Gambling Rules & Regulations

Office of the Liquor and Gambling Commissioner
GPO Box 2169
Adelaide SA 5001
Telephone: (08) 8226 8410
Facsimile: (08) 8226 8512
Email: lottery@agd.sa.gov.au
Website: www.olgc.sa.gov.au

Raffles and Lotteries

The Office of the Liquor and Gambling Commissioner publishes a comprehensive fact sheet for running a raffle, detailing the fundraising licensing obligations and conditions.

This factsheet can be downloaded by clicking:

http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/LookupFiles/Rules-Conditions-Raffles.pdf/$file/Rules-Conditions-Raffles.pdf

Information contained in factsheet can be summarised as follows:

Major Lottery Licence

In South Australia, lotteries are regulated under the provisions contained in the Lottery and Gaming Act 1936 (the Act).  In order for major lotteries to be conducted in this State, the association must have a current major lottery licence.

What is a major lottery?

A major lottery is a fundraising lottery conducted by an association where the total retail value of all prizes in the lottery exceed $5,000 and the prizes are distributed by lot or drawing.

No part of the net proceeds of a major lottery can be applied for the benefit of a member of the association or a registered corporation that returns profits to its members.

 What is an exempt lottery?

The following lotteries are exempt from the licensing provisions of the Lottery and Gaming Regulations 2008:

Fundraising Lotteries

  • Minor Lotteries – a minor lottery is a lottery where the total retail value of all prizes in the lottery does not exceed $5,000
  • Minor Bingo Sessions – a minor bingo session is where the total gross proceeds in each session does not exceed $500
  • Sweepstakes – a sweepstakes is a scheme where money is paid into a pool and all or part of this money is distributed as prizes to persons who have drawn the winner’s chances from the results of specified racing events conducted within or outside South Australia. The gross proceeds of a sweepstakes cannot exceed $2,000
  • Raffles of a private nature conducted among persons engaged in common employment where the total value of the prize does not exceed $25

Non-Fundraiser Lotteries

  • Participation Lotteries – a lottery to encourage the participation of members at functions at no cost (other than the cost to be a member) conducted by an association and prizes do not exceed $5,000.
  • Calcutta sweepstakes – a sweepstakes conducted by an association where the winning chances arising from the results of certain sporting events are auctioned and the gross proceeds do not exceed $15,000,
  • Lotteries where all proceeds are given in prizes – a lottery where the gross proceeds to not exceed $2,000 and the whole of the proceeds of the lottery after deduction of the administrative expenses, constitute the prizes.
  • Minor trade promotion lotteries – a trade promotion lottery conducted by an organisation to promote the sale of their goods or services, other than a major trade promotion lottery or a trade promotion (instant prize) lottery.

These lotteries do not require a lottery licence however they must be conducted in accordance with the provisions of the Lottery and Gaming Regulations 2008.

Approved purpose

The approved purposes for which a major lottery can be conducted are:

• Religious, educational, charitable or benevolent purposes

• Promoting or encouraging literature, science or the arts

• Providing medical treatment or promoting the interests of persons who have a particular physical, mental or intellectual disability

• Establishing, carrying on or improving a community centre, or promoting the interests of a local community or particular section of a local community

• Sport, recreation or amusement

• Promoting animal welfare

• Conserving resources or preserving any part of the environmental, historical or cultural heritage of the State

• Promoting the interests of students or staff of an educational institution

• Political purpose

• Promoting the common interests of persons who are engaged in or interested in a particular business, trade or industry.

When is a major lottery licence required?

A major lottery licence is required for any fundraising lottery where the total retail value of all prizes in that lottery exceed $5,000. The lottery must be conducted in compliance with the rules set out in the Regulations.

A fundraiser lottery, where the total retail value of all prizes in the lottery is $5,000 or less, is a minor lottery and is exempt from licensing requirements, however the lottery must be conducted in compliance with the rules set out in the Regulations.

Making an application

  • The application form must be submitted at least 14 days prior to the date of commencement of the lottery.
  • A major lottery cannot be commenced or advertised in any way until the lottery has been licensed and the licence number stated on the tickets and in all advertising.

Grant of a major lottery licence

A major lottery licence may be granted if:

• The association is eligible to apply for a licence

• All of the net proceeds of the major lottery will be applied for one or more approved purposes

• No part of the net proceeds is to be used for the benefit of any member of the association or a registered corporation which returns profits to its members

• The association is a fit and proper body to conduct lotteries

• The lottery which the licence relates appears to be financially viable.

