Lotteries

Numbered tickets are sold to people and a draw is held in which 1 or more numbers are randomly selected. Prizes are distributed to participants holding the ticket/s with the corresponding numbers.

• Draw lotteries can only be conducted to raise funds for, or on behalf of, a charity or non-profit organisation.
• The total value of all of prizes must not exceed $30,000.
• A minimum 40% of the gross proceeds must be paid to the benefiting charity or non-profit organisation.

Commonly known as ‘scratchies’, people buy tickets containing hidden symbols that are revealed by removing or scratching off some covering material. Prizewinning symbols are randomly distributed among the tickets or cards.

• No-draw lotteries can only be conducted to raise funds for, or on behalf of, a charity or non-profit organisation.
• The total value of all prizes mustn’t exceed $5,000.
• The total number of tickets produced or obtained for sale cannot exceed 3,000.
• A minimum 40% of the gross proceeds must be paid to the benefiting charity or non-profit organisation.

Also referred to as mini-Lotto, lion-ball, kick-a-ball, make-a-mark and pick-the-pack. Players pay a small entry fee to select six numbers from a possible 20. Six numbers are then drawn by organisers. If a player has correctly chosen all six, they win a prize.

• Mini-numbers lotteries can only be conducted to raise funds for, or on behalf of, a charity or non-profit organisation.
• The total prize value for one session of mini-numbers lottery mustn’t exceed $20,000.
• The total prize value for one session must be at least 50% of the gross proceeds.
• A minimum 40% of the gross proceeds must be paid to the benefiting charity or non-profit organisation.

Entrants play a number of draws on various dates over a set period. For example, draws can occur over a number of days or weeks as specified in the rules. The most common types of progressive lotteries are hundred clubs, silver circles and tipping competitions.

• Progressive lotteries can be conducted by anyone for any purpose.
• There is no prize limit for progressive lotteries. However, the amount of money payable as a prize can’t exceed $7,000.

Progressive lotteries include tipping competitions.

Tipping competition rules:

• the participants predict the outcome or results of a sporting or other contingency, and
• points are awarded for successful predictions, and
• the prizes are wholly distributed in accordance with the rules of the competition, and
• periodical prizes may be awarded (in accordance with the rules of the competition).

Participation is free and none of the prizes include money. This isn’t a progressive lottery or a trade promotion. Examples include lucky door or lucky seat promotions.

• Free lotteries can be conducted by anyone for any purpose.
• The total value of all prizes for the lottery must not exceed $30,000.
• Participation must be free.
• A prize in a free lottery must not include money.

Unless participation is free, you may incur reasonable expenses for:

• the cost of producing or obtaining the tickets or cards
• advertising and promotion
• hiring or operating a device, or premises
• the cost of prizes, and prize money
• salaries, wages and commission paid to persons assisting in the conduct of the gaming activity
• auditing accounts relating to the gaming activity
• other amounts that, under an authority, a person or organisation is permitted to deduct from money received in connection with the gaming activity.

Commission and other payments can be paid except from funds received from conducting a progressive or mini-numbers lottery.

No payment may be made as a salary, wage, fee, commission, percentage or other benefit to anyone who conducts a progressive or mini-numbers lottery.

You must deposit proceeds from your gaming activity into an account at an authorised deposit-taking institution no later than 2 business days after the money is received.

Appropriate records must be kept for a period the operator thinks fit.

Records may include:

• all expenses incurred
• the date on or period during which the gaming activity was conducted
• the date on which prize winners were determined and announced
• prizes and total prize value offered
• gross proceeds
• proceeds paid to the benefiting organisation (if applicable) and the ratio of those proceeds to the gross proceeds received, expressed as a percentage
• if practicable, the names and contact details of prize winners and prizes won.

For progressive lotteries with a prize value exceeding $30,000, additional records must be kept including:

• all income and expenses including related assets and liabilities
• the total amount of money (including donations) received from participants
• number of tickets printed, obtained or generated (if applicable)
• number of tickets sold or distributed for sale (if applicable)
• the number of unsold tickets (if applicable)
• the names and contact details of all persons who bought tickets

However, records aren’t required for a progressive lottery where the total amount received from ticket sales is less than $10,000, and the gross proceeds are wholly applied towards prizes or returned to players in accordance with the rules.

If the annual gross proceeds of a gaming activity exceed $250,000, accounts must be audited by a qualified auditor. This includes accounts that relate to receipts and expenses.