Promotional raffles

Information on promotional raffles including authorities, prizes, tickets, advertising rules and record keeping

A promotional raffle can only be conducted at a venue that holds a club licence under the Liquor Act 2007. It must only be held for the purpose of attracting or entertaining patrons.

Minimal or no profit is received from ticket sale of tickets, as at least 90% of the gross proceeds must be used to cover the cost of the prizes. This is different to a raffle organised to raise funds for a registered club.

A promotional raffle is also different to a trade promotion lottery, which is a free-entry promotion organised to promote patronage. For example, member badge draws, instant win promotions, spin and win, and prize draw game shows.

Authority from Fair Trading isn't required to hold a raffle.

Who can play?

Only members of the host club and their guests can participate in a promotional raffle.

Children can participate, unless the rules of the raffle have an age limit.

People not allowed to play include anyone:

  • conducting the gaming activity, including determining who wins a prize
  • involved in the management of any benefiting organisation

Prizes

The maximum total prize value is $5,000 for any individual raffle.

Prizes can consist of anything except money or a prohibited prize.

Prohibited prizes

The following prizes are prohibited:

  • a firearm, ammunition, an imitation firearm or a prohibited weapon within the meaning of the Weapons Prohibition Act 1998
  • tobacco, smoking or vaping product
  • cosmetic surgery and other procedures falling under Division 1A of Part 3 of the Poisons and Therapeutic Goods Act 1966
  • more than 20 litres of liquor with an alcohol content not exceeding 20% by volume or more than 5 litres of liquor with an alcohol content exceeding 20% by volume
  • any other prize that contravenes any other law of this State or the Commonwealth. For example, Charitable Fundraising Act 1991 (NSW) and Gaming Machines Act 2001 (NSW)

Unclaimed prizes

The rules of the promotional raffle should outline how an unclaimed prize is dealt with.

For example, if a prize is not claimed within a set period of time it could be forfeited and another draw take place to determine a new winner. The prize must be preserved until it is awarded to the prize winner.

Changes to a gaming activity

If there any changes to the rules for a gaming activity, you must take all reasonable steps to notify the participants or make the information publicly available within a reasonable time before the activity takes place.

Advertising

The rules of the gaming activity must be clearly advertised to enable potential participants to make informed decisions about entering.

Where it’s not possible to publish the rules in an advertisement or on a ticket, the included information must state where the rules can be found such as a website.

Advertising material must not:

  • depict children participating in the gaming activity
  • suggest that winning will be a definite outcome of participating in the gaming activity
  • suggest that participating in the gaming activity will definitely improve a person’s financial prospects
  • encourage a breach of the law

If your gaming activity requires an authority, all advertising material must clearly display the authority number.

Administration

Where applicable, the following requirements apply to gaming activities.

Organiser expenses

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.

Commissions

There are no restrictions for payment of commission or remuneration for promotional raffles.

Proceeds

Proceeds from a gaming activity must be deposited into an account at an authorised deposit-taking institution no later than 2 business days after the money is received.

Record keeping

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 prize winners were determined and announced
  • prizes and total prize value
  • the gross proceeds
  • the 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 the prize winners and the prizes won

Auditing

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.

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