A trade promotion is a lottery to promote the sale of goods or services. The winners must be determined by a draw or by chance.
- If the winners are determined by skill, it isn't considered a lottery and doesn't require a trade promotion lottery licence, for example any tipping competitions.
- A competition where a person can only enter by completing a minor test of skill, like answering a simple question, is still a trade promotion if the winner is determined by a draw.
Entry must be free for all trade promotions, but:
- participants 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 50 cents (plus GST and any mobile charges).
Winners can be drawn, or win instantly, depending on the type of promotion.
A trade promotion can't run for longer than 12 months from the start date to the final closing date for entries.
Types of trade promotion
Some trade promotions require a licence. Before you begin, you'll need to determine if you need a licence and which promotion type to apply for.
Prizes over $5,000
If the total prize amount is $5,001 or more and winners are determined by a draw, it is a major trade promotion. A major trade promotion can include instant prizes.
You must apply for a major trade promotions licence.
Major trade promotion application time
Standard applications will take 10 business days to assess from when CBS receive your application.
Applications lodged within 5 business days of the planned trade promotion date require you to pay a premium fee – providing for an assessment within 5 business days of receiving the application.
Prizes $5,000 and under
If the total prize amount is $5,000 or under and you're not using instant scratch or break open tickets, it's a minor trade promotion.
You don’t need a licence for minor trade promotions.
Instant tickets
If you're using instant scratch or break open tickets where the number, letter or symbol is hidden, it's an instant prize trade promotion lottery.
Instant prize lotteries have instant prizes only and may also have an unclaimed prize draw.
Regardless of the prize amount, you must apply for an instant prize trade promotion licence.
Prizes over $5,000
If the total prize amount is $5,001 or more and winners are determined by a draw, it is a major trade promotion. A major trade promotion can include instant prizes.
You must apply for a major trade promotions licence.
Major trade promotion application time
Standard applications will take 10 business days to assess from when CBS receive your application.
Applications lodged within 5 business days of the planned trade promotion date require you to pay a premium fee – providing for an assessment within 5 business days of receiving the application.
Prizes $5,000 and under
If the total prize amount is $5,000 or under and you're not using instant scratch or break open tickets, it's a minor trade promotion.
You don’t need a licence for minor trade promotions.
Instant tickets
If you're using instant scratch or break open tickets where the number, letter or symbol is hidden, it's an instant prize trade promotion lottery.
Instant prize lotteries have instant prizes only and may also have an unclaimed prize draw.
Regardless of the prize amount, you must apply for an instant prize trade promotion licence.
How to apply
Apply online for a major or instant prize trade promotion licence.
Entry
Anyone can enter a lottery, subject to any requirements or restrictions outlined in the terms and conditions, unless the product or prize isn't available to a person because of their age.
You cannot enter a lottery if you’re:
- an organisation or managing committee member running it.
- involved in the conduct or promotion of the lottery (whether as principal, agent or employee).
Tickets
Minor and major trade promotion lottery
Each ticket must give an equal chance of winning the major prize (the prize of highest value).
- Example: to ensure an equal chance of winning, an organisation might draw the major prize first.
Instant prize trade promotion lottery
- Each ticket in an instant prize trade promotion lottery must give an equal chance of winning a prize.
Prizes and promotions
The goods and services being promoted must be your normal business products. You cannot charge more for the goods and services being promoted while the lottery is being run. A penalty of up to $2,500.00 applies.
Trade promotion lotteries can't promote or have as prizes:
- tobacco products
- firearms, antique firearms and ammunition
- dangerous articles and prohibited weapons
- cosmetic surgery or other similar medical or surgical procedures where the main purpose is improving personal appearance
- goods or services that are illegal to sell in South Australia
- other lotteries.
A ticket is void if the holder is under the legal age to receive the prize or buy the promoted goods or services.
The payment of a cash prize over $1,000.00 must be offered by bank deposit and paid as soon as possible.
The value of the prize advertised must be the retail value. For antiques, artwork, collectables or second-hand goods, the value must be whatever is likely to be paid for the item if sold at auction.
The terms and conditions of a trade promotion should provide for the manner in which prizes must be dealt, such as notification and claiming. Prize winners should be provided a reasonable opportunity to claim their prize (at least 14 days).
Instant prizes
For trade promotion lotteries with instant prizes, the licence holder must make sure tickets are made, packaged and stored so that no one can tell whether a ticket is a winning one before participating in the lottery.
Draws
Not applicable to instant prize trade promotion lotteries.
The draws must take place:
- on the day, time and place specified in the terms and conditions or the licence
- in front of an independent scrutineer, if total prize value is over $30,000
- by lot, meaning a random drawer. Where picked electronically, the winner(s) must be drawn by a random number generator that draws a winner at random.
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 be drawn if the winner isn't there.
If the winner isn't present when the lottery is drawn, within seven days tell them in writing what they’ve won and how it can be delivered or collected.
For minor trade promotion lotteries – a list of either the drawn prizes and their winners or the winning ticket numbers must be published in a place relevant to where it was promoted or conducted for at least seven days after the draw.
Attendance requirement - casino
The casino may require attendance at a draw to claim a prize but this must be clear in the terms and conditions and all advertisements, other than television, radio or cinema.
Scrutineer
A scrutineer must be either:
- a commissioner for taking affidavits in the Supreme Court
- a justice of the peace
- a notary public (this is a legal practitioner that witnesses and certifies documents)
- any other person authorised to take declarations under the Oaths Act 1936
- a person authorised by the minister to be a scrutineer
- on the Australian Government's list of approved witnesses.
Advertising
All advertisements of a lottery must contain:
| Requirement | Minor trade | Major trade | Instant prize trade |
|---|---|---|---|
| The name of the trader | Yes | No | Yes |
| The address of the trader | No | No | Yes |
| The licence number | No | Yes | Yes (except on television, radio or at the cinema.) |
| How a person may enter the lottery | Yes | Yes | No |
| The duration of the lottery | No | No | Yes |
| The nature and value of the prizes to be won | Yes | Yes | Yes |
| How and where to get a copy of the full terms and conditions of the lottery | Yes | Yes | Yes |
Advertising or promoting any lottery must include:
- enough information for people to understand the chances of winning when the lottery ends
- how often a prize or prizes can be won.
Advertising or promoting any lottery must not:
- be aimed at people aged under 18 years or demonstrate them gambling
- suggest that the lottery can fix personal or financial problems or to 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 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.
Results
For major trade promotion lotteries and instant prize trade promotion lotteries, for each prize valued at over $250, the initial of the first name, last name and the postcode of each winner must be published within 30 days of the draw except where a winner has requested that their details not be published.
Major trade promotion results must be published where specified in the terms and conditions.
Instant prize trade promotion results must be published where specified in the terms and conditions, or appropriate to where the lottery was promoted or conducted, and participants would reasonably expect to locate the information.
Record keeping
Minor trade promotion lotteries
Ticket butts, entry forms and other records relating to the lottery must be kept for at least three months after the draw and be available for inspection by CBS.
Major trade promotion lotteries
The licensee must keep accurate records of the:
- details of each participant (whether by retaining entry forms or otherwise)
- distribution of all prizes and who they were awarded to
- details of any unclaimed prizes and how they were dealt
- details of the lottery draw (including the date, time, address and scrutineer).
These records must be kept for at least three months after the lottery is drawn and be available for inspection by CBS.
Instant prize trade promotion lotteries
The licensee must keep accurate records of the:
- lottery period
- details of the participants
- distribution of all prizes and the winner(s)
- details of any unclaimed prizes and how they were dealt.
These records must be kept for at least three months after the drawing of the lottery and ensure they are available for inspection by CBS.
Penalties
Anyone who acts dishonestly in connection with the lottery is guilty of an offence. A penalty of up to $50,000 or two years imprisonment applies.
If the trader or promoter 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.
A person who conducts a trade promotion lottery on behalf of a trader and fails to comply with the rules set out in the Lotteries Regulations 2021 (SA) is guilty of an offence.
Contact CBS Lotteries
Email
LotteryLicensing@sa.gov.au
Phone
131 882 (option 7)
You can also book a lottery appointment for further assistance.
Related information
Documents
Terms and conditions of entry (222KB)
Major trade promotion lotteries guidance note (370KB)
