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