NSW Competition Permits Have Changed as of July 1st 2020 & it’s Time to Celebrate

Game of chance is now fair game! 

Hooray, the permit rules have changed. This is truly cause for celebration.

As of 1 July 2020, you no longer need to obtain a licence to run a competition (or trade promotion) in NSW if your total prize pool is under $10,000 AUD.

Why is this huge news?

This was a legislation that was made in 1901 to promote competitions and you didn’t read that wrong, it was made in the previous century! That’s how old the law was.

In order to run a game of chance competition, you had to sell your soul and get the $80 licence, even when the prize was worth less than that. Getting the permits was also a little bit of a drawn-out (in some cases it could take up to 21 days) and manual process, but thankfully that’s all behind us now (at least for prizes valued less than $10,000). You also had to add in an awkward game of skill that compromised on your competition results and viral potential.

Now, regardless of what size business you are, you can run a competition that’s a game of chance (needing no skill, where a winner can be picked at random) or a game of skill (where you have to prove your abilities to be chosen a winner) without all the hassle.

What’s changed with NSW competition licences?

There are two new pieces of legislation, The Community Gaming Act 2018 and the Community Gaming Regulation 2020 came into effect on 1 July 2020.

With new licensing rules for competitions open to New South Wales you save time, money and a whole lot of stress.

NSW Fair Trading’s changes to legislations announcement key changes are as follows:

  • Replacing activity-based permits with duration-based authorities (1, 3 or 5 years)
  • Increasing thresholds to only require gaming activities with high total prize values to hold an authority
  • Removing the cap on ticket price for all permitted gaming activities
  • Introducing a less prescriptive “rules” scheme that allows operators to set their own conditions to gaming activities
  • Prescribing general fairness and accountability provisions that require operators to conduct gaming activities with integrity
  • Introduction of penalty infringement notice offences when the laws are not followed.

What do the new NSW licensing laws mean for your competition?

In the simplest terms this means that if you are running a competition it can be a game of chance competition without having to get a licence. If you are running a competition where the prize is worth more than $10,000 then you have licensing options that are cheaper and more flexible.

If you’re running a competition above $10,000 you need to just apply for the licence via NSW Fair Trading Trade Promotion authority.

In comparison to old competition fees of up to $2,400, the new fees are much more affordable. The new fees are duration-based ‘authority’, which allow businesses to run multiple competitions within a 1, 3 or 5 year period with an absolute maximum cost of $800 for 5 years.

Here’s the new pricing structure:

The new costs for ‘authority’ to run your competition in NSW if your prize is over $10,000 from NSW Fair Trading website.

So what are you waiting for?

Go run your game of chance competitions without a worry in the world!

Be sure to check out the rules for the other states in Australia, here’s a summary.

Victoria

  • You do not require a trade promotion permit for any Games of Skill or Game of Chance.

South Australia

  • Trade promotion permits are required for Games of Chance open to SA residents if the prize is valued at $5,000 or more.
  • You can find out more about SA trade promotion regulations and apply for a permit here.

Australian Capital Territory

  • Trade promotion permits are required for Games of Chance open to ACT residents if the prize is valued at $3,000 or more.
  • You can find out more about ACT trade promotion regulations and apply for a permit here.

Northern Territory

  • Trade promotion permits are required for Games of Chance open to NT residents if the prize is valued at $5,000 or more. If
  • You can find out more about NT trade promotion regulations and apply for a permit here.

Western Australia

  • You do not require a trade promotion permit for any Games of Skill or Games of Chance that comply with prescribed conditions.
  • You can find out more about these prescribed conditions here.

Tasmania

  • You do not require a trade promotion permit for any Games of Skill or Games of Chance that comply with prescribed conditions.
  • You can find out more about these prescribed conditions here.



Don't miss these stories: