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Whilst every care has been taken in the preparation of this document we do not warrant its accuracy, and you should take any necessary steps to ensure that any tipping competition that you run is within the law.
What is a tipping competition?
If entry fees are charged and if the total prize pool is less than $1,000 and all fees are returned as prizes then no permit is required, otherwise it constitutes gaming and it is illegal.
If entry is free, footy tipping competitions may be regarded as trade promotion lotteries depending on your rules -
"A competition in which the winners are determined by the skill of the entrant is
considered to be a game of skill as the winners are determined by a panel of judges and there is no element of chance involved. A skill-based competition is not considered to be a trade promotion lottery as defined in the Lottery and Gaming Act, 1936.
However, in some instances, a competition may appear to be a skill-based competition (ie a tipping competition) but if there is more than one winner, the promoter allows for the conduct of a draw to allocate the prize. In this situation, it is considered that the competition is a trade promotion lottery as there is a possibility that the winner will be determined by an element of chance."
With the above in mind, we strongly recommend that you keep your tipping competition free of any 'elements of chance'. To find out how this can easily be done, please give us a call to discuss.
The information below therefore applies to trade promotion lotteries.
Do I need a Licence or Permit to Conduct a Tipping Competition?
A license is required where if the total value of all prizes in the promotion exceeds $500.
An application must be submitted not more than 4 months or less than 14 days prior to the date of the commencement of the lottery.
The licence can only be issued for 12 months.
Vary - see www.cbs.sa.gov.au/assets/files/Lottery_fees.pdf
Is there a maximum amount payable by participants?
Entry must be free. The cost of entry by telephone cannot exceed 50 cents or the cost of ordinary postage if entry is by post.
- all tobacco products
- firearms or ammunition
- if the prize includes a trip, then a travel form must be completed.
Delivery of Prizes
If the prize is not delivered to the winner at the time of the draw, the winner must be advised in writing of the prize and the particulars of how the prize is to be delivered or collected within 14 days of the draw.
Locating Prize Winners
The winner of a prize has three months from the date of a draw in which to claim their prize. If a prize remains unclaimed after this period, the Office must be notified and direction will be given.
The name and address of each winner of a prize valued at over $100 must be published in a newspaper or magazine within 30 days of the draw, unless the winner has requested their details not be published.
What must the rules of the competition provide?
- the method by which a participant can enter
- the starting and closing dates of the competition
- details of the nature and number of prizes and the individual prize values
- the place, time and date of the determination of results
- the name of the newspaper in which the names and addresses of winners are to be published, and the date of publication
- an indication of who the trader is, and the trader’s address.
Records to be kept
Records relating to the promotion must be maintained for 3 months after the end of the promotion.
There is a range of penalties for conducting a Trade Promotion contrary to the requirements.
South Australia’s Office of Consumer & Business Affairs
(08) 8226 8512
GPO Box 2169
Adelaide SA 5001