Legality of tournaments and online draws

In Australia, online tournaments and online draws held by casinos are subject to the federal Interactive Gambling Act 2001 (IGA) and state and territory regulations. Their legality depends on the format, structure of prizes and the presence of permission from the operator.

1. General legal framework

* IGA 2001defines the provision of certain interactive games (online slots, roulette, poker for money), but allows services licensed at the state and territory levels if they meet the terms of the license.
Tournaments and draws where real money or valuable prizes participate are considered gambling events and require a license.
Without the permission of the regulator, holding such shares in AU is considered a violation.

2. Legal tournament and draw formats

Sports betting tournaments - allowed if you have a license for betting activities.
Gaming tournaments in licensed casinos are allowed if the casino has the right to offer the appropriate type of game (for example, a poker tournament in a licensed poker room).
Deposit-based draws - legal as long as they are held under a licensed operator's bonus program and the terms are fully disclosed to players.

3. Formats that are prohibited

Online slot, roulette or blackjack tournaments with cash contributions and prizes in AUD without an AU license.
Network draws organized by offshore operators without the permission of ACMA.
"Paid entry" events from unlicensed sites.

4. Requirements for transparency and conditions

Clearly publish rules of engagement, including winning criteria and prize allocation.
Fixed event start and end dates.
No hidden conditions that can change the chances of winning after the start of the tournament.
Ensure participant data protection and draw/count using certified systems.

5. Role of regulators

ACMA monitors compliance with federal regulations and blocks illegal sites.
The licensing authorities of the states and territories approve the terms of tournaments and draws under the operator's license.
If violations are identified, the regulator may impose a fine, suspend the license or oblige to return the funds to the participants.

6. Responsibility of operators

Comply with license and local regulations.
Provide a report on the tournament or draw at the request of the regulator.
Ensure the integrity and transparency of the procedure.

7. Recommendations to players

Check whether the casino has a license that allows a specific tournament format or draw.
Study full rules before making contributions.
Avoid taking part in events held by offshore operators without Australian permission.

Conclusion:
  • In Australia, the legality of tournaments and online draws directly depends on the operator's license, the format of the event and compliance with transparent conditions. Legal tournaments are available only through licensed platforms, and participation in illegal promotions deprives the player of legal protection and can lead to blocking the site.