Competition Permits in Australia: A State-by-State Breakdown

Competition permits in Australia are only needed for games of chance (prize draws, which the law calls trade promotion lotteries), and only in four places: NSW, South Australia, the ACT and the Northern Territory, once your total prize pool passes that jurisdiction’s threshold. Games of skill never need a permit, and Victoria, Queensland, Western Australia and Tasmania don’t issue them at all.

Here’s the catch. Most business owners find this out after the giveaway post has gone live, usually when someone asks “is this legal?” in the comments. A $4,000 prize that’s perfectly fine in NSW still needs a permit in the ACT. Once you know which rules you’re dealing with, the whole thing takes an afternoon to sort.

Do you need a competition permit in Australia? The state-by-state answer

You need a competition permit if your promotion is a game of chance, it’s open to people in NSW, South Australia, the ACT or the NT, and your total prize pool is above that jurisdiction’s limit. Everything else runs without a permit, as long as you follow the local conditions.

State or territory	Permit needed for a game of chance?	What the approval is called	Regulator
New South Wales	Yes, if total prizes exceed $10,000	Trade promotion authority (1, 3 or 5 years)	NSW Fair Trading
South Australia	Yes, if total prizes exceed $5,000, or at any value for instant scratch or break-open tickets	Major trade promotion licence or instant prize trade promotion licence	Consumer and Business Services (CBS)
ACT	Yes, if total prizes exceed $3,000	Trade promotion lottery permit	ACT Gambling and Racing Commission
Northern Territory	Yes, if total prizes exceed $5,000 (unless you hold a permit for the same promotion in another state)	Permit to conduct a trade lottery	Licensing NT
Victoria	No, at any prize value	None (conditions apply)	Victorian Gambling and Casino Control Commission
Queensland	No	None (a “category 4 promotional game”)	Office of Liquor and Gaming Regulation
Western Australia	No, if you meet the prescribed conditions	None (treated as a permitted lottery)	Gaming and Wagering Commission
Tasmania	No	None (conditions apply)	Liquor and Gaming Branch, Department of Treasury and Finance

Games of skill are simpler. No state or territory requires a competition permit for them.

The mistake we see most? Checking only the state your business is in. The rules follow your entrants, so a Brisbane café running an Instagram draw “open to all Australians” has to meet the rules of all eight jurisdictions. There’s no single national permit, which means you apply separately in each state that needs one.

Which competition permits does a national draw need at each prize level?

For a game of chance open to the whole country, your total prize pool decides the paperwork:

• $3,000 or less: no permit anywhere. Every state’s conditions still apply.
• Over $3,000, up to $5,000: an ACT permit only.
• Over $5,000, up to $10,000: ACT and South Australian approvals. You won’t need an NT permit, because the NT accepts a permit for the same promotion from another jurisdiction.
• Over $10,000: add a NSW trade promotion authority and a NSW notification.

One exception cuts across all of this. A scratchie-style instant win promotion open to South Australians needs a licence at any prize value, even $50.

Is a giveaway a lottery? How Australian lottery rules apply to businesses

If chance picks the winner, yes. Every state treats a random-draw giveaway as a lottery. What keeps yours legal is that it’s a trade promotion lottery: free to enter, run to promote a real business, and conducted under each state’s conditions.

Australian lottery laws are mostly about stopping unlicensed gambling. Charge people for a chance to win and you’ve left the trade promotion rules behind. You’re now in raffle and gaming territory, which most states reserve for charities, community groups and licensed operators.

Type of promotion	Who can run it	Entry	Competition permit?
Trade promotion lottery (giveaway, prize draw, instant win)	Any business promoting its goods or services	Free, or a purchase at the normal price	Only in NSW, SA, the ACT and the NT, above their thresholds
Raffle or art union	Community and charitable organisations	Paid tickets	Covered by separate state fundraising and gaming rules; not open to for-profit businesses
Game of skill	Anyone	Usually free	Never
First-come, first-served giveaway	Anyone	Free	Never, because nothing is left to chance

That last row surprises people. When a client asked whether “the first 1,000 subscribers get a free T-shirt” was a lottery, our lawyers confirmed it wasn’t, so no permit applied anywhere. They still recommended short terms covering the cap, who’s eligible, one per person and how the item gets delivered.

Is your competition a game of chance or a game of skill?

This one question decides whether competition permits apply to you at all. If luck plays any part in who wins, regulators treat the whole promotion as a game of chance. Our explainer on games of chance and games of skill covers the legal definitions in more depth.

What counts as a game of chance?

