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MINOR LOTTERIES (INCLUDING RAFFLES)

Raffles are a good way of raising funds.

  • There is an Act of Parliament and associated Regulations associated with running a raffle.

  • Everyone in the Association must abide by the Act and Regulations, even where the retail prize value is low.

  • Refer to the information from the Office of Liquor and Gambling Commissioner for additional information. www.olgc.sa.gov.au

 

 

 

The important points for Minor Lotteries are:

  • No license is needed for raffles where the retail prize value is under $5,000.

  • Only persons over the age of 15 years can sell tickets.

  • Tickets cannot be sold or offered for sale through the post to a person, unless they have given their prior consent (in writing).

  • Door to door sales cannot be made before 9am or after 8pm or sunset whichever occurs last.

  • The winner does not have to be present at the draw.

  • The prize/s cannot jackpot.

  • The ultimate responsibility for the conduct of any raffle within SACWA is State Council (with the Administration Committee acting for it between State Councils).

  • State Council must have adequate controls in place and over its State Committees, Branches, Groups and Holiday Cottage Management Committees to ensure that raffles are conducted correctly. These controls must include regular reports, endorsement of expenses, raffle records and full access to those records.

  • The penalties for breaches of the Act and Regulations can be as high as $50,000 or 2 years imprisonment. 

  • It is recommended that a raffle run for not more than 4 months.

  • The total retail value of the prizes must not be greater than $5,000.

  • The total retail value of the prizes must be at least 1/5th of the total face value of all tickets in the raffle (1/5 of the possible gross proceeds if all tickets are sold).  To work the possible gross proceeds, multiply the total retail value of the prizes by 5.  (Example – Retail value of the prize is $100.  The possible gross proceeds would be $100 X 5 =$500.  This means that $500 worth of tickets must go on sale.

  • There is no fixed price for tickets – the number of tickets on sale is determined by the possible gross proceeds of the lottery divided by the value of a ticket.  (Example = $500 worth of tickets on sale with each ticket worth $1 would mean that 500 tickets could be offered for sale – if the price of each ticket was 50 cents, then 1,000 tickets could be offered.  If the price of a ticket is 20cents, then 2,500 tickets could be offered).

  • Each ticket must be sold at the same price.

  • If the tickets are sold before the day of the draw, each ticket and the butt of the ticket must include the name of the Association and the date, place and time of the draw. The butt must state the name and address, or telephone number of the purchaser of the ticket.

  • A raffle cannot run at a loss. Ticket sales must exceed the total retail value of the prizes. If not, the deficiency is made up from other funds and the Minister must be notified.

  • Draw the raffle ON THE DAY AND AT THE TIME specified.

  • Draw the prizes in descending order – that is first prize, then second and so on.

  • Deliver the prizes within four days.  Notice must be given to the winners, stating the amount of the prize and the time and place where the prize can be collected.

  • The administrative expenses of the raffle cannot exceed 10% of the total face value of the tickets in the lottery (possible gross proceeds).

  • The winner has 3 months after the draw to collect the prize. If the prize is not collected in this time frame, the person running the raffle must notify the Commissioner, who will give instructions regarding the disposal of the prize.

  • Perishable goods (food) can be sold and the monetary value then becomes the prize.

  • Accounts and raffle records must be kept for each raffle. Any unsold tickets must be kept for at least one year from the day the lottery is drawn. Records must contain the:

  • Retail Value of the prizes,

  • The date, place and time of the draw,

  • The number of tickets in the raffle,

  • The face value of the raffle (possible gross proceeds),

  • The number of tickets sold,

  • The gross value of tickets sold,

  • The administrative costs of running the raffle,

  • The prize winners and the name of the person/s drawing the tickets,

  • GST payable on the net proceeds of the raffle,

  • Net proceeds of the raffle,

  • The raffle record must be filed in State Office so that it is available for inspection by the Minister at any time.

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