Trade lotteries (NT) - Not-for-profit Law
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Trade lotteries (NT)
Legal information for community organisations in the Northern Territory
This fact sheet covers:
► overview of the lottery laws in the Northern Territory
► what is a trade lottery?
► who can run a trade lottery?
► when is a permit required to run a trade lottery?
► how to apply to run a trade lottery
► conditions for trade lotteries
► games of chance vs games of skill
► foreign lotteries
► online lotteries
► national games of chance, and
► trade lotteries checklist
This fact sheet summarises some of the legal issues to be aware of when conducting a trade lottery
in the Northern Territory.
This fact sheet doesn’t cover in detail other gaming activities such as raffles, minor lotteries, major lotteries,
calcuttas, sweepstakes, bingo, mini lottos and tipping competitions.
In this fact sheet, further detail of any Northern Territory Government requirements referred to can be found
on Licensing NT’s website.
If your organisation wants to conduct a lottery or game of chance in another state or territory, you must
comply with the laws of that jurisdiction.
This information is intended as a guide only and is not legal advice. If your organisation has a legal
problem, you should talk to a lawyer before making a decision about what to do.
Overview of the lottery laws in the Northern Territory
Gaming laws in the Northern Territory are governed by the Gaming Control Act 1993 (NT) and the Gaming
Control (Community Gaming) Regulations 2006 (NT) (collectively the Lottery Laws) and regulated by
Licensing NT.
© 2021 Justice Connect. This information was last updated in April 2021 and is not legal advice; full disclaimer and copyright notice at www.nfplaw.org.au/disclaimer.Trade lotteries (NT) | 2021 2
The Lottery Laws broadly govern the conduct of:
• sweepstakes • raffles
• calcuttas • minor lotteries
• bingo • major lotteries
• mini lottos • trade lotteries
• tipping competitions • foreign lotteries
• free entry lotteries
Whether a permit is required, depends on the type of lottery that is conducted.
The table below provides a brief description of the different games governed by the Lottery Laws:
Sweepstakes A sweepstake is a game where participants pay a set fee for a chance to win an
allotment against a competitor in an event.
Sweeps are commonly used for events such as the Melbourne Cup. Each participant
is drawn a horse in the race and the winner (or winners) of the sweepstake is
determined by the result of the race or event. The prize pool, made up from the entry
fees less any permitted deductions, is distributed to the sweepstake winner (or
winners).
Calcuttas A calcutta is a more complex version of a sweepstake where participants purchase
the chance to win an allotment against a competitor in an event or race and the
allotments are auctioned.
The holder of the allotment may elect to sell the right and receive 50% of the
proceeds of the sale or to retain the right by making the highest bid and paying 50%
of that bid.
The prize pool, made up of the entry fees less any permitted deductions, is
distributed to the holder of the rights against the winner and designated placegetters
of that event.
Bingo Bingo is a game of probability where players mark off numbers on pre-printed cards
as numbers are drawn randomly by a caller. The winner is the first person to mark
off all their numbers, or numbers in a line, and announce they have bingo.
Mini-lottos Mini-lotto is a game similar to Tatts Lotto where six numbers are drawn from a total
of between seven and 40 numbers. The total value of prizes can be up to $5,000.
Tipping A tipping competition is a game of chance and skill where participants pick the win or
competitions lose result of a series of sporting matches or other events. The person who gets the
highest number of correct results is the winner. The total value of prizes can be up to
$5,000. Where total prizes are more than $5,000, the competition must be treated as
a minor or major lottery and a permit is needed.
Free entry A free entry lottery is where a person is automatically entered by being a member of
lotteries an association or by purchasing a ticket to a function. Examples are a weekly
membership draw or a door prize at an event.
If the prize is more than $2,000, the winner must be determined within four weeks
after the date the prize reaches the maximum amount. The winner is determined by
either holding repeated draws until the winner is determined or giving the prize to the
participant with the nearest correct entry.
Raffles A raffle is a lottery in which the total value of tickets available for sale or the total
amount of the entry fees to be charged do not exceed $5,000.
Minor lotteries A minor lottery is a lottery in which the total value of tickets available for sale is
between $5,001 and $20,000.Trade lotteries (NT) | 2021 3
Major lotteries A major lottery is a lottery in which the total value of tickets available for sale
exceeds $20,000.
Trade lotteries A trade lottery means a lottery conducted for the purpose of promoting a product or
business by a person in the course of carrying on his or her trade or business.
Note – no entry fees can be charged for trade lotteries.
