Category Archives: Trade promotion permits

From 21 June you will no longer need a competition permit in Victoria

As foreshadowed in a previous post, Victoria are removing the need for competition permits. Previously, if your prize pool was over $5,000 you would need to obtain a permit from NSW, ACT, VIC and SA. From 21 June, you will no longer need a permit in Victoria to run a chance-based competition.

From 21 June 2015, businesses, charities and community organisations will no longer need to apply to the Victorian Commission for Gambling and Liquor Regulation (VCGLR) for a permit to conduct a trade promotion lottery.

Impact on the cost of running a competition

The cost of a Victorian trade promotion lottery permit is $344.20. As a result of the change the cost of obtaining permits for any competition with a prize pool of over $5,000 in all States will decrease by $344.20.

Victoria are not the most expensive nor the slowest State in issuing competition permits. The cost saving is a definite positive but there won’t be a benefit in terms of how long it takes to get all lottery permits back from the remaining States.

A ‘free for all?’

Despite the fact that you will no longer need a lottery permit in Victoria for your chance-based competition, you will still need to comply with the guidelines in place in Victoria for businesses running competitions.

The VCGLR website will be updated on 20 June with a list of those conditions.

The competition terms and conditions that we draft on your behalf will comply with those conditions. Obviously, these conditions will include requirements to: give each entry an equal chance of winning, award the prizes you say you will award

Implications in other States

Other States may, but at this stage have not, follow the lead from the VCGLR. The Victorian regulator were highly regarded by trade promotion agencies, reviewing competitions against the regulations in a reasonable manner and for a reasonable fee (as much as a tenth that charged in other States).

In our opinion the best option would be for there to be a national system in place, in recognition of the fact that there is too much complexity in the different State and Territory laws and this simply ties business up in further red tape.

Permitz Group will continue to be able to offer first rate assistance in all areas of competitions. We have assisted a large range of multinational companies run competitions in Australia, New Zealand, the United States, and Europe. Our primary aim is to offer a single solution to the problem of complex and contradictory State based rules surrounding competitions and trade promotions

Click here for a copy of the letter from the Victorian Regulator: Competition permits in Victoria

The top 5 mistakes people make in relation to the need for competition permits

Competition permits are generally required if the winners of your competition are determined by chance. Typically this means the winners are either drawn or win instantly by, for example, scratching a game card.

Competition permits are not required if your winners are determined solely by skill and by qualified judges. Examples of skill-based competitions include those which typically ask a question to be answered in 25 words or less.

There are some common misconceptions about the need for competition permits (Also know as lottery permits). Here are a list of the top 5 mistakes people make in relation to the need for competition permits:

1. I am running a mix skill and chance-based competition therefore I do not need permits— Wrong! You may need permits if your competition involves any element of chance in the determination of winners.

2. I am located in QLD but running a national chance-based competition therefore I do not need permits— Wrong!  If you have a national competition you will need permits from at least NSW and the ACT.

3. Everyone else runs competitions without permits, so there is no chance I will get in trouble – Wrong!  It is an offense to run a competition without competition permits where required. There are serious, and we mean serious, potential penalties.

4. Permits are required from QLD– Wrong! You will need to comply with the QLD guidelines but do not need to apply for a permit in QLD.

5. When I am waiting for permits I can just put ‘Permits pending’ or TBC on advertising material– Wrong! You will need to display the actual permit numbers, as well as various other information, on your advertising.

For more information about the need for competition or lottery permits, send us an email to

Generating leads from competitions

Many of us spend a lot of time on website development and customisation but don’t do a great deal to increase website conversions and generate new leads.

A competition (also known as a trade promotion or lottery) can be an effective way of increasing leads generated from your website. Form conversion rates before and during the competition period give you a clear method of reviewing the effectiveness of your competition.

The key to an effective competition is to ensure that it is as simple as possible to enter and to ensure that the right people know about your competition. Asking for excessive personal information such as date of birth will only serve to drive potential entrants and leads away.

A chance-based competition, which may require lottery or trade promotion permits, requires minimal effort from competition entrants. Winners can be determined by a competition draw.

For a complete and obligation free quote, contact the quote form on our website or send us an email to

Three ideas for your next competition

Various competitions

Looking for a fresh competition that will stir up your customers, infuriate your competitors and increase your sales?

Here are three out-of-the-box ideas for your next promotion.

1. Ongoing rewards and a chance to win Big! The best way to run a competition is to keep it going and to keep giving. Many of the most successful competitions we have seen give away small prizes such as DVDs, event tickets, and cash on a weekly or monthly basis. A blanket permit allows you to run a number of competitions with smaller prize pools over 12 months. On key dates, to coincide with product launches, or events, you can then obtain individual permits to give away larger prizes.

2. Instant win! An instant win competition gives entrants an immediate sense of winning, can encourage multiple purchases and allows you to award prizes to multiple winners.

Instant win promotions need to reward continual participation by your entrants. Ensure that you give a large number of prizes and a smaller number of large prizes. Your minor prizes could be discounts or free products or services that you offer.

