Things to Consider When Running An Online Competition in Australia

Posted on: 2nd June 2014

If you want to run an online competition in Australia, you really have to educate yourself about the differences on permit requirements for different states. Since each state operate independently and implement rules and regulations that only apply to them, you have to be careful in finding out which one you should follow.

If you search the Web, you’d find a handful of government sites that talk about running trade promotions and/or online competitions in Australia. We have compiled a handy guide to make it easier for you to know the essentials of application permit and running a successful online competition.

Online Competition/Trade Promotions

Most Australia States deem that online competitions representing a particular business, company, or brand are classified as trade promotions. Usually, a company advertiser, a product promoter or a marketing manager uses such online competitions to promoter their merchandise or strengthen their brand status in the market. Before running such an online competition, they should assess the different aspects of the competition because it can determine whether a permit is required or not. Needless to say, there are competitions aimed for charitable purposes and these may be subject to a different set of rules and regulations. Same thing will apply to club competitions and raffles.

Game of Skill vs. Game of Chance

Most states do not require trade permits for games of skill – wherein the entrant has to answer a question, submit something, or showcase a talent or skill in order to win. Games of skill have a judge or judges that would put all qualified entrants through a selection process until they determine who is the most deserving of the grand prize.

On the other hand, a trade permit is required for all games of chance – and the rules and regulations depend on the state where it would be run. Games of chance take into account the chance or probability of the entrant in order to win a specific prize. One example would be the lottery.

Trade Promotion Permit in Victoria:

  • Trade permits are not required for promoters running games of skill.
  • If the online promotion has a total prize value of more than $5,000, a permit is required to run it.
  • For more information, visit the VCGLR website.

Trade Promotion Permit in NSW:

  • Trade permits are not required for promoters running games of skill.
  • Games of chance must have a trade permit regardless of the total prize pool value.

Trade Promotion Permit in South Australia:

  • Under the Lottery and Gaming Act 1936, games of skill are not deemed as a lottery.
  • If the total prize pool value is higher than $5,000, then a permit is required for all online promotions that have an element of chance in it.
  • For more information, visit the SA OLGC website.

Trade Promotion Permit in the ACT:

  • Trade permits are not required for promoters running games of skill.
  • If the online promotion has an element of chance, the contest organizer must get a trade permit for it regardless of its total prize pool value.
  • For more information, visit the ACT Gambling and Racing Commission website.

Trade Promotion Permit in the NT:

  • Trade permits are not required for promoters running games of skill.
  • If the total prize pool value is higher than $5,000, then a permit is required for all online promotions that have an element of chance in it.
  • For more information, visit the NT Department of Justice website.

For Western Australia, Tasmania, and Queensland, trade promotion permits are not required. Nevertheless, the contest organizer must look at the complete set of rules and regulations because certain conditions might apply for a particular state and vice versa. It is essential to contact the respective government bodies before running an online competition to avoid any legal problems.

 

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