A promotional raffle can only be conducted at a club registered under the Registered Clubs Act 1976 for entertainment purposes. Usually minimal or no profit is received from the sale of tickets in a promotional raffle. This is different from a raffle which is organised to raise funds for a registered club.
A club does not need a permit for a promotional raffle. But the club must comply with the Lotteries and Art Unions Act 1901 and the Lotteries and Art Unions Regulation 2007.
No more than seven promotional raffle sessions can be played each week. A session is an unbroken period of time during which a series of promotional raffles are played. A session cannot last longer than three hours. The three hour period includes time set aside for selling tickets and conducting all draws for prizes.
Can other lotteries be conducted with a promotional raffle?
Yes. One fundraising raffle can be conducted during each promotional raffle session provided a minimum profit of 40 percent is attained and the total value of prizes in the fundraising raffle does not exceed $5,000.
Prizes can be goods, wares, merchandise, services, vouchers for goods or services that are not redeemable for money and tickets for admission to entertainment. Winners of shopping vouchers can redeem their voucher or store credit up to the value specified for products and services.
During a session of promotional raffles, a prize value cannot exceed $500. This is allowed only once per session. In all other situations, the total value of a single prize cannot exceed $100. At the end of a session, a bonus prize valued at $50 can be awarded as part of a ticket clean-up scheme. In this scheme, patrons of the session write their name on the back of their used tickets. A draw is held, and the winner is awarded the bonus prize. Prize values must be at normal retail value.
Some prizes are prohibited:
- money prizes (e.g. cash, cheques)
- tobacco products
- firearms or ammunition
- cosmetic surgery or other procedure designed to improve personal appearance
- liquor prizes more than 20 litres.
If a prize winner does not claim the prize within a reasonable period of time after the result is first announced, the result must be announced at least three more times (if not claimed before then). If the prize is unclaimed after the fourth announcement, a redraw can take place.
What if a prize is not available?
If a prize is not available for collection after a draw or is damaged and unreplaceable, the prize winner can accept an alternative prize that has a similar value to the original prize. The prize winner and the club must negotiate a fair and reasonable outcome.
Tickets cannot cost more than $5 each and there is no maximum number of tickets that can be sold.
There is no specific rule about the format of tickets used for a promotional raffle but you should have internal controls to avoid fraudulent activity. A procedure must also be in place to make sure that tickets are secure, distributed on a purely random basis, and are not capable of manipulation. Tickets must be only issued on a club’s premises. Tickets for liquor prizes cannot be sold by or to a person under 18 years of age. Also, a person under 18 cannot give or collect a liquor prize in a promotional raffle.
Who can play?
Only members of the host club and their guests can participate in a promotional raffle. You can’t play if you’re organising or assisting with the promotional raffle. It is unwise for club directors, management and employees to participate in a promotional raffle at their club.
The House rules must cover:
- the conditions of entry (including the minimum age of the participants)
- the charge, if any, to be imposed for participating in a promotional raffle
- how prizes will be calculated, determined and awarded
- the place, date and time of a promotional raffle
- how prize winners will be notified
- the method for claiming prizes (including the course of action to be adopted if a prize is unclaimed)
- how disputes over the conduct of a promotional raffle, or claiming a prize, will be resolved
- a statement banning persons conducting or participating in a promotional raffle from participating as a player.
The rules must be displayed at the venue of the game.
The rules must be clearly advertised and readily available to participants.
Participants must also be clearly informed of the cost of tickets and details of prizes and their value.
A club must not publish any raffle advertising that:
- encourages a breach of the law
- depicts children participating in a raffle
- is false, misleading or deceptive
- suggests that winning will be a definite outcome of entering or participating in the raffle
- suggests that entering or participating in the raffle will definitely improve a person’s financial prospects
- is not conducted in accordance with decency, dignity and good taste.
You must keep all receipts, invoices and other records concerning costs and outgoings, and amounts received as payments for tickets. Ticket butts, draw documents and corresponding computer-generated documents must be kept for at least three months after the winners are determined.
The income and expenditure records must show:
- the gross proceeds from promotional raffles, and
- any costs and expenses of the raffles.
The income and expenditure records can be kept for a session of promotional raffles rather than for each raffle in the session.