Any promotion where the winner is drawn, spun or revealed at random. For a small business, that usually looks like:

• a “like, follow and comment to win” draw on Instagram or Facebook
• “every purchase this month goes into the draw”
• instant win codes, scratchies or spin-the-wheel mechanics
• a lucky door prize at your launch event

What counts as a game of skill?

A competition where entries are judged on merit against criteria you publish upfront. Think “tell us in 25 words or less why you deserve a weekend away”, or a photo competition judged on creativity and relevance to your brand.

Skill has to be real, though. Asking entrants to name the colour of your logo isn’t a test of skill. Neither is a judging panel that picks favourites without any criteria. If a regulator can’t see how the winner was chosen, expect them to treat it as chance.

A genuine skill competition can even be limited to paying subscribers. Our lawyers have signed off on that structure where the eligibility was spelled out in every ad and the judging was clearly on merit.

What if your competition mixes chance and skill?

Treat it as a game of chance. This is where most “it’s a skill competition, so we’re fine” plans fall over. Four common set-ups and how they’re classed:

• Answer a question, then go into the draw. Chance. The question filters entries, but luck still picks the winner.
• Judged entries with a random tie-breaker. Chance has crept back in. Break ties with a second judging round instead.
• Footy tipping competitions. Genuinely borderline, so our lawyers treat these case by case. The ACT has its own rule: a paid tipping comp must put most of each entry fee into the prize pool.
• A prize for your top referrer. Rewarding sales activity isn’t a draw. Our lawyers have advised treating it as a commission-style reward with its own separate terms, rather than bundling it into your competition terms.

Which states require competition permits, and what are the rules?

NSW competition permits: a trade promotion authority above $10,000

Searching for a “NSW lottery permit” or a “game of chance permit NSW”? They’re the same thing. Since 1 July 2020, under the Community Gaming Act 2018 (NSW), businesses hold a trade promotion authority that lasts 1, 3 or 5 years depending on the fee paid. Once you have one, you can run as many promotions as you like while it’s in force.

You only need an authority when a single promotion’s total prize value exceeds $10,000. For each of those promotions, you notify NSW Fair Trading online and lodge your rules at least 10 business days before launch. The promotion can’t start until that notification is in.

Watch the timing. Some older guides still quote a 3-day notice period, and we’ve seen launch dates planned around it. Ten business days is the current rule, so a promotion starting on a Monday needs its notification lodged two weeks earlier.

Two NSW rules apply to every game of chance, even under $10,000:

• Written consent from the business being promoted. This matters for agencies and influencers running a draw on a brand’s behalf. Get the sign-off before you post.
• Advertising limits. Your ads can’t show children taking part, or suggest that entering will improve someone’s financial situation.

If you change the prizes, their value or how winners are picked after notifying, tell NSW Fair Trading as soon as you make the change. Authority fees are set each financial year and include a non-refundable processing fee. If you run big promotions a few times a year, the 5-year authority is almost always better value. Most businesses that pay for a 1-year authority end up renewing it anyway.

South Australia: a licence above $5,000, or for any scratchie

South Australia regulates trade promotions under the Lotteries Act 2019 (SA) and the Lotteries Regulations 2021. Consumer and Business Services sorts promotions into three types:

• Minor trade promotion: total prizes of $5,000 or less and no instant tickets. No licence needed, but South Australia’s conditions still apply.
• Major trade promotion: total prizes over $5,000, or any promotion mixing instant prizes with drawn prizes. You need a major trade promotion licence.
• Instant prize trade promotion: scratch or break-open tickets with hidden numbers, letters or symbols. You need a licence at any prize value.

Standard applications take at least 14 business days from when CBS receives them. Pay the premium fee and you’ll have an assessment within 5 business days. If a single draw’s prizes are worth $30,000 or more, an independent scrutineer has to oversee it. Anyone involved in running the promotion can’t enter it.

One South Australian rule catches subscription businesses out. CBS won’t license a promotion where entry means buying a membership the business doesn’t otherwise sell. The draw has to promote your real products, not an entry ticket in disguise.

ACT: the lowest threshold in the country at $3,000

Under the Lotteries Act 1964 (ACT), a trade promotion with total prizes of $3,000 or less is an “exempt lottery”. No permit, but the ACT Gambling and Racing Commission’s exempt lottery conditions still apply. Go over $3,000 and you need a trade promotion lottery permit before you advertise to ACT residents or let them enter.

Fees scale with your prize pool. On the Commission’s published schedule, they start at $238 for pools just over $3,000 and climb to $3,840 for pools above $200,000.

