The Hopscotch Bar in Braddon has been granted a permit for its "Tranny Bingo" shows after the events were deemed as falling under gaming laws, but the law looks set to change.
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The government is considering scrapping the need for a permit for "low-risk" lotteries.
The change might also allow school raffles and similar lotteries that have prizes worth less than a certain threshold to be run without a permit.
The bar ran into trouble with its transvestite-led shows which include a bingo game, prompting Chief Minister Andrew Barr to seek advice on how to ease the way for such events.
Gambling and Racing Commission chief executive Greg Jones said this week the government was looking at amendments that would allow the commission more flexibility for "low-risk lotteries".
One option was to set a prize threshold of, say, $500, below which people wouldn't need a permit, he said.
Currently, events such as housie and bingo, raffles, trade promotions and calcuttas (in horse racing) fall under the definition of lotteries and require permits.
Games of skill, where there is no element of chance involved, are exempt. Games of skill are broadly defined and include estimating a number or weight, or "stating reasons for liking something", or competitions judged by experts.
Other exemptions cover prizes in the form of rebates, discounts and refunds, or "private lotteries" which are restricted to people who work or live in one place or below to an association.
Mr Jones said Hopscotch had been granted a 12-month permit for Tranny Bingo, without the need for staff training in problem gambling, harm minimisation measures or other requirements.
