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An instant lottery is a fundraiser conducted by an organisation where participation depends on the purchase of an instant scratch or break-open ticket with a hidden number, letter or symbol. The prizes in an instant lottery cannot exceed $5.000 in value.
You must have a licence before you can advertise or begin an instant lottery.
Who can run an instant lottery?
To run an instant lottery, you have to either be:
- any incorporated organisation (like an incorporated association) other than a registered corporation, under Commonwealth law, that returns profits to its members
- any unincorporated organisation that has:
- at least 10 members
- a management committee appointed or elected by the members of the organisation
- a written constitution.
Entry
An instant lottery ticket must not be sold to a person under the age of 18.
Proceeds
Funds raised through an instant y lottery can only be used for an approved purpose and can include:
- a religious, educational charitable or benevolent purpose
- promoting or encouraging literature, science or the arts
- providing medical treatment or promoting the interests of someone who has a particular physical, mental or intellectual disability
- establishing, running or improving a community centre
- promoting the interests of a local community or group
- sport, recreation or amusement
- promoting animal welfare
- conserving resources or preserving the environmental, historical or cultural heritage of South Australia
- promoting the interests of students or education staff
- political purpose
- promoting the common interests of people connected to a business, trade or industry
- any other purpose approved by the commissioner.
All net proceeds of the lottery must be used for one or more approved purposes. Net proceeds are the gross proceeds of the lottery (total money received minus the amount spent on prizes and administrative expenses to conduct the lottery.
At least 20% of the gross proceeds of an instant lottery must be used for one or more approved purposes.
The funds raised can’t be used to benefit a member of the organisation or a registered corporation (under Commonwealth law) that returns profits to its members.
Tickets
The tickets for an instant lottery must be purchased from an approved supplier of instant lottery tickets. Each series of instant lottery tickets must include a unique serial number.
Each ticket must be of equal value with an equal chance of winning. After opening a ticket, the outcome should be known instantly.
Instant lottery tickets must be made, packaged and stored so that numbers, letters or symbols can’t be detected before a ticket is purchased.
Prizes
The total value of all prizes in the lottery must not be less than 20% of the total face value of all tickets in the lottery. Face value means the amount obtained by multiplying the total number of tickets available in the lottery by the individual ticket price.
The payment of a cash prize over $1,000.00 must be offered by bank account deposit and paid as soon as possible after the prize is drawn.
Prohibited prizes
Prizes in an instant lottery cannot include:
- Tobacco products
- Firearms (including antique firearms)
- Ammunition
- Dangerous articles and weapons
- Medical treatments
- Goods or services that are illegal to sell in South Australia.
Advertising
Any advertisement or promotion of an instant lottery must include the number of the lottery licence.
The licensee must display at or near the place at which the tickets are being sold, a sign that states:
- the nature and value of the prizes to be won
- restrictions on entry
- the total number of tickets available in the lottery.
Unless that information appears on the tickets.
Advertising or promoting any lottery must include:
- enough information for people to understand the chances of winning when the lottery ends
- how often a prize or prizes can be won.
Advertising or promoting any lottery must not:
- be aimed at people aged under 18 years or demonstrate them gambling
- 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.
Financial requirements and record keeping
The licensee must keep accurate records of the:
- number of tickets sold
- number of tickets that were available for sale
- name of the ticket supplier
- serial numbers of the tickets sold in each lottery
- opening and closing dates of each lottery
- class or type of each lottery
- gross proceeds of the lottery
- details of where the net proceeds were distributed (including the name of each recipient and the amount received by them)
- income and expenditure relating to the lottery.
Records must be kept in relation to each lottery conducted during the licence period for at least one year from the expiry of the licence and ensure that they are available for inspection by Consumer and Business Services (CBS).
Financial statements
If the gross proceeds during the reporting period are:
- less than $50,000, within one month of licence issue or expiry, lodge a financial statement with CBS.
- $50,000 or more, within two months of licence issue or expiry, lodge a financial statement with CBS.
The financial statement must be certified correct by the auditor who audited the accounts of each lottery conducted during the licence period.
The auditor of the lottery must be either:
- a member of CPA Australia
- a member of Chartered Accountants Australia and New Zealand
- a member of the Institute of Public Accountants
- a person approved by the commissioner.
Banking
All money received from the sale of tickets in each lottery must be paid into a financial institution or bank account operated by the organisation.
Contact CBS Lotteries
Email
LotteryLicensing@sa.gov.au
Phone
131 882 (option 7)
You can also book a lottery appointment for further assistance.
