 00:00 on -- /-- /20-- at (insert address)
  • The winners will receive (insert prize details)
  • Total Prize pool value is (insert total prize pool)

Prize conditions

  • Winners will be notified by phone/email within two (2) business days of the draw. The winners will have their details published in (insert publication, website or URL) on -- /-- /20-- . (Only required if individual prize is valued over $250)
  • If there are any unclaimed or un-awarded prizes a prize draw will be conducted on (insert time and date) (Must be 3 months after the original prize draw unless it is an event based prize.) at the same time and place as the original draw. If a winner is drawn they will be contacted by phone and in writing within two (2) business days and will have their name published (insert publication, website or URL) on -- /-- /20-- . (Only required if individual prize is valued over $250)

Authorised under NSW permit number: LTPx/xx/xxxxxx

Additional terms and conditions that may be required

If a multiple lottery permit

  • Multi B – Individual prizes will not exceed $250.00. Total prizes during the period of the permit will not exceed $50,000.00
  • Multi C – Individual prizes will not exceed $1,000.00. Total prizes during the period of the permit will not exceed $100,000.00

If instant win/predetermined lottery

  • Printing and other quality control errors will not invalidate an otherwise valid prize claim. Unless otherwise due to fraud or ineligibility under these Terms and Conditions, all prize claims in excess of the advertised prize pool will be honoured. Instant win game materials void if stolen, forged, mutilated or tampered with in any way
  • If there is no second chance draw – a statement that all prizes from the advertised total prize pool will be distributed during, or after the completion of, the lottery, together with a statement that details how prizes are to be distributed after the completion the lottery, unless Liquor & Gaming NSW waives this requirement

If promotion involves alcohol

  • The Promoter encourages consumers to enjoy alcohol responsibly. Please refer to the GL4001 ‘Liquor promotion guidelines’ and GL4003 ‘Intoxication guidelines’ at liquorandgaming.justice.nsw.gov.au.

If promotion involves gaming machines

  • Prizes are not redeemable for cash

If winner required to be at draw

  • Winner must be on the premises when their name is announced to be eligible to claim their prize
  • Winner has 4 minutes to claim their prize from the time their name is announced

Prizes

Prohibited prizes include:

  • tobacco products in any form
  • firearms or ammunition
  • weapons
  • cosmetic surgery or other procedure designed to improve personal appearance
  • liquor prizes – more than 20 litres of liquor with an alcohol content not exceeding 20 percent by volume or more than five litres of liquor with an alcohol content exceeding 20 percent by volume.

If a lottery is being played at a hotel (excluding general bar licences), registered club or the casino, you cannot reward a cash prize between 10.00pm and 8.00am the next day. You can give them a cheque.

If a money prize is greater than $2,000, the prize winner must be paid anything over $2,000 or the full amount via a cheque or electronic transfer. You can display ‘not redeemable for cash’ or ‘not transferable’ at the game.

Trade promotion lotteries with alcohol prizes

Tickets or rights for alcohol prizes cannot be distributed by, or to a person under 18. Also, a person under 18 cannot give or collect a liquor prize.

When do I have to deliver the prize?

You must deliver the prizes within six weeks after the close of the lottery – unless you clearly stipulate a longer period in your published lottery rules.

How should I notify the results of the draw?

You should notify prize winners within two days of the draw:

  • prize winners should be personally notified (face-to-face, mail, telephone, or email)
  • if the prize value is more than $500, you need to make a public announcement by print or electronic media e.g. newspaper or website.

Tickets

Tickets cannot be sold. Entry must be free. An exception is when the participants purchase goods or services at their normal retail value, for example, where proof of purchase is required.

How to play

You must leave enough time for each phase of the lottery including:

  • notifying the start of the lottery
  • publishing rules for the lottery
  • distributing tickets or coupons
  • collecting entries
  • the period between the closing date for entries, the draw, announcement of the results, and notification to winners.

Who can participate in the lottery?

It’s inappropriate for business directors, management and employees, their immediate families, their retailers, suppliers, associated companies and agencies to participate in a lottery managed for their own business – unless the lottery is specifically an ‘in-house’ lottery. Only members and guests of a registered club should participate in a lottery aimed at promoting the business of the club. A minor can participate in a trade promotion lottery.

Advertising

The rules (including conditions of entry) must be clearly advertised and readily available to participants. Consumers must be fully and clearly informed of the rules so that they can make informed decisions about entering a lottery, thus minimising the prospect of complaints about the integrity of the lottery and the promoter. Be careful to avoid the risk of false or misleading advertising. Sometimes it may not be possible to publish the rules in an advertisement or on the wrapper of a product. In this case, any advertisement, notice or information must state where the full rules are to be found – for example, a website.

