I’m Running A Competition – Do I Need A Permit?

There are two types of competitions a business can run:

1. A game of chance
2. A game of skill

What’s the difference?

A game of skill tends to require more effort from the entrants. Most of the time, people who enter games of skill need to create an original piece of work as their entry. 

An example of a game of skill is a competition which asks its entrants to answer a question in “25 words or less” or submit a unique piece of work like a photo or video.

On the other hand, the winner of a game of chance is based on pure luck. Entrants don’t need to demonstrate any skill in a game of chance.

Examples include entering your email address or tagging a friend in a facebook post, in exchange for an entry.