Trade Promotions Update: Victoria removes the requirement for Permits

At present, if your national game of chance trade promotion exceeds a total prize pool value of $5,000, you require a permit in New South Wales, Australian Capital Territory, South Australia and Victoria. However, legislation passed by the Victorian Parliament has now removed the requirement for a permit for any trade promotions running in Victoria, effective from 21 June 2015.

The Gambling and Liquor Legislation Further Amendment Act 2014, which was passed by Victorian Parliament last year, proposed that the conduct of trade promotions remain compliant with specific regulations yet remove the requirement to apply for a permit with the Victorian Office of Liquor, Gaming and Racing.

For our trade promotions clients, this means reduced turnaround times in obtaining permits. Considering the fast paced nature of trade promotions, from concept to close, this change is certainly beneficial to businesses running trade promotions in Victoria.

However, this doesn’t mean that the previous standing requirements don’t still remain. Part 5 of the proposed Gambling Regulation Regulations 2015 remake the current provisions for non-permit trade promotions to apply to all trade promotions and will include new provisions to address some matters previously included in trade promotion permits. These new provisions will:

• require the consent of a prize winner before a prize may be substituted
• ensure that a prize winner does not incur a cost to accept their prize; and
• prohibit trade promotions that are offensive or contrary to public interest.

Other states such as Queensland and Western Australia also regulate the conduct of trade promotions in this way. The proposed Regulations and the Regulatory Impact Statement can be viewed on the Department of Justice & Regulation website at justice.vic.gov.au/RIS and are available for public comment.