However, any unusual or onerous conditions must be clearly and prominently stated on the outside of the product, without the consumer having to purchase the product or service to discover those details. An example of a promotion that fails the test of adequate disclosure of the conditions of entry is where a simple sticker is placed on the wrapper of a product that tells consumers they have a chance to win $100,000 by purchasing the product. Although the sticker may state that the rules of entry are contained on the game card which is enclosed in the product, there is no information on the outside of the wrapper stating the closing date of the lottery (which may have already passed). Failure to provide this most basic information will breach the permit conditions and may breach the fair trading laws. The lottery rules, any electronic and/ or print media advertising material and any entry forms, coupons, wrappers, labels, tickets or other documents must disclose the permit number in the format ‘NSW Permit No. LTP../../.....’.

You must not state or imply that the lottery is to be conducted for charity or a charitable purpose, or for a not-for-profit organisation unless approved by us.

Advertising restrictions

You cannot publish any lottery advertising that:

  • encourages a breach of the law
  • depicts children participating in a lottery activity
  • is false, misleading or deceptive
  • suggests that winning will be a definite outcome of entering or participating in the lottery activity
  • suggests that entering or participating in the lottery activity will definitely improve a person’s financial prospects
  • is not conducted in accordance with decency, dignity and good taste.

Integrity controls

Scrutiny of the draw

In a draw where the total value of the prizes is greater than $10,000, the draw and the announcement of the prize winner(s) must be scrutinised by an independent person – unless we grant an exemption. This requirement does not apply where the winners are solely decided through a pre-determined, instant win, scratch, break-open or bingo-style lottery or game of chance, e.g. Housie. The ‘scrutiniser’ observes the draw process and decides whether all entries to the lottery have been treated equally and that no person has received an unfair advantage or unfair gain.

Approval for a non-independent person to scrutinise the draw

Apply to us in writing with full details about the draw process including safeguards and controls designed to overcome any person manipulating the draw.

Statutory declaration for prizes over $10,000

If the total value of the prizes is over $10,000, the person who scrutinises the draw must complete a statutory declaration. The declaration must state the scrutineer is independent (unless otherwise approved), that they scrutinised the draw, and that the details of the winners of prizes have been verified.

Records

All entry forms and other records must be kept for at least three months after the date on which the winners are decided, unless a prize remains unclaimed – in which case you must keep records for at least three months after we approve the re-draw. For multiple lottery permits you must keep a prize register for at least 12 months after the expiration of the permit, detailing:

  • each prize awarded
  • the date the prize was awarded
  • the prize retail value
  • the name and contact details of the prize winner.

Pre-determined, instant win, scratch, break open or bingo style components

The following requirements apply to trade promotion lotteries involving:

  • instant win lotteries
  • break-open tickets or cards
  • scratch or rub-off instant win lotteries
  • bingo-style games of chance
  • pre-determined result lotteries (for example, letters are sent to potential customers, each containing different numbers and the customer does not know whether the number is a winning number or not.

What you must include in the published rules for these lotteries:

Prizes

You must include a statement in the lottery rules stating that all prizes from the advertised prize pool will be distributed. You must give us details about how you’ll distribute prizes.

Printing errors

Due to the possibility of printing errors, structural faults or similar factors, there might be a situation where claims for prizes are received in excess of those prizes specified in the advertised prize structure. To address this possibility, you must include:

  • a statement in the rules stating that at the end of the lottery all existing claims for prizes and entitlements to claims will be met notwithstanding the advertised prize pool has been exceeded
  • a statement in the rules stating that printing errors or other quality assurance matters outside the control of the individual player must not be used as the sole basis for refusing to award a prize.

Random games

In random games - games where the number of possible winners is not known beforehand, being the result of chance or lot:

  • prize value less than $5,000 where there is more than one claim for a particular prize of $5,000 or less, each claimant is to receive an equal share of the prize or $1,000, whichever is the higher
  • prize value more than $5,000 where there is more than one claim for a particular prize of over $5,000, each claimant is to receive an equal share of the prize, 10% of the prize, or $2,000, whichever is the higher.

Controlled games

In a controlled game - games, where the number of possible winners is known beforehand, based on the number of winning game material printed - the sharing of prizes, is not permitted.

Printing requirements

Advertising should include the words ‘total prize pool’ against the prize pool value. Where possible, the game material including tickets or cards must provide:

  • the maximum number of game material to be distributed
  • the rules
  • the total prize structure.

When this is not possible, this information must be given to players.

