Gambling Rules & Regulations

NSW Office of Liquor, Gaming and Racing
Level 7, 323 Castlereagh Street, Sydney
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

Art Unions

The NSW Office of Liquor, Gaming and Racing issues a very easy to Factsheet detailing everything you need to know about conducting an art union.

This factsheet can be downloaded by clicking:

http://www.olgr.nsw.gov.au/pdfs/gofc_fs_art_unions.pdf

Information in the Art Union factsheet can be summarised as follows:

What is an Art Union?

An art union is a lottery where the total value of prizes exceeds $25,000.  Prizes are distributed by a draw of tickets or marbles from a barrel or other receptacle, or by an electronic device (often called a random number generator).

This fact sheet outlines the applicable requirements and best practice. If the total retail value of prizes is $25,000.

If conducting an art union to raise funds for a charity, the organisers must be authorised by the charity to do this. As well the charity may need a fundraising authority under the Charitable Fundraising Act 1991. Check with us, if unsure.

Who can Benefit from holding an Art Union?

An art union can only be conducted to raise funds for a non-profit organisation.  A non-profit organisation is a body of persons which is not formed for private gain eg. charities, sporting clubs, social clubs, registered clubs, political parties, trade unions and incorporated associations.

Is a Permit Required?

Yes.

Who can Apply for a Permit?

Anyone representing a not-for-profit organisation can apply for a permit. However, the application must be signed by a nominee (director, member of the management committee, or an employee) of the not-for-profit organisation.

How long can an Art Union be Conducted?

An art union ideally should be commenced and completed within 6 months.

The date, place and time of the drawing for the prizes, as printed on the face of each ticket, cannot be altered without written approval.

What is the Maximum Value of Prizes?

The total retail value of prizes must exceed $25,000. There is no maximum limit.

Can Prizes be Money?

Yes but the total amount of money prizes (excluding spending money) cannot exceed $25,000.

What Prizes are Allowed?

Prizes can consist of or include anything except a prohibited prize.

Prizes can be goods, wares, merchandise, services, vouchers for goods or services that are not redeemable for money, tickets for admission to entertainment, and tickets (with spending money) for tours or journeys.

Spending money can be given as part of a tour or journey eg. a travel prize provided the spending money does not exceed $25,000 and does not exceed 20% of the total value of the travel prize.

If any prize is more than $25,000, a shopping voucher or store credit is a viable alternative.

If a prize is a shopping voucher, winners can redeem the voucher or store credit up to the value specified for products and services.

What Prizes are Prohibited?

Some prizes are prohibited:

• money prizes over $25,000

• tobacco products

• firearms or ammunition

• prohibited weapons

• cosmetic surgery or other procedure designed to improve personal appearance

• liquor prizes over 20 litres.

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.

What Expenses can be Incurred?

Reasonable expenses can include:

• purchase of the prize or prizes

• purchase of the tickets

• hiring or operating any device used as a draw receptacle

• renting premises for the art union

• advertising and promoting the art union, including postage, telephone, lists of names

• auditing the art union accounts, other records and processes

• salaries, wages or commission payable top organisers.

Remuneration or a commission is allowed, but can only be paid to a person for services rendered in connection with the art union if there is a written agreement between that person and the benefiting organisation.

The agreement must specify the service to be rendered; the remuneration or commission to be provided; and the period of the agreement.

If the benefiting organisation holds a fundraising authority under the Charitable Fundraising Act 1991, the agreement must specify other requirements as stipulated by condition 20 imposed on that organisation’s fundraising authority. If unsure, check with us.

A commission must not be paid to a person for selling tickets unless the name and address of the purchaser of the ticket have been legibly written on the ticket-butt (or recorded in the computer-generated drawing docket).

What are the Maximum Allowable Expenses?

Total allowable expenses (including the cost of the prizes in an art union) must not exceed 70% of the gross proceeds of the art union.  The benefiting organisation should receive at least 30% of the gross proceeds of an art union.

Is there a Maximum Price per Ticket?

The selling price must be applied consistently to all tickets sold.

No ticket should be sold except for the advertised value of the ticket, or for some other consideration which is equivalent to the value.

It is acceptable to sell tickets at a discount, but only if this is fully disclosed in all information made available to purchasers, and is offered to all purchasers consistently.

