Basic Information About Online Competitions in Australia

Posted on: 12th April 2014

This is a basic overview of the competition rules and regulations in Australia. It is important that you understand them to bring utmost success to your promotion and eventually, to the brand you are establishing and/or maintaining.

Different states in Australia provide varied terms of conditions when running mobile- or SMS-billed services and online competitions or lotteries are not exempted. Depending on the mechanics of the online competition, an organizer or promoter has to look at the specific rules and regulations of different states when it comes to permit application and other factors needed to run an online competition legally.

Games of Skill

If you are running any sort of online competition, you have to determine first if it would be classified as a game of skill. If that is the case, then most states would usually not require you to get a permit. A game of skill is wherein entrants have to submit something that shows their skill, knowledge, or expertise. This is the quite the opposite of a game of chance where there is a random element wherein the participant has no control over it.

A game of skill usually selects a specific number of qualified winners based on their answers or skills portrayed, as required by the competition. If there is no random element in the online competition, then there is no need to get a permit for that.

Games of Chance

If the online competition you are going to organize does not meet the criteria set above, it will be deemed as a game of chance. Many Australian states require promoters to get a permit for that.

South Australia, Victoria, Northern Territory

If the competition prize is less than $5,000 AUD, then it is considered as a ‘minor lottery’; therefore, a permit is not required. For further information see the following state websites: South Australia, Victoria, Northern Territory.

New South Wales, Australian Capital Territory (ACT)

Regardless of the prize value of the online competition, permits are needed if you are going to run a game of chance. For further information see the following state websites: New South Wales, ACT

Queensland, Tasmania, Western Australia

Online competitions in Queensland, Tasmania and Western Australia do not need permit regardless of the total prize pool value. For further information see the following state websites: Queensland, Tasmania, and Western Australia.

Other legal and regulatory requirements

When launching an online competition service in Australia, there are many requirements you have to follow in order to make it legal. These may include the rules and policies for mobile operators as well as payment options and subscription services. Although some requirements are quite detailed and comprehensive, following these can mean optimum success for your online competition.

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