The ultimate responsibility for ensuring that the conduct of the lottery complies with the Act and Regulations rests with the management committee of the association conducting the lottery.

What is the duration of a major lottery licence?

There is no prescribed time limit for the running of a major lottery, however to maintain public interest, it is recommended that the period for selling of tickets in a lottery does not exceed four months.

What records must be kept and audited

The major raffle holder must ensure that it keeps records in relation to the lottery including:

  • The number of ticket books issued for sale
  • The names and addresses of the persons to whom tickets were issued for sale,
  • The number of tickets sold and the number of tickets returned unsold or lost
  • All monies received from the sale of tickets in the lottery must be paid into the association’s ADI (financial institution/bank) account
  • Accurate records of all income and expenditure relating to the lottery must be maintained.
  • Any tickets not returned to the association are considered to be lost tickets. Unsold tickets must be available for audit by the auditor.
  • The accounts and records relating to the major lottery and any unsold tickets in the lottery for a period of at least one year from the day on which the licence expires.
  • These accounts, records or tickets must be available for inspection by the Minister, on request, at any time during that period.
  • Audit the tickets in the lottery with a view to determining the number of tickets sold, unsold or lost
  • Carry out the audit in sufficient time to enable the association to comply with these regulations in relation to the provision of a financial statement in respect of the lottery
  • On completing an audit, complete the auditor’s report attached to the major lottery financial statement.

What information must be lodged at the completion of the lottery?

A financial statement outlining the outcome of the lottery must be lodged within one month of the draw date. The auditor appointed by the association must complete the auditor’s report which is attached to the financial statement.

 Conditions

  • There is no maximum amount fixed for ticket prices, whatever price is considered reasonable can be charged.
  • The selling price you charge must be consistently applied to all tickets sold.
  • All tickets (other than bonus tickets) should be sold at the advertised value
  • The number of tickets offered in the lottery cannot exceed the number specified on the licence.
  • An association can offer inducements to encourage the purchase and sale of lottery tickets in a major lottery. These inducements include bonus tickets for ticket purchasers and gifts and rewards for either purchasers or sellers of tickets.

Bonus tickets are tickets which can be offered free of charge to purchasers of a certain number of tickets (e.g: purchase a book of ten tickets and receive one ticket free).

The number of bonus tickets are to be included in the total number of tickets available. Details of the bonus offer must appear on the face of each ticket and must apply throughout the whole period during which tickets are on sale.

Gifts and rewards can be offered as inducements to either sell or purchase lottery tickets. For example , the ticket seller who sold the winning ticket could receive a gift or reward, or if the winner had purchased a complete book of tickets which included the winning ticket, they could receive a gift or reward in addition to their prize.

Prize conditions

  • Liquor is prohibited from being offered as an inducement to enter or participate in the lottery.
  • The total value of all prizes in a major lottery must not be less than 20% of the total face value of all tickets in the lottery.
  • The prizes must consist of cash, goods or services.

Prohibited prizes

Prizes prohibited in major lotteries includes:

• Tobacco products

• Firearms, antique firearms and ammunition

• Dangerous articles and prohibited weapons

• Cosmetic surgery and other similar medical or surgical procedures undertaken with the predominant purpose of improving personal appearance.

• Any goods or services the sale of which in South Australia would be an offence.

Valuing prizes

The prizes must be valued at their retail value – regardless of whether they were purchased at a discount or retail price or donated.

If the prize is an antique or a piece of artwork, craftwork, collectible bric-a-brac or is secondhand, the value of the prize is the price likely to be paid for the item if sold at an auction. In all other cases, the value of the prize is the retail price or a reasonable estimate of the likely retail price of the item.

What details must be provided relating to prizes?

If a prize (e.g: travel, motor vehicle, mobile phone, etc) has conditions attached, full details of the conditions must be provided. For example:

  • Travel prizes must include details of the number of persons entitled to use the prize, destination details, additional components (accommodation, air fares, etc) , prize value, restrictions (off-peak periods, expiry period, etc) , redeemable for cash, etc
  • House and/or land prizes must include details of conveyancing and transfer costs, land tax, etc
  • Motor vehicle prizes must include details of make and model of vehicle, accessories, registration, on-road costs, etc;
  • Mobile phone prizes must include details of any costs and mobile phone plan which must be undertaken by winner, etc.

What information is required on the tickets and book covers?

