Game Of Skill Competition Terms And Conditions In New Zealand

Running a game of skill competition can be a brilliant way to build brand awareness, grow your email list, drive sales, and reward your customers. From “best photo wins” to “answer this question” to “create a slogan”, skill-based promotions are popular because they feel simpler than games of chance.

But don’t get caught out: even if your competition is genuinely based on skill, you still need clear, legally sensible rules. In practice, your terms and conditions do a lot of heavy lifting - they set expectations, reduce disputes, and help you comply with New Zealand law.

This guide walks you through the key points New Zealand businesses should consider when drafting game of skill competition terms and conditions, including when you might need a licence, what laws still apply, and what clauses matter most for small business owners.

What Counts As A “Game Of Skill” Competition?

In simple terms, a game of skill competition is one where winners are chosen based on skill, knowledge, creativity, or merit - not random chance. The defining factor is how you decide the winner.

Common examples include:

• Creative competitions (e.g. “design a logo”, “write a tagline”, “submit a recipe”, “make a video”).
• Judged competitions (e.g. “best photo wins” based on a judging panel’s scoring criteria).
• Knowledge-based competitions (e.g. answering a set of questions where the most correct answers or best explanation wins).
• Performance-based challenges (e.g. time-based challenges, leaderboards, measurable achievements).

On the other hand, if a winner is picked randomly (like a lucky draw), or the outcome is materially influenced by chance, you may be moving into “game of chance” territory - which can trigger different legal requirements.

Practical tip: A lot of disputes happen because a promotion is described as skill-based, but the selection method is vague (or looks random). Your terms should clearly explain the judging process so you can show it’s genuinely based on skill.

Do You Need A Permit Or Licence In New Zealand?

Whether you need a permit (or licence) depends on what you’re actually running - and sometimes how it’s structured (including whether people pay to enter, how winners are selected, and how the prize is funded).

As a general rule:

• True games of skill are typically not regulated as gambling because the outcome is decided by merit rather than chance.
• Games of chance (including many prize draws and raffles) can fall under the Gambling Act 2003 framework and may require licensing or need to fit within a category of permitted gambling (such as certain “sales promotion schemes”).

But here’s the catch: the “skill vs chance” line isn’t always as clear as people expect, especially if you:

• pick winners randomly from a pool of “eligible” entries,
• use a wheel/spin/random number generator to decide a winner,
• allow entries that don’t require any meaningful skill (e.g. “tell us in 10 words why you want to win” with no real criteria), or
• bundle entry with a purchase in a way that looks like “pay to play”.

Purchase-to-enter is particularly important to think through. In New Zealand, a “buy to enter” promotion that awards prizes by chance may be treated as a sales promotion scheme under the Gambling Act 2003, which comes with specific conditions (and it isn’t always as simple as “skill-based = no rules”). If you’re unsure, it’s worth getting advice early - it can be much cheaper to structure your promotion properly than to fix it after launch. You can also sanity-check your approach against common permit questions in Competitions: Do I Need A Permit?.

What Laws Still Apply To Game Of Skill Competitions?

Even if your promotion is clearly a game of skill (and not regulated like gambling), it’s still a business activity - so general commercial laws apply.

Here are the main legal areas to keep on your radar.

Fair Trading Act 1986 (Advertising And Misleading Conduct)

If you promote a competition, you need to make sure what you say is accurate and not misleading. This includes:

• what the prize is (and any important limitations),
• how to enter (and whether purchase is required),
• closing dates, judging dates, and announcement dates, and
• how the winner will be selected.

If you advertise a prize in a way that creates a strong impression (for example, the prize includes “free shipping” or includes add-ons), but the fine print changes that meaning, you can create real compliance risk. It’s also smart to keep your advertised price and prize claims consistent - the same principles discussed in advertised price compliance apply to promotions too.

Consumer Guarantees Act 1993 (Sometimes Relevant)

Many competitions are linked to products or services (for example, “buy X to enter” or “subscribe to win”). If you’re selling to consumers, you generally can’t contract out of key consumer guarantees (with limited exceptions).

