Tag Archives: what is a skill-based competition

Permits needed for skill-based competitions

A common question is whether permits are needed for skill-based competitions. The simple answer is no.

When determining whether or not a competition is based on skill it is important to consider if there are any elements of chance involved in the determination of winners.

Chance-based competitions include:

1) Competitions where winners are drawn;
2) Competitions where winners are determined instant (and determined randomly);
3) Scratch and Win type competitions; and
4) Competitions where the prize is dependent on the number of entries or any other factor outside of the control of entrants.

There are some competitions which include elements of skill and chance. These competitions will still need permits. For example, in the first round of a competition entrants must answer a question which is then judged, in the final round a winner is drawn- this is a chance-based competition.

Any competition that is chance-based requires permits (from at least NSW if conducted on a national basis).

Voting competitions do not require permits so long as there are no elements of chance involved. i.e. if you conduct a voting competition, how will you determine the winner if two or more entrants have the same number of votes? If you conduct a draw, then permits would be required.