Trade promotions
Essential information on running a trade promotional lottery in NSW. Learn about authorities, prizes, advertising, rules and record keeping.
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Key information about trade promotions
A trade promotion is a free-entry lottery used by businesses to promote their goods or services. Trade promotions in NSW are regulated by the Community Gaming Act 2018 and the Community Gaming Regulation 2020.
Who can play?
Anyone can participate in a trade promotion unless they are:
- conducting the trade promotion including determining the winners
- involved in the management of any benefiting business
Children can participate unless the rules of the trade promotion have an age limit.
Entry requirements
Trade promotions cannot have an entry or other related fee for participating.
Entry by purchasing goods or services at their normal retail value is allowed.
Written approval of benefiting business
If you are conducting a trade promotion on behalf of a business, make sure that you have written consent from the benefitting business before you start the promotion activity.
Is an authority required?
An authority is required if the total prize value for a single trade promotion exceeds $10,000.
If you are unsure if your trade promotion requires an authority, you can use the community gaming check tool.
Apply for an authority
An authority can be issued for a selected period of 1, 3 or 5 years allowing multiple promotions to be run under a single authority.
The application fee depends on the duration of the authority.
Duration | Fixed fee | Processing fee | Total fee | *Total fee if lodged online |
---|---|---|---|---|
1 year | $124 | $371 | $495 | $458 |
3 years | $371 | $371 | $742 | $705 |
5 years | $619 | $371 | $990 | $953 |
Apply for an authority
Conditions
Fees are for July 2024 - June 2025.
The above fees include a $371 non-refundable processing fee. If you cancel your authority, this fee will not be refunded.
*For online applications, there is a 10% processing fee discount.
Notification of commencement of gaming activity
If your gaming activity requires an authority, you must provide a copy of the gaming rules to NSW Fair Trading. This must be at least 10 working days before the proposed promotion takes place.
Gaming activities cannot commence until notification is given, you can notify NSW Fair Trading online.
Please refer to the community gaming rules template when providing the rules to NSW Fair Trading. You can send your completed set of rules to NSW Fair Trading at CElottery@customerservice.nsw.gov.au.
Prizes
There is no maximum prize limit for trade promotions.
Prizes may consist of anything except a prohibited prize.
Prohibited prizes
The following prizes are prohibited:
a firearm, ammunition, an imitation firearm or other prohibited weapons as defined by the Weapons Prohibition Act 1998
tobacco, smoking or vaping products
cosmetic surgery and other procedures falling under Division 1A of Part 3 of the Poisons and Therapeutic Goods Act 1966
more than 20 litres of liquor where the alcohol is 20% or less by volume or more than 5 litres of liquor where the alcohol content is more than 20% by volume
any other prize that contravenes any other law of this State or the Commonwealth. For example, Charitable Fundraising Act 1991 (NSW) and Gaming Machines Act 2001 (NSW)
Unclaimed prizes
The gaming activity rules should specify how to deal with an unclaimed prize.
If a prize isn’t claimed within a set period of time, it can be forfeited, and another draw held to determine a new winner. Otherwise, the prize must be kept until awarded to the winner.
Every reasonable effort must be taken to contact the prize winner. If contact cannot be made, the operator must keep the prize for the duration stated in the rules.
If the rules do not have a time frame for an activity that requires authorization, the operator must keep the prize for at least 3 months. After this time a new winner may be chosen.
Perishable prizes, such as a meat tray, can be disposed of or sold for a reasonable price. The money (after sale or disposal costs) must be held in trust for the winner.
Changes to rules
If there any changes to the rules for a gaming activity, you must:
take all reasonable steps to notify the participants, or
make the information publicly available within a reasonable time before the activity starts.
If an authority is required for the gaming activity, any substantial change must be reported to NSW Fair Trading. You can do this by filling out a Changes to Gaming Activity notification form and sending it to CElottery@customerservice.nsw.gov.au.
Advertising
You must clearly advertise the rules of the trade promotion. This will enable potential participants make an informed decisions about entering.
If you cannot publish the rules in an advertisement or on a ticket, you must state where the rules can be found, such as a website.
Any unusual or onerous conditions of entry must be clearly displayed without consumers having to purchase a product or service to discover those details.
If a product or service purchase is required for entry, these conditions must be clearly and prominently displayed on the outside of the product.
Advertising material must not:
encourage a breach of the law
depict children participating in the gaming activity
suggest that winning will be a definite outcome of participating in the gaming activity
suggest that participating in the gaming activity will definitely improve a person’s financial prospects
If you need an authority for your gaming activity, all advertising material must clearly display the authority number.
Running a trade promotion online
Businesses can promote their goods or services online including on social media.
The person or organisation promoting the business must:
comply with the rules of the trade promotion
comply with applicable requirements under the Community Gaming Laws
apply for a valid NSW authority if the promotion has:
a total prize value exceeding $10,000 and
is open to NSW residents, even if the operator lives outside of NSW.
Administration
Where applicable, the following requirements apply to gaming activities.
If the gaming activity requires an authority and the total prize value is over $10,000, you cannot offer any funds received as payment to any person.
Exemptions apply if the payment is:
a commission or payment for services rendered in connection with the activity; and
it is provided under a written agreement with the person/body conducting the gaming activity; and
the agreement specifies the services to be rendered, the commission/payment to be provided and the term of the agreement
There are no restrictions on commissions or payments for trade promotions if the total prize value is less than $10,000.
You must deposit proceeds from your gaming activity into an account at an authorised deposit-taking institution no later than 2 business days after the money is received,
There is no requirement to keep records for conducting trade promotion gaming activities.
However, maintaining records is recommended, as this will help properly manage activities.
If the annual gross proceeds of your gaming activity exceed $250,000, the accounts must be audited by a qualified auditor.
This includes accounts that relate to receipts and expenses.
NSW Fair Trading Community gaming
Have a question about a community gaming activity?
You can contact NSW Fair Trading.