Your competition terms shouldn’t try to override consumer rights relating to the underlying goods/services being purchased. The competition rules can govern entry and prize allocation - but they shouldn’t be used as a backdoor way to avoid consumer law obligations.

Privacy Act 2020 (Collecting And Using Entrant Data)

Most competitions collect personal information - even if it’s just a name and email address. The Privacy Act 2020 requires you to handle personal information responsibly, including telling people what you’re collecting, why, how it will be used, and who it might be shared with.

If you’re collecting entries through your website or social media, it’s common to align your competition terms with your Privacy Policy (and to make sure both documents tell the same story).

Spam And Digital Marketing Rules

If you plan to add entrants to your mailing list, send promotional follow-ups, or run the competition through email marketing, you need to be careful about consent and unsubscribe requirements.

In New Zealand, the Unsolicited Electronic Messages Act 2007 sets rules around commercial electronic messages (including consent, identification, and an unsubscribe facility). It’s worth checking your marketing flow against the basics covered in email marketing laws, especially if your competition is being used as a lead-generation tool.

Copyright And Content Use (For Creative Entries)

Many game of skill competitions involve user-generated content - photos, videos, written entries, designs, or testimonials.

If you want to repost or use entries later (for example, in ads), your terms should deal with:

• whether entrants keep ownership of their content,
• what licence they grant you (e.g. to repost on social media, to use in marketing), and
• whether you can edit the content, and how long you can use it for.

This is a big one for disputes - entrants often assume they’re only giving you permission to judge the content, not to use it commercially.

What Should Game Of Skill Competition Terms And Conditions Include?

If you want your promotion to run smoothly, your terms and conditions should be more than a quick template. They should reflect how you’re actually running the competition in real life.

If you’re looking for a professionally drafted set of Competition Terms & Conditions, it helps to understand the key clauses that typically matter.

1. Promoter Details

Start with the basics:

• who is running the competition (legal business name),
• NZBN/company number (if applicable), and
• how entrants can contact you.

This builds trust and makes it clear who is responsible for the promotion.

2. Eligibility Criteria

Spell out who can (and can’t) enter. For example:

• age requirements (e.g. 18+),
• New Zealand residents only (or specified regions),
• employees/contractors and their immediate family excluded, and
• limits like “one entry per person” (or per email address).

If you allow entries from minors, you’ll want to think carefully about privacy and consent - and make sure your entry process is appropriate for that age group.

3. Entry Method (And Whether Purchase Is Required)

Be very clear about:

• how to enter (steps, platform, required fields),
• whether entry is free or tied to a purchase, and
• if purchase is involved, whether there’s an alternative free entry method.

Clarity here reduces complaints like “I did what the post said but you rejected my entry”.

4. Competition Period

Include:

• start date and time (with timezone),
• closing date and time,
• judging date(s), and
• when and how winners are announced.

It’s also smart to reserve the right to extend the competition if needed - but if you do, you must do it transparently and consistently with your original advertising.

5. The Skill Criteria And Judging Process

This is the heart of well-drafted game of skill competition terms and conditions for New Zealand businesses.

Your terms should cover:

• what the judges are looking for (e.g. originality, relevance to theme, technical skill, clarity, creativity).
• how judging works (e.g. a panel, an internal team, external judge, scoring system).
• how ties are resolved (e.g. re-judge, head judge decision).
• whether judging is final (and what that means in practice).

If “public voting” is involved, be careful. Voting can be manipulated and can raise questions about fairness. If you do use voting, your terms should clearly deal with issues like fake accounts, vote buying, and your right to verify and disqualify suspicious activity.

6. Prize Details (And Any Conditions)

Describe the prize in enough detail that it’s not misleading. Include:

• what the winner gets (including model/size/colour where relevant),
• how many prizes are available,
• any limits (for example, travel blackouts, expiry dates, or location limits),
• whether the prize is transferable or redeemable for cash, and
• who pays for any extra costs (e.g. travel insurance, visas, installation, ongoing subscriptions).

If you’ve ever seen a competition blow up online, it’s usually because the prize wasn’t as “all-inclusive” as people assumed.

7. Winner Notification And Claiming

Your terms should explain:

• how you will contact winners (email/phone/social media message),
• how long they have to respond, and
• what happens if they don’t respond (e.g. you select a replacement winner).

