What is Commercial Gaming

'Commercial Gaming' refers to any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e. placed as a bet – for the purpose of winning a sum of money or other valuable items.

This definition extends to agreements within such games that stipulate the loser must compensate the winner with money or any other item of value. Commercial games encompass gaming machines, internet gaming, electronic skill-based games, lottery games, event wagering (including bets placed on certain events such as sporting events, or horse racing), along with any other form of commercial gaming regulated and licensed by the GCGRA.

It is important to note that games incorporating elements of skill alongside or in place of chance are still encompassed within the definition of Commercial Gaming. The integration of skill-based elements does not negate the characterisation of the activity as Commercial Gaming.

Commercial Gaming vs. Promotional Activities

The GCGRA does not license or regulate activities that are deemed to be promotional in nature (i.e. serve as marketing expenses). The GCGRA is responsible for determining in its sole discretion if an activity falls within the definition of Commercial Gaming or qualifies as a promotional. The following guidelines outline the key components that differentiate a true promotional activity from a commercial gaming activity - including lottery.

• Objective of the Promotion: 

  The promotion should have a clear and specific purpose, such as increasing brand awareness, introducing a new product, driving sales, or engaging a particular demographic.
  
  

• Fair Market Value:

  If the promotion requires a purchase, the price of the product or service must reflect its fair market value (FMV). Pricing products significantly above FMV, coupled with a prize-winning opportunity, constitutes a lottery, which is a form of Commercial Gaming, because the prize or the opportunity to win a prize is essentially being "sold" through inflated prices, rather than being offered as a genuine promotion.
  
  

• Prize as a Marketing Cost:

  In a legitimate promotion, prizes are treated as marketing expenses, not a method to generate revenue. Prizes typically include giveaways or time-sensitive discounts that are tied to the objective or goal of the promotion.