Competition Permit Guide by State
Everything Australian businesses need to know about trade promotion lottery permits, state-by-state requirements, costs, and how to stay compliant.
Games of Chance vs Games of Skill
The single most important distinction in Australian competition law is whether your promotion is a game of chance or a game of skill. This classification determines whether you need a trade promotion lottery permit, which states you need to register in, and what rules apply to your terms and conditions.
The Core Rule: If the winner is selected at random (or by any mechanism outside the entrant's control), it is a game of chance and almost certainly requires a permit. If the winner is selected based on the merit of their entry by a judge or panel, it is a game of skill and generally does not require a permit.
Games of Chance (Permit Required)
- Random draws from all entries
- Instant win promotions (scratch cards, codes)
- Lucky number games
- Spin-to-win mechanics
- Any promotion where luck determines the winner
Games of Skill (Usually No Permit)
- 25 Words or Less competitions
- Photo competitions (judged on merit)
- Recipe or cooking competitions
- Video submissions (judged)
- Any promotion judged on creative merit
The Grey Areas
Some promotions sit in a grey area between chance and skill, and regulators may view them differently depending on the state:
- Vote-to-win: If the public votes on entries, regulators sometimes treat this as chance because the entrant cannot control the outcome. Having a judging panel make the final decision from a shortlist of public vote finalists is a safer approach.
- First correct answer: Trivia competitions where the first correct answer wins can be considered chance if the question is so easy that virtually everyone gets it right. The question must genuinely test knowledge or skill.
- User-generated content with random draw: If you ask people to submit a photo but then randomly draw the winner (instead of judging), it is a game of chance regardless of the creative entry requirement.
- Social media "like and share": Selecting a winner from likes, shares, or comments is a random draw and requires a permit.
When in doubt, treat it as a game of chance and obtain the necessary permits. The cost of a permit is almost always far less than the cost of non-compliance.
State-by-State Permit Requirements
Each Australian state and territory has its own legislation governing trade promotion lotteries. Requirements, thresholds, fees, and processing times vary significantly. Below is a comprehensive breakdown as of 2026 - always confirm current requirements directly with the relevant authority as regulations can change.
New South Wales (NSW)
Regulatory Body: Liquor & Gaming NSW (under the Department of Enterprise, Investment and Trade)
Permit Required When
Total prize pool exceeds $10,000
Approximate Cost
$100 - $300+
Processing Time
5 - 10 business days
NSW requires a trade promotion lottery permit for any game of chance where the total prize pool exceeds $10,000. Promotions under this threshold are generally exempt but must still comply with the Lotteries and Art Unions Act 1901 and include proper terms and conditions.
How to apply: Visit the Liquor & Gaming NSW website and submit an application through Service NSW. You will need to provide your promotion details, terms and conditions, prize descriptions, and draw details.
Victoria (VIC)
Regulatory Body: Victorian Gambling and Casino Control Commission (VGCCC)
Permit Required When
Total prize pool exceeds $5,000
Approximate Cost
$50 - $200+
Processing Time
5 - 15 business days
Victoria has a lower threshold than NSW. Any trade promotion lottery with prizes totalling more than $5,000 requires a permit from the VGCCC. The Gambling Regulation Act 2003 governs these promotions.
How to apply: Visit the VGCCC website and submit your application online. You will need to detail the promotion mechanics, prize pool, eligibility criteria, and attach your full terms and conditions.
Queensland (QLD)
Regulatory Body: Office of Liquor and Gaming Regulation (OLGR), Department of Justice and Attorney-General
Permit Required When
Generally not required for trade promos
Approximate Cost
N/A (no permit needed)
Key Requirement
Must comply with OLGR rules
Queensland is the most business-friendly state for trade promotion lotteries. Under the Lotteries Act 1997, trade promotion lotteries are generally exempt from requiring a permit, provided the promotion meets certain conditions: entry must be free (no purchase required beyond normal retail), the promoter must be a trading entity, and the promotion must be genuinely designed to promote trade.
Important: While no permit is needed, you must still comply with all OLGR guidelines and your promotion must include proper terms and conditions. Visit the OLGR website for the latest guidance on exempt promotions.
South Australia (SA)
Regulatory Body: Consumer and Business Services (CBS), Attorney-General's Department
Permit Required When
All trade promotion lotteries
Approximate Cost
$50 - $200+
Processing Time
10 - 15 business days
South Australia requires a lottery licence for virtually all trade promotion lotteries involving a game of chance, regardless of the prize value. The Lottery and Gaming Act 1936 governs these promotions. SA is one of the strictest states in this regard.
How to apply: Visit the Consumer and Business Services (CBS) website to download the application form and submit it along with your terms and conditions, prize details, and the required fee.
Western Australia (WA)
Regulatory Body: Department of Local Government, Sport and Cultural Industries (Racing, Gaming and Liquor division)
Permit Required When
Total prize pool exceeds $20,000
Approximate Cost
$100 - $400+
Processing Time
10 - 20 business days
Western Australia has a relatively high threshold. Trade promotion lotteries with a total prize pool under $20,000 generally do not require a permit, but must still comply with the Gaming and Wagering Commission Act 1987. For larger prize pools, a permit from the Department is required.
