Doubts on legality of texting games

By JULIET ROWAN

Cellphone text competitions regularly run by television and radio stations could be illegal, the Government has warned.

The Department of Internal Affairs says companies risk breaching the new Gambling Act, which bans most forms of gambling using cellphones.

The ban is designed to protect children and teenagers, who are big users of cellphones.

Businesses considering running a text competition have been advised to seek legal advice, and those contacted by the Herald said they would do so.

CanWest MediaWorks, which runs TV3 and radio stations including The Rock, The Edge, MoreFM and Radio Pacific, said the warning was unexpected.

"It's the first we've been made aware of any issues [with text competitions]," said CanWest spokesman Roger Beaumont.

The Radio Network, which owns stations including Newstalk ZB, Classic Hits and ZM, could not be reached for comment last night.

Keith Manch, director of Internal Affairs' gaming and censorship regulation group, said cellphone technology gave young people 24-hour access to instant gambling.

The risk was that young people would develop gambling problems.

Gambling in New Zealand is licensed only as a form of community fundraising and is not allowed as a commercial venture, with the exception of the country's six casinos.

Under the Gambling Act, which came into force last month, businesses can run cellphone gambling if it "is a legitimate sales promotion in the form of a lottery".

Sales promotions require a person to buy goods or services at no more than their usual retail price.

If using a cellphone means higher than usual calling costs are incurred, then such promotions become lotteries.

Vodafone, which regularly runs text competitions, said it had been working with the department and lawyers to get the provisions of the act clarified.

Spokeswoman Sarah Williams said the company would not proceed with any text competition unless it was sure it complied with the act. "There are still grey areas."