Game of skill vs game of chance in Victoria
Victorian trade promotions can award prizes using either a game of skill or a game of chance. In a game of skill, winners are selected based on a judged criterion, answering a question correctly, submitting a creative entry, or completing a task to the highest standard. There is no lottery element, so the promotion falls outside gambling regulation entirely, provided judging is conducted fairly and documented.
In a game of chance, the winner is determined by a genuinely random prize draw from all valid entries. This is where the free entry and cost-per-entry requirements become critical. The Gambling Regulation Act 2003 requires that the draw method gives each ticket a random and equal chance of being drawn. So long as entrants are not required to pay more than $1 per entry for participation, running a game of chance to promote goods or services is fully permissible in Victoria without a permit, at any prize value.
The Gambling Regulation Act 2003 also makes clear that its conditions apply even if a lottery event includes skill-based activities. If a promotion includes both chance and skill elements, the chance component triggers the gambling regulation conditions. When in doubt, legal teams should apply the more conservative classification and treat the promotion as a game of chance.
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The free entry distinction is the lynchpin of trade promotion compliance. The moment a promotion requires payment, directly or indirectly, of more than $1 per entry for a chance to win, it moves out of the trade promotion category and into regulated gaming. For enterprise teams running high volumes of campaigns, having a documented entry process review built into every pre-launch workflow is non-negotiable.
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VIC trade promotion rules explained (2026)
Running a compliant VIC trade promotion requires attention to several distinct legal areas. Below we break down each key obligation in practical terms for in-house legal and marketing teams.
Entry requirements and costs
Every Victorian trade promotion must include a genuine free entry pathway. Entry costs, such as phone calls, SMS entries, or postage, must not exceed the gazetted amount, currently $1 per entry including GST. It must not be a condition of entry that a participant has played a gaming machine or taken part in a loyalty scheme that required them to play a gaming machine. These are hard prohibitions under the Gambling Regulation Act 2003 and apply regardless of prize value or promotion type.
Written consent requirement
If the promotion is being run by a third party on behalf of a business, for example, by a marketing agency, promotions house, or in-house legal team supporting a separate business unit, written consent must be obtained from the business whose trade or business is being promoted. The promotion must also primarily benefit that business. This is a frequently overlooked obligation for enterprise teams running promotions across multiple brands or client portfolios.
Advertising and promotional materials
All materials used to promote the lottery, including digital advertising, social media posts, packaging, and any scratch and win cards, must include:
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The lottery's closing date
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Where and when the lottery will be drawn (if applicable)
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The name and date of publication where winners' names will be published
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Any entry requirements
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In a newspaper circulating generally in Victoria
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On the internet, for a minimum period of 28 days
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In the publication where the lottery was solely advertised (for example, a trade journal or promotional magazine)
Winner publication obligations
Winners of prizes valued over $1,000 must have their names published by one of the following methods:
This is a specific and enforceable obligation. Enterprise legal teams running multiple promotions with high-value prizes need a systematic approach to winner publication that is built into the post-draw workflow, not treated as an afterthought.
Draw conduct
The method of the draw must give each ticket a random and equal chance of being drawn. The draw procedure must be documented. Entrants do not need to be present at the draw to be eligible for a prize, except where the entry and the draw occur on the same day and in the same place, in which case presence may be required as a condition of entry if stated in the terms.
Prize delivery
The prize must be paid or transferred to the winner within 28 days of the draw. Prize winners must be advised of their win in writing. Winners must not be required to incur a cost to accept a prize (other than a trivial cost). A prize winner may only be substituted through a second draw if the conditions of entry allow it, and only if reasonable efforts to identify or contact the original winner have been unsuccessful.
Record keeping
Certain records must be kept for a 3-year period after the lottery is finalised. Records must provide accurate financial accounting of the lottery, accounting for all entries, and reporting of the distribution of prizes.
Privacy and data use
Entrants' personal information may only be used for purposes stated in the conditions of entry. The promoter must not use entrant information for any other purpose. If the promotion is being run by a third party on behalf of a business, written agreement must be obtained from that business confirming they will not use entrant information for any purpose outside the stated conditions of entry.
Enterprise compliance framework for legal teams
For large organisations running frequent or high-volume trade promotions, consumer brands, retailers, loyalty programs, FMCG companies, ad hoc compliance management creates compounding risk. A single missed winner publication obligation, an undocumented draw procedure, or a failure to retain records for 3 years can expose the business to regulatory action and reputational damage. Victoria's framework, while permit-free, is not compliance-free.
Enterprise legal teams should build the following into their promotional compliance operating model:
Pre-launch checklist
Confirm promotion type (game of chance vs skill), verify entry cost compliance, obtain written consent from promoted business, draft terms and conditions that include all mandated disclosure items, confirm draw date, draw location and publication outlet for winners.
Draw management
Document draw methodology and confirm random selection process. Retain draw records. Notify winner in writing within the post-draw period. Initiate winner publication process for prizes over $1,000 immediately post-draw.
Post-promotion record keeping
Retain financial accounting, entry accounting, and prize distribution records for 3 years. Archive terms and conditions, advertising materials, and consent documentation.
Privacy governance
Confirm that conditions of entry clearly state all intended uses of entrant data. Obtain written agreement from promoted business on data use limitations. Do not use entrant data for purposes outside the stated conditions.
For teams running 10, 50 or hundreds of promotions per year, this level of governance requires tooling, workflow automation, and audit trail capability, not spreadsheets and email threads.
Pricing and budget risk analysis
Unlike NSW, which requires businesses to pay for a trade promotion authority (with fees varying by duration — 1, 3 or 5 years), Victoria imposes no permit fees. The cost of running a Victorian trade promotion is therefore a function of internal compliance management, legal review, terms and conditions drafting, draw facilitation, and winner publication costs, not government fees.
For enterprise teams, the hidden cost of poor compliance is substantially higher than the cost of building a compliant process. Regulatory penalties, promotion invalidation, and winner disputes are costly to resolve after the fact. Building a streamlined, auditable compliance workflow that covers the Gambling Regulation Act 2003 conditions for every promotion is the most cost-effective approach at scale.
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