Instant win promotions are usually considered games of chance in Australia. Accordingly, competitions permits will be required as follows:
- NSW – if the prize pool is over $10K
- SA – always if there is an instant win mechanic
- ACT – if the prize pool is over $3K
Instant win promotions are a great way to add excitement to the consumer journey, and promote sales, as each purchase adds to the chance of winning. Some common instant win promotion mechanics include:
- Scratch cards;
- Product packaging, such as under a cap, or inside a wrapper;
- Online unique code redemption; and
- Random winning entry times.
There are unique requirements in several states and territories for instant win promotions, including:
- NSW & VIC require all prize claims to be honoured, regardless of whether printing or other quality control errors have occurred.
- In VIC, manual instant win promotions need to reference the maximum number of game cards printed.
- The SA lottery department must be notified of the name and address of any instant win prize winner over $250 within 14 days of winning. It is therefore important to consider how you will capture these details in the entry mechanic.
In addition to the above, it is a requirement for national promotions that all advertised prizes be given away. This can be done via a second chance draw, and therefore consideration must also be given to how entrants data is captured and how the second chance draw will be conducted.
In some instances, a waiver can be submitted to avoid a second chance draw, however this depends on where the promotion is being conducted, the prize value and pool, and the entry mechanic. Please contact Plexus for assistance.
For more information on instant win promotions, or assistance with drafting competitions terms, please contact the Plexus Promotion Wizard legal team.