Trade Promotions Update – 2020/2021 NSW Gaming Changes

Major Changes to Trade Promotions in 2020/2021 – What you need to know?

As 2020 rapidly draws to a close we farewell not only a year of twist and turns, but also of exceptional change to the marketing, advertising and communications landscape.

In addition to the ‘new normal’ that this year has come to embody, some legal and regulatory changes have been implemented which will continue to affect media and communications industries going forward. From 1 July 2020, the NSW Gaming Authority reconfigured existing procedures for Trade Promotions. The new framework seeks to “minimise the regulatory burdens on promoters, remove unnecessary red tape and provide greater flexibility” for those businesses running promotional campaigns.

Here’s what you need to know:

• Trade Promotion Authority: You no longer need a permit for every promotion regardless of prize value. If the total prize value of your promotion is less that $10,000, no Authority is required. If your promotion has a prize pool worth more than $10,000, the Authority will provide you with duration-based permission for 1, 3 or 5 years. Whilst you won’t need a traditional permit, your promoter Authority number must be displayed where the prize pool exceeds $10,000.

Authority fees are as follows:

• Rules: With an Authority in place you will still need to submit your Terms & Conditions (Rules) to the NSW Gaming Authority for each promotion which has a total prize value greater than $10,000 at least 10 days before the promotion’s start date. The Terms & Conditions must conform to the standing ‘Rules’ as a minimum.
• Dispute Resolution: A new minimum requirement is that a dispute resolution method must accounted for in running promotions in NSW. As a matter of best practice we advise that a dispute resolution method should be expressly provided for in all promotion Terms & Conditions that include NSW as a baseline standard.
• Amendments: If there is a substantial change to the conduct of a promotion under an Authority, the promoter must submit a Notification Form for Changes to Gaming Activity. The form cannot be used to completely replace the Rules, the changes can be implanted after the promotion is advertised, but the promoter must take all reasonable steps to notify the participants or make the information publicly available within a reasonable time before the promotion starts.
• Penalty infringement notices: Breaches of the Regulation fall within new offences, resulting in penalty infringement notices being issued.
• Fairness and Accountability: A general fairness and accountability provision has been introduced requiring promotors to conduct promotions with integrity. This includes conducting annual audits if your business has generated over $250,000 in revenue from promotional activities over the course of the financial year.

Here’s what you need to do:

• For current promotions: If you believe your promotion activities for the financial year of 2020/2021 will reach the $250,000 revenue threshold, you will need to prepare for an audit. Your accountant should be contacted to assist with these arrangements.
• Moving forward: We recommend that for each draw you conduct a scrutineer is appointed, and that adequate documentation is kept in order to meet the new accountability and audit provisions. Talk to us about preparing scrutineer documentation so that when the time for an audit arrives you are well prepared.

Here’s where we can help:

von Muenster Legal will continue to keep you informed with any changes and announcements that are made by the Gaming Authorities.

If you have questions about the new regulations or are seeking clarification – please get in touch. We are here to support you every step of the way.

On another note, we have moved offices to our new home on Suite 2, Level 2, 105 Reservoir Street, Surry Hills NSW 2010. Our reception team can be contacted on 02 9163 8958.

We look forward to working with you in 2021.

The von Muenster Legal Team