Once approved, every entry form and ad must show your permit number. The draw has to happen within 12 months unless the Commission agrees otherwise, and any change to the promotion needs its approval first. Running regular draws? Ask about a “blanket” permit, which covers multiple lotteries under one set of generic terms.

Northern Territory: a permit above $5,000

The NT calls anything with prizes over $5,000 a major trade lottery, and you’ll need a permit to conduct a trade lottery from Licensing NT. Lodge your application at least 10 working days before the promotion starts. At $5,000 or less, it’s a minor trade lottery and no permit is needed.

There’s a handy shortcut here. If you already hold a permit for the same promotion in another state or territory, you can run it in the NT without a local one. You still publish the results of the draw and keep full records for at least 2 years.

Two traps. If you advertise before your permit comes through, your ads must say the promotion is subject to approval and won’t go ahead without it. And you can’t award an over-18 prize, like alcohol, to someone under 18.

What rules apply in states that don’t require a competition permit?

Victoria, Queensland, WA and Tasmania drop the application. The rules stay. Breach a condition and you’re running an unlawful lottery, permit or no permit.

Victoria

No permit at any prize value, but the Gambling Regulations 2015 set firm conditions. The cost of entering (a phone call, SMS or postage) can’t be more than $1 including GST. Every entry needs a random and equal chance of being drawn, and the prize must reach the winner within 28 days of the draw.

Winners can’t be asked to pay anything beyond a trivial cost to accept their prize. So “you’ve won, just cover the $80 shipping” doesn’t fly in Victoria. If someone else runs the promotion for you, they need your written agreement not to use entrants’ details beyond what the terms allow.

For any prize worth over $1,000, you publish the winner’s name. Keep your records for 3 years after the promotion ends. Swapping to a new winner is only allowed through a second draw, and only if your conditions of entry allow for one.

Queensland

Queensland classes trade promotions as category 4 promotional games under the Charitable and Non-Profit Gaming Act 1999 (Qld), overseen by the Office of Liquor and Gaming Regulation. No licence or permit is required. Entry must be free and the promotion must genuinely promote your goods or services.

Queensland is stricter than most about unclaimed prizes. Your terms need to allow for a redraw (or for jackpotting the prize into a later draw), so a draw with no plan B is already non-compliant on day one.

Western Australia

WA’s Gaming and Wagering Commission treats a trade promotion lottery as a permitted lottery, provided you meet the conditions in Schedule 5 of the Gaming and Wagering Commission Regulations 1988. The big ones: there must be no cost to enter, and your terms must clearly state how the winner will be chosen. Once the promotion starts, you can’t change those terms without the Commission’s written approval.

Heads up if you’re looking for the regulator. WA’s racing, gaming and liquor team now sits within the Department of Creative Industries, Tourism and Sport, after several moves in recent years. Our lawyers have seen clients chase contact details for departments that no longer exist, so check the current Racing, Gaming and Liquor page on wa.gov.au before you email anyone.

Tasmania

No permit is needed for a genuine trade promotion under the Gaming Control Act 1993 (Tas). The Liquor and Gaming Branch of the Department of Treasury and Finance oversees it. As elsewhere, entry must be free and the promotion must be tied to your business.

Second chance draw rules in Australia: unclaimed prizes and claim deadlines

An unclaimed prize draw (often called a second chance draw) is a redraw you run when the original winner can’t be contacted or doesn’t claim in time. It’s the part of a promotion almost nobody plans for, until the winner’s Instagram account turns out to be abandoned.

When our lawyers review competition terms, a missing uncontactable-winner procedure is one of the most common gaps. Each state handles it a little differently:

State or territory	What your terms need	Deadline to plan around
NSW	A redraw process in the rules you lodge (for promotions over $10,000)	Tell NSW Fair Trading about any change to how winners are picked
Victoria	A second draw, allowed by your terms, used only after reasonable efforts to reach the original winner	Prize delivered within 28 days of the draw
Queensland	A redraw or jackpotting of unclaimed prizes	Redraw if the prize goes unclaimed for 3 months
South Australia	An unclaimed prize draw that gives the winner a fair chance to claim	CBS guidance points to a 14-day claim window
ACT	An unclaimed prize draw	Publish winners of prizes worth $1,000 or more
Northern Territory	A method of notifying winners and publishing results	Keep records for at least 2 years
Western Australia	A clearly stated winner selection method	Terms can’t change after launch without approval, so build the redraw in first
Tasmania	Clear claim and redraw terms	Follow the timeline you publish

Our practical rule for a national draw: give winners at least 14 days to respond, set a fixed redraw date in your terms, and deliver every prize within 28 days of whichever draw it came from. That timeline keeps you inside the tightest rules in every state.

