Can a prize promotion be run that is based on skill?
Yes, prize promotions based on skill are allowed; however, if the following conditions are fulfilled it will still be considered as gambling and regulated by the Gambling Act:
- the player agreed to pay cash or any other form of consideration to participate in order to receive a cash prize or something of value in the event of a certain outcome or a future contingent event;
- winning or losing depends exclusively or to a material degree upon an element of chance.
Accordingly, if the skill element and the element of chance cannot be separated, it is most likely that such activity will be considered as gambling activity under the Gambling Act.