South Australian Lottery Legislation Changes

The South Australian government has introduced new lottery rules which come into effect today (Friday 10 December 2021). A review of the existing Lottery and Gaming Act 1936 was undertaken in 2019, with the aim of modernising the regulation of lotteries in South Australia.

The result of the review was the creation of the new and simplified Lotteries Act 2019 and the Lotteries Regulations 2021.

We have outlined below an overview of the legislative changes.

Are there any changes to the permit requirements in South Australia?

In short, no. The requirements of when to obtain a permit in South Australia remain unchanged.

You will still require a trade promotion permit in SA if:

a) the promotion is run in SA; and

b) there is chance involved in determining winner/s; and

c) the total prize pool for the promotion is more than $5,000 nationally (or if the promotion is an instant win promotion e.g. scratch & win (not online instant win), a permit would be required irrespective of the total prize pool value).

Draw Scrutineer Requirement - $30,000 Draw Pool Threshold (previously $20,000)

South Australia requires a person independent of the promotion who is authorised to sign an affidavit (e.g. justice of the peace, lawyer, etc) to oversee (i.e. scrutinise) the conduct of certain draws.

The threshold for when a draw scrutineer is required in SA has changed. A scrutineer is now required for any draw if the prize pool for the draw is $30,000 or more (the previous requirement was $20,000 or more).

For a nationally run competition, the overall scrutineer requirements will not change and you will need to obtain a scrutineer for each draw in the promotion where the total prize pool for the entire campaign is over $10,000. This is a requirement under NSW legislation.

SA Electronic Draw Approval Number No Longer Required

There is no longer a requirement to obtain a SA electronic draw approval number for any electronic drawing system used to randomly determine winners.

However, businesses may be required to provide the SA lottery department information relating to the system used to conduct the draw, if requested.

Notification of Winners – 7 days of draw (reduced from 14 days)

Winners must now be notified in writing within 7 days of the draw. The previous requirement both in SA and nationally was 14 days of the draw.

Winner Publication – newspaper publication no longer mandatory

Winners of prizes over $250 must be published in the location outlined in the Terms and Conditions within 30 days of the draw.

Notably, there is no longer a mandatory requirement for winners to be published in a newspaper and only be allowed to be published on a website where competition entry is via that website. This will create cost savings for businesses who would normally publish winners in a newspaper.

Unclaimed Prize Draw – now 2 months after original draw (if SA permit req)

A redraw is now mandatory in SA. The redraw must occur no earlier than 2 months after the original draw (if a SA permit is required i.e. if the total prize pool for the trade promotion is over $5,000, or involves an instant win element, regardless of the prize pool) or no earlier than 1 month after the original draw (if a SA permit is NOT required i.e. the total prize pool is $5,000 or less excluding instant win promotions).

Previously, the requirement was to conduct the redraw 1 month after the original draw for a national campaign. Exceptions apply for prizes involving tickets to an event which take place within a month of the draw.

Advertising Requirements

For any campaign run in SA only, you will now only be required to include the following on any trade promotion advertising to comply with the Lotteries Regulations 2021 (SA):

• the SA permit number (if required)

• how to enter

• the nature and value of the prizes

• how to get a copy of the full terms and conditions.

If a permit in SA is not required for the promotion (i.e. total prize pool less than $5,000) you will ALSO need:

• the Promoter’s name

If a manual instant win mechanic (e.g scratch & win) you will ALSO need:

• duration of lottery (start/end dates)

• the Promoter’s name & address (unless advertised via TV/Radio/Cinema)

What is no longer required?

• Promoter’s name if total prize pool over $5,000 (unless manual instant win)

• Promoter’s address (unless manual instant win)

• Draw time, place & date

• Date and location where winner/s will be published

For a national run trade promotion the requirements for information for inclusion on advertising remain the same as listed below, the only difference is that there is a change in requirement regarding inclusion of the promoter’s details depending on the nature of the promotion:

• Permit numbers

• Start and closing dates

• Draw time, place and date

• Date and location where winner/s will be published

• Nature and value of prizes

• Reference to where the full Terms and Conditions are located

• How to Enter

If the prize pool is under $5,000 (and not manual instant win)

• Promoter’s name

If the promotion involves manual instant win:

• Promoter’s name and address (address not required if advertised on TV/radio/cinema)

From a misleading and deceptive conduct perspective, we also recommend including any onerous conditions on any advertising material e.g. start/end dates, eligibility requirements, age restriction, entry limits, etc.

New prohibition on management entering a trade promotion

A person involved in the management of a trade promotion lottery must not enter the lottery. A $5,000 penalty applies for non compliance with this new rule.

Advertising must not be directed to minors

The trade promotion advertising or promotion of the lottery must not appear, to a reasonable observer, to be directed at minors or to portray minors participating in gambling activities.

Advertising must not imply prize improves winner’s financial position/ relieve financial difficulties

Advertising must not imply that the lottery is a means of improving a person's personal or financial position or relieving personal or financial difficulties or providing for the payment of expenses or debts. For example, implying that the prize may be used to pay off your debts.

Other new advertising requirements

Advertising must not:

• imply that the lottery can increase social, sexual or employment opportunities

• exaggerate the prizes or suggest the chance of winning is better than it really is

• suggest that someone’s skill means a better chance of winning

• link the lottery with drinking too much alcohol

• exaggerate the connection between the lottery and how the proceeds will be used.

For any further information on the legislative changes in South Australia please contact the Plexus legal team at [email protected].