Some brands also run a second chance draw on purpose, putting non-winning entries back in for extra prizes. That’s fine, but it’s still a game of chance. Add those prizes to your total prize pool before you check any competition permit threshold. In South Australia, mixing instant prizes with a drawn prize also moves you into the major licence category.

How do you apply for a competition permit?

Work through it in this order and you’ll avoid most of the back and forth with regulators:

1. Lock in your mechanics. How people enter, how the winner is picked, the opening and closing dates, the draw date and the redraw date.
2. Add up every prize. Include runner-up, instant win and redraw prizes, at retail value including GST. Thresholds apply to the total pool, not the headline prize.
3. Decide who can enter. Map your eligible states against the table above. Excluding a state is allowed, as long as your ads say so just as clearly as your terms.
4. Write your terms and conditions. Regulators ask for them with your application. Our guide on terms and conditions for a promotional competition covers what to include.
5. Gather the paperwork. Your business’s legal name and ABN, prize descriptions and values, the draw method, copies of your ads, and written consent from the business being promoted if you’re running it on someone else’s behalf.
6. Lodge early. Allow at least 14 business days in South Australia, 10 working days in the NT and a 10-business-day notice period in NSW. Add more at busy times like Christmas and EOFY.
7. Add your permit numbers. Put each permit or licence number on your ads, entry forms and terms.
8. Run the draw and keep records. Record entries, the draw and prize delivery, and publish winners wherever the state requires it.

Costs depend on the state, your prize value and how quickly you need approval. NSW prices its authority by term, the ACT scales its fee with the prize pool, and South Australia charges extra for its 5-day premium service. Fees change every financial year, so check the regulator’s current schedule rather than a figure from last year’s blog post.

What rules apply to every competition, with or without a permit?

Permits are only one layer. These apply to games of skill and chance alike, in every state.

Entry must be free. You can require a purchase at the normal retail price. What you can’t do is charge an entry fee, or inflate the price of a product during the promotion. A paid membership or subscription that exists mainly as an entry ticket is the fastest way to turn a giveaway into an illegal lottery.

Don’t mislead anyone. The Australian Consumer Law in the Competition and Consumer Act 2010 (Cth) covers how you describe prizes, odds and closing dates. For a company, maximum penalties run to the greater of $50 million, three times the benefit gained, or 30% of turnover during the breach. Your ads and your terms must say the same thing.

Handle entrant data properly. Every entry form collects personal information, which brings the Privacy Act 1988 (Cth) into play. A Privacy Policy template covers how you store and use it. Add a privacy collection notice to the entry form if you plan to email entrants afterwards. Marketing emails also need opt-in consent and an unsubscribe link under the Spam Act 2003 (Cth).

Follow the platform’s rules. Instagram and Facebook expect a statement that your promotion isn’t sponsored or endorsed by Meta, and they restrict entry mechanics like “share to your timeline to enter”. Our article on terms and conditions for online competitions walks through the social media side.

Check your prize is allowed. Firearms, tobacco and vaping products, and cosmetic or medical procedures are banned or restricted as prizes in most states. Large quantities of alcohol are restricted too, and alcohol prizes mean excluding minors from entry. Our guide to the laws on free product giveaways covers prize choices in more detail.

What we see in Lawpath consultations about competition permits

Our lawyers talk business owners through giveaways all the time, from local gyms and event organisers to dating apps and national consumer brands. These issues come up again and again.

Paying members as the entry ticket. Membership platforms and subscription apps love a monthly draw for paying members. That’s workable when the draw is a genuine perk of a membership you already sell, with one equal entry per active member. When people are only signing up to enter, our lawyers flag it as a likely illegal lottery, and South Australia won’t license it at all.

Capping every draw at $3,000. For apps running frequent national giveaways, our lawyers often recommend treating each draw as its own promotion with a prize pool of $3,000 or less. That keeps every draw under the lowest threshold in the country, so no competition permit is needed anywhere. The catch: each draw needs its own promotion period and prize description, even if the base terms are shared.

Prizes with no fixed value. A prize worth “a share of whatever our horse wins” or “a percentage of next month’s sales” can’t be measured against a threshold. Put a dollar cap on it. Without one, you can’t tell regulators your prize pool, and you can’t tell whether you need a permit.

