Lotteries

About the different types of lotteries

There are a number of different types of lotteries, each type of lottery has different rules and requirements for how they must be conducted.

Draw 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. 

No draw lotteries 

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. 

Mini number lotteries 

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. 

Progressive lotteries 

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. If the total prize value is over $30,000, you will need an authority to conduct the lottery.  

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). 

Free lotteries 

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. 

Who can play? 

Anyone can play a lottery unless they are: 

• conducting the gaming activity, including determining who wins a prize 

• involved in the management of any benefiting organisation 

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

Is an authority required? 

An authority is required to conduct a progressive lottery if the total prize value exceeds $30,000. An authority from NSW Fair Trading is not required to conduct any other type of lottery. 

If the lottery is for raising funds for a charitable or non-profit organisation, written authorisation from the benefiting organisation must be provided.

If you are unsure if your lottery requires an authority, you can use the community gaming check tool.

Apply for an authority

An authority can be issued for a selected period of 1, 3 or 5 years allowing multiple promotions to be run under a single authority.

The application fee depends on the duration of the authority.

To apply for an authority to conduct a lottery, 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 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

Prizes may consist of anything except a prohibited prize.

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)

Tickets

Tickets should include:

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

Selling tickets

There is no restriction on who can sell tickets in a lottery.

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

Changes to the gaming activity

You, as the operator, can change how the lottery activity 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.

For progressive lotteries requiring an authority, all substantial changes to rules must be notified to NSW Fair Trading by filling out a Changes to Gaming Activity form and sending it to CElottery@customerservice.nsw.gov.au.

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

Ticketing errors

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

Advertising

You must clearly advertise the rules of the lottery. 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:

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