CONDUCTING A TRADE PROMOTION IN TASMANIA
A trade promotion is a mechanism used mainly to promote a business, where a prize is offered as an incentive for customers to buy goods and/or services. A trade promotion sometimes appears to be similar to a lottery, or a raffle. However, the Gaming Control Act 1993 makes it clear that a trade promotion is not a lottery or a raffle.
Unlike a lottery or raffle, a trade promotion cannot have a cost of entry (except for the ordinary cost of purchasing the goods or services, which should be the normal retail price). For example, if you decided to conduct a trade promotion on beer, you would give the customer an entry into the trade promotion prize draw each time the customer bought a beer. You cannot raise the price of beer, or any other good or service, to cover the costs of running the trade promotion.
To conduct a legal trade promotion you must offer to sell goods and/or services at the regular price. What goods and/or services you wish to include as part of the trade promotion is up to you.
A customer cannot simply pay to enter the draw for a prize. The customer must buy goods and/or services to enter the trade promotion. If you let a customer enter the trade promotion by any other means, such as paying to enter without buying goods and/or services, or by buying a raffle ticket, then the promotion is in all likelihood, a lottery.
Lotteries are illegal unless they are specifically authorised by the Tasmanian Liquor and Gaming Commission. Under section 5A of the Gaming Control Act 1993, the penalty for conducting an unauthorised lottery is a fine of up to 600 penalty units for a first offence, and a fine of up to 1000 penalty units, or imprisonment for a term of up to 2 years or both, for a second or subsequent offence.
A LEGITIMATE TRADE PROMOTION MUST FOLLOW THESE STEPS:
- A customer may enter a trade promotion only by purchasing specified goods and/or services. The person conducting the trade promotion may determine what goods and/or services entitle customers to enter.
- The goods and/or services must be sold at the regular retail price. There should be no cost to enter the trade promotion EXCEPT the regular purchase price of goods and/or services that are part of the promotion; and
- The winner of the promotion must be determined by chance.
If any of these rules are broken, the trade promotion may actually be an unauthorised lottery.
IT IS NOT A TRADE PROMOTION IF THERE IS A COST TO ENTER THAT IS SEPARATE FROM, OR IN ADDITION TO, PURCHASING GOODS AND/OR SERVICE.
If your organisation information changes (eg change to address) you need to
notify the Commission within 21 days. If your responsible person changes, please complete the change to responsible person form and return to the
Change of Responsible Person (PDF 168Kb)
Certain games are exempt from approval. These include small raffles, tipping competitions and sweepstakes. You can find out more about the conditions of each exemption on the Exempt Games fact sheet .
Authorisations to conduct minor gaming activities are issued subject to the provisions of the Gaming Control Act 1993 and to any directions given by the Tasmanian Liquor and Gaming Commission. In particular, minor gaming permit holders:
- Must comply with the Gaming Control Act 1993.
- Must ensure that the proceeds raised under a permit granted pursuant to this application will only be applied for the lawful purpose stated in the application and will not be used for private gain.
- Must comply with the rules and conditions of authorised games as determined by the Commission.
- Must lodge an individual activity notification with the Commission at least seven (7) days prior to conducting an authorised game listed on the minor gaming permit. The conduct of authorised games must not commence until notification has been submitted to the Commission. Individual activities may range from one (1) day to the length of the minor gaming permit.
- Must only conduct the authorised games specified on their issued minor gaming permit. Should an organisation wish to conduct an authorised game that is not specified on the permit, an application to amend the permit must be completed and lodged with the Commission for determination. If approved, the existing minor gaming permit will be amended to include the new authorised game.
- Must only use equipment approved by the Commission for any electronic determination of a game outcome.
- Must submit an application to amend the minor gaming permit if the responsible person of an Organisation changes. It will be necessary for the new contact to sign the statutory declaration and Authority and Consent form contained in the application to amend minor gaming permit.
- Must give written notice to the Commission of any change of address within 21 days after that change of address occurs.
- Must give written notice to the Commission of any change in the details of the responsible person within 21 days after that change occurs.
- Must keep such accounting records as necessary to correctly record and explain transactions arising from the conduct of gaming.
- Must ensure all records relating to the conduct of gaming are retained for seven (7) years.
Please note that in accordance with section 76ZZO of the Act the Commission may grant a minor gaming permit subject to such conditions as the Commission considers appropriate.
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