Social Media Competition License requirements in Australia
tSMN runs competitions all-the-time! When you have amazing clients like ours, sometimes these competitions are MASSIVE and heres what we’ve learned about the competition licence requirements. Every state has their own requirements when it comes to competitions, so let’s break it down by the most popular FAQs when it comes to running competitions in Australia.
Do I need a lottery licence in Victoria, Australia if my total prize pool is over 25k?
In Victoria, Australia, businesses, charities, and community organisations do not need to apply for a permit to conduct a trade promotion lottery, regardless of the total prize pool value. This includes lotteries with a prize pool over $25,000. However, all trade promotion lotteries must comply with the conditions set out in the Gambling Regulation Act 2003 and Gambling Regulations 2015. These conditions include restrictions on entry expenses, requirements for written consent, the promotion of the trade or business, publication of winners for prizes over $1000, record-keeping, and other specific rules regarding the conduct of the lottery [“]
Do I need a lottery licence in ACT, Australia if my total prize pool is over 25k?
n the Australian Capital Territory (ACT), a permit is generally required for lotteries where ACT residents can enter or where the lottery is advertised to ACT residents. However, certain lotteries are exempt, such as trade promotion lotteries where the total prize value does not exceed $3,000. Since your total prize pool is over $25,000, you would need to obtain a permit before you can conduct or advertise the lottery in the ACT. This applies unless your lottery is skill-based (with no element of chance), in which case a permit would not be necessary. Moreover, if a lottery is conducted via a website, a permit is not required unless the website is hosted in the ACT or the lottery is advertised in the ACT in addition to the website. [“]
How much is it in ACT?
In the ACT, the cost of a permit for a trade promotion lottery varies depending on the prize value:
- Greater than $3,000 and up to $5,000: $238
- Greater than $5,000 and up to $10,000: $348
- Greater than $10,000 and up to $50,000: $671
- Greater than $50,000 and up to $100,000: $959
- Greater than $100,000 and up to $200,000: $1,915
- Greater than $200,000: $3,840
Apply here: https://www.gamblingandracing.act.gov.au/industry/forms-and-fees/lotteries
Do I need a lottery licence in NSW, Australia for a competition if my total prize pool is over 25k?
Yes, in New South Wales (NSW), Australia, you will need a permit if you are running a game of chance competition and the total prize pool is valued at $10,000 AUD or more. The NSW licenses are managed by the Department of Fair Trading, and there is one type of permit (or authority) that allows you to run multiple competitions and draws within a 1, 3, or 5 year period. For a single competition with a total prize pool valued over $10,000, the license or authority will cost a minimum of $389 when you apply online. [“]
Apply here: https://www.nsw.gov.au/money-and-taxes/community-gaming/trade-promotions
Do I need a lottery licence in NSW, Australia for a competition if my total prize pool is over 25k?
In Queensland (QLD), Australia, you are required to have a Category 3 Gaming Licence for competitions such as raffles or art unions if the gross proceeds are more than $50,000. Since your competition has a total prize pool of over $25k, this would fall under the Category 3 games criteria, and you would need to secure a licence accordingly. [“]
Do I need a lottery licence in SA, Australia for a competition if my total prize pool is over 25k?
In South Australia (SA), for a competition or trade promotion where the total prize amount is over $5,000, you are required to apply for a major trade promotions licence. The entry for participants must be free, although it may require the purchase of goods or services related to the promotion, and winners must be determined by lot, drawing, or chance. [“]
Apply here: https://www.sa.gov.au/topics/business-and-trade/running-a-business/trade-promotions
Do I need a lottery licence in WA, Australia for a competition if my total prize pool is over 25k?
Not necessarily, In Western Australia (WA), if you meet the prescribed conditions for a trade promotion lottery, you are not required to apply for a permit to operate your competition. However, you must ensure that the competition is conducted in accordance with the specific conditions laid out for such lotteries. For more detailed information on these conditions, you might need to refer to the official guidelines provided by the Department of Local Government, Sport and Cultural Industries in WA.