How to apply: Visit the Department of Local Government, Sport and Cultural Industries website for application forms and guidelines. Applications should be submitted well in advance of the promotion start date.
Tasmania (TAS)
Regulatory Body: Liquor and Gaming Branch, Department of Treasury and Finance
Permit Required When
Total prize pool exceeds $5,000
Approximate Cost
$50 - $150+
Processing Time
5 - 10 business days
Tasmania requires a permit for trade promotion lotteries where the total prize pool exceeds $5,000, governed by the Gaming Control Act 1993. Promotions below this threshold are generally exempt but must still meet basic requirements including proper terms and conditions.
How to apply: Visit the Liquor and Gaming Branch website for application details and submit your permit application along with supporting documentation.
Australian Capital Territory (ACT)
Regulatory Body: ACT Gambling and Racing Commission (Access Canberra)
Permit Required When
Generally not required for trade promos
Approximate Cost
N/A (notification may apply)
Key Requirement
Notification may be required
The ACT is relatively relaxed for trade promotion lotteries. Under the Lotteries Act 1964, many trade promotions are exempt from requiring a permit, though you may need to notify the ACT Gambling and Racing Commission depending on the prize value and promotion type.
How to apply: Visit the Access Canberra website to check whether your promotion requires notification or approval and to find the relevant forms.
Northern Territory (NT)
Regulatory Body: Licensing NT, Department of Industry, Tourism and Trade
Permit Required When
All trade promotion lotteries
Approximate Cost
$50 - $150+
Processing Time
10 - 15 business days
The Northern Territory requires a permit for trade promotion lotteries under the Gaming Machine Act and the Racing and Betting Act. Like South Australia, the NT requires permits regardless of prize value for games of chance.
How to apply: Visit the Licensing NT website for application forms and guidelines. Submit your application with sufficient lead time before the promotion is due to start.
Quick Reference Table
| State | Permit Needed? | Threshold | Est. Cost | Processing |
|---|---|---|---|---|
| NSW | Yes, above threshold | $10,000 | $100-$300+ | 5-10 days |
| VIC | Yes, above threshold | $5,000 | $50-$200+ | 5-15 days |
| QLD | Generally exempt | N/A | N/A | N/A |
| SA | Yes, all lotteries | No threshold | $50-$200+ | 10-15 days |
| WA | Yes, above threshold | $20,000 | $100-$400+ | 10-20 days |
| TAS | Yes, above threshold | $5,000 | $50-$150+ | 5-10 days |
| ACT | Generally exempt | N/A | N/A | N/A |
| NT | Yes, all lotteries | No threshold | $50-$150+ | 10-15 days |
Costs and processing times are approximate and may change. Always confirm directly with the relevant authority before lodging.
Running a National Competition
The Multi-State Problem: There is no single national competition permit in Australia. If your promotion is open to residents across multiple states, you may need to obtain separate permits from each state where entrants are eligible.
This is the aspect that catches most businesses off guard. Running a nationwide random draw means you need to comply with the laws of every state and territory where people can enter. In practice, this means:
Step 1: Determine Which States Need Permits
If your promotion is open to all Australians, you will likely need permits from NSW, VIC, SA, and NT at minimum (plus WA and TAS depending on prize value). QLD and ACT are generally exempt for trade promotions.
Step 2: Apply Well in Advance
Allow at least 4-6 weeks before your promotion launch date. Some states take longer than others, and you cannot legally start the promotion until all required permits are in hand.
Step 3: Include All Permit Numbers in Your T&Cs
Your terms and conditions must list the permit number for every state where you hold one. This is a legal requirement and must be visible to entrants.
Step 4: Consider Excluding Problematic States
Some businesses choose to exclude certain states (particularly SA and NT) from their promotions to reduce the administrative burden. If you do this, it must be clearly stated in the T&Cs and enforced during the draw.
Pro Tip: Many larger brands use promotional law agencies that handle multi-state permit applications as a bundled service. If you run promotions regularly, this can save significant time and reduce the risk of missing a requirement.
Common Mistakes Businesses Make
Running Without a Permit
The most common and most serious mistake. Many businesses, particularly small ones, simply don't realise they need a permit for a random draw. "It's just a small giveaway on Instagram" does not exempt you from state lottery laws.
Confusing Chance and Skill
Adding a creative element (like asking entrants to share a photo) does not make it a game of skill if the winner is then selected randomly. The winner selection method is what determines the classification, not the entry method.
Inadequate Terms and Conditions
Even if you have the correct permits, your competition can be challenged or voided if your T&Cs don't meet requirements. Terms must include: promoter details, entry period, eligibility, prize descriptions, draw details, permit numbers, and how winners are notified.
Forgetting Multi-State Requirements
Getting a permit in your home state but forgetting that your online promotion is accessible to people in other states. If someone from SA can enter, you need an SA permit.