The book cover must contain a notice to the ticket seller providing instructions on the conduct of ticket sales.  The ticket buyer’s section of the ticket must include:

  • The lottery licence number
  • The ticket number
  • The name of the association who the proceeds are in aid of
  • The name of the association conducting the lottery
  • The number and price of the tickets
  • The nature and the value of the prizes
  • The number of bonus tickets that are available
  • The date, time, day and venue of the drawing of the lottery
  • The newspaper and the date on which the results will be published.

If there are any terms and conditions of entry or participation in the lottery, these must be included on the ticket (e.g: persons under the age of 18 years unable to enter)

The ticket seller’s section of the ticket (ticket butt) must include:

  • The lottery licence number
  • The same ticket number as shown on the ticket buyer’s section of the ticket
  • The name, address and telephone number of the ticket buyer
  • The name of the association who the proceeds are in aid of
  • The date on which the lottery is to be drawn.

Conduct of the lottery

  • Any person can enter a major lottery, subject to the association’s rules. There is no age limit on the purchase of major lottery tickets prescribed in the Act and Regulations.
  • An association must not enter a lottery conducted by that association. However, a natural person including any committee member belonging to that association is allowed to enter the lottery.
  • A child under the age of 15 years cannot sell lottery tickets unless the child is accompanied by and under the supervision of an adult.
  • Ticket seller must ticket butts include the name and address of the ticket buyer.
  • A ticket in the lottery must not be given or posted to a person for sale to or by that person without his or her prior consent. Letters can be sent to people inviting them to buy tickets in the lottery, however the tickets must not be included with the letter.
  • The number of tickets in the lottery cannot exceed the number of tickets specified in the licence.
  • Tickets cannot be sold before the commencement date stated on the licence
  • The association must ensure all unsold tickets, ticket butts of sold tickets and proceeds from ticket sales are returned prior to the drawing of the lottery.
  • For each prize valued at over $250 the number of the prize winning tickets in the lottery must be published in a newspaper circulating generally throughout the State within seven days of the draw. If a prize is not delivered to its winner at the time the lottery is drawn, the association must, within four days of the draw, notify the winner in writing of the prize that has been won and the details of how the prize can be delivered or collected.

Advertising the lottery

  • Any advertisement of the major lottery must state the lottery licence number

An association which conducts a major lottery must ensure that the following requirements with respect to advertising or promoting the lottery are complied with.

The advertising or promoting must not be such so as to appear to:

  • Be directed at minors or to portray minors participating in gambling activities
  • Imply that the lottery is a means of relieving personal or financial difficulties or providing for the payment of such things as rent, mortgages, education or household staples
  • Imply that the lottery is a means of enhancing social, sexual or employment prospects.

The advertising or promoting must not:

  • Exaggerate the prizes or the chances of winning a prize
  • Present the chances of winning in a manner which is false,
  • Misleading or in a manner that cannot be verified
  • The advertising or promoting must not state or imply that the skill of the participant can influence the outcome of the lottery
  • The advertising or promoting must not associate the lottery with excessive alcohol consumption
  • The advertising or promoting must not exaggerate the connection between the lottery and the use to which the association intends to apply the proceeds of the lottery
  • The advertising or promoting must not refer to the value or nature of a prize, or the frequency with which a prize may be won unless the advertising or promoting.
  • Includes sufficient information for a reasonably informed person to understand the odds of winning or the overall return to the participant

Conducting the draw

The lottery must be drawn:

  • On the day, time and place specified in the licence
  • Under the supervision of the association
  • In the presence of any ticket holders in the lottery who wish to be present
  • In the presence of a scrutineer who is not associated with the licensee or otherwise involved in the conduct of the lottery.
  • Every ticket in a major lottery must have a fair and equal chance of winning the major prize in the lottery.
  • The participants in a major lottery cannot be required to be present at the drawing of a lottery in order to win a prize. Therefore, a prize cannot ‘jackpot’ or a redraw conducted if the winner is not present.

Who can be a scrutineer?

A scrutineer must be either:

• A commissioner for taking affidavits in the Supreme Court

• A justice of the peace

• A notary public

• Any other person authorised to take declarations under the Oaths Act 1936

• A person of a class authorised by the Minister to be a scrutineer.

Bingo

What are bingo sessions?

Bingo sessions are fundraising and nonfundraising lotteries involving the conduct of the game of chance commonly known as “bingo”, “housie”, “housie housie” or “eyes down bingo”.

Bingo is a game played with game cards in which each card contains at least 15 numbered squares. The caller randomly selects a number and, if matched, the player marks or covers the number on their game card. A player wins when all of the numbers are marked or covered to correspond with a predetermined format.

Fundraising bingo sessions can only be conducted by an association which has not been formed for private gain and includes charities, social clubs, political parties, registered clubs, sporting clubs and trade unions.  No part of the net proceeds of the bingo sessions can be applied for the benefit of a member of the association or a registered corporation that returns profits to its members.

The funds raised by the bingo sessions are to be applied for the approved purposes of an association.

When is a major bingo licence required?

In South Australia, lotteries are regulated under provisions contained in the Lottery and Gaming Act 1936 (‘the Act’). In order for bingo sessions to be conducted in this State, the bingo sessions must be either granted a licence or fall within a class of exempted lotteries. A major bingo licence is required for the conduct of fundraising bingo sessions where the total gross proceeds of a session exceed $500.

When is a license not required?

Fundraising bingo sessions where the total gross proceeds of each session is $500 or less are exempt from the licensing requirements of the Regulations, however the bingo sessions must be conducted in compliance with the minor bingo rules set out in the regulations.  These rules include:

  • The gross proceeds from each session of bingo must not exceed $500.
  • The whole of the net proceeds of the bingo session is to be applied for one or more of the approved purposes specified in the Regulations.
  • At least 10% of the gross proceeds of the session must be applied for an approved purpose
  • No part of the net proceeds of the bingo session is to be applied for the benefit of a member of the association or for a registered corporation which returns profits to its members.
  • Sharing of the facilities or services of the association or acquisition of goods or services from a registered corporation will not be construed as receiving a benefit from the net proceeds of the lottery.
  • Prizes from any other game of chance available to persons attending the session cannot be used to subsidise the bingo prizes.
  • The prizes in any game of bingo must be not less than 20% of the gross proceeds of the game (less any amount allowed for a jackpot).
  • Prizes must be paid in cash immediately after the completion of the game.

Who can apply for a major bingo licence?

An application for a major bingo licence may be made only by or on behalf of an association to conduct bingo sessions on its own behalf.

What is the duration of a major bingo licence?

A major bingo licence is issued for a twelve month period commencing on the day on which the licence is granted.

Conduct of the bingo sessions

To ensure the integrity and credibility of the association is maintained, it is recommended that the association create the rules under which their bingo sessions are to be conducted. These rules should be displayed within the venue and be readily available to players. Possible issues to include in the bingo rules are:

  • Conditions of entry into the game
  • Entry eligibility (ie minors, members of
  • Management committee, etc)
  • Cost of bingo sheets
  • Format for the allocation of prizes (ie
  • Full house, line games, etc)
  • Details of jackpots
  • Claiming and sharing prizes
  • Procedure for the verification of
  • Winning cards
  • Dispute resolution.

An association can conduct a maximum of three sessions of bingo per week.

  • If two or more sessions of bingo are conducted on the same day, there must be an interval of at least 30 minutes between those sessions.
  • The sessions must be conducted on the days, times and at the places specified in the licence.
  • The bingo sessions must be conducted under the supervision of the association, and at least two persons who are members of the management committee or staff of the association must be present during the conduct of each bingo session.
  • The serial number applicable to a game of bingo and the method to be used to determine winners (including jackpots) must be announced to the players in the game immediately prior to the commencement of the game.
  • The drawn numbers must be clearly announced to all players and winning tickets verified by members of the management committee or staff of the association.
  • The gross proceeds from a session of bingo must not exceed $9,000.

Bingo sheets and game cards

  • A bingo sheet consists of a series of individual bingo games.
  • Each bingo game card must consist of at least 15 different numbers and contain a serial number which is common to all game cards on the bingo sheet.
  • Each sheet used in any game must state the same unique serial number.
  • The bingo sheets used by the players in any game must be priced at the same price, and must give rise to an equal chance of winning.
  • No bingo sheet can be given free of charge.
  • Children under the age of 15 years cannot sell bingo sheets and game cards unless they are accompanied by and under the supervision of an adult.
  • Bingo sheets must not be issued by the association to the person conducting the session more than one bingo session in advance.

What restrictions apply to the playing of bingo?

  • A person under the age of 18 years must not participate in a bingo game unless accompanied by, and under the supervision of an adult.
  • Anyone can play bingo, subject to the association’s bingo rules.
  • There is no obligation for a player at a bingo session to participate in every game conducted at the session.

