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Raffle Rules – South Australia

 

We pride ourselves on keeping up with the finer details for running raffles throughout Australia. Unfortunately, raffle rules and regulations differ 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 the rules and regulations.

If you live in South Australia and are wondering what the rules and regulations are for running a raffle, you are in the right place. Welcome to our guide on South Australian raffle rules and regulations, where you will learn how to run a raffle in the Festival State. 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 South Australia

In South Australia, the government body that oversees raffle compliance is the Consumer and Business Services (CBS) which is part of the SA Government Attorney-General’s Department.

For the legal enthusiasts, there is one key piece of legislation that dictates charitable fundraising and more specifically to run raffles (lotteries) in South Australia, are the Lotteries Regulations 2021, which are based on the Lotteries Act 2019. The regulations are quite recent compared to other states. If you have run a raffle in the past and would like to know what has changed in the regulations, then head to this summary of changes made.

 

Online Resources

If you are not keen to read the legislation and South Australian raffle rules, I don’t blame you. Thankfully, the CBS has put together some guidelines so that you don’t have to read through pages of riveting legal jargon. They have provided a single web page with lots of pertinent information regarding raffles. Please note in the regulations raffles are referred to as lotteries.

 

South Australian 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 South Australia’s raffle regulations that need to be considered.

 

1.     Am I allowed to run a raffle?

To run a raffle in South Australia you need to be a representative of a ‘community organisation’. This means your organisation will need to be a not-for-profit organisation, registered with an ABN or ACN, and has a benevolent or charitable purpose. Descriptions of organisations that CBS have deemed to be community organisations can be found at this web page..

It is important to note that the proceeds of your raffle must not be used to benefit individual members. All proceeds must be used for an ‘approved purpose’ (a list can be found here).

Lottery Classifications

Major Lotteries: the total value of your prizes is greater than $5,000 with at least 35% of ticket sales to be used for an approved purpose.

Minor Lotteries: the prize pool is less than or equal to $5,000 with at least 20% of ticket sales to be used for an approved purpose.

 

2.     Do I require a raffle permit?

All Major Lotteries require a permit. You can apply online here at least 14 days before the raffle begins and you will need to pay the application fee, which is currently $9.95.

Before applying, make sure you have all the required information:

  • A copy of your proposed ticket and book cover design
  • The terms and conditions of entry and participation
  • Copies of any contracts you have with a commission or fundraising agent
  • Details about whether you will have the prizes before ticket sales start
  • The value of prizes such as collector’s items or major second-hand articles

If you are a first-time applicant, you will also need to provide:

  • A copy of your organisation’s constitution
  • Names and addresses of your management committee members
  • The number of financial members in your organisation.

 

3.     What sort of prizes can I offer when running a raffle?

The CBS will refuse any permit application where the prizes are deemed inappropriate. Inappropriate prizes include alcohol, tobacco products or dangerous goods such as firearms.

 

4.     Are there any raffle rules on ticket pricing and sales?

There are no regulations that specifically dictate ticket pricing and you are allowed to offer bonus tickets for larger purchases. The use of bonus tickets must remain constant for the entire raffle, i.e. you cannot start discounting tickets or changing the number of bonus tickets provided after the raffle has begun.

The total value of ticket sales must not exceed five (5) times the value of the prizes. For example, if your prizes are worth $10,000, then ticket sales must not exceed $50,000.

 

5.     What are the rules for information on the tickets?

All tickets must include the following information:

  • The lottery licence number (if a major lottery)
  • A unique ticket identifier for each ticket
  • The price and the total number of tickets available
  • Name of the organisation running the lottery
  • Organisation benefiting from the funds raised
  • Prizes and their value
  • Number of bonus or free tickets
  • Terms and conditions of entry, for example – people under 18 years old are unable to enter
  • Date, time, day and venue of the lottery draw
  • Date and method for publishing the results.

 

6.     What are the rules for drawing winners?

The draw must be conducted at the date, time and location stated on the ticket. If any ticket holders wish to attend the draw, you must oblige the request. If the value of prizes are greater than $30,000, you will need a ‘Scrutineer’ in attendance.

A Scrutineer can be:

  • A commissioner for taking affidavits in the Supreme Court
  • A justice of the peace
  • A notary public
  • Any other person allowed to take declarations under the Oaths Act 1936
  • A person authorised by the commissioner to be a scrutineer

All records, including ticket stubs, number of tickets sold and unsold, and details of ticket sellers, must be kept for twelve months after the draw.

 

7.     Are there advertising restrictions?

Your advertising must not:

  • Be aimed at people aged under 18 years old
  • Suggest that the lottery can fix personal or financial problems or to cover expenses
  • Imply that the lottery can increase social, sexual or employment opportunities
  • Exaggerate the prizes or suggest the chance of winning is better than it is
  • Suggest that someone’s skill means a better chance of winning
  • Link the lottery with drinking too much alcohol
  • Exaggerate the connection between the lottery and how the proceeds will be used.

All advertising must include the following information:

  • The lottery licence number
  • The nature and value of the prizes to be won
  • How to locate a copy of the full terms and conditions

 

8.     When running my raffle, do I need to have a set of Terms & Conditions?

When applying for a permit, you will need to have a set of terms and conditions prepared.

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

Please consider that each raffle is different, and it’s best practice to ensure your terms & conditions have had the due diligence put in place to include all the clauses you may need.

 

9.     Who can buy and sell raffle tickets?

Anyone may participate in a raffle so long as the terms and conditions allow. You cannot participate if you are part of the management committee or conducting the raffle.

When selling tickets, the following rules must be followed:

  • Ticket sellers must have clear instructions on the ticket book cover for major and minor lotteries.
  • Children under 15 years old can only sell tickets if they are with an adult.
  • A ticket must not be given or posted without consent. Letters can be sent to people inviting them to buy tickets, but tickets mustn’t be included.
  • For major lotteries, tickets can’t be sold before the start date on the licence.

 

10.  What records do I need to keep?

The following guidelines are provided for record keeping and auditing:

  • Where the total prize pool is under $30,000, a financial statement outlining the lottery’s outcome must be sent to CBS within one month of the draw.
  • Where the total prize pool is $30,000 or more, a financial statement outlining the lottery’s outcome must be sent to CBS within two months of the draw.
  • Once the financial statement has been finalised, if the total prize pool is $30,000 or more, the lottery auditor will be prompted to certify the financial statement.

The auditor of the lottery must be a member of either:

  • CPA Australia
  • Chartered Accountants of Australia and New Zealand
  • Institute of Public Accountants.

Where the total prize value of the lottery is $30,000 or more, the auditor must:

  • take reasonable steps to make sure the organisation keeps proper records for the lottery
  • audit the tickets and record the number of tickets sold, unsold or lost
  • allow enough time for the audit so the organisation can provide a financial statement in line with the lotteries regulations
  • complete the auditor’s report attached to the lotteries financial statement.

 

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 CBS, 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.

 

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