Running giveaways and competitions in the Australian Capital Territory can be a powerful growth strategy, provided you structure the promotion to meet local laws. This guide explains what counts as a trade promotion lottery, when you need approval, how exempt raffles work, and how a membership‑based giveaway club can operate legally.

Quick snapshot
• Trade promotion lotteries: approval required when total prize value is over 3,000 dollars.
• Exempt lotteries: raffles up to 2,500 dollars total prize value are exempt if all conditions are met.
• Games of skill: no approval, but advertising and privacy laws still apply.
• Giveaway clubs: allowed if entries are genuinely free and not sold as a separate fee.

What is a trade promotion lottery in the ACT

A trade promotion lottery is a chance‑based promotion used to market goods or services. Entry must not require a separate fee. You may link entry to buying a product or joining a service at its normal price, provided there is no extra charge for the entry itself and the promotional terms are clear and fair.

Core requirements

• Chance determines the winner.

• No separate entry fee.

• Clear, accessible Terms and Conditions.

• Random and fair draw method.

• Prizes awarded as described and within stated timeframes.

ACT approval threshold and timing

• Approval is required if the total prize value for a trade promotion lottery exceeds 3,000 dollars.

• Approval must be granted before you advertise or conduct the promotion.

• Fees scale by prize value.

• Keep a copy of the approval and final Terms and Conditions for your records.

Recommended launch timeline

1. Scope the prize pool and confirm whether approval is required.

2. Draft full Terms and Conditions and privacy notices.

3. Apply for approval (if needed) before any advertising.

4. Publish the promotion with the final rules.

5. Run the draw, notify winners, deliver prizes, and retain records.

Exempt lotteries and ACT raffles

Raffles with a total prize value that does not exceed 2,500 dollars can be exempt if you meet all exempt‑lottery conditions. Exempt status does not remove consumer law, advertising, or privacy obligations. Larger or higher‑risk raffles need approval before you advertise or conduct ticket sales.

Raffle essentials

• Only sell tickets and advertise once you hold approval if required.

• State ticket price, draw date, prize description and value, and how winners are notified.

• Keep complete ticket and draw records for audit.

• Ensure prizes and advertising are suitable for the audience.

• Do not offer prizes that are illegal, unsafe, or restricted for minors.

Games of skill vs games of chance in the ACT

• Game of skill: winner is chosen on merit using objective criteria. No approval is required. Document your judging criteria, panel, and scoring rubric.

• Game of chance: winner is selected by luck. This is a trade promotion lottery and the approval threshold applies.

Giveaway clubs and membership models in the ACT

A giveaway club can operate as a lawful trade promotion framework if you observe the following:

• Do not charge any separate entry fee. If you sell memberships, the membership must provide real, stand‑alone value unrelated to entry.

• Entries must be genuine bonuses, not the product being sold.

• The total prize value determines whether approval is needed. If your club’s prize pool exceeds 3,000 dollars for a promotion, obtain approval before advertising.

• Use clear, consistent Terms and Conditions, and keep auditable records of entries and draws.

Best practice for clubs

• Provide a straightforward, no‑cost way to enter that does not require purchasing add‑ons.

• Make the draw process transparent. Consider a recorded draw or a supervised randomisation method.

• Publish winner initial, suburb, prize, and draw date where appropriate.

• Deliver prizes promptly and document delivery.

Advertising, privacy, and data rules that still apply

• All claims must be true, clear, and not misleading. Avoid fine‑print traps.

• Present key facts up front: eligibility, start and end dates, how to enter, prize details, draw method, and winner notification.

• Collect only the personal information you need, store it securely, state intended uses, and offer opt‑outs for marketing.

• For email and SMS marketing around the promotion, include compliant unsubscribe or STOP options and honour opt‑outs quickly.

• If you include alcohol, age‑restricted goods, or sensitive prizes, add strict eligibility checks and lawful delivery procedures.

ACT Terms and Conditions template checklist

Include these items in a single rules page or document:

• Sponsor name and ACT address for contact.

• Eligibility: age, residency, excluded persons (employees, agents, household members).

• Promotion period: open and close dates with time zone.

• How to enter: exact steps, any purchase conditions, and entry limits.

• Draw details: date, time, method, and location, plus redraw rules for unclaimed prizes.

• Prize schedule: description, quantity, and approximate retail value for each prize.

• Winner notification and publication method and timing.

• Verification requirements: ID, age checks, and how disqualification is handled.

• Privacy statement: what data you collect, why, how long you keep it, who you share it with, and opt‑out options.

• Liability clauses that are consistent with Australian Consumer Law.

• State‑specific wording where required and “void where prohibited” if relevant to external audiences.

Record‑keeping and winner management

• Keep entry lists, draw logs, and winner communications for the period your approval or conditions require.

• Retain proof of prize delivery or collection.

• Maintain a winners list that can be provided upon request where required.

• If a prize is unclaimed, apply your stated redraw or forfeit procedure exactly as written.

Common mistakes to avoid

• Advertising or opening entries before ACT approval when the prize pool exceeds 3,000 dollars.

• Charging a separate fee to enter, or inflating prices so entry appears to be purchased.

• Vague or inaccessible Terms and Conditions.

• Unclear winner notification timelines or failure to deliver prizes as described.

• Collecting more personal data than necessary or missing unsubscribe options for marketing.

Example timelines

Exempt raffle (under 2,500 dollars total prizes)
Week 1 plan and draft rules. Week 2 publish rules and sell tickets. Week 3 draw and notify. Week 4 finalise records.

Trade promotion lottery over 3,000 dollars
Week 1 scope prizes and draft rules. Week 2 lodge approval and wait for decision. Week 3 publish upon approval. Weeks 4–6 run the campaign. Week 7 draw, notify, deliver prizes, complete records.

FAQs

Do I need approval for every trade promotion in the ACT
No. Approval is required when the total prize value for a promotion exceeds 3,000 dollars. Smaller, low‑risk trade promotions can proceed if they meet exempt conditions.

Can I require a purchase to enter
You cannot charge a separate entry fee. Linking entry to a purchase at the normal retail price is acceptable, provided the entry is a true bonus, the price is not inflated, and the terms are clear.

Are raffles always exempt under 2,500 dollars
Only if all exempt‑lottery conditions are met. If you cannot meet those conditions, or your prize pool is higher, obtain approval before any advertising or ticket sales.

Can a membership giveaway club operate nationally if I am based in the ACT
Yes, but your rules must satisfy each jurisdiction. If you plan to include residents of other states and territories, align your structure with the strictest elements you will encounter and confirm additional approvals where required.


Start a giveaway club here : https://www.thecrimsonmarket.com/hub/clubs