Is there a Maximum Number of Tickets that can be Sold?

No.

What is the Format of Tickets?

The purchaser’s portion of the ticket must always include the same serial number as the ticket-butt. The purchaser’s portion must also include the price of the ticket and the full name of the benefiting organisation. A ‘rubber stamp’ imprint containing these details is acceptable.

Ticket-butts must be numbered consecutively in the same series as the ticket. Ticket-butts must also contain space for the name and address of the purchaser to be written.

The purchaser’s portion of the ticket must include:

• the name of the art union

• the name of the benefiting organisation

• the price of the ticket

• details of the prizes and their recommended retail value

• the place, date and time of the draw

• details of the way in which the results of the draw will be publicised

• the number of tickets in the art union

• the name and address of the promoter

• the number of the permit we issue for the art union

• the serial number of the ticket

• the total number of tickets in the art union.

Ticket-butts and drawing dockets must be numbered consecutively in the same series as the ticket. They must also contain space for the name and address of the purchaser to be written.

How should Ticket Sales be Managed?

An art union must be conducted fairly.

Organisers cannot send tickets to any person except with the prior consent of the person, even if the person is a member of the organisation conducting the art union. This applies even if the person is to purchase the ticket or is to act as agent for the sale of the tickets.

Organisers can send letters, notices, etc to people asking them to buy tickets in an art union. However, tickets should not be included with letters, notices etc unless the recipient has consented beforehand.

If organisers intend to sell tickets in a street or public place in a local government area, written permission from the local council may be required. Check with the local council.

How should an Art Union be Advertised or Promoted?

In advertising and promotion materials, purchasers must be informed:

• of the price of the ticket

• of the name of the organisation for whose benefit the art union is being conducted

• of details of the prizes and their recommended retail value

• of the place, date and time of the draw

• how prize-winners will be notified

• how the results of the draw will be publicised.

It is acceptable for this information to be provided on the ticket, and not elsewhere.

Tickets and any advertising or promotional material used in conjunction with the art union must give a detailed description of the prizes.

This should include the following:

How should the Draw be Conducted?

The draw must take place in Australia.

Every person who has purchased a ticket in an art union must have a fair and equal chance of winning every prize in the art union when drawn.

Art union organisers cannot impose a condition requiring a ticket-holder to be present at the draw to claim a prize in the art union.

All prizes must be distributed by the drawing of ticket-butts or numbered marbles from a barrel or other suitable container. The receptacle should be large enough to allow all butts or marbles to be included and mixed freely.

If more than one prize is offered, the major prize should be the first drawn. Then the other prizes should be drawn in descending order according to number and value.

Sellers of tickets must return to the organisers all ticket-butts (or appropriate computer-generated document) relating to tickets sold by them, the proceeds of sales, and all unsold tickets issued to them before the date fixed for the draw of the prizes or at any earlier date that the organisers may require.

If a ticket is not included in the draw, the organisers must use best endeavours to refund the price to the ticket owner within 7 days after the draw is held.

The draw should be conducted at the place, date and time shown in any information provided to purchasers.

How should the Results of the Draw be notified?

Organisers should notify prize-winners within 2 days of the draw. Organisers must also publish a list of prize-winners in a newspaper within 7 days of the draw.

What Records must be kept?

Proper and prudent records must exist. This means keeping all receipts, invoices and other records concerning costs and outgoings, and payments received as payments for tickets.

The organisers must also keep a record of:

• the total amount of money received from the sale of tickets

• the total value of the prizes

• the number of tickets printed, obtained or generated (including serial numbers)

• the number of tickets sold or distributed for sale (including serial numbers)

• the name and address of each person to whom tickets were distributed for sale, together with the number of tickets issued and the serial numbers

• the names and addresses of all persons who applied for a ticket

• the names and addresses of all persons who bought tickets (as shown on the ticket-butts or computer records)

• the names and addresses of the prize winners, together with the details of their prizes

• the number of tickets unsold (including their serial numbers).

Organisers must deposit all money received into an account at a financial institution that belongs to the benefiting organisation. This should occur as soon as practicable, preferably within 2 days after it is received.

How long must Records be kept?

