Competition permits are generally required if the winners of your competition are determined by chance. Typically this means the winners are either drawn or win instantly by, for example, scratching a game card.
Competition permits are not required if your winners are determined solely by skill and by qualified judges. Examples of skill-based competitions include those which typically ask a question to be answered in 25 words or less.
There are some common misconceptions about the need for competition permits (Also know as lottery permits). Here are a list of the top 5 mistakes people make in relation to the need for competition permits:
1. I am running a mix skill and chance-based competition therefore I do not need permits— Wrong! You may need permits if your competition involves any element of chance in the determination of winners.
2. I am located in QLD but running a national chance-based competition therefore I do not need permits— Wrong! If you have a national competition you will need permits from at least NSW and the ACT.
3. Everyone else runs competitions without permits, so there is no chance I will get in trouble – Wrong! It is an offense to run a competition without competition permits where required. There are serious, and we mean serious, potential penalties.
4. Permits are required from QLD– Wrong! You will need to comply with the QLD guidelines but do not need to apply for a permit in QLD.
5. When I am waiting for permits I can just put ‘Permits pending’ or TBC on advertising material– Wrong! You will need to display the actual permit numbers, as well as various other information, on your advertising.
For more information about the need for competition or lottery permits, send us an email to email@example.com.