Running a trade promotion is a great way to expand your brand’s audience while building on existing brand loyalty. However, each state and territory, like Queensland, ACT, NSW and Victoria, have their own unique set of legal restrictions that must be followed - otherwise serious consequences must be faced.
In this article we will break down the key considerations and requirements necessary to run a trade promotion in Queensland.
Consider how you will measure the success of your promotion, this will determine what type of promotion will work best for you.
There are two main types of trade promotions - Games of Chance and Games of Skill.
Games of Skill are promotional activities whereby the winner(s) are determined by some sort of skill based mechanic (e.g. entrants submit an answer to a promotional question which can then be judged in order to determine a winner). This requires entrants to be heavily involved with your brand and your promotion and works best for engaging with existing, loyal customers.
Games of Chance are promotional activities whereby the winner(s) are determined by some sort of chance based mechanic, such as a random prize draw or an instant win type competition (e.g. scratch cards, online instant win promotions). This type of promotion has a lower barrier to enter and works well for both attracting new customers and engaging with existing customers.
While it is only mandatory for games of chance based promotions to have terms and conditions, we strongly recommend that all trade promotions have a set of Terms and Conditions to govern the conduct of the promotion. Terms and conditions can be created quickly and easily with the use of a terms and conditions generator such as Promotion Wizard.
The advantage of including terms and conditions for your game of skill promotion include your ability to clearly outline:
A permit is NOT required to run a game of chance OR game of skill promotion in Queensland.
Luckily, you do not need to fulfil any legal requirements when running a Game of Skill trade promotions in Queensland.
However, there are several requirements that come with running a Game of Chance promotion in Queensland. These include:
Entry into a game of chance promotion must be free. In the instance that an entrant is required to buy goods or services to enter, the costs of the goods or services must be no more than its market value.
The terms and conditions governing the promotion must include:
There are no specific requirements in QLD for when or how winners must be notified.
Prizes that are prohibited include:
Within 1 year of the start date of the promotion.
The promotion is only permitted to have one round of elimination of entrants.
The promotion is only permitted to have one round of elimination of entrants.
Must occur within 1 month of when winners are decided. Exceptions apply where the winner cannot be contacted or if a longer period of time is agreed to in writing by the winner.
The promoter is allowed to substitute a prize if the alternate prize is of equal or greater value and similar to the original prize.
A re-draw is mandatory in Queensland. This must be 3 months after the original draw, but you can set the re-draw for an earlier date (e.g. 1 month after the original draw) as long as this is specified in the terms and conditions.
General gaming records must be kept for five years. This includes draw details, prize details and names of winners. Entries are NOT required to be kept.
The Charitable and Non-Profit Gaming Act 1999 outlines the parameters around category 4 games (i.e. game of chance promotions in QLD). Heavy penalties apply for non-compliance under the Charitable and Non-Profit Gaming Act 1999. Therefore, we strongly recommend that you obtain terms and conditions from our office to ensure your terms meet the legal requirements and you avoid such penalties.
Keeping track of your promotion, and all the different requirements that go into terms and conditions in each state can be tricky. Using a technology platform such as Plexus Promotion Wizard can take the stress out of running a promotion.
With Plexus Promotion Wizard you can generate perfect T&Cs for your competition or trade promotion in as little as 15 minutes. The automated terms and conditions generator allows you to easily input your promotion details and have legally compliant terms and conditions in 24 hours.
Plexus Promotion Wizard offers end to end legal support for competitions & promotions. Custom T&Cs and the right competition permits without the hassles. 90% faster and half the cost of traditional legal firms.
One of our consultants will be in touch ASAP to answer your questions and determine your requirements.
Want to speak to someone instead? Call us on 1300 983 907
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