September 22, 2026
Sanicki Lawyers
22 September 2026
Commercial, Trade Promotions
The Commonwealth Parliament passed the Interactive Gambling Amendment (Gambling Reform) Bill 2026 (Cth) on 19 August 2026, introducing reforms aimed at restricting gambling advertising, the activities of online gambling providers and trade promotions (the Bill). This Bill is set to take effect, amending the Interactive Gambling Act 2001 (the Act) on 1 January 2027.
The Bill follows the 2023 parliamentary inquiry into online gambling, which identified concerns regarding gambling-related harm and the prevalence of gambling advertising in Australia. In response, the Bill introduces measures aimed at restricting gambling advertising and reducing its visibility across a range of platforms.
The Bill also responds to the growing use of trade promotions as revenue-generating business models rather than an incidental marketing tool for businesses. In particular, the increasing popularity of subscription-based trade promotion models, like LMCT+, has prompted regulators to examine the distinction between legitimate trade promotions and gambling services more closely. Read more about LMCT+ and their trade promotion models here.
The Bill introduces a number of significant reforms, including:
Trade promotions are games of chance or skill commonly used to promote a business, boost revenue, enhance brand profile or endorse products. Although trade promotions can vary in form, entry must technically be free. However, organisers can offer goods or services at retail value, subsequently granting customers entry into the trade promotion. Historically, trade promotions have been regulated under a combination of state and territory legislative frameworks, with permit requirements applying in some jurisdictions. The Act has also operated as a federal overlay for certain online promotions.
Schedule 4 of the Bill amends the definition of a ‘trade promotion gambling service’ under Section 8BB of the Act.
Under the amended definition, a promotion will only qualify as a ‘trade promotion gambling service’ where:
The fourth requirement is particularly significant. The amendments do not prevent businesses from running trade promotions on a recurring basis. Rather, they target participation that is provided on an ongoing or recurring basis as part of a system of continuous or repeated draws, which is a feature commonly associated with subscription-based and membership-style promotion models.
Importantly, compliance with state or territory trade promotion regimes will not necessarily mean a promotion qualifies as a trade promotion gambling service under the Act.
From 1 January 2027, every trade promotion will need to fit within the amended definition of a “trade promotion gambling service” in Section 8BB of the Act. Having a state or territory permit won’t be enough on its own. If a promotion runs under an existing permit issued for promoting trade, but doesn’t actually meet that definition, it will be an offence under the Act.
This represents a significant shift from the previous position, under which compliance with applicable state and territory trade promotion requirements would generally have permitted a promotion to proceed.
The amendments also grant the Minister the power to determine whether a particular service qualifies as a trade promotion gambling service, by introducing an additional layer of regulatory oversight beyond the statutory criteria.
Compliance with the amended framework will be monitored and enforced by the Australian Communications and Media Authority, with significant civil penalties applying for non-compliance.
For businesses conducting, or wanting to conduct trade promotions, it is imperative to review existing and proposed promotions to ensure they satisfy the amended definition of a ‘trade promotion gambling service’ under the Act, ahead of the changes commencing 1 January 2027.
Given the expanded regulatory oversight and significant penalties for non-compliance, businesses should carefully assess whether their promotions continue to satisfy the federal exemption.
At Sanicki Lawyers, we pride ourselves on assisting our clients with navigating the legal framework around trade promotions. Our Trade Promotions team can provide you with practical and compliant advice on current or future trade promotions in line with the changes, as set out in the Bill.
If you require assistance with ensuring your trade promotion is compliant, contact Tugce Ayata via email: [email protected] or on (03) 9510 9888.