Foreign lotteries A foreign lottery is a lottery that is conducted or to be conducted outside the
Northern Territory and is authorised by or under and conducted in accordance with
the law of the country or the State or Territory of the Commonwealth in which it is
conducted.
Note – games can be ‘deemed’ lotteries
The Director of Licensing NT has the power to determine that a game of chance is a lottery in
the course of administering the Lottery Laws. In these circumstances, the lottery will either be
considered a raffle, a minor lottery or a major lottery in accordance with the entry fees and
definitions of those games.
What is a trade lottery?
What is a trade lottery?
A trade lottery means a lottery conducted for the purpose of promoting a product or
business by a person in the course of carrying on their trade or business.
A trade lottery will be considered:
• a minor trade lottery if the total value of the prizes offered doesn’t exceed $5,000, and
• a major trade lottery if the prizes offered exceed $5,000
Trade lotteries must be free to enter.
How will I know if the lottery I am conducting is a trade lottery?
If you are a person carrying on a trade or business in the Northern Territory and you are
conducting a lottery for the purpose of promoting a product or business, then you are
conducting a trade lottery.
Generally, lotteries conducted by community organisation in the Northern Territory will be a
raffle, minor lottery or major lottery as the purpose of the lottery is likely to be to raise funds
for a charitable cause rather than to promote a product or business.Trade lotteries (NT) | 2021 4
Who can run a trade lottery in the Northern Territory?
An organisation that wishes to conduct a trade lottery must either be:
• an approved association, or
• a person carrying on a trade or business in the Northern Territory
Despite the above, any person may, by agreement in writing with the Minister, conduct a lottery for a
purpose specified in the agreement. The agreement may stipulate that the person pay fees, taxes or levies
to the Northern Territory.
Steps to become an approved association:
Step 1 Complete the approved association form
Step 2 Attach copies of your relevant documents to the application (this might include a copy of
your organisation’s certificate of incorporation and its governing document)
Step 3 Submit your application and documents to the Director-General of Licensing by post or in
person to a Territory Business Centre.
See Licensing NT’s website for more information regarding the process for becoming an approved
association.
When is a permit required to conduct a trade lottery?
A person conducting a trade or business in the Northern Territory or an approved association can conduct a
minor trade lottery without a permit. A permit is required for major trade lotteries.
Note – an approved association can also conduct the following lotteries and games of chance in the
Northern Territory without a permit:
• calcuttas, sweepstakes and bingo
• free entry lottery with prizes totalling $2,000 or less
• raffles with ticket sales of $5,000 or less
• mini lotto with prizes totalling $5,000 or less, and
• tipping competitions with prizes totalling $5,000 or less
Do I need to get a permit to conduct a trade lottery?
Only approved associations or persons conducting a trade or business in the Northern
Territory can conduct a trade lottery. A permit will only be required if the prizes offered in
the trade lottery exceed $5,000.
How to apply to run a trade lottery in the Northern Territory
The following table sets out the general application process to run a trade lottery in the Northern Territory.
See the specific application form for more information about the details your organisation will need to
provide to Licencing NT as part of this process.
Features Application process
Minor trade • lottery conducted for the purpose of • Ensure you are a person conducting a trade
lottery promoting a product or business in the or business in the Northern Territory, or apply
Northern Territory by a person in the to Licensing NT to become an approvedTrade lotteries (NT) | 2021 5
course of carrying on their trade or association using the approved association
business form.
• the total value of the prizes offered doesn’t • You don’t need to apply for a permit for a
exceed $5,000, and minor trade lottery.
• there is no entry fee
Major trade • lottery conducted for the purpose of • Ensure you are a person conducting a trade
lottery promoting a product or business in the or business in the Northern Territory, or apply
Northern Territory by a person in the to Licensing NT to become an approved
course of carrying on their trade or association using the approved association
business form.
• the total value of the prizes offered exceed • Decide on how the lottery will be run (for
$5,000, and example, the number of tickets, rules and
conditions, how the lottery will be drawn, how
• there is no entry fee
prizes will be awarded).
• Submit your application to conduct a trade
lottery to Licensing NT along with any relevant
supporting documents (for example, copies of
entry forms and advertising material).
Note – Licensing NT advises that it usually
takes 10 days to process an application.
Foreign • lottery that is conducted outside the • Ensure your organisation has obtained the
lottery Northern Territory, and relevant authority for the State or Territory of
the Commonwealth that the lottery is
• authorised by or under and conducted in
conducted in.
accordance with the law of the country or
the State or Territory of the • Apply to the Director-General of Licensing in
Commonwealth in which it is conducted writing at LicensingNTExec.AGD@nt.gov.au
for permission to sell tickets to the lottery in
the Northern Territory. Include any relevant
information about the lottery including (but not
limited to) information about the organisation
selling tickets for the lottery.