What you must lodge with an application for these lotteries

  • the name and address of the business which is responsible for preparing and printing the game material
  • how and by whom the winning numbers or symbols are to be determined
  • how and by whom the winning game material is to be distributed
  • the full prize structure to be won over the period of the trade promotion lottery
  • the estimated prize payouts (if appropriate) for each week of the trade promotion lottery
  • a written assurance that the system cannot be tampered with in any way by any person or organisation involved in the production or distribution of the game material
  • evidence may be required of insurance coverage held by the promoter against any damage or loss caused by any structural faults or breakdowns which affect the successful conduct of the trade promotion lottery.

Permit conditions

In addition to the standard permit conditions, the following conditions apply to these lotteries:

  • all details of claims for prizes over $100 which are denied must be retained. These details shall include the names and contact details of the claimants and the reason(s) why the claims were not met
  • players must be informed as soon as possible of the reasons for refusing to award a prize, unless forgery or similar tampering with the card is suspected and the reason for the refusal to award the prize cannot be given to the claimant because of possible legal consequences
  • adequate security measures must be adopted to eliminate the potential for the manipulation of the distribution of winning cards.

Gaming machines

A permit is required when the gaming machine itself does not determine the winner or the prize; it simply determines that the person playing the machine has the right to receive an entry into a draw. Prizes awarded in the draw must adhere to the restrictions below. A permit is not required if there is a bonus prize based on the play of a gaming machine or where players accumulate bonus or reward points. These promotions do not involve a draw to determine the prize winner. These promotions may involve the awarding of vouchers, stamps, tokens, points, or play money. A gaming machine win or any bonus points acquired cannot be credited to smart card.

Prizes in a gaming machine promotion

Under section 45 of the Gaming Machines Act 2001, prizes awarded as part of a gaming machine promotion are restricted and must not:

  • be cash: including cheques, electronic transfer of funds (EFT), gold or silver coins and EFT/credit cards that cash can be drawn from
  • exceed $1,000 in value
  • be exchangeable or redeemable for cash:
  • including an amount of money that could be given as change (only if redeemed at a registered club or hotel).

When applying for a trade promotion lottery involving gaming machines your lottery rules must include a reference to these prize restrictions. A link to a charity or other not-for-profit organisation NSW permit conditions stipulates that a permit holder cannot represent that a trade promotion lottery is conducted for, or in conjunction with, an appeal for funds for a not-for-profit organisation. We can set aside this condition in a particular case, upon request. If there is a link to a fundraising appeal for a not-for-profit organisation (including a charity) in connection with your application, you must give us:

  • a letter from the not-for-profit organisation consenting to the link with the lottery
  • an assurance that the proceeds of the fundraising appeal will not be used to fund the conduct of, or prizes in, the lottery
  • an assurance that the proceeds of the fundraising appeal will be banked intact into the account of the benefiting organisation.

Lotteries conducted by wagering operators

A non-proprietary association or licensed wagering operator or their employee that conducts a lottery must not publish any advertising that offers any credit, voucher or reward as an inducement to participate or to participate frequently, in any gambling activity including as an inducement to open a betting account.

Card jackpot games – for example, ‘Jokers Wild, Wild Card’

We will only grant a permit for a card jackpot game promotion if terms and conditions of entry are agreed to by the applicant/promoter/benefiting organisation.

Lotteries involving alcohol

To make sure that licensees sell and supply liquor responsibly, guidelines have been developed for the responsible promotion of alcohol. Go to the Liquor and Gaming website for more information.

Computerised draw systems

Where a computerised system is used to decide the winners of prizes (including a device used in connection with a 190-telephone service, an SMS telephone facility, an MMS telephone facility or the Internet) the permit holder must get two reports:

1. Appraisal Report

The appraisal report must detail whether the computerised system is random in its selection of winners and has appropriate safeguards and controls in place to overcome the possibility of a person manipulating the system. For example password control or two or more persons acting independently. The appraisal report must be sourced from an appropriately qualified, independent person with knowledge of the technology used to develop the draw system.

The appraisal report as prepared by the nominated independent person must make reference to the following:

  • control and security features (login, passwords)
  • operating procedures
  • whether the system is tamper-proof
  • whether all entrants have an equal chance of winning
  • technical data and promotional material
  • whether a hard-copy of the prize winners’ list is provided
  • operating procedures
  • the name, title, address and expertise of the person giving the appraisal report
  • the name and address of the supplier, manufacturer or developer of the device or system
  • the name and model number of the random number generating device; or the name of the application or software of the computerised random number generator.

2. Draw Procedure Report

The draw procedure report must detail the safeguards and controls in place to overcome the possibility of a person manipulating any stage of the draw or announcement of the prize winner processes and must contain information about the:

  • purposes for which the device will be used
  • procedures used in entering the range of numbers or the draw procedure
  • safeguards and controls exercised over the draw process (accessibility, passwords, supervision)
  • how the results are to be announced, and
  • what precautions are taken to ensure there is no substitution of prize winners.
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