South Australia has one of the most detailed and strictly regulated gambling and promotional frameworks in Australia. If you want to run a giveaway club, trade promotion, raffle, or lottery in South Australia, you must structure your promotion carefully to stay compliant with the state’s Lotteries Act and Lotteries Regulations.

This guide explains exactly how to operate legally in South Australia and is fully optimised for SEO to help you rank for every key search term related to giveaways, trade promotions, raffles, and prize competitions.

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South Australia at a Glance

• A Major Trade Promotion Licence is required when the total prize value exceeds 5,000 dollars for SA entrants.

• Minor Trade Promotions (5,000 dollars or less) do not require a licence.

• Instant Prize Promotions using scratch or break-open tickets always require a licence, regardless of prize value.

• Entry must always be free, although entry can be attached to buying goods or services at their normal price.

• Promotions cannot run longer than 12 months.

• Certain prizes such as weapons, tobacco, and cosmetic surgery are prohibited.

• Raffles and fundraising lotteries have their own minimum return percentages and requirements.

• Penalties for running an unlawful lottery are severe, including fines and possible criminal liability.

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Trade Promotion Lotteries in South Australia

A trade promotion lottery is a chance-based promotion designed to promote the sale of goods or services. If winners are determined randomly, you are running a lottery even if you call it a giveaway.

Key rules:

• Entry must be free. You may require a purchase, but only at the normal retail price.

• You may not charge an entry fee or inflate pricing to disguise paid entry.

• Promotions may not exceed 12 months in duration.

• Winners must be selected by a fair random method such as a draw or digital randomiser.

• People running the promotion or with direct control of the benefiting business cannot enter.

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Major vs Minor Trade Promotions

Minor Trade Promotions (No Licence Required)

A trade promotion is considered “minor” when:

• The total prize value is 5,000 dollars or less, and

• It is not an instant win scratch-style promotion.

You do not need a licence for minor trade promotions.

Major Trade Promotions (Licence Required)

A licence is required when:

• The total prize value is more than 5,000 dollars, or

• You want to operate an instant-win draw using scratch or break-open materials.

Licences must be approved before any advertising or entry period begins.

Licence processing timelines

• Standard processing may take around 10 business days.

• Faster approval may require premium fee processing.

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Instant Prize Trade Promotions

If your giveaway uses:

• Scratch cards

• Peel-to-reveal

• Break-open tickets

• Hidden symbols

• Mystery instant win packaging

then you must obtain an Instant Prize Trade Promotion Licence, even if the prize pool is small.

Instant win promotions also require all tickets to be securely controlled, trackable, and distributed according to strict rules.

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Prohibited Prizes in South Australia

Your promotion cannot offer:

• Firearms, ammunition, or dangerous weapons

• Tobacco or vaping products

• Cosmetic surgery or invasive beauty procedures

• Illegal or restricted goods

• Other products prohibited under South Australian law

Ensure every prize you offer is lawful to supply, lawful to transfer, and safe for the general public.

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Advertising, Disclosures, and Terms

Your advertising must be clear, fair, and transparent.

You must clearly display:

• How to enter

• Eligibility requirements

• Opening and closing dates

• The date, time, and location of the draw

• The total prize value

• Where entrants can find the full Terms and Conditions

• The licence number (for major or instant prize promotions)

Advertising must not:

• Suggest that winning is guaranteed

• Imply financial or lifestyle improvement

• Encourage harmful or irresponsible behaviour

• Overstate the chances of winning

• Link the promotion to heavy alcohol consumption

• Exploit vulnerable groups

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Draw Rules and Winner Notification

In South Australia, all trade promotions must:

• Conduct the draw on the exact date, time, and place listed in the rules

• Use a fair and unbiased selection method

• Allow entrants to attend the draw if they choose

• Notify winners in writing within seven days

• Publish winners for prizes over 250 dollars, using initials and suburb

• Provide clear and reasonable instructions for prize collection

Scrutineer requirement

If the prize pool exceeds 30,000 dollars, an independent scrutineer must oversee the draw.

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Record Keeping

You must keep:

• Entry forms or ticket butts

• Digital entry logs

• Draw records

• Winner notifications

• Prize fulfilment documentation

Records must be kept for three months for trade promotions.

For fundraising lotteries, additional financial records and audits may be required.

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Penalties for Non-Compliance

South Australia imposes serious penalties for:

• Running an unlicensed major or instant prize promotion

• Failing to follow the rules of a licensed promotion

• Misleading advertising

• Failing to distribute prizes correctly

• Dishonest conduct in a lottery

• Offering prohibited prizes

Both businesses and individual officers (directors, managers) can be held personally liable.

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Giveaway Clubs and Membership-Based Promotions

Many businesses now run giveaway clubs where customers receive entries as part of a subscription or membership.

In South Australia, a giveaway club must follow trade promotion rules:

• Entries must be a bonus, not the product being sold.

• Membership must offer clear independent value.

• You may not sell entries or increase membership pricing to indirectly sell entries.

• If the prize pool available to SA residents exceeds 5,000 dollars, a Major Trade Promotion Licence is required.

• Instant win components require a licence regardless of prize value.

Failure to structure a membership giveaway correctly is considered operating an unlawful lottery.

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Fundraising Raffles and Charity Lotteries

Raffles and charity lotteries operate under a different set of rules.

Minor Raffles (No Licence)

A raffle is considered “minor” when the total prize value is 5,000 dollars or less.

Major Raffles (Licence Required)

A licence is required when:

• The prize pool is more than 5,000 dollars, or

• The raffle format triggers additional regulatory conditions.

Minimum returns

• Minor raffles must return a minimum percentage of proceeds to the approved purpose.

• Major raffles must return a higher minimum percentage of proceeds.

• Ticket printing, seller rules, banking, and auditing requirements apply.

Raffles cannot be used for for-profit commercial purposes. They are strictly for charitable and community groups.

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South Australia Compliance Checklist

Use this before launching any promotion or giveaway:

• Define whether your promotion is chance or skill based

• Calculate the prize pool for SA entrants

• Determine whether you need a licence

• Draft Terms and Conditions covering all legal requirements

• Plan your advertising and include necessary disclosures

• Prepare a fair draw process and scrutineer (if required)

• Keep proper records

• Deliver prizes correctly and on time

• Store documentation for three months or more

• Confirm your membership or giveaway club model complies with trade promotion rules

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South Australia FAQ for Giveaways and Trade Promotions

When do I need a trade promotion licence?
When the total prize value for SA residents exceeds 5,000 dollars, or if you run any form of instant win promotion.

Can I charge an entry fee?
No. Entry must be free. You may require the purchase of goods at normal retail price.

How long can a promotion run?
No longer than 12 months.

Are instant win promotions allowed?
Yes, but they always require a licence.

Can my business run a raffle?
No. Raffles are for charitable or community organisations. Businesses must use trade promotion rules.

Do giveaway clubs need a licence?
Yes, if they run chance-based promotions with prize pools over 5,000 dollars or include instant win components.