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Information on running trade promotional lotteries including authorities, prizes, advertising, rules and record keeping
A trade promotion gaming activity is a free-entry lottery conducted to promote goods or services supplied by a business.
A trade promotion must genuinely promote goods or services apart from offering participation in the trade promotion gaming activity.
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.
No entry or related fees are permitted.
Entry by purchasing goods or services at their normal retail value is allowed.
Is an authority required?
An authority is required if the total prize value for a single trade promotion exceeds $10,000.
Notification of commencement of gaming activity-
Not applicable if prize is under $10,000 if over see below.
If the gaming activity requires an authority, the operator must provide a copy of the gaming rules to NSW Fair Trading at least 10 working days before the proposed promotion takes place. Gaming activities cannot commence until notification is given via this portal.
Please refer to this template when lodging the rules.
Written approval of benefiting business
The person or organisation conducting the trade promotion must have written consent from the benefiting business.
Promoting goods or services 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 and all applicable requirements under the Community Gaming Laws.
This includes applying 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.
There is no maximum prize limit for trade promotions.
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 takes place.”
If an authority is required for the gaming activity, any substantial change must be reported to NSW Fair Trading by filling out a Changes to Gaming Activity notification form.
The rules of the trade promotion must be clearly advertised to enable potential participants to make informed decisions about entering.
Where it’s not possible to publish the rules in an advertisement or on a ticket, the included information must state where the rules can be found such as 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.
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 your gaming activity requires an authority, all advertising material must clearly display the authority number.
Where applicable, the following requirements apply to gaming activities.