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Major sporting codes often attract tipping competitions (e.g. AFL footy tipping) that allow entrants to pick the winning team/s in each week of a sporting season to earn points if successful.
A footy (sports) tipping competition does not require our approval as it only involves an element of chance (unlike a lottery or raffle which involve entirely chance) with some level of skill and knowledge to select a winning team.
A sports tipping competition that involves an element of chance can only be conducted where:
This means that the organiser of the tipping competition cannot take money out of the prize pool as expenses.
A sports tipping competition requires our approval when:
A sports tipping competition is considered illegal when:
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.
Where the tipping competition is conducted as a trade promotion lottery, the trade or business running the lottery must provide the prizes.
The most common method is to award prizes to the three entrants who have selected the most winners over the season.
Weekly prizes can be also be awarded for tipping all winners in the round.
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.
There are no set guidelines for how a workplace tipping competition should be conducted, and it is up to the person organising the competition to develop their own rules.
A sports tipping competition that involves an element of chance may be run as a trade promotion lottery to promote a genuine trade or business. Entrants must not be charged to participate.
A sports tipping competition conducted that is not promoting of a trade or business and no fee is charged for entrants to participate is considered a gratuitous lottery.
Should you consider running a tipping competition on a commercial basis (i.e. if you are intending to conduct it to make money for yourself, your business or to raise funds for a community or charitable organisation from the competition), you are advised to seek your own independent legal advice.
In addition, if you are intending to run your commercial competition using the internet, text message, MMS, or other interactive technology you are advised to seek your own independent legal advice about whether this activity is allowed under Commonwealth legislation, in particular the Interactive Gambling Act 2001.
If your proposal is permitted under Commonwealth legislation, you should contact us.