This avoids a stalemate where the winner never claims the prize and you’re unsure what you can do next.

8. Disqualification, Cheating, And Entry Removal

You’ll usually want the right to disqualify entries where:

• the entry is incomplete or late,
• the entrant doesn’t meet eligibility requirements,
• there’s suspected fraud or manipulation, or
• the content breaches your content standards (offensive, defamatory, infringing, etc.).

This is also where you can deal with “bulk entries” or automated entry tools if you want to keep things fair.

9. Intellectual Property And Content Permissions

For creative competitions, include clauses covering:

• ownership (often entrants keep ownership),
• a licence to use submissions for the competition and promotion, and
• permissions to publish winner names/entries (where appropriate).

If you plan to use entries in paid advertising, be explicit. “We may repost your entry” is not the same as “we may use your entry in ads for the next 12 months.”

10. Liability, Risk, And Prize Use (Especially For Events)

If your prize involves an in-person activity (like a workshop, retreat, sports experience, or physical challenge), you should think about safety and liability.

Depending on the scenario, you might also consider a Waiver for participants - especially if the activity has obvious physical risks. A waiver won’t solve everything (and it won’t excuse negligence), but it can help set expectations and reduce disputes.

How To Run Your Competition Smoothly (And Avoid Disputes)

Good terms and conditions matter, but how you run the competition day-to-day also affects your legal risk. Here are practical steps we often recommend for small businesses.

Keep Your Ads, Posts, And T&Cs Consistent

If your social media post says “winner announced Friday” but your terms say “within 14 days”, you’ve created confusion you didn’t need. Where possible:

• keep the key details the same everywhere, and
• if space is limited (like Instagram captions), link clearly to full terms.

Consistency is one of the easiest ways to reduce complaints.

Document Your Judging Process

Because skill-based competitions depend on judging, keep records such as:

• the judging criteria you used,
• scoring sheets or notes (even brief ones), and
• who judged and when.

If someone challenges the outcome, being able to show a structured process can be the difference between a quick resolution and a drawn-out dispute.

Be Careful With Data Collection And Marketing Consent

If you’re collecting entries via a form, make sure you’re clear about:

• whether marketing opt-in is optional or required,
• how entrants can unsubscribe, and
• how long you’ll keep competition data.

As a rule of thumb, don’t quietly add people to marketing lists unless they’ve clearly agreed - and make sure your Privacy Policy matches what your competition terms say.

Think About Your Broader Website/Platform Terms

If you’re running the promotion through your website (especially if entries involve uploading content or using an online account), it may also be relevant to have broader Website Terms and Conditions that cover acceptable use, content rules, and account behaviour.

Your competition rules can sit alongside those website terms - but you should avoid conflicts between them.

Don’t Rely On A Generic Template

It’s tempting to grab a free set of terms and swap in your business name, but competitions can be surprisingly nuanced - particularly around skill criteria, judging, IP rights, privacy, prize restrictions, and (where chance is involved) the Gambling Act rules for sales promotion schemes.

When your terms are properly tailored, you’re far more likely to:

• avoid misunderstandings with entrants,
• reduce the chance of a complaint escalating, and
• protect your brand reputation if something unexpected happens.

Key Takeaways

• A game of skill competition is decided by merit (skill/knowledge/creativity), and your terms should clearly explain the judging process to support that.
• Even if your promotion isn’t a “game of chance”, you still need to comply with laws like the Fair Trading Act 1986 and the Privacy Act 2020.
• Strong game of skill competition terms and conditions will usually cover eligibility, entry method, competition dates, judging criteria, prize conditions, winner notification, disqualification rights, and IP/content permissions.
• If you’re collecting personal information, align your competition terms with your Privacy Policy and be careful with marketing consent and unsubscribe requirements (including under the Unsolicited Electronic Messages Act 2007).
• Keep your advertising and posts consistent with the full terms to avoid misleading impressions and disputes.
• Where prizes involve physical activities or events, consider whether a waiver or additional risk language is appropriate.

If you’d like help drafting or reviewing competition terms so you’re protected from day one, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.