Promotional raffles
Essential information about promotional raffles including authorities, prizes, tickets, advertising rules and record keeping
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About promotional raffles
A promotional raffle is a type of event where tickets are sold to patrons and prizes are awarded to winners that are selected from a random draw.
A promotional raffle can only take place 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. A promotional raffle is different to a raffle organised to raise funds for a registered club or a trade promotion lottery. Trade promotion lotteries are 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 NSW 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 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)
Unclaimed prizes
The rules of the promotional raffle should outline how an unclaimed prize is dealt with.
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.
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 starts.
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.
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.
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
There are no restrictions for payment of commission or remuneration for promotional raffles.
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.
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.
NSW Fair Trading Community gaming
Have a question about a community gaming activity?
You can contact NSW Fair Trading.