Dr. Sash Neser
At Bolsta we pride ourselves on keeping up with the finer details for running raffles throughout Australia. Unfortunately, there are different raffle rules and regulations for every state and territory, which makes it difficult to know exactly what’s required. The mighty raffle is a trusted powerhouse of fundraising and it is important to make sure you comply with rules and regulations.
If you live in the Australian Capital Territory (ACT) and are wondering what the rules and regulations are for running a raffle, you are in the right place. Welcome to our guide on ACT raffle rules and regulations, where you will learn how to run a raffle in the nations capital. In this guide we walk you through everything you need to know, to make sure your raffle is legitimate.
Legislation around running a raffle in the ACT
In the ACT, the government body that oversees raffle compliance is the Gambling and Racing Commission (GRC) which is an independent body established under section 5 of the Gambling and Racing Control Act 1999.
For the legal enthusiasts, there is one key piece of legislation that dictates charitable fundraising and running raffles (lotteries) in the ACT, which is the Lotteries Act 1964. It provides for a wide range of lottery-type activities, such as Trade Promotion Lotteries, Raffles, Housie, Calcuttas, Card Jackpot Raffles and Lucky Envelope Raffles.
Online Resources
If you are not keen to read the legislation and ACT raffle rules, I don’t blame you. Thankfully, the GRC has put together some guidelines so that you don’t have to read through hundreds of pages of riveting legal jargon. They have several resources that you can access online to assist you in getter the finer details:
1. On this web page , they have defined what a raffle is in the ACT
2. You can download their ‘Standard Raffle Information and Conditions’ here
ACT Raffle Regulations and Requirements
If accessing the legislation and online resources is not your cup of tea, read on. We have prepared a summary of the key points regarding the ACT’s raffle regulations you will need to take into consideration.
1. Am I allowed to run a raffle?
Unlike most other states and territories, there do not appear to be many restrictions regarding the organisations that can conduct a raffle. Typically, within Australia, it is a requirement that organisations conducting raffles must be not-for-profit entities undertaking fundraising for benevolent activities. This is not the case in the ACT. You must have an ABN or ACN for your organisation, but you are not required to be a not-for-profit organisation.
In the ACT, individuals rather than a business may run some smaller types of lotteries, but only under certain conditions. Those conditions are covered in the following section of this article.
2. Do I require a raffle permit?
In the ACT, if your organisation is running a raffle, there is a simple blanket rule that determines if you require a permit. Any raffle run by an organisation with prizes that have a total value greater than $2,500 requires a permit. You can get your permit online using their ‘smart form’.
You may also be exempt from obtaining a permit if you conduct a ‘personal lottery’. The definition of a ‘personal lottery’ is one in which participation is restricted to members of the same association, or who work or live in the same premises, and where there is no external advertising of the raffle. If you want to know the specifics for raffle permit exemptions, use this link to download a guide.
One thing to note before applying for your raffle is the application fee. The fees charged to conduct a raffle in the ACT are significantly higher than most other states and territories. Current fees can be found here. At the time of publishing this article, the fees were:
· Prizes greater than $2,500 and less than or equal to $5,000 = $230
· Prizes greater than $5,000 and less than or equal to $10,000 = $336
· Prizes greater than $10,000 and less than or equal to $50,000 = $647
· Prizes greater than $50,000 = $925
If you are a charity registered with the ACNC, you may apply to have the fees waived. If your application is rejected, or if you withdraw your application, this fee is non-refundable, so use caution before submitting your application. Note, the GRC will provide feedback and help amend your application rather than point blank, refusing an application that does not meet their requirements. You should allow at least 10 business days for your application to be processed.
When applying for your raffle, you will need to submit the terms and conditions for the raffle and an example of your raffle ticket, so make sure you have these items prepared before submitting your application.
3. What sort of prizes can I offer when running a raffle?
When running a raffle in the ACT, the GRC will refuse any permit application in which the prizes are inappropriate, especially if ticket sales will be made available to ticket buyers under the age of 18. Inappropriate prizes include alcohol, tobacco products or dangerous goods such as firearms.
Other considerations in relation to prizes:
· You may not charge any administration or delivery fees for delivery of prizes
· If you are offering travel products as a prize, all relevant details such as departure dates, number of travelers, inclusions and exclusions must be provided on your ticket and in your terms and conditions.