Not Conducting the Draw Properly
Many states require that random draws be conducted in the presence of an independent witness and that results are recorded. Simply picking a random comment on social media is not a compliant draw method.
What Happens If You Don't Get a Permit?
Non-compliance with trade promotion lottery legislation is a serious matter. Consequences vary by state but can include:
Financial Penalties
Fines for operating an unlicensed lottery can be substantial, ranging from several thousand dollars to tens of thousands depending on the state and severity. In some states, penalties apply per offence, meaning each day the illegal promotion runs could be a separate offence.
Promotion Voided
Regulators can order that the promotion be ceased immediately and that any prizes already awarded be dealt with according to their direction. This is embarrassing and damaging to your brand.
Entrant Complaints
Disgruntled entrants (particularly non-winners) can and do report unlicensed promotions to regulators. Social media makes it easy for complaints to go viral, compounding the reputational damage.
Legal Liability
In extreme cases, directors or officers of the company can be held personally liable. Winners may also have legal grounds to challenge the outcome if proper procedures were not followed.
Permit-Free Alternatives (Games of Skill)
If the permit process seems daunting, or you want to avoid the cost and complexity entirely, consider running a game of skill instead. Games of skill do not require trade promotion lottery permits in any state, provided the winner is genuinely determined by the merit of their entry.
25 Words or Less
Ask entrants to complete a sentence like "I love [your brand] because..." in 25 words or less. A judge or panel selects the most creative, original, or compelling answer. This is one of the most popular and well-established game of skill formats in Australia.
Photo or Video Competitions
Ask entrants to submit a photo or video related to your product or brand. A judging panel selects the winner based on criteria such as creativity, relevance, and quality. Clearly define the judging criteria in your T&Cs.
Recipe or Creative Competitions
Perfect for food, beverage, and lifestyle brands. Ask entrants to submit an original recipe or creative work using your product. Judged entries based on originality, presentation, and use of the product.
Design Competitions
Ask entrants to design something - a logo, a product label, a social media post. This works particularly well for creative brands and generates excellent user-generated content for your marketing.
Critical Requirements for Games of Skill
- Genuine judging: The winner must truly be selected on the merit of their entry, not randomly. Keep records of the judging process.
- Clear criteria: Your T&Cs should specify how entries will be judged (e.g., creativity, originality, relevance to the brief).
- Qualified judge: Having an independent or qualified judge adds credibility and legal protection.
- No random element: If you shortlist entries and then randomly draw from the shortlist, it becomes a game of chance.
Frequently Asked Questions
Do I need a permit for a social media giveaway?
If the winner is selected randomly (e.g., picking a random comment or using a random number generator), then yes, it is a game of chance and permit requirements apply. The fact that it's on social media does not create an exemption. Many small businesses run Instagram and Facebook giveaways without realising this. To avoid needing a permit, structure it as a game of skill - for example, ask for a creative caption and judge entries on merit.
How much does it cost to get competition permits?
Costs vary by state and prize value. For a typical national promotion, expect to pay between $300 and $1,000+ in total permit fees across all required states. Individual state fees range from about $50 to $400. If you use a promotional law agency to handle the process, their service fees are additional but they can streamline multi-state applications significantly.
Can I just exclude states where permits are required?
Yes, this is a common approach, particularly for smaller businesses. You can state in your T&Cs that the promotion is not open to residents of certain states (e.g., SA and NT). However, you must actually enforce this - if someone from an excluded state enters and wins, you cannot award the prize. You also need to consider whether excluding states significantly reduces your promotion's reach and impact.
What's the difference between a trade promotion lottery and a regular lottery?
A trade promotion lottery is run by a business to promote its products or services, and entry is free (or tied to a normal commercial transaction). A regular lottery (like a charity raffle) requires participants to pay for a ticket. Trade promotion lotteries have separate, generally less stringent regulations than lotteries where people pay to enter. The key requirement is that no separate payment is required beyond the normal price of the product being promoted.
Do I need a permit if the prize is under $100?
It depends on the state. In SA and NT, permits are required regardless of prize value for games of chance. In most other states, there is a threshold (ranging from $5,000 to $20,000) below which permits are not required. However, even below the threshold, you must still comply with relevant legislation and have proper terms and conditions. A small prize value does not exempt you from the law - it may only exempt you from the permit requirement specifically.
How far in advance should I apply for permits?
Allow at least 4-6 weeks before your promotion start date. While some states process applications in under a week, others can take up to 20 business days. If you need permits from multiple states (which is likely for a national promotion), you need to wait for the slowest state before launching. Starting a promotion before all permits are granted is illegal and can result in the promotion being shut down.
Are online-only competitions treated differently?
No. The platform on which the competition runs (online, in-store, print media) does not change the legal requirements. An online random draw competition open to NSW residents still needs an NSW permit if it exceeds the threshold. In fact, online promotions are often subject to greater scrutiny because they are accessible from every state, making multi-state compliance even more important.
Ready to Set Up Your Competition?
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