'Winner, Winner, Chicken Dinner!' - the Law on incentive prize draws

Are you looking to entice more people to participate in your survey, research study, event or new initiative by offering them a chance to win a prize?

If the prize will be drawn randomly (rather than being awarded on skill or merit), this will constitute a lottery and will be subject to legal requirements.

A lottery is any competition involving the award of a prize to be determined by a draw where:

  1. entry into the draw depends on the participant providing or doing something of value to the University; and
  2. the selection of the prizewinner involves some element of chance鈥

Do you need a licence for this?

In South Australia, any lottery is unlawful as a common nuisance unless it is exempted or licensed under the Lottery and Gaming Act.

The good news is that your incentive prize draw will be exempted as a minor trade promotion lottery if it meets the following criteria:

  • the prize draw is offered for the purpose of promoting the University or University activities
  • it is free to enter (or free if goods or services are purchased)
  • prizes do not include prohibited goods or services (tobacco, weapons, cosmetic surgery)
  • total retail value of the prizes is <$5000

However, if your lottery does not satisfy all the above criteria, you will likely require a licence.

Other requirements

Although a licence is not required for a minor trade promotion lottery, there are other regulatory requirements that must be met. These include:

  • all advertisements must contain the University name and address; terms and conditions of entry; details about the prizes and prize draw;
  • winners must be determined by random draw, and not using an electronic system
  • a list of the drawn prizes and winners must be displayed in a prominent place (e.g. a University webpage or noticeboard)
  • records of the lottery must be retained for 3 months following the prize draw

Resources

A complete checklist is available on the . Further information on lotteries is available on the .

If you will be collecting personal information from the participants, please ensure it is in accordance with the University鈥檚 .

If you would like assistance with drafting the terms and conditions of entry, please contact the Legal and Risk Branch via helpdesklegal@adelaide.edu.au.

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