Art unions

About art unions

An art union is a lottery where the winners are chosen through a ticket draw. The prize pool must be more than $30,000.

An art union can only be conducted to raise funds for non-profit organisations such as

• charities (for example, the Red Cross and the RSPCA) 
• sporting clubs 
• social clubs 
• registered clubs 
• political parties 
• trade unions 
• incorporated associations

Art union operators must have written authorisation from a non-profit organisation to raise funds on its behalf. A minimum 30% of the gross proceeds must be paid to the non-profit organisation.

Who can play? 

Anyone can enter an art union unless they are: 

• conducting the gaming activity, including determining who is to win a prize in the gaming activity; or 
• involved in the management of any benefiting organisation 

Children can participate unless the art union’s rules have an age limit. 

Is an authority required? 

To conduct an art union, an authority must be obtained from NSW Fair Trading. 

Apply for an authority

The application fee depends on the length of the authority.

An authority can be issued for a selected period of 1, 3 or 5 years.

To apply for an authority to conduct an art union, simply download and complete the application form and submit it to CElottery@customerservice.nsw.gov.au.

Conditions

The above fees include a $371 non-refundable processing fee. If you cancel your authority, this fee will not be refunded.

Fees are for July 2024 - June 2025.

Notification of commencement of gaming activity

If your gaming activity requires an authority, you must provide a copy of the gaming rules to NSW Fair Trading. This must be at least 10 working days before the proposed activity takes place.

Gaming activities cannot commence until notification is given to NSW Fair Trading. You can do this by filling out and submitting a commencement of gaming activity notification form to CElottery@customerservice.nsw.gov.au.

Prizes

There is no maximum total prize value. However, the maximum cash amount that can be awarded as a separate prize must not exceed $30,000.

Prizes may consist of anything except a prohibited prize. 

Prohibited prizes

The following prizes are prohibited: 

• a firearm, ammunition, an imitation firearm or other prohibited weapons as defined by the Weapons Prohibition Act 1998  

• tobacco, smoking or vaping products   

• 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 where the alcohol is 20% or less by volume or more than 5 litres of liquor where the alcohol content is more than 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)

Property prizes

For real estate prizes, you as the operator must maintain and insure the property up until the property is transferred to the winner.

As the operator, you must also pay for all expenses involved and comply with all legal obligations relating to the property.

Unclaimed prizes

The gaming activity rules should specify how to deal with an unclaimed prize.  

If a prize isn’t claimed within a set period of time, it can be forfeited, and another draw held to determine a new winner. Otherwise, the prize must be kept until awarded to the winner.  

Every reasonable effort must be taken to contact the prize winner. If contact cannot be made, the operator must keep the prize for the duration stated in the rules.  

If the rules do not have a time frame for an activity that requires authorization, the operator must keep the prize for at least 3 months. After this time a new winner may be chosen.  

Perishable prizes, such as a meat tray, can be disposed of or sold for a reasonable price. The money (after sale or disposal costs) must be held in trust for the winner. 

Prize winner notification

The rules of the art union must state:

• how prize winners will be determined, notified and announced
• the period for which prizes will be kept if the winner is not present at the draw
• the period for which prizes will be held until they are awarded to the prize winner
• the circumstances in which a redetermination of prize winners may occur.

If the rules do not specify a period, the selection of a new prize winner cannot occur until at least 3 months after the original prize winner was determined.

In these circumstances, unclaimed perishable prizes may be sold or disposed of.

All prizes must be carefully preserved until they are awarded or until they have been disposed of in accordance with part 4 of the Community Gaming Regulation 2020.

If the value of the prize is over $5,000, and the winner requests it, you must pay any amount over $5,000 by electronic funds transfer.If the prize winner does not request electronic transfer, you must pay the amount exceeding $5,000 in a manner agreed with the prize winner (other than cash).

Tickets

There are no restrictions on who can sell tickets in an art union.

Anyone who sells tickets must return all ticket butts, unsold tickets and the gross proceeds of ticket sales to the operator before the draw takes place.

Tickets should include:

• price
• name of person or organisation conducting the activity
• benefiting organisation (if applicable)
• authority number (if applicable)

Ticketing errors

A player's right to a prize is not affected due to an error in the production of tickets or cards.

Changes to the art union

You as the operator, can change how the art union is conducted as long as the change means the gaming activity is still conducted fairly and impartially.

You must notify players of the change or make the information publicly available within a reasonable time before the activity takes place.

Changes may include:

• prizes or prize value
• the date or method prize winners are determined
• the authority holder
• a significant change in the number of tickets

Any substantial change must be reported to NSW Fair Trading, you can do this by filling out a Changes to Gaming Activity notification form. Simply download and fill out the form, then send it to CElottery@customerservice.nsw.gov.au.

Advertising

You must clearly advertise the rules of the art union. This will enable potential participants make an informed decisions about entering.

If you cannot publish the rules in an advertisement or on a ticket, you must state where the rules can be found, such as a website.

Advertising material must not:

• encourage a breach of the law
• 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

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