From time to time we are asked what the consequences would be if a client ran a chance-based competition without a competition permit.
Wanting to unneccesary avoid red tape
Understandably people don’t like red tape and don’t want to wait for a trade promotion permit to be issued. Unfortunately, like many things in life you can’t avoid the requirement to obtain competition permits if you need them.
So when and where do you need a competition permit
The two main categories of competitions are those based on skill and those based on chance. Competitions can involve both elements of skill and chance.
Competition permits are required in the following states for chance-based competitions (or competitions with elements of chance and skill):
ACT: You will need a competition permit from the ACT no matter what the prize pool is -if the competition is a game of chance. Note that there are some exceptions from requirement to hold a competition permit in the ACT, Give us a call to find out.
NSW: Again, no matter what the prize pool is if the competition is a game of chance. NSW issue permits very quickly and are inexpensive.If your prize pool (total given away under the competition) is over $5,000 then you will need a competition permit from VIC. VIC: If your prize pool (total given away under the competition) is over $5,000 then you will need a competition permit from VIC. The cost of a permit in VIC is not tied to the value of all prizes unlike in other states.You will need a National Police Certificate to obtain a permit from VIC
SA: If your prize pool (total given away under the competition) is over $5,000 or involves instant- win then you will need a competition permit from SA
WA: Under the WA regulations you are automatically issued a competition permit so long as you comply with the permit conditions. You will need to email a copy of the competition terms and conditions to the regulator and may need approval if you subsequently amend the competition terms and conditions.
NT: You will only need a competition permit from the NT if you don’t have a permit for that same competition from another state.
Elsewhere: You will not need a competition permit from any other Australian state or territory. States such as Queensland have guidelines which you will need to comply with- they are classified as Type 4 promotions.
Should I both obtaining a competition permit?
With so many sets of regulations to consider it is no wonder that many want to avoid the need for competition permits altogether. Unfortunately, if you fail to obtain competition permits when they are required you risk regulatory investigations/ prosecution and penalties- in short you will be breaching your legal obligation. Although the likelihood of getting caught may be low, the consequences could be very substantial.