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Whilst every care has been taken in the preparation of this document we do not warrant its accuracy, and you should take any necessary steps to ensure that any tipping competition that you run is within the law.
What is a tipping competition?
Considered to be a 'Trade Promotion Lottery' if entry is free, or if there is a cost involved it is considered as an 'Other Lottery'.
Taken from ACT’s website:
‘The Lotteries Act provides for a wide range of lottery type activities such as raffles, silver circles, housie and trade promotions. Persons wishing to conduct a lottery in the ACT must apply in writing for approval. The lottery must meet certain conditions to ensure that the lottery will be conducted properly and that subscribers’ interests are adequately protected. The licence fees applicable are calculated on the total prize value of the lottery.’
The information below applies to trade promotion lotteries.
Who can conduct a Tipping Competition?
For Trade Promotions, any company or business.
Do I need a Licence or Permit to Conduct a Tipping Competition?
Yes, if the competition is advertised in the ACT and the total prize vale exceeds $3000 - unless the prizes consist totally of the granting of rebates, discounts and other allowances in respect of amounts payable, or the granting of refunds of amounts paid, or for goods sold or services performed in the course of carrying on that trade or business which are available equally to all participants.
Seven working days should be allowed for processing once the Commission has received all information.
Promotions must not last longer than 12 months.
The fee depends on the total prize value and range from $211 to $3372. Details.
Is there a maximum amount payable by participants?
Yes, for those organisations using 1900/SMS/MMS as a method of entry then the cost of connection must not exceed 55 cents.
Distribution of proceeds
All prizes in the promotion must be distributed or allocated as approved. A redraw or "second chance draw" must be used where it is possible for a prize to be unclaimed or undistributed. This draw must occur no sooner than three months after the final draw date.
Tobacco products may not be offered as prizes.
Delivery of Prizes
Prize winners must not be charged any delivery fee.
Where the value of any individual prize is equal to or greater than $1,000, the promoter must publish, as soon as practical, the results in:
- newspaper that is distributed in the region; or
- publication or medium (such as where the promotion was advertised) approved by the Commission as part of the application process.
Where individual prize values are under $1,000, the winners must be notified directly, such as by mail, e-mail or fax, within 21 days of the determination of the results.
What must the rules of the competition provide?
The following must be included in the application:
- terms and conditions
- who can enter
- how and where entry can be made
- detailed description of prizes (a separate form is proved for the details of travel prizes).
- date of results
- details of the newspaper in which notification should appear.
- In the case of radio or television advertising a transcript of the advertisement should be attached to the application.
In the case of entry by 1900/SMS/MMS, a letter stating the percentage distribution of revenue that the service provider and the organisation shall receive and the full number to be used.
ACT’s Gambling and Racing Commission
(02) 6207 0361
(02) 6207 7390
ACT Gambling and Racing Commission
PO Box 214