4. Are there any raffle rules on ticket pricing and sales?
There are no regulations that specifically dictate ticket pricing. There are no minimum or maximum prices and you may offer bonus or discount tickets for larger purchases. The maximum allowable proceeds from ticket sales depend on the total value of the prizes:
· For raffles where the value of prizes does not exceed $10,000, ticket sales must be only five (5) times the value of the prizes. For example, if your prizes are worth $1,000, then ticket sales must not exceed $5,000.
· For larger raffles where the value of prizes is greater than $10,000, ticket sales must be only ten (10) times the value of the prizes. For example, if your prizes are worth $20,000, then ticket sales must not exceed $200,000.
5. What are the rules for information on the tickets and drawing winners?
All tickets must include the following information:
· The permit number as provided by the GRC (if applicable)
· The benefiting person or organisation and the purpose for which the raffle is to be conducted
· A full list of prizes and their retail or market value
· Any conditions attached to the prizes
· A ticket number (sequential numbering of tickets is required)
· The date, time, and location of the draw
· Where and when the results will be published, or how and when winners will be advised
6. What are the rules for drawing winners?
When drawing the winning tickets, there are several rules that you will need to adhere to. The ACT is one of the few states / territories that require a redraw to be conducted if winners do not claim their prize. Rules for draws are:
· The draw must be conducted in a manor that is deemed fair and transparent and in a way that ensures every ticket has an equal chance of being drawn
· If there is more than one prize, then the prize with the highest value must be drawn first so that all entrants have a chance to win the major prize (unless winning tickets are eligible to be redrawn)
· You may not make being present at the draw a condition of winning
· Results must be published within 7 days of the draw and winners must be notified with 21 days of the draw
· If a prize is not claimed within what is deemed a ‘reasonable period’, then a redraw must occur
· The date and time of the redraw must be detailed in the terms and conditions
All records concerning the raffle, including ticket stubs, number of tickets sold and unsold, and details of ticket sellers, must be kept for twelve months after the determination of the results.
6. Are there advertising restrictions around raffles?
The ACT does not specifically stipulate restrictions regarding marketing material, but based on other states, here are some guidelines regarding what not to do when advertising or promoting your raffle:
· Do not depict children participating in the gaming activity
· Do not suggest that winning will be a definite outcome of participating in the gaming activity
· Do not suggest that participating in the gaming activity will definitely improve a person’s financial prospects
· Do not encourage a breach of the law
7. When running my raffle, do I need to have a set of Terms & Conditions?
The permit application process in the ACT requires that a set of terms and conditions be uploaded as part of the process, so make sure you have drafted a set before commencing your application.
Common items that are detailed in the terms and conditions include:
· Who may participate – age or location restrictions
· How the draw will take place and details for conducting a redraw in the event a winner does not claim their prize
· How winners will be notified
· Privacy policy relating to personal data collected during the raffle
There are other clauses that you may want to add. If you are unsure of what the terms and conditions should include, then your best bet is to check out a few other raffles to see what they included in their terms and conditions. If you are running a large raffle, the expense of a lawyer to write terms and conditions for you, is worth your consideration.
8. Who can buy and sell raffle tickets?
The rules in the ACT are not really defined on this topic, but do state that ‘where participants are (or could be) under the age of 18 years, the Commission will refuse to approve an application where the Commission considers the prizes to be inappropriate e.g. liquor products, tobacco products or dangerous goods.’. This being the case, then if you are offering this type of prize, make sure it is explicit on your ticket and in your terms and conditions that raffle tickets may not be purchased by anyone under the age of 18.
Whilst it is not stated, it is usually the case that anyone involved with the management of the raffle, or part of the management team in the benefiting organisation, is not allowed to buy tickets.
Also…
Our disclaimer. The information in this article is current at the time of writing. It is intended as a summary and should not be considered comprehensive. We endeavor to keep the content up to date but can’t guarantee that the powers that be have not changed the rules in the meantime. Please check with the GRC, if you have any queries regarding your raffle, especially if your raffle is classed as a large raffle. We wish you the best of success in your fundraising efforts.
Some additional resources for you
· Learn more about the most common raffle mistakes
· Learn more about the types of raffle prizes that work best
· Learn more about on how to get prizes donated easily
· Download a handy donation request template to help you get donated raffle prizes
· Learn more about different options for raffle ticket pricing
· For more information on terms and conditions, take a look at this article from a legal firm.