Bingo prizes

The prize in every game of bingo (together with any jackpot won on the game) must be paid in cash immediately after the completion of the game. If more than one person wins the game or jackpot, the prize must be divided equally between them. The prize in every session of bingo must not be less than 20% of the gross proceeds of the session (less any amount allowed for a jackpot). The prizes of any other game of chance made available to persons attending the session must not be used to subsidise the bingo prizes.

Can prizes in a bingo session jackpot?

A jackpot can be conducted during a bingo session, however the jackpot amount must not exceed 10% of the gross proceeds of the session.  Prizes cannot accumulate or jackpot between any game played in one bingo session and a game played in another session.

Bingo sessions cannot promote or have as prizes, prohibited goods or services which include:

• Tobacco products

• Firearms, antique firearms and ammunition or other dangerous articles

• Cosmetic surgery or other similar procedure with the main purpose of improving personal appearance

• All goods and services that cannot legally be sold in South Australia

Liquor is prohibited from being offered as an inducement to participate in a bingo session.

Can bingo be advertised?

An advertisement of a bingo session must state the licence number.

An association which conducts bingo must not advertise or promote the lottery:

  • On the radio on a weekday between the hours of 6.00 a.m. and 8.30 a.m.; or
  • On the television on a weekday between the hours of 4.00 p.m. and 7.30 p.m.

An association which conducts bingo that is a fundraiser must ensure that the following requirements with respect to advertising or promoting the lottery are complied with:

The advertising or promoting must

  • Not be such so as to appear, to be directed at minors or to portray minors participating in gambling activities; or
  • Imply that the lottery is a means of relieving personal or financial difficulties or providing for the payment of such things as rent, mortgages, education or household staples; or
  • Imply that the lottery is a means of enhancing social, sexual or employment prospects;
  • The advertising or promoting must not:
  • Exaggerate the prizes or the chances of winning a prize;
  • Present the chances of winning in a manner which is false, misleading or in a manner that cannot be verified;
  • The advertising or promoting must  not state or imply that the skill of the participant can influence the outcome of the lottery;
  • The advertising or promoting must not associate the lottery with excessive alcohol consumption;
  • The advertising or promoting must not exaggerate the connection between
  • The lottery and the use to which the association intends to apply the proceeds of the lottery;
  • The advertising or promoting must not refer to the value or nature of a prize, or the frequency with which a prize may be won unless the advertising or promoting:

includes sufficient information for a reasonably informed person to understand the odds of
winning or the overall return to the participant; and if the advertising or promoting is intended to encourage a person to participate in the lottery during a particular period—includes sufficient information for a reasonably informed person to understand the likelihood that the prize will be won by a person during that period.

Banking requirements

The net proceeds of all bingo sessions must be paid into a financial institution/bank account that is operated by the association.

What information must be submitted to this Section?

A quarterly financial statement detailing each game must be lodged within one month of the expiry of each quarter of the licence period. A major bingo licence cannot be granted until all outstanding quarterly financial statements have been lodged.

What records need to be kept?

The accounts and records relating to each bingo session conducted and any unsold tickets in the session for a period of at least one year from the day on which the licence expires.

These accounts, records or tickets must be available for inspection by the Minister, on request, at any time during that period.

Exempted bingo sessions

Exempted bingo sessions can be either fundraising or non-fundraising lotteries.  Exempted fundraising bingo sessions are lotteries where the gross proceeds of each session does not exceed $500. These bingo sessions are exempt from the licensing provisions of the Regulations. However, the bingo sessions must be conducted by the association on its own behalf and in accordance with the minor bingo rules as set out in the Regulations.

Exempted non-fundraising bingo sessions are lotteries where:

  • The gross proceeds of the session do not exceed $2,000
  • The whole of the proceeds of the session, after deducting the administrative expenses of conducting the session, constitute the prize or prizes in the session; and the prizes do no include any prohibited goods or services;
  • The amount deducted for administrative expenses does no exceed 2% of the gross proceeds of the session; and  each ticket in a bingo session gives rise to a fair and equal chance of winning a prize.

Who is responsible for the conduct of bingo sessions?

The ultimate responsibility for ensuring that the conduct of the bingo sessions complies with the Act and Regulations rests with the management committee of the association licensed to conduct the bingo sessions, even though the day to day running of the bingo sessions may be undertaken by persons who are not members of the management committee.

    Share

Leave a Comment