Major sporting codes often attract tipping competitions (e.g. AFL footy tipping). These allow entrants to pick the winning teams in each round of a sporting season to earn points, if successful.
A footy (sports) tipping competition does not require our approval. It involves an element of chance with some level of skill and knowledge to select a winning team. This differs from a lottery or raffle, which is entirely chance.
A sports tipping competition that involves an element of chance can only be conducted where all the money that has been collected is returned as prizes.
This means that the organiser of the tipping competition cannot take money out of the prize pool as expenses.
A sports tipping competition is considered illegal when the competition involves betting. This does not include a set fee or cost to enter the competition.
Betting would make the competition illegal if offered in Victoria unless a licenced wagering or sports betting operator, such as Tabcorp, conducted it.
Prize money
The value of the prizes can be determined by whoever is running the competition. Information about prizes as well as entry fee to the competition should be clearly explained to participants before they choose to enter.
Running a sports tipping competition as a trade promotion lottery
A sports tipping competition, that involves an element of chance, may be run as a trade promotion lottery(opens in a new window) to promote a genuine trade or business. Entrants must not be charged to participate. The conditions of a trade promotion lottery(opens in a new window) apply in this case.
Where the tipping competition is conducted as a trade promotion lottery(opens in a new window), the trade or business running the lottery must provide the prizes.
A sports tipping competition that does not promote a trade or business and does not charge a fee for entrants to participate, is considered a gratuitous lottery.
How to determine a winner
The most common method is to award prizes to the three entrants who have selected the most winners over the season.
Weekly prizes can also be awarded for tipping all the winners in the round.
Entry fee
If the competition is based on skill and knowledge, then it is up to the person running the competition to set the entry fee. Information about the entry fee should be clearly explained in the rules.
Workplace footy tipping competitions
There are no set guidelines for how a workplace tipping competition should be conducted. It is up to the person organising the competition to develop their own rules.
Commercial sports tipping
Are you planning on organising a commercial scale tipping competition using technology like the internet or text? Make sure you get legal advice to find out whether it's legal in Australia, under the Interactive Gambling Act 2001.
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