Major and minor lotteries

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Anyone can enter a lottery, subject to certain requirements and any restrictions outlined in the terms and conditions.

Who cannot enter a lottery:

• An organisation that is running the lottery.
• A committee member of an organisation that is running the lottery.
• Anyone involved in the conduct or promotion of the lottery (whether as principal, agent or employee).

Funds raised through any 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 a minor lottery and 35% of a major 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.

If the gross proceeds don’t cover the cost of all prizes, the organisation must make up the difference and notify Consumer and Business Services (CBS) in writing.

Each ticket in a major or minor lottery must give an equal chance of winning the major prize, of highest value.

This may require an organisation to draw the major prize first - ensuring each ticket has an equal chance of winning it.

Requirements apply to bonus or bundled tickets, meaning tickets offered at a discount when purchasing a certain number of them.

Requirements by lottery type

What tickets must include

Buyer's section:

• lottery licence number - major lottery
• ticket number
• price and the total number of tickets
• 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 unable to enter
• date, time, day and venue of the lottery draw
• where the winner’s details will be published and date of publishing.

Seller's section - ticket butt:

• lottery licence number – major lottery only
• same ticket number as shown on ticket buyer’s section
• name, address and phone number (or email) of the ticket buyer
• name of the organisation benefitting from funds raised
• date the lottery will be drawn.

Rules for ticket sales

• 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.

Ticket sellers must:

• be given a certificate or authority from the organisation
• give the organisation a receipt for the ticket books
• make sure ticket butts include the name and either the address, phone number or email of the buyer
• return all unsold tickets, ticket butts and proceeds from ticket sales before the lottery is drawn
• if paid a commission, pay the net proceeds to the organisation by cheque or deposit into the organisation’s bank account.

The terms and conditions of a major lottery must include:

• if a third party has been engaged to promote or conduct the lottery, the name of the third party and its role
• if any of the net proceeds will be distributed to another organisation than the one conducting the lottery- the name of the organisation benefitting.

If the terms and conditions of a minor lottery explain how an unclaimed prize is to be dealt, the terms and conditions must give reasonable opportunity for the prize to be claimed e.g. fourteen days.

If a prize is not delivered to its winner when the ticket is drawn, the winner must be notified in writing, within seven days, what they have won and how it will be delivered or collected.

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 a 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

Major lottery advertising or promotion must include:

• the number of the lottery licence
• the nature and value of the prizes to be won
• how and where to get a copy of the full terms and conditions of the lottery
• the total number of tickets available in the lottery.

Any lottery advertising or promotion must also 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 old 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.

Major lottery advertisements must state:

• 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
• the total number of tickets available.

Incentives

An organisation can encourage lottery ticket sales by offering:

• bonus tickets - for example, buy ten tickets and get one free. A number of bonus tickets must be included in the total amount of tickets available. Details of the offer must be included on each ticket and apply for the whole time that tickets are on sale
• gifts and rewards - for example, the ticket seller who sells the winning ticket receives a gift or reward. However, alcohol can’t be offered to encourage people to participate in the lottery.

Allow enough time for each phase of the lottery, including printing tickets, advertising, collection of ticket butts, drawing of winners and publishing the results.

The organisation is responsible for making sure the lottery follows all necessary rules and regulations.

In special circumstances, an organisation can ask for a lottery rule to be waived if it is fair to lottery participants. Additional conditions may be needed if a waiver is granted.

Major and minor lotteries must be drawn:

• on the day, time and place stated
• under the supervision of the organisation
• in front of any ticket holders who want to be there
• in front of:
  • an independent scrutineer for major lotteries with total prizes of $30,000 or more
  • an independent person not associated with the licensee or the lottery.

Scrutineer

A scrutineer must be either:

• a commissioner for taking affidavits in the Supreme Court
• a justice of the peace
• a notary public (this is a legal practitioner that witness and certifies documents)
• any other person authorised to take declarations under the Oaths Act 1936
• a person authorised by the commissioner to be a scrutineer.

Auditor

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.

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
• audit the accounts for the distribution of proceeds and report whether the proceeds were deposited and applied in accordance with the Lotteries Regulations 2021
• allow enough time for the audit so the organisation can provide a financial statement in line with the Lotteries Regulations 2021
• report any reasonable suspicion of irregularities or contravention of the Lotteries Act 2019 or the Lotteries Regulations 2021
• complete the auditor's report attached to the lotteries financial statement.

All money received from the sale of tickets in a major lottery must be paid into a financial institution or bank account operated by the organisation.

Financial statements - major lottery

Where the total prize pool is under $30,000, a financial statement must be lodged within one month of the draw.

Where the total prize pool is $30,000 or more, a financial statement must be lodged within two months of the draw. The nominated auditor will be prompted to certify the financial statement.

Financial statements do not need to be lodged for minor lotteries.

The organisation must keep a record of:

• number of ticket books issued
• names and addresses of people who were issued tickets
• number of tickets sold, returned unsold or lost – tickets that aren't returned are considered lost
• all income and expenses relating to the lottery.

The accounts and records must be kept for at least three months for minor lotteries and one year for major lotteries.

The organisation must keep accurate records of the following, relating to its lottery type.

Keeping the records

Keep the above records available for inspection by CBS for:

• a minor lottery - three months
• a major lottery - one year from the time of the draw.

For a major lottery, each prize valued at over $250 and the number of prize-winning tickets, must be published within 30 days of the draw using the method specified in the terms and conditions.

If a winