Published on by The ROOPON Team
Running a giveaway is one of the highest-leverage marketing tactics available to Shopify merchants — but in Australia, there are specific legal requirements that determine whether your promotion is a legitimate trade promotion or an unlicensed lottery. Getting this wrong can result in fines, complaints to state gaming authorities, or simply an unenforceable promotion that damages your brand.
This guide explains exactly what makes a giveaway legal in Australia, what permits you may need, and the fastest path to running a compliant promotion through your Shopify store.
The Fundamental Rule: Trade Promotion vs Lottery
Australian law draws a sharp line between two types of prize promotions:
Trade Promotion ✓
A genuine product or service is sold. Giveaway entry inclusions are a free promotional benefit bundled with that purchase. The purchase must have real commercial value — the customer is buying something worthwhile, not just a member benefit.
Example: Customer buys ROOPON access (discounts + rewards). Promotional giveaway entry inclusions are bundled under the campaign terms.
Unlicensed Lottery ✗
Participants pay purely for a member benefit, with no genuine product or service of real value provided. This requires gaming authority permits in most states — and without one, it is illegal regardless of intent.
Example: Selling “giveaway entries” as a product on Shopify with no underlying platform or service value.
Important for Shopify merchants:Simply listing “giveaway entries” as a product and charging for them — without an underlying product of genuine value — is not a trade promotion. It is an unlicensed lottery and is illegal without the required permits.
State Permit Requirements
Even for legitimate trade promotions, some states require a permit when the prize value exceeds a threshold. Current general requirements (always verify with the relevant authority):
| State | Permit? | Threshold | Authority |
|---|---|---|---|
| NSW | Yes | > $10,000 total prize | Liquor & Gaming NSW |
| ACT | Yes | > $3,000 total prize | ACT Gambling & Racing Commission |
| VIC | Notify only | > $5,000 total prize | VGCCC |
| QLD | Generally no | > $10,000 — register | OLGR Queensland |
| SA | Yes | > $5,000 total prize | Consumer & Business Services SA |
| WA | No | Comply with Trading (Allowances) Act | DLGSC WA |
| TAS | Yes | Any value | Tasmanian Gaming Commission |
| NT | Yes | Any value | NT Racing Commission |
* General reference only — requirements change. Verify with the relevant authority before running any promotion.
Legal Compliance Checklist for Shopify Merchants
A genuine product or service is sold — not just a member benefit
Full terms and conditions are published before the promotion opens
Winner selection method is clearly stated (random draw or skill)
Draw date and prize details are specified in advance
Winners are announced publicly within the stated timeframe
State permits are obtained where required (NSW, ACT, SA, TAS, NT)
No misleading claims are made about prize value, odds, or entry mechanics
The terms say whether entry is paid or free
What Not to Do
Charging participants purely for a member benefit, with no genuine product or service
Running a raffle without the required gaming authority permit
Making misleading claims (e.g., "guaranteed to win", fabricated odds)
Not publishing terms and conditions before the promotion starts
Failing to announce winners publicly as promised
Your Options as a Shopify Merchant
| Option | Effort | Compliance | Cost | Best For |
|---|---|---|---|---|
| Build it yourself | High | Your responsibility | Legal fees + dev time | Enterprise brands with legal teams |
| Social media giveaway (free entry) | Medium | Your responsibility | Time + prize cost | Awareness campaigns, brand pages |
| ROOPON Giveaways app (Shopify)Recommended | Low | ROOPON handles campaign T&Cs, draws, winners | Revenue share on sales | Shopify merchants wanting a structured, compliant, revenue-generating giveaway |
ROOPON Giveaways for Shopify
When you install and sync the app, ROOPON access products appear in your Shopify catalogue. Customers purchase genuine ROOPON access — a platform providing partner discounts and rewards — and promotional giveaway entry inclusions come bundled under the active campaign terms.
This means:
A genuine product is sold — ROOPON access with real platform value
Giveaway entry inclusions are promotional benefits, not products sold separately
ROOPON publishes and manages the campaign terms and conditions
ROOPON runs the draws and announces winners publicly
You earn revenue share on qualifying sales — no additional cost to you
Your Shopify checkout handles payment normally — no custom integration
Ready to set up on Shopify?
The merchant start page walks you through account creation, billing, API scopes, and your first product sync — step by step.
What You Need to Prepare
A ROOPON merchant account
Create at roopon.com — separate from your personal or customer account
Shopify store access
You need admin access to install the ROOPON Giveaways app and grant scopes
ABN
Required to set up billing and revenue share payouts
Bank account details
For revenue share payouts via your ROOPON affiliate/merchant profile
Product merchandising plan
Decide where you will surface ROOPON products: collection pages, cart upsells, PDP
