How to Legally Charge a Fee for a Board Game Competition in New Zealand

Question from Atlantis, How to Legally Charge a Fee for a Board Game Competition in New Zealand

Answer from AI:

When planning to host a competition for a board game you’ve created, incorporating a registration or signup fee can be a strategic move to ensure that participants are genuinely interested and committed. However, it’s crucial to structure this fee in a way that aligns with New Zealand’s legal framework, particularly to ensure it’s not classified as gambling. Here’s a general guide on how to proceed, keeping in mind the importance of consulting with a legal professional for advice tailored to your specific situation.

Understanding the Legal Landscape

In New Zealand, gambling activities are regulated by the Gambling Act 2003. This legislation defines gambling and outlines what constitutes legal and illegal gambling activities. To ensure your board game competition doesn’t fall under the category of gambling, it’s essential to understand these definitions and regulations.

Key Considerations

• Definition of Gambling: The Gambling Act 2003 defines gambling as paying or staking something of value on the outcome of a game, which is determined by chance or a mix of chance and skill. Competitions based purely on skill are generally not considered gambling.
• Prize Competitions: Your board game competition might be classified under “prize competitions,” which are allowed as long as they do not involve an element of chance in determining the winner.
• Registration Fee: Charging a registration or signup fee is legal, but the competition must be skill-based, and the outcome should not be determined by chance to avoid being classified as gambling.

Steps to Legally Charge a Fee

To ensure your competition is on the right side of the law, consider the following steps:

1. Clarify the Basis of Competition: Ensure the competition is based purely on skill. This means the winner should be determined by their proficiency in the game, not by random chance.
2. Transparent Rules: Clearly outline the rules of the competition, including how winners are determined, to demonstrate that it’s based on skill.
3. Set a Reasonable Fee: The registration fee should reflect the costs of organizing the competition or the value of the prizes, rather than being a profit-making mechanism.
4. Documentation: Keep detailed records of the competition’s structure, the fees charged, and how the fees are used. This documentation can be crucial if your competition’s legality is ever questioned.
5. Consult a Legal Professional: Before finalizing your plans, consult with a lawyer who specializes in gaming and competition law in New Zealand to ensure compliance with all legal requirements.

Additional Resources

For more detailed information on the legalities of hosting a competition in New Zealand, consider the following resources:

• The Gambling Act 2003 provides comprehensive details on what constitutes gambling and the exceptions.
• The Department of Internal Affairs offers guidance on gambling laws and can provide advice on whether your competition might be considered gambling.

Important Note: This information serves as a general guide and should not be taken as specific legal advice. The legal landscape can vary based on the specifics of your competition, and laws and regulations are subject to change. Always consult with a legal professional to ensure your competition complies with current New Zealand laws.

By carefully planning your competition and ensuring it aligns with New Zealand’s legal requirements, you can charge a registration or signup fee without it being classified as gambling. Remember, the key is to emphasize the skill aspect of your board game and to be transparent and fair in the competition’s organization.