The Rules for Running Online Competitions

The Rules for Running Online Competitions

Running online competitions? Make sure you have the right permits in place and follow the gaming regulations for your state.

We all know that running online competitions (for example on Facebook or drawing a winner from a prize draw) can be a great way to promote your business. But did you know that there are regulations around running online competitions and there are offences under Australian Consumer Law if you don’t follow them?

First check with the gaming regulations for your state

Competitions are called ‘Trade Promotions’ in the legal world. Regulations for Trade Promotions vary from state to state in Australia so it’s important to check with the relevant gaming body that regulates competitions, or us, before publishing your Trade Promotion or online competitions…

online terms

Games of skill vs game of chance

Australia wide, gaming regulators distinguish between:

  1. Game of skill – where an element of skill is required to win eg ‘tell us in 25 words or less’ or ‘post a photograph’; and
  2. Games of chance – like a lottery where someone wins purely by chance.

Permits are usually required for games of chance.

Contact Us

  • By submitting this form, your information will be dealt with in accordance with our Privacy Policy. You agree to receive emails from us, however you can unsubscribe at any stage.
  • This field is for validation purposes and should be left unchanged.

The general rule for online competitions is that games of skill do not require a permit, irrespective of the jurisdiction within which the competition is run. You need to make sure you comply with various items to make sure that it is truly a game of skill though.

What are your obligations?

Special terms and conditions of the award or prize ALWAYS need to be disclosed.

You MUST NOT disguise the cost of a free gift or prize by including it in the selling price of the advertised goods.

You MUST supply prizes the same as those offered in the Trade Promotion.

We recommend that you seek legal advice and get clear, tailored terms and conditions that comply with Australian Consumer Laws for online competitions and Trade Promotions.

 

(c) Progressive Legal Pty Ltd – All legal rights reserved (2019)

Contact Us

  • By submitting this form, your information will be dealt with in accordance with our Privacy Policy. You agree to receive emails from us, however you can unsubscribe at any stage.
  • This field is for validation purposes and should be left unchanged.

Related Articles