Ticket-butts, draw documents and corresponding computer-generated documents must be kept for at least 3 months after the date of the draw at which winners are determined.

Unsold tickets must be retained for at least 3 years after the date of the draw.

Is a Financial Return Required?

Art union organisers must send us an audited statement of income and expenditure, a balance sheet, and a statutory declaration within two months from the date of the draw. The organisers must also send us a receipt from the benefiting organisation of the art union for the net proceeds derived from the art union.

We supply a sample statement of income and expenditure and balance sheet and the statutory declaration when we issue a permit to the art union organisers.

Who is Responsible?

The promoter or organisers are responsible for the proper management and conduct of an art union.

A subcommittee can be elected from within the benefiting organisation to be the organising committee. Alternatively, the benefiting organisation can authorise persons outside the organisation to conduct the art union on its behalf. Where a committee or outside people conduct the art union, the management committee of the benefiting organisation should satisfy itself as to the good standing and competence of the organisers.

Raffles

The NSW Office of Liquor, Gaming and Racing issues a very easy to Factsheet detailing everything you need to know about conducting a raffle.

This factsheet can be downloaded by clicking:

www.olgr.nsw.gov.au/pdfs/gofc_fs_rraffles.pdf.

Information in the Art Union factsheet can be summarised as follows:

What is a Raffle?

A raffle is a lottery where the total value of prizes does not exceed $25,000.

Prizes are determined by a draw of tickets or marbles from a barrel or other receptacle, or by an electronic device (often called a random number generator).

Who can Benefit from holding a Raffle?

A raffle can only be conducted to raise funds for a not-for-profit organisation.

Is a Permit Required?

No – a permit is not required for a raffle.

But the raffle organiser must comply with the Lotteries and Art Unions Act 1901 and the Lotteries and Art Unions Regulation 2007.

What is the Maximum Value of Prizes?

The total retail value of prizes must not exceed $25,000.

Can Prizes be Money?

Yes – but the total amount of money prizes (excluding spending money) cannot exceed $25,000.

What Prizes are Allowed?

Prizes can consist of or include anything except a prohibited prize.

Prizes can be goods, wares, merchandise, services, vouchers for goods or services that are not redeemable for money, tickets for admission to entertainment, and tickets (with spending money) for tours or journeys.

What Prizes are Prohibited?

Some prizes are prohibited:

  • Money prizes over $25,000
  • Tobacco productS
  • Firearms or ammunitioN
  • Prohibited weapons
  • Cosmetic surgery or other procedure designed to improve personal appearance
  • Liquor prizes more than 20 litres.

What Expenses can be Incurred?

Reasonable expenses can include:

  • Purchase of the prize or prizes
  • Purchase of the tickets
  • Hiring or operating any device used as a draw receptacle
  • Renting premises for the raffle
  • Advertising and promoting the raffle
  • Auditing the raffle accounts and other records
  • Salaries, wages or commission payable to organisers.

Remuneration or a commission is not allowed if the total value of prizes is $5,000 or less.

If the total value of prizes exceeds $5,000, remuneration or a commission is allowed – but can only be paid to a person for services rendered in connection with the raffle if there is a written agreement between that person and the benefiting organisation.

What are the Maximum allowable Expenses?

Total allowable expenses (including the cost of prizes in a raffle) must not exceed 60% of the gross proceeds of the raffle.

How much should the benefiting Organisation Receive?

The benefiting organisation should receive at least 40% of the gross proceeds of the raffle.

Is there a Maximum Price per Ticket?

No. Whatever price is considered reasonable can be charged. However, when deciding the selling price of tickets, raffle organisers must weigh up the potential number of tickets that can be sold and the requirement to achieve a profit of 40% or more.

The selling price must be applied consistently to all tickets sold.

No ticket should be sold except for the advertised value of the ticket, or for some other consideration which is equivalent to the value.

It is acceptable to sell tickets at a discount, but only if this is fully disclosed in all information made available to purchasers, and is offered to all purchasers consistently.

Is there a Maximum number of Tickets that can be Sold?

No.

How should Ticket Sales be Managed?

A raffle must be conducted fairly. A procedure must be adopted which ensures that tickets are secure, distributed on a purely random basis, and are not able to be manipulated.

