Interactive Gambling Reform: Changes to Rules Governing Trade Promotions

Trade promotions are defined as a free-to-enter competition that is conducted by businesses to promote their own goods or services, encourage sales and to gain exposure for their brand. Trade promotions can include games of chance where random winners are picked, games of skill where a winner is determined through a skill-based assessment, or gifts provided with purchases.

While trade promotions are typically designed to create excitement and incentivise consumer participation, there are specific rules and regulations set forth by the Australian Government within the Interactive Gambling Act 2001 (the Act), as well as other state and territory legislation. These are in place to ensure transparency and fairness, as well as consumer protection.

The new Gambling Reform Bill aims to amend the Act, to split trade promotions into two distinct categories:

1. Standard retail promotions which will face minimal disruption; and
2. Subscription based models which will face increased regulation and, in some instances, will be banned.

Section 8BB of the Act defines ‘trade promotion gambling services’ and Section 5(3)(bb) of the Act provides that ‘trade promotion gambling services’ are exempt and are not prohibited interactive gambling services.

The primary regulatory mechanism of the Bill is to tighten the ‘trade promotion gambling services’ exemption under Section 5(3)(bb). It is specifically designed to eliminate businesses that use retail prize draws as a direct revenue generator rather than an incidental marketing tool.

Under the proposed amendments, a trade promotion will no longer be defined as a ‘trade promotion gambling service’, for the purposes of the Section 5(3)(bb) exemption, if it satisfies all of the following criteria:

1. Customers are required to pay a membership, subscription or other fee;
2. That fee provides entry (or ongoing entries) into one or more draws or games; and
3. The payment is not solely for the provider’s own goods or services but is effectively for access to the gambling service itself.

Any trade promotion satisfying the above criteria would be classified as an interactive gambling service under the Act. This would mean they would become prohibited if the proposed Bill is adopted.

There are other exemptions currently available under the Act, such as those for organisations that obtain a licence from the State or Territory in which they operate. In practice, these are difficult to obtain and are typically granted to major lottery companies and wagering service providers, such as bookmakers.

The above changes are aimed at ensuring businesses do not offer ‘lottery-style’ products under the guise of trade promotions. Fortunately, there are actions businesses can take to ensure a trade promotion is not excluded from the new definition.

These include ensuring that customers do not pay membership or other additional fees in order to enter a trade promotion. This will clarify that the trade promotion is not designed to directly raise revenue from a lottery-type service.

If customers are paying to enter a trade promotion, it is important to ensure any payments are not solely in exchange for entry into the promotion. Any payment made must be for the provider’s own goods or services, meaning customers receive something of value outside of entry into the trade promotion.

Any additional fees that do not give the customer a tangible benefit outside of entry into a trade promotion will likely be viewed as payment for access to a gambling service itself, as per Criteria 3, and therefore be prohibited under the amended legislation if the Bill passes.

The above changes have not yet been implemented and still need to pass through Parliament. The consultation process for the new Bill has concluded and the legislation is expected to be tabled in the next parliamentary session, which commences on 22 June 2026.

While it is likely that the majority of the reforms will become law, it is important to note that they are currently in draft form and may change. These reforms are anticipated to commence on 1 January 2027.

We therefore recommend reviewing any current and future trade promotions now to ensure compliance with the proposed changes.

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 your current or future trade promotions in line with the proposed changes, as set out in the Gambling Reform Bill.

If you require assistance with ensuring your trade promotion is compliant, contact Tuch Ayata via email: tugce@sanickilawyers.com.au or contact our office (03) 9510 9888 for a free initial consultation.