Fundraising for organisations

Sweepstakes

Sweepstakes are a way of fundraising or betting by pooling money, then giving each participant a randomly drawn entrant in a horse race, harness race or greyhound race. Prizes are then given from the pool of money collected.

Sweepstakes don’t need a licence if:

  • it is run by an association on its own behalf
  • the gross proceeds are less than $2,000
  • the prizes don’t include banned goods or services
  • all money collected is used for prizes.

You must be 18 years or older to participate.

Calcutta Sweepstake

A Calcutta Sweepstake is a way of fundraising where the chance of winnings from a race, game or sporting event is auctioned to ticket holders.

A Calcutta doesn’t need a lottery licence if:

  • the gross proceeds are less than $15,000
  • it is run by an association
  • the prizes don’t include banned goods or services.

A Calcutta may only be conducted for:

  • a horse race, harness race or greyhound race
  • the final of the Bay Sheffield Foot Race.

Guidelines for a Calcutta Sweepstake

  • all runners must be auctioned
  • tickets prices must be set before the auction and race
  • only ticket holders can be in the auction and draw
  • if the draw happens on a different day from the race, the results must be announced to everyone who has a ticket
  • the amount of the pool must be announced before the auction and progressive totals must be announced after each runner is sold
  • if a ticket holder doesn’t join or doesn’t win at the auction, they forfeit their ticket
  • if a ticket holder wins the auction, they pay the amount of the bid minus the amount already paid for the ticket.
  • if the person who drew the runner isn’t at the auction, their ticket can be sold to someone else.

Proceeds

For a sweepstake, the total value of prizes must be at least 20% of the gross proceeds. At least 35% of the gross proceeds, as well as all net proceeds, must be used for an approved purpose.

For a Calcutta sweepstake, the running costs can’t be more than 10% of the gross proceeds. All remaining money must be used for prizes.

The funds raised can’t be used to benefit a member of an association or a registered corporation that returns profits to its members.

Tickets

All tickets must be sold at the same price and have an equal chance of winning.

Tickets can’t be sold more than three months before the race.

If tickets are sold before the day of the draw, or at a different location:

  • each ticket and butt must contain the name of the association, the name of the race and the date, place and time of the draw
  • the butt of each ticket must contain the contact details of the buyer
  • the draw must happen on the day, place and time stated on the ticket.

You can’t offer incentives to participate, other than the prizes.

Drawing

Each person must be notified of the runner they have drawn before the race. A list of names in the draw must be read out and displayed straight after the draw.

Prizes

All winners must be given their prize or notified of the time and place they can collect it, within four days of the race. Unclaimed prizes must be kept for three months.

Record keeping

Records of a sweepstake must be kept for three months from the date it was drawn.

Applying for a lotteries licence

Apply for a lotteries licence


Contact Consumer and Business Services

Phone

131 882

In person

91 Grenfell Street
Adelaide

Post

GPO Box 1719
Adelaide SA 5001


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Page last updated 18 August 2017

Provided by:
Attorney-General's Department
URL:
http://www.sa.gov.au/topics/family-and-community/community-organisations/fundraising-for-organisations/sweepstakes
Last Updated:
18/08/17
Printed on:
24/11/17
Copyright statement:
SA.GOV.AU is licensed under a Creative Commons Attribution 3.0 Australia Licence. © Copyright 2016