Raffle organisers cannot send tickets to any person except with the prior consent of the person, even if the person is a member of the organisation conducting the raffle. This applies even if the person is to purchase the ticket or is to act as agent for the sale of the tickets.

Organisers can send letters, notices, etc to people asking them to buy tickets in the raffle. However, tickets must not be included with letters, notices etc unless the recipient has consented beforehand.

If organisers intend to sell tickets in a street or public place in a local government area, written permission from the local council may be required. Check with the local council.

If the total value of the prizes is greater than $5,000, the person selling the ticket must at point of sale record the name and address of the purchaser legibly on the ticket-butt (or, if it is a computer-generated ticket, record these details in the computer database).

Tickets in a raffle containing liquor prizes must not be sold by or to a person under 18 years of age. Also, a person under 18 cannot give or collect a liquor prize.

How should the Draw be Conducted?

Every person who has purchased a ticket in a raffle must have a fair and equal chance of winning every prize in the raffle when drawn.

Raffle organisers cannot impose a condition requiring a ticket-holder to be present at the draw to claim a prize in the raffle.

All prizes must be distributed by the drawing of ticket-butts or numbered marbles from a barrel or other suitable container. The receptacle should be large enough to allow all butts or marbles to be included and mixed freely.

An electronic drawing machine may be used, if the program used to draw the numbers is in fact random, and every number entered into the draw has a fair and equal chance of being drawn. If unsure, contact the supplier.

If more than one prize is offered, the major prize should be the first drawn. Then the other prizes should be drawn in descending order according to number and value.

Sellers of tickets must return to the organisers all ticket-butts (or appropriate computer-generated document) relating to tickets sold by them, the proceeds of sales, and all unsold tickets issued to them before the date fixed for the draw of the prizes or at any earlier date that the organisers may require.

If a ticket is not included in the draw, the organisers must use best endeavours to refund the price to the ticket owner within 7 days after the draw is held.

The draw should be conducted at the place, date and time shown in any information provided to purchasers.

If a ticket purchaser or other person wants to attend the draw, the organisers should facilitate this.

What Records must be kept?

Proper and prudent records must exist. This means keeping all receipts, invoices and other records concerning costs and outgoings, and payments received as payments for tickets.

If the total value of the prizes is $5,000 or less, the organisers must keep a record of the total amount of money received from the sale of raffle tickets and the value of the prizes. Organisers should also keep a record of:

  • The number of tickets printed, obtained or generated (including serial numbers)
  • The number of tickets sold or distributed for sale (including serial numbers)
  • The name and address of each person to whom tickets were distributed for sale, together with the number of tickets issued and the serial numbers
  • The names and addresses of all persons who bought tickets (as shown on the ticket-butts or computer records)
  • The names and addresses of the prize winners, together with the details of their prizes
  • The number of tickets unsold (including their serial numbers).

Organisers must deposit all money received into an account at a financial institution that belongs to the benefiting organisation. This should occur as soon as practicable, preferably within 2 days after it is received.

If the benefiting organisation holds a fundraising authority under the Charitable Fundraising Act 1991, additional record-keeping requirements may apply. Check with us, if unsure.

How long must Records be kept?

Ticket-butts, draw documents and corresponding computer-generated documents must be kept for at least 3 months after the date of the draw at which winners are determined.

If the total value of prizes is greater than $5,000, all records including unsold tickets must be kept for at least 3 years after the date of the draw.

Is a Financial Return required?

No. However, the benefitting organisation must ensure that its financial statements detail the gross proceeds and expenses of raffles.

Who is Responsible?

The promoter or organisers are responsible for the proper management and conduct of a raffle.

A subcommittee can be elected from within the benefiting organisation to be the organising committee. Alternatively, the benefiting organisation can authorise persons outside the organisation to conduct the raffle on its behalf. Where a committee or outside people conduct the raffle, the management committee of the benefiting organisation should satisfy itself as to the good standing and competence of the organisers.

The benefiting organisation should introduce adequate controls to oversight the organisers, including:

  • Insisting on reports
  • Ratifying all expenses and prizes awarded
  • Having full access to records and registers
  • Ensuring financial records are audited
  • Exercising proper internal controls over the purchase, sale and safekeeping of tickets including unsold tickets.

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