3. A chance at a Million Dollars! A million dollar prize pool does not need to cost you a million dollars. Prize insurance allows you to offer prizes in the order of $100,000, $500,000 or one million dollars for a fraction of the total prize value. Such a competition gives a winner the chance to win a large prize. Typically, you would draw one entrant who then attends an event where they are required to pick an envelope out of a possible hundred. One envelope may contain a million dollar cheque whilst the others contain a consolation prize. No matter which envelop your winner picks, they walk away happy.

Permitz have been involved in a very large number of innovative promotions, giving away millions, giving away trips to virtually every continent. Permitz can look after terms and conditions and competition permits for your next competition.

Some commonly Asked questions

1. When do I need competition permits?

Competition permits are generally required if the winners of your competition are determined by chance. Typically this means the winners are either drawn or win instantly by, for example, scratching a game card.

Competition permits are not required if your winners are determined solely by skill and by qualified judges. Examples of skill-based competitions include those which typically ask a question to be answered in 25 words or less.

2. What if the draw/ my office is in a particular state, does this mean I only need permits from that state?

The location of the draw and/ or your office is irrelevant. However, if the competition is only open to residents of a particular state or it is a requirement that entrants come to a location in a particular state, you may only need competition permits from that state.

3. Do I need competition terms and conditions for a simple or a small competition?

Yes. Competition terms need to set out a number of important things. These include who can enter, when someone needs to enter, what restrictions are in place and what the prizes are. If you fail to have competition terms and conditions you will leave a number of questions unanswered. This increases the risk of a complaint or dispute later on. It is better to have clear terms and conditions which set out everything about the competition and avoid ambiguity.

4. What detail do I need about the competition prizes?

You should include as much detail as you can about the competition prizes in the competition terms and conditions.

Some state regulators specify particular information which must be included. For example, in VIC, you need to ensure you include the name or type (i.e. star rating and location) of any hotel included in an accommodation prize.

5. How long does it take to obtain competition permits?

Each state takes a different amount of time to issue a competition permit. We suggest you aim for three weeks from the day you apply to the day you need permits back. You will need to include the permit numbers in any advertising of the competition.

Permits needed for skill-based competitions

A common question is whether permits are needed for skill-based competitions. The simple answer is no.

When determining whether or not a competition is based on skill it is important to consider if there are any elements of chance involved in the determination of winners.

Chance-based competitions include:

1) Competitions where winners are drawn;
2) Competitions where winners are determined instant (and determined randomly);
3) Scratch and Win type competitions; and
4) Competitions where the prize is dependent on the number of entries or any other factor outside of the control of entrants.

There are some competitions which include elements of skill and chance. These competitions will still need permits. For example, in the first round of a competition entrants must answer a question which is then judged, in the final round a winner is drawn- this is a chance-based competition.

Any competition that is chance-based requires permits (from at least NSW if conducted on a national basis).

Voting competitions do not require permits so long as there are no elements of chance involved. i.e. if you conduct a voting competition, how will you determine the winner if two or more entrants have the same number of votes? If you conduct a draw, then permits would be required.

Changes to VIC process to obtain lottery permits

The Victorian trade promotion regulator, the VCGLR, have announced changes to the way they assess lottery permits.

As of now, you will no longer need to attach a copy of competition terms and conditions to applications submitted online. The online form is very long, much longer than any other state and already goes into a lot of detail already provided in the competition terms and conditions. The other change is that a National Police Certificate will no longer be required.

The two most important implications of the change are:

1) It is likely that VCGLR will be faster in the review of online lottery permit applications; and

2) It is now more important than ever to ensure your competition terms and conditions are compliant, are consistent and make sense. The VCGLR were an important safety check, picking up errors. As they are no longer reviewing online applications it is now very important that Promoters carry out proper checks of their terms and conditions.

The above changes are part of a wider trend which will see the end of the need for competition permits from Victoria, this is expected early to mid next year.

If you have any questions about competition permits in Victoria, send us an email to

A great year so far

This year Permitz has been lucky to work on some very interesting, unique and exciting consumer competitions. Overall we have noticed an increase in divergence away from a traditional online competition, a focus on the collection of actionable data and an increased understanding of how consumers react to promotions.

We have worked with brands that we love. From Lavazza, The Coffee Club and Sony. Many of our clients have come up with unique competitions. We have also worked with exciting solar energy, technology brands and agencies.

So far this year, we have not only been involved in awarding winners millions of dollars in prizes, we have been involved with competitions giving away awesome prizes such as a trip to Necker Island to meet Richard Branson.

Permitz has expanded our services and can now literally manage every aspect of competition marketing. From competition terms and conditions, lottery permits to winner selection and notification.

The year is not over yet and we look forward to continuing work in such an exciting area.

Christmas promotions

There is still time to set up a competition for your customers to coincide with Christmas!

Permitz suggests you consider submitting a request for terms and conditions and competition permits this week or early next week if you want to run a competition near Christmas.

Christmas competitions, competition permits

Competitions can be a very effective way of increasing sales, building a customer database or launching a new product or service. To run a chance-based competition you would require competition permits from at least NSW and the ACT. Competition permits can take some time to be issued, so get in touch now.