Government shuts down giveaway clubs operating as illegal lotteries
Federal reforms close gaps letting subscription services run high-value prize draws without lottery licensing.
The Albanese government passed reforms to end a loophole. Giveaway businesses had been running as trade promotions and skipping strict lottery rules.
LMCT+ was recently fined for over 10 times running an illegal lottery in South Australia. Horsey People is refunding some customers who entered draws.
State laws had excluded these customers. RS Rewards has been barred from operating in one state.
The new rules now apply to subscription businesses. They offer repeated chances to win big prizes.
They must now get proper gambling or lottery licenses. This includes formal approval, background checks and compliance oversight.
Legitimate trade promotions must tie prizes to an actual product or service. They cannot make the prize the main reason people sign up.
The changes protect consumers. They also help state-licensed lotteries and charities compete fairly.
- Over 10 breaches
- LMCT+ fines
- RS Rewards
- Operator barred
- August
- Reformed month
Why it mattersAustralians who entered these draws believed they were following the rules. They could have lost money unfairly. The reforms protect consumers. They also stop operators from exploiting gaps in the rules.
AustraliaAustralians may see giveaway clubs fold or reshape their offers. State lotteries and charities should benefit from fairer competition.
✓ Claims checked against the source and corrected before publish. checked 11 d ago