Conditions for trade lotteries
Both major and minor trade lotteries must meet all of the following standard conditions:
• you must run a trade lottery in accordance with the Gaming Control (Community Gaming) Regulations
• you must run it in a way that complies with the NT Code of Practice for Responsible Gambling
• you must not include a prohibited game
• entry must be free, but can be conditional on buying goods or services
• each entry must have an equal chance of winning the major prize
• liquor must not be a principal prize (this includes prizes consisting solely of money and liquor)
• you can’t offer firearms, weapons, ammunition, explosives or tobacco products as prizes
• you must not award a prize to a person under 18 years that includes liquor, goods or services that are
restricted by law to people over 18
• you must clearly state all of the following on entry forms and promotional material:
– the lottery terms and conditions (terms and conditions must be fair and equitable)
– the permit number (if applicable)
– the period in which it is being run
– the draw date
– details of how the winners are determined, and
– how winners will be notifiedTrade lotteries (NT) | 2021 6
• if prizes are subject to restrictions and conditions, such as travel prizes, you must clearly display the
term 'Conditions Apply' on the ticket and any promotion
• no employees of the business, or their family members, may participate
• the lottery must be drawn on the date specified, and prizes awarded to the winners as set out in the
lottery's terms and conditions, and
• you must publish the names of the major prize winners in a local or a national newspaper
If there is a dispute, complaint or investigation about the conduct or outcome of a lottery, the business
conducting the lottery must demonstrate to the reasonable satisfaction of the Director-General of Licensing
that it has complied with these conditions.
Games of chance vs games of skill
A game of chance provides all entrants with an equal chance of winning and the winner is selected at
random.
In contrast, a game of skill involves no element of chance at any point in the game or competition.
As a general guide, games of skill are competitions or processes that determine a winner by requiring a
participant to submit something or answer a question in order to win or be selected for a prize. The winner
is usually selected by a judge or panel of judges. These are not considered trade promotions or lotteries.
Examples of a game of skill include:
• an essay writing competition such as 'In 100 words or less, tell us why you consider...'
• trivia nights, and
• other skills-based competitions, such as an art or talent competition
While an organisation doesn’t need to obtain a permit to conduct a promotion that is considered a game of
skill, the organisation still needs to take care that all entries are judged individually on their merit and the
winner is selected based on merit.
Caution
Care should be taken to ensure that the 'game' or test of 'skill' for the promotion is one that
is a true test of skill so that participants can’t potentially enter the same answer.
For example – a question that participants could give the same answer to is a factual
question such as ‘Who is the prime minister of Australia?’
If any prize is given after a draw from the participants who had provided the correct answer
to the factual question, that would be a game of chance and therefore subject to the laws
applying to games of chance.
Foreign lotteries
A person must obtain permission from the Minister before they can sell tickets in a foreign lottery (that is, a
lottery conducted or to be conducted outside the Northern Territory which has been authorised by or under
and conducted in accordance with the law of the country or the State or Territory of the Commonwealth in
which it is conducted).
The Minister may impose conditions on the ticket sales and conduct of foreign lotteries and has the right to
refuse to grant permission in accordance with the Lottery Laws.Trade lotteries (NT) | 2021 7
Online games
Organisations that want to conduct a lottery, game or foreign lottery by means of the internet must apply to
the Minister for approval.
This does not apply to:
• gaming conducted by an approved association in accordance with the Lottery Laws, and
• trade lotteries conducted in accordance with the Lottery Laws
There are currently no application forms for requests to conduct an online game. Applications can be made
in writing to the Director-General of Licensing at LicensingNTExec.AGD@nt.gov.au and should include any
relevant information regarding the proposed online gaming. Applicants will then be required to provide any
additional information the Director-General of Licensing may request.
In addition, if you plan to conduct a trade promotion lottery or other game of chance online using social
media (such as Facebook, Twitter, YouTube), you must comply with the social media website’s promotions
guidelines in addition to the relevant state and territory authority requirements (see below).
You will need to carefully check the social media website’s promotions guidelines as they may contain
specific requirements on:
• how you can conduct your trade promotion lottery
• how your trade promotion lottery is associated with the social media organisation, or
• disclosing certain information to, or obtaining information from, entrants
Note
Websites such as social media platforms sometimes have their own guidelines for trade
promotions and other games of chance. Remember to consider them before conducting a
trade promotion lottery online. For more information go to our webpage on Social Media.
Facebook has a number of guidelines that must be followed if conducting a trade promotion lottery or other
game of chance using its website.