Excluding a state to dodge a permit. Leaving South Australia or the ACT out of a promotion is a legitimate way to avoid a competition permit. Where it goes wrong is consistency. If someone in an excluded state can still pay for the thing that gets them an entry, but can never win, that’s a misleading conduct problem under the Australian Consumer Law.

Monthly giveaways with no paper trail. Recurring draws are where records slip. Our lawyers recommend screen recording every draw (redraws too) and keeping a simple spreadsheet for each promotion. Log the prize value, excluded states, permit status, draw date and result. If a regulator ever asks, you’ll have the answer in minutes.

Selling raffle tickets as a business. Event businesses with a big-ticket sponsored prize often want to sell tickets to recover the cost. A for-profit business can’t run a paid raffle. The fix is to restructure it as a trade promotion, with free entry that comes with buying your tickets, merchandise or services at their normal price.

Switching to skill to avoid permits. For businesses running daily or national promotions, a genuine game of skill is often the simplest structure. No competition permit, no thresholds, one set of terms. It only works if the skill is meaningful and the judging criteria are published and followed.

Frequently asked questions about competition permits in Australia

Do I need a permit to run a giveaway on Instagram?

Only if it’s a random draw open to NSW, South Australian, ACT or NT residents with total prizes above that jurisdiction’s limit. Online giveaways follow the same rules as any other trade promotion. A judged Instagram competition never needs a permit, but you still need terms and a Meta disclaimer.

Is a giveaway a lottery under Australian law?

Yes, if chance decides the winner. It’s legal as a trade promotion lottery when entry is free and it promotes a real business. A first-come, first-served giveaway isn’t a lottery, because nothing is left to chance.

Do games of skill need a competition permit in Australia?

No. No state or territory requires a competition permit for a genuine game of skill. You still need clear terms, published judging criteria and honest advertising under the Australian Consumer Law. Add any random element, such as a tie-breaking draw, and it becomes a game of chance.

Do I need a permit for a competition in NSW?

Only if it’s a game of chance with total prizes over $10,000. NSW calls it a trade promotion authority, and it lasts 1, 3 or 5 years. You also notify NSW Fair Trading and lodge your rules at least 10 business days before each promotion starts.

How much does a competition permit cost?

It depends on the state and your prize pool. NSW prices its authority by term, the ACT’s fee starts at $238 and rises with the prize pool, and South Australia charges more for a 5-day turnaround. Fees change each financial year, so check the regulator’s current schedule.

How long does it take to get a competition permit?

Allow three to four weeks to be safe. South Australia takes at least 14 business days for a standard licence, or 5 with the premium fee. The NT wants your application at least 10 working days before launch, and NSW needs 10 business days’ notice.

Can I make people buy something to enter?

Yes, as long as they pay the normal retail price and nothing extra to enter. You can’t charge an entry fee or raise prices during the promotion. Victoria caps any cost of entering, like an SMS, at $1 including GST.

Do I need a new permit for every competition?

It depends where. A NSW authority covers every promotion you run while it’s in force, though each one over $10,000 still needs a notification. The ACT offers a blanket permit for multiple lotteries. South Australia and the NT generally license each promotion separately.

Is there one competition permit for all of Australia?

No. Each state regulates its own trade promotions, so a national game of chance may need separate approvals in NSW, South Australia and the ACT. The NT is the exception. It accepts a permit for the same promotion from another state or territory.

What are the rules for a second chance draw?

Your terms must set out the claim period, the redraw date and how you’ll contact the new winner. Victoria only allows a replacement winner through a second draw your terms provide for. Queensland requires a redraw if a prize goes unclaimed for 3 months.

How long does a winner have to claim a prize?

Whatever your terms say, within each state’s limits. South Australia’s guidance points to at least 14 days, and Victoria needs the prize delivered within 28 days of the draw. Set a clear claim deadline and a fixed redraw date before launch.

What happens if I run a competition without the right permit?

You’re running an unlawful lottery in that state, which can mean fines and an order to stop the promotion. If your advertising was misleading too, the Australian Consumer Law penalties apply on top. Fixing it before launch costs far less than fixing it afterwards.

Ready to run your competition?

If this feels like a lot of rules for one giveaway, you’re not alone. Most businesses only need to answer three questions: chance or skill, which states, and how big the prize pool is. Answer those and you’ve done the hard part.

For anything national, over $3,000, or built around memberships, a quick check before launch is worth it. Get a fixed-fee quote from a Lawpath lawyer to review your terms and competition permit requirements before your promotion goes live.