This free entry lottery usually involves a pack of 52 playing cards and a joker all lying face down. Players turn a card for the chance to win a prize by choosing the joker. If no one draws the joker, the prize jackpots and organisers repeat the draw.
A card jackpot game is a form of trade promotion, so you need a permit and there is an application fee. If you link a raffle to a card jackpot game and sell tickets, a minimum of 40 percent of the gross proceeds must go to a not-for-profit organisation.
Illegal card jackpot games
Card jackpot games are illegal if players pay to play or if players pay to enter a raffle and raffle winner is allowed to turn over one of the cards for the chance to win a prize. If the joker card is not drawn, the prize jackpots and the draw is repeated on another occasion. These games are illegal under the Lotteries and Art Unions Act 1901, the Unlawful Gambling Act 1998, the Liquor Act 1932, and the Registered Clubs Act 1976. Operators, licensees and management will be prosecuted.
Terms and conditions of entry
Terms and conditions of entry into the card jackpot game must be developed and always on display where the game is being played. The terms and conditions of entry must contain particulars similar to the standard terms and conditions of entry. You can find a template for entry terms and conditions in the card jackpot game and other similar games’ guidelines (PDF, 256.18 KB). Make sure you include a copy of the terms and conditions of entry when you lodge your completed application. The terms and conditions of entry cannot be altered or amended unless you’ve received written approval by us.
Players can gain entry into the card jackpot game trade promotion by making a bar purchase, purchasing a meal, entering the hotel, playing a gaming machine, or other methods. These methods may require the patron to satisfy certain and reasonable entry requirements. In addition to one or more of these methods, entry may be obtained by a patron purchasing a ticket in a raffle that is raising funds for the benefit of a certain not-for-profit organisation. Once they’ve received an entry ticket, a patron will receive a ticket in the trade promotion lottery. The raffle ticket butt or number cannot be reused in the trade promotion lottery – a separate ticket must be used in the trade promotion.
Fundraising raffles in conjunction with card jackpot games
Free-entry card jackpot games can be linked to participants who have purchased a ticket in a fundraising raffle for a not-for-profit organisation. No part of the proceeds from the sale of tickets in the raffle can be used or applied to the provision of prizes or otherwise in the card jackpot game. Additional terms and conditions of entry into the raffle must be developed, published and displayed. You can find a template (B) for raffle terms and conditions in the card jackpot game and other similar games guidelines or you can create your own document as long as the content is similar. Make sure you include a copy of the raffle terms and conditions of entry when you lodge your completed application. There must also be at least one other means of entry not linked to the fundraising raffle.
If the card jackpot game is played with a fundraising raffle, the application for a permit must also be accompanied by a Declaration. You can find a template, labelled C, for a Declaration in the card jackpot game and other similar games guidelines. The Declaration acknowledges that none of the proceeds of the raffle will be given or distributed, directly or indirectly, to the trade or business.
If a fundraising raffle is played alongside a trade promotion lottery, you must follow the raffle laws. These include:
- the winner does not need to be present at the draw in order to win the prize,
- the prize winner must receive the prize they won, and
- prizes cannot jackpot from week to week.
There are also prize restrictions:
- a liquor prize is restricted to not more than 20 litres
- a money prize is restricted to not more than $25,000
- the total value of prizes is restricted to not more than $25,000
- no prize can be a prohibited prize (tobacco, firearm, ammunition, a weapon, or cosmetic surgery).
Records and remuneration
Proper accounts and records must be kept for ticket sales, gross income, expenses, and profit relating to the raffle. All raffle ticket-butts or corresponding computer-generated documents must be kept for at least three months after the date of the draw. The gross proceeds must be banked into the account of the benefiting organisation as soon as practicable, preferably within two business days.
Only reasonable and proper expenses (in addition to prizes) can be deducted from the gross proceeds of the raffle. No commission or remuneration for services can be payable to any person or organisation. The net proceeds to the benefiting not-for-profit organisation must be at least 40 percent of the gross proceeds.