When using Facebook as a promotional tool, you must:
• ensure that your trade promotion lottery is lawful
• include an acknowledgement that the promotion is not sponsored, endorsed or administered by, or
associated with, Facebook
• include a release of liability for Facebook for each entrant or participant, and
• let entrants or participants know that they are disclosing information to you and not to Facebook
The Facebook promotions guidelines also prohibit certain activities in conducting your promotion. You must
not:
• make entry or registration to the promotion conditional on taking any action other than liking a Page,
checking in to a Place, or connecting to the app (for example, you can’t require a person to post a photo
on the Page wall)
• use Facebook’s features or functionality as a registration or entry mechanism. For example, the act of
liking a Page or checking in to a Place can’t automatically register or enter a promotion participant, or
• use Facebook’s trade marks, trade names, copyrights or other intellectual property in connection with
the promotion
Unless you follow Facebook’s guidelines, you run the risk of Facebook removing your advertisement or
disabling your account. For a full list see Facebook’s Pages, Groups and Events Policies.Trade lotteries (NT) | 2021 8
National games of chance
This fact sheet focuses on the laws in the Northern Territory, but it’s important to remember that each state
and territory has its own laws relating to lotteries and games of chance, and its own regulatory bodies with
responsibility for administering those laws.
If you plan to conduct a game of chance where entrants can enter from different states or territories (for
example, an online lottery), you will need to conduct it in accordance with the relevant laws for each state
and territory.
Note
Different states and territories have different laws. You may need to get more than one
permit if the trade promotion will be in one or more states or territories.
What if I am conducting a lottery outside of the Northern Territory, but
I want to sell tickets online?
A lottery conducted outside of the Northern Territory is a ‘foreign lottery’. If you want to sell
tickets to residents in the Northern Territory, you will need to obtain permission from the
Minister and comply with any conditions set by the Minister (see above for more
information about foreign lotteries).
You will also need to apply to the Minister for permission to sell tickets for the lottery online
and consider if you need to get any permits in other states and territories.Trade lotteries (NT) | 2021 9
Trade lotteries checklist
The following is an initial checklist when contemplating conducting a trade lottery in the Northern Territory.
It’s not an exhaustive list, but can be used by a not-for-profit organisation as a guide to the key
considerations when conducting a trade lottery.
Checklist
Will the entry for the proposed game be free and is the game for the purpose of promoting a
product or business in the Northern Territory? (ie. is it a trade lottery?)
Is the proposed game for the purpose of raising funds for a charitable cause? (in which case
the game may be a raffle, minor lottery or major lottery rather than a trade lottery)
What is the total value of the prizes available and is a permit required?
Has the organisation conducting the proposed game applied to become an approved
association (if required)?
Will the proposed game be conducted online? If so, will the organisation conducting the
proposed game need to apply for approval from the Director-General of Licensing?
Is the organisation conducting the proposed game in a state or territory other than the
Northern Territory? If so, has the organisation applied to the Director-General of Licensing
to conduct a foreign lottery? Is the organisation compliant with the laws of the state or
territory the game will be conducted in?
Will the game be conducted inside the Northern Territory and in other states and territories?
Gaming laws of all states and territories may apply if anyone in Australia can participate.Trade lotteries (NT) | 2021 10
Resources
Not-for-profit Law resources
The Not-for-profit Law website has further resources on the following topics:
► Raffles and minor gaming
This page provides information on how to conduct raffles and other minor gaming activities across
Australia.
► Fundraising
This section features resources to help not-for-profit organisations navigate Australia’s complex
fundraising laws.
► Events
There are many legal issues to consider when holding events. This page provides fact sheets on
different kinds of events.
► Communications and advertising
This section of the Information Hub provides information on advertising, campaigns or protests,
intellectual property, setting up and managing a website and social media.
► Tax
Visit the Tax section for resources on Deductible Gift Recipient Endorsement, Fringe Benefits
Concessions, Goods and Services Tax, income tax exemptions and state tax laws.
Licensing NT
Licensing NT has many resources on community gaming:
► About community gaming in the NT
► Conditions on lotteries, raffles and games
► Apply to run a minor or major lottery
► Apply to run a trade lottery
Other relevant resources
► Australian Charities and Not-for-profits Commission (ACNC): information regarding
fundraising for charities
Charity fundraising is something that people regularly raise concerns with the ACNC. The information
provided on the ACNC’s website provides some useful general considerations for charities to keep in
mind when raising funds for their charitable cause.
Legislation
► Gaming Control Act 1993 (NT)
► Gaming Control (Community Gaming) Regulations 2006 (NT)You can also read
