Fundraising for organisations

Trade promotions

A trade promotion is a lottery to promote the sale of goods or services. Entry must be free but:

  • the participant may have to buy goods or services, which are the subject of the promotion
  • the cost of entry by phone can’t be more than 55 cents including GST for landlines and 50 cents for mobile phones (plus mobile charges)
  • the cost of entry by post can't be more than the normal cost of postage.

The winners can be drawn or win instantly depending on the type of promotion.

Types of trade promotion

Some trade promotions require a licence, and if prizes are drawn electronically then the drawing system must also be approved. There are also different rules for licensed gaming operators.

Major trade promotions

Prizes in a major trade promotion have a retail value of more than $5,000 and can include both instant and drawn prizes.

You need a licence for major trade promotions. You will also need an electronic drawing system approval number if the prize is drawn electronically.

Standard applications

Standard applications will take at least 14 business days from when CBS receive your application.

Premium applications

If you need the licence within 5 business days from when CBS receive your application, you must pay a premium fee.

Minor trade promotions

Prizes in a minor trade promotion have a retail value of less than $5,000 and can include both instant and drawn prizes.

You don’t need a licence for minor trade promotions but may need an electronic drawing system approval number if the prize is drawn electronically.

Instant prize trade promotions

An instant prize lottery has instant scratch or 'break-open' tickets where the number, letter or symbol is hidden. A licence is needed regardless of the total prize value.

Trade promotion lotteries are considered instant prize lotteries if they have instant prizes only and may also have:

  • an unclaimed prize draw
  • a second chance or major draw in the terms and conditions.

Licensed gaming operators

Trade promotions conducted by licensed gaming operators must be approved by CBS as acceptable.

Licensed gaming operators include the SKYCITY Casino, SA TAB, Lotteries Commission, bookmakers, authorised interstate betting operators, racing clubs with on-course totalisator betting licences and the holders of gaming machine licences.

A lottery is considered an acceptable trade promotion if all of these apply:

  • it is a minor or major trade promotion lottery
  • its main purpose is to reward or retain existing customers (rather than to encourage people to gamble more than they normally would)
  • it has been approved by CBS.

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Prizes

Lotteries can't promote or have as prizes:

  • tobacco products
  • firearms, antique firearms and ammunition
  • dangerous articles and prohibited weapons
  • cosmetic surgery or similar procedures.
  • goods or services that are illegal to sell in South Australia.

The value of the prize advertised must be the retail value.

Conduct and conditions

Allow enough time for each phase of the lottery, including:

  • printing tickets
  • advertising
  • drawing
  • notifying winners
  • publishing the results.

If the terms and conditions include unclaimed prizes, there is no minimum requirement on how long the prizes must be kept after the draw, otherwise, they must be kept for at least three months.

Advertising

Anyone can enter a trade promotion lottery, subject to the terms and conditions unless the product or prize is not available to a person because of their age.

All advertisements of a major trade promotion lottery - other than television, radio or at the cinema - must contain:

  • the name and address of the trader
  • the licence number
  • the duration of the lottery
  • the nature and value of the prizes
  • the number of draws and the date, place and time for the drawing
  • the date the results will be available and how participants will be notified.

All advertisements of a major trade promotion lottery on television, radio or at the cinema must contain:

  • the licence number
  • how a person can enter
  • the nature and value of the prizes
  • how and where to get a copy of the lottery's full terms and conditions.

All advertisements of an instant prize lottery must contain:

  • the name and address of the trader
  • the licence number
  • the duration of the lottery
  • the nature and value of the prizes
  • how and where the full terms and conditions can be accessed if they aren’t included in the advertisement.

Advertising or promoting of any lottery must not:

  • suggest that the lottery can fix personal or financial problems or cover expenses
  • imply that the lottery can increase social, sexual or employment opportunities
  • exaggerate the prizes or suggest the chance of winning is better than it really is
  • suggest that someone’s skill means a better chance of winning
  • link the lottery with drinking too much alcohol
  • exaggerate the connection between the lottery and how the proceeds will be used.

Advertising or promoting must include enough information for people to understand the chances of winning or the overall return when the advertising:

  • encourages people to enter within a certain time frame
  • refers to how often a prize or prizes can be won.

A major trade promotion lottery can't begin until a licence has been granted. The licence number must appear on all advertising.

Drawing

The drawing must take place:

  • on the day, time and place stated
  • under the supervision of the association
  • in front of any ticket holders who want to be there
  • in front of an independent scrutineer, if the total prize value is over $20,000.

Participants don't have to be present when the lottery is drawn to win a prize. A prize can't 'jackpot' or a new ticket drawn if the winner isn't there.

If the winner is not present when the lottery is drawn, notify them in writing within 14 days and tell them how the prize can be delivered or collected.

A trade promotion lottery must not be drawn electronically unless the system has been approved by the minister.

Results

For each prize valued at over $250, the name and address of each winner must be published in a newspaper circulating throughout the state within 30 days of the draw.

If the lottery has only been advertised in a particular publication or website, or if an entry is only permitted on a particular website, results must be published in that publication or website.

The name and address of each winner of an instant win prize valued at over $250 or any drawn prize, regardless of the value, must be forwarded to Consumer and Business Services within 14 days of the draw.

Scrutineer

A scrutineer must be either:

Record keeping

Ticket butts, entry forms and other records relating to the lottery must be kept for at least three months after the draw.

Penalties

Anyone who acts dishonestly in connection with the lottery is guilty of an offence. The maximum penalty is $50,000 or two years imprisonment.

If the association is guilty of an offence and receives a penalty, the same applies to:

  • each member of the management committee
  • board of directors
  • chief executive officer
  • any employee responsible for the conduct of the lottery.

Contact Consumer and Business Services

Phone

131 882

In person

91 Grenfell Street
Adelaide

Post

GPO Box 1719
Adelaide SA 5001


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Page last updated 30 October 2017

Provided by:
Attorney-General's Department
URL:
http://www.sa.gov.au/topics/family-and-community/community-organisations/fundraising-for-organisations/trade-promotions
Last Updated:
30/10/17
Printed on:
25/11/17
Copyright statement:
SA.GOV.AU is licensed under a Creative Commons Attribution 3.0 Australia Licence. © Copyright 2016