I am looking at starting up an online competition. Can someone please tell me if there is a legal obligation and do I need to have permission first? My competition site will put people in for a chance to win $50,000.00 (US) and I am just making sure that I dont need to have approval or anything. I guess Im looking for some type of watchdog.... Please help Thanks
It would depend on where you are located (both as an individual and a business). Some states/countries may require you to get a permit for this sort of thing. It would also depend on how you word it. Another big issue would be the requirements for entering this competition. For example, any requirement that represents some real world value (money, etc...) can take this from the competition realm to the gambling realm. Also, what type of competition is it? If it is a random chance type deal then you have to stay on the right side of lottery/gambling laws. If it is an actual competition (such as a race or sports event) then there is a higher chance that what you want to do is legal. This is definitely the type of thing you should discuss with a lawyer.
Thanks for that. The competition would be based around the "Luck" category. I am located in Australia but would be looking at a world wide comp. It's not quite gambling, as the "buyer" is actually getting something for their money rather than just a chance... but it's not like a sport or race as mentioned above. I will be speaking to a lawyer, I just thought there maybe someone that has already gone through it all before. Cheers
honesty... it's a must, but my users cant just take my word for it. I'd actually be looking to have a watchdog with me to ensure my users that it is the real deal.