Trade promotions (Tas) - Not-for-profit Law
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Trade promotions (Tas)
Legal information for community organisations in Tasmania
This fact sheet covers:
► overview of the lottery laws in Tasmania
► minor gaming conducted for charitable purposes
► what is a trade promotion?
► games of chance vs games of skill
► is a permit required to conduct a trade promotion?
► foreign games
► online games of chance, and
► national games of chance
This fact sheet summarises some of the legal issues to be aware of when conducting trade
promotions or games of chance in Tasmania.
This fact sheet doesn’t cover in detail other gaming activities such as gaming machines, keno, lotteries,
raffles, lucky envelopes, bingo and Calcutta sweepstakes.
In this fact sheet, further detail of any Tasmanian Government requirements referred to can be found on the
Department of Treasury and Finance website.
If your organisation wants to conduct a lottery or game of chance in another state or territory, you must
comply with the laws of that jurisdiction.
This information is intended as a guide only and is not legal advice. If your organisation has a legal
problem, you should talk to a lawyer before making a decision about what to do.
Overview of the lottery laws in Tasmania
The rules about trade promotions and other gambling activities in Tasmania are found in the Gaming
Control Act 1993 (TAS) and the Gaming Control Regulations 2014 (TAS) (collectively the Lottery Laws).
These laws are overseen and administered by the Tasmanian Liquor and Gaming Commission
(Commission).
© 2021 Justice Connect. This information was last updated in April 2021 and is not legal advice; full disclaimer and copyright notice at www.nfplaw.org.au/disclaimer.Trade promotions (Tas) | 2021 2
The Lottery Laws broadly govern the conduct of:
• minor gaming conducted for charitable • major lotteries
purposes, such as raffles, bingo, calcutta • trade promotion lotteries
sweepstakes, lucky envelopes, dancing
dollars, instant draw bingo and Tassie’s Best
Punter
Depending on the type of game that is being conducted, a permit may or may not be required.
Minor gaming conducted for charitable purposes
Minor gaming is gaming where the proceeds are used for a not-for-profit organisation or for charitable
reasons (such as education, welfare, sport and recreation) and not for the private gain or benefit of any
person, (except by way of charity).
Minor gaming can only be conducted for ‘authorised games’. The Lottery Laws require an Individual
Activity Notification to be lodged with the Commission 14 days before conducting an authorised game.
In addition, a Minor Gaming Permit is required before conducting an authorised game. Once obtained, a
Minor Gaming Permit will be valid for a period of either one or two years and subject to the conditions
prescribed by the particular minor gaming permit.
As at April 2021, the current list of authorised games and a description of each are as follows:
Raffles A permit is required where the retail value of the prizes exceeds $5 000.
For raffles where the total prize value is $5 000 or less, the rules and conditions for
conducting a raffle must still be adhered to. That is, tickets must be printed and
results must be published.
For all raffles, raffle proceeds must be used exclusively for the lawful purposes of a
not-for-profit organisation or a charitable purpose and not for the private gain or
benefit of any person.
Bingo Bingo is a game in which each player is given a card with numbers printed on it and
the winner is decided by the player matching randomly selected numbers to the
numbers on the player’s ticket.
Calcutta A calcutta sweepstake is a combination of a lottery and an auction. Participants
sweepstakes purchase a ticket in the draw for a contestant in a race or event. At the completion of
the draw, the successful tickets (‘contestants’) are then auctioned. Only successful
and unsuccessful ticket holders may bid for a contestant. Traditionally prizes of the
stake are issued for first, second and third placed contestants.
Lucky envelopes Lucky envelopes are a form of pre-determined lottery. They may also be known as
‘bingo tickets’, (due to the word ‘bingo’ spelt along the front of the ticket), ‘pull-tabs’
or ‘break opens’. Lucky envelopes cannot be sold to anyone under the age of 18.
Dancing Dollars Dancing Dollars is a game in which each player is given a card with numbers printed
on it. The winner (or winners) is decided by drawing numbers from a group of
numbers that correspond with the entry numbers of the game cards submitted by
players in the game.
Instant Draw As this game may only be played in conjunction with a bingo session, it’s only
Bingo necessary to submit an individual activity notification for the bingo sessions at which
the game will be played (that is – only one notification must be submitted covering
both bingo and Instant Draw Bingo).Trade promotions (Tas) | 2021 3
Tassie’s Best The rules of ‘Tassie’s Best Punter’ are set out on the Department of Treasury and
Punter Finance webpage Rules and Conditions - Tassie's Best Punter.
Note – rules and conditions
The conduct of an authorised game is also subject to certain rules and conditions.
The rules and conditions are published on the Department of Treasury and Finance website.
Note – small raffles
A Minor Gaming Permit is not required for a raffle if the total retail value of the prizes does not
exceed $5,000.
However, the rules and conditions for conducting a raffle must still be adhered to. That is –
tickets must be printed and results must be published etc.
In all instances raffle proceeds must be used exclusively for the lawful purposes of a not-for-
profit organisation or a charitable purpose and not for the private gain or benefit of any person.
Tip
If your not-for-profit organisation wants to conduct an authorised game, it should apply for a
Minor Gaming Permit and lodge an Individual Activity Notification with the Commission 14
days before conducting the authorised game.
Exempt games
The Commission may declare a game to be an exempt game not requiring a Minor Gaming Permit.
As at April 2021, the Commission has declared the following games to be ‘exempt games’ for the purpose
of the Lottery Laws:
• tipping competitions in which the outcome or occurrence of a sporting event is tipped where:
– the total contributions do not exceed $10 000
– a participant does not contribute more than $150, and
– the total sum contributed, without any deduction, is distributed as prizes in money or money's worth
• raffles in which the total prize value does not exceed $5000
• sweepstakes where:
– the total contributions do not exceed $10 000
– no participant contributes more than $110, and
– the total sum contributed is paid, either:
– without any deduction, to the winner, or as the case may be, to the participants drawing the three
contestants that finish in the first three places, orTrade promotions (Tas) | 2021 4
– to the winner, or as the case may be, to the participants drawing the three contestants that finish
in the first three places and the contestant that finishes last in the race in respect of which the
sweepstake is held
• fundraising cards and tickets (such as sport cards and margin tickets) where:
– the gross receipts do not exceed $200, and
– the prize (or prizes) are not less than 50% of gross proceeds for the game
• ‘Anzac Day Two Up’ where:
– the game known as ‘Anzac Day Two-up’ is played during the period starting at 6.00am and ending at
6.00pm on 25 April in any year, and
– the premises where the game is conducted is occupied on a permanent basis by an organisation, the
majority of the members of which, are former members of the defence forces
Major lotteries
What is a lottery?
The Lottery Laws define a ‘lottery’ generally as a game:
• that involves the distribution of a prize, and
• where the determination of a winner involves an element of chance
The Commission may declare a lottery or class of lotteries to be a ‘major lottery’ by notice published in the
Gazette, or by written notice to a person conducting a lottery.
To conduct a major lottery, a Tasmanian Gaming Licence endorsed for Major Lottery Endorsement is
required. A guide to the licence and the application form is published on the Department of Treasury and
Finance website.
For the purpose of the Lottery Laws, a trade promotion is not a lottery.
What is a trade promotion?
A trade promotion sometimes appears to be similar to a lottery or a raffle, however in Tasmania these are
treated as different forms of gaming under the Lottery Laws and subject to different rules.
Note
In Tasmania, under the Lottery Laws, trade promotions are treated as forms of gaming
different from a lottery or a raffle and are subject to different rules.
What is a trade promotion?
In short, a trade promotion occurs when an organisation, (whether it’s a business, community
or charitable organisation) promotes its products or services or purpose by offering prizes to
winners selected by an element of chance (like a random draw).Trade promotions (Tas) | 2021 5
A trade promotion is a competition conducted by a business or organisation where:
• a prize is offered to promote the business’ or organisation’s products or services, and
• the winner of the prize is determined by chance (ie. a ‘game of chance’)
Examples of trade promotions include:
• drawing a winner from a barrel or 'instant win' competitions
• spinning wheels
• purchase-to-enter competitions
• 'scratch and win' cards
• prize pool sweepstakes
• joker’s jackpots or joker poker, and
• members draws
Games of chance vs games of skill
A game of chance provides all entrants with an equal chance of winning and the winner is selected at
random. The operator of the trade promotion can’t factor in any skill when determining the winner.
In contrast, a game of skill involves no element of chance at any point in the game or competition.
As a general guide, 'games of skill' are competitions or processes that determine a winner by requiring a
participant to submit something or answer a question in order to win or be selected for a prize. The winner
is usually selected by a judge or panel of judges. These are not considered trade promotions.
Examples of a game of skill include:
• an essay writing competition such as 'In 100 words or less, tell us why you consider...'
• trivia nights, and
• other skills-based competitions, such as an art or talent competition
While an organisation doesn’t need to obtain a permit to conduct a promotion that is considered a 'game of
skill', the organisation still needs to take care that all entries are judged individually on their merit and the
winner is selected based on merit.
Caution
Care should be taken to ensure that the 'game' or test of 'skill' for the promotion is one that
is a true test of skill so that participants can’t potentially enter the same answer.
For example – a question that participants could give the same answer to is a factual
question such as ‘Who is the prime minister of Australia?’
If any prize is given after a draw from the participants who had provided the correct answer
to the factual question, that would be a game of chance and therefore subject to the laws
applying to games of chance.Trade promotions (Tas) | 2021 6
Is a permit required to conduct a trade promotion?
Provided that a trade promotion complies with the following conditions, a permit is not required to
conduct a trade promotion in Tasmania:
1. An entrant may enter the trade promotion only by purchasing specified goods or services. The
trade promotion operator may determine what goods or services entitle people to enter.
2. The goods or services that are part of the promotion must be sold at the regular retail price. There
should be no other cost to enter the trade promotion.
3. The winner of the promotion must be determined by chance.
If these conditions are not followed, the promotion may actually be a lottery, which is subject to different
rules. For example, if an entrant pays to enter without purchasing goods or services, or is required to
purchase a raffle ticket, then the promotion is probably an unauthorised lottery.
In Tasmania, lotteries are illegal unless they are specifically authorised by the Commission. Penalties for
conducting an illegal lottery include a fine of up to 600 penalty units for a first offence.
Caution
If your trade promotion does not comply with the trade promotion conditions, then the
promotion may in fact be a lottery, which is subject to its own set of rules, including the
requirement to apply for a Tasmanian Gaming Licence (for major lotteries) or Minor Gaming
Permit (for authorised games).
Foreign games
A foreign game is a game:
• conducted outside Tasmania lawfully and in accordance with the requirements of the jurisdiction in
which the game is conducted, and
• for which tickets are sold from premises in Tasmania
A Foreign Games Permit is required for foreign games to be conducted. Information on the application
process for a Foreign Games Permit is published on the Department of Treasury and Finance website.
It’s a good idea to contact the Tasmanian Liquor and Gaming Branch on (03) 6166 4040 before applying for
a Foreign Games Permit.
Subject to any conditions specified in the permit, a Foreign Games Permit authorises:
• the permit-holder to sell tickets in Tasmania for the foreign games specified in the permit, and
• those tickets to be sold either by the permit holder or its accredited representative
Foreign Games are regulated by the Foreign Games Permit Rules which are made by the Commission
pursuant to the Lottery Laws.Trade promotions (Tas) | 2021 7
Online games
If you plan to conduct a trade promotion lottery or other game of chance online using social media (such as
Facebook, Twitter, YouTube), you must comply with the social media website’s promotions guidelines in
addition to the relevant state and territory authority requirements (see below).
You will need to carefully check the social media website’s promotions guidelines as they may contain
specific requirements on:
• how you can conduct your trade promotion lottery
• how your trade promotion lottery is associated with the social media organisation, or
• disclosing certain information to, or obtaining information from, entrants
Note
Websites such as social media platforms sometimes have their own guidelines for trade
promotions and other games of chance. Remember to consider them before conducting a
trade promotion lottery online. For more information go to our webpage on social media.
Facebook has a number of guidelines that must be followed if conducting a trade promotion lottery or other
game of chance using its website.
When using Facebook as a promotional tool, you must:
• ensure that your trade promotion lottery is lawful
• include an acknowledgement that the promotion is not sponsored, endorsed or administered by, or
associated with, Facebook
• include a release of liability for Facebook for each entrant or participant, and
• let entrants or participants know that they are disclosing information to you and not to Facebook
The Facebook promotions guidelines also prohibit certain activities in conducting your promotion. You must
not:
• make entry or registration to the promotion conditional on taking any action other than liking a Page,
checking in to a Place, or connecting to the app (for example, you can’t require a person to post a photo
on the Page wall)
• use Facebook’s features or functionality as a registration or entry mechanism. For example, the act of
liking a Page or checking in to a Place can’t automatically register or enter a promotion participant, or
• use Facebook’s trade marks, trade names, copyrights or other intellectual property in connection with
the promotion
Unless you follow Facebook’s guidelines, you run the risk of Facebook removing your advertisement or
disabling your account. For a full list see Facebook’s Pages, Groups and Events Policies.Trade promotions (Tas) | 2021 8
National games of chance
This fact sheet focuses on the laws in Tasmania, but it’s important to remember that each state and territory
has its own laws regarding trade promotions and games of chance, and its own regulatory bodies that
administer those laws.
If you plan to conduct a trade promotion lottery or other game of chance where entrants can enter from
different states or territories (for example, an online trade promotion lottery), you will need to conduct it in
accordance with the relevant laws for each state and territory.
Note
Different states and territories have different laws. You may need to get more than one
permit if the trade promotion lottery or other game of chance will be in one or more states
or territories.Trade promotions (Tas) | 2021 9
Resources
Not-for-profit Law resources
The Not-for-profit Law website has further resources on the following topics
► Raffles and minor gaming
This page provides information on conducting raffles and minor gaming activities.
► Fundraising
This section features resources on how to navigate Australia’s complex fundraising laws.
► Events
This page covers legal issues to consider when holding an event.
► Communications and advertising
Communications, including advertising and promotions, are essential tools for not-for-profits. This
section features information on intellectual property, setting up a website and social media.
► Tax
Learn more about Deductible Gift Recipient Endorsements, Fringe Benefits Concessions, Goods and
Services Tax, income tax exemptions and state tax laws.
Tasmanian Liquor and Gaming Commission
► Applying for a Gaming Licence or Permit
► Gaming frequently asked questions
Legislation
► Gaming Control Act 1993 (TAS)
► Gaming Control Regulations 2014 (TAS)You can also read
