A major goal of any business is to attract new customers and further engage existing ones. Offering people a chance to win something is the perfect way to achieve these goals!
Running a competition will help you:
- Attract visitors to your website or social media page.
- Promote a special offer, sponsor or products.
- Build a mailing list/newsletter/social following.
- Reward your user-base.
- Generate revenue for your website.
- Engage and connect with your audience.
- With free marketing: people like to share competitions to their friends.
- Obtain user generated content.
There are two different types of competitions you can choose to run:
- A Game of Chance: Winner is being randomly selected eg. a lottery or random draw
- A Game of Skill: Winner is selected based on the entry being judged
Game of Chance
It’s very important to run a fair and ethical competition and abide by the consumer law requirements, such as, ensuring that you actually give away the prize on offer; that the prize matches the description and value you have advertised; and that you are not running a competition where you can only win an entry into the competition.
Games of Chance often require Permits from State Authorities. This depends upon the state in which the competition is running, the value of the prize, and the form of competition. Each state of Australia has different regulations which are frequently changing so it’s important to consult with Ansible or check with state government websites for the latest advice.
The Australian Capital Territory, New South Wales, South Australia, and Northern Territory require permit applications to be lodged for promotions running in their particular state. Having said that, NT only requires an application to be lodged if the promotion is running solely in that state. If the promotion is open to residents of NSW or another state to enter, as well as NT residents, no application is required from NT.
ACT, NSW, and SA will all provide approval numbers which must be included in all promotional material. No on-air or print promotion of any competition can commence without approval numbers from all relevant states.
Queensland, Tasmania, Western Australia and Victoria do not require permit applications to be lodged for Games of Chance, however, each state has their own legislation which must be met.
Note that legislation requires entry into any Game of Chance be “free”. “Free” is seen as the cost of postage to enter via mail and PSMS and IVR entry charged at $0.55 per entry (or less if Mobile Entry mechanic is used).
Note also that there is legislation around displaying entry details and costs on screen and in print, so again it’s important to consult with Ansible or check with state government websites for the latest advice.
All of the above needs to be outlined in your Terms and Conditions for each Competition. Ansible’s Campaigns and Promotions team can guide you through drafting T&C’s or check with your state authority.
To ensure approvals are back from all states in time to meet pre-promotion dates 14 business days must be allowed. Application forms and Terms and Conditions will need to be submitted to each relevant state.
Games of Skill
A game of skill, as the title implies, requires skill to win and also requires a judging panel to determine the winner from all entries received. They often require an element of creativity which the judges can assess.
A Game of Skill does not require permit approvals from any state, but must be run fairly and with appropriate legal responsibilities in place.
Do note, if a competition has a requirement to answer a question (or similar) where there is a level of skill involved to provide the correct answer, then all “correct” entries are included in a random draw, this would become a Game of Chance and permit approvals would be required from the relevant states.
Terms and Conditions are required for Games of Skill. Ansible can draft terms and conditions for both Games of Chance and Games of Skill for the client’s specific legal/liability review.
Any questions about Games of Chance and Games of Skill can be directed to Ansible for advice.
For more detailed information please contact Ansible.
Hayley von Giese – firstname.lastname@example.org – 02 8373 2241
Ruth Conry – email@example.com – 08 7223 6550
Stacy Owens – firstname.lastname@example.org – 08 7223 6550
Coming Soon – Everything you need to know about… Entry Mechanics…Writing Great Terms and Conditions.