NEW SOUTH WALES GOVERNMENT

NSW Office of Liquor, Gaming and Racing

 

COMMUNITY GAMING FACT SHEET
GRATUITOUS LOTTERIES

Click here for PDF version (263KB)

QUICK FACTS

CONTENTS

Introduction - definition Penalties
Introduction - purpose conducted Permit - not required
Introduction - who may conduct Prizes - maximum value of
Conduct - advertising restrictions Prizes - permitted
Conduct - general Prizes - prohibited
Conduct - giving of prize to the prize winner Results - notification of
Conduct - participation of minors
Records - inspection of
Conduct - responsibility Records - keeping of
Conduct - who can participate .Tickets, etc. cannot be sold

What is a gratuitous lottery?

A gratuitous lottery is a lottery or game of chance in which entry or participation in the lottery or game is free.

It includes such lotteries or games of chance known as "lucky door" or "lucky seat" prizes.

A gratuitous lottery is conducted under section 4G of the Lotteries and Art Unions Act.

For what purpose may gratuitous lotteries be conducted?

Gratuitous lotteries are usually organised on the basis that persons gain the right of entry in the draw by attending an event or activity. Often these events or activities are organised for the purpose of raising funds for charities and other not-for-profit organisations.

The right to entry in the draw may be based on (for example) :

Who may conduct gratuitous lotteries?

Anyone may conduct gratuitous lotteries. However, a gratuitous lottery cannot be conducted for the purposes of promoting any trade or business. To promote trade or business using a lottery or game of chance an authorising permit must be obtained under section 4B of the Act. For more information refer to the Community Gaming Fact Sheet entitled Trade Promotion Lotteries.

Is a permit required?

No.

What is the maximum value of prizes?

The total value of prizes in a gratuitous lottery cannot be more than $5,000.

What types of prizes may be offered?

Prizes may consist of or include anything except a prohibited prize (for more information refer What prizes are prohibited?). Prizes can be goods, wares, merchandise, services, vouchers for goods or services that are not redeemable for money, tickets for admission to any entertainment and tickets for tours or journeys.

What prizes are prohibited?

The following are prohibited prizes:

Liquor prizes

A prize may consist of or include liquor within the meaning of the Liquor Act 1982. However, the maximum quantity that may be offered as a prize or as part of all the prizes in the session of games is 20 litres (for example, two cartons [48x375ml cans of beer, or 24x750ml bottles of wine or spirits.)

Tickets for liquor prizes cannot be sold by or to a person under 18. Also a person under 18 cannot give or collect a liquor prize.

Can I charge an entry or participation fee in connection with the lottery?

No.

Are minors able to participate?

The law does not forbid a minor from participating or assisting in the conduct of a gratuitous lottery. This is a matter for the organiser and perhaps the intended participants to determine.

Can persons organising or conducting the lottery participate?

There is no restriction on persons conducting or assisting in the conduct of the lottery participating or winning. However, organisers should be mindful that if they and their families participate in a lottery, complaints may arise about them often winning prizes to the concern of other participants. Such issues affect the integrity of the lottery because of the perception of wrongdoing.

How should the lottery be conducted?

The lottery must be conducted in accordance with the rules and the information provided to the participants. All rights to participate must be included in a draw.

Are there any advertising restrictions?

Yes. From 1 March 2003, you must not publish, or cause to be published, any lottery advertising that:

From 1 September 2002, you must not enter into or extend the duration of a contract or arrangement for the publication of any lottery advertising that does any of these things.

In this context, publish includes disseminate in any way, whether by oral, visual, written or other means (for example, dissemination by means of cinema, video, radio, television or the Internet).

You must not state or imply in any information or publicity that the lottery is authorised or approved by the Government or by any government agency e.g. Lotto, Scratch lotteries, Keno, etc.

How should the results of the lottery be notified?

Normally the prize winner of a gratuitous lottery is notified at the event or activity at which participants attend. If for any reason this is not the case, you should notify each prize winner within 2 days of the determination of the winner.

How must I arrange for the prize to be given to the prize winner?

Whether or not the prize winner has claimed the prize, you should arrange for the relevant prize to be given to each prize winner within 7 days after the determination of the result.

What records do I need to keep?

There is no requirement to keep records.

Who is responsible?

The promoter or organisers are jointly and individually responsible for the proper management and conduct of the lottery.

Are the records subject to inspection?

Yes. All records are subject to inspection by Officeal inspectors or police officers.

Are there any penalties?

Yes. There is a range of penalties for conducting a lottery contrary to requirements, including—

Last updated: Nov 2006

NSW Office of Liquor, Gaming and Racing
ABN 52 273 723 634
Office of Charities
Level 7, 323 Castlereagh Street, Haymarket
GPO Box 7060 Sydney 2001
Phone:(02) 9995 0666 Facsimile:(02) 9995 0611
Email lottery.inquiries@olgr.nsw.gov.au    Website www.olgr.nsw.gov.au

This guide is designed to provide accurate and authoritative information in regard to the subject matter covered, and with the understanding that the NSW Office of Liquor, Gaming and Racing is not passing legal opinion or other professional advice. If you require a more detailed understanding of the legislation, it is recommended that you contact your legal advisor.
The law governing the conduct of this lottery or game of chance is the Lotteries and Art Unions Act, 1901 and the Lotteries and Art Unions Regulation, 2002. The Act and Regulation can also be accessed at www.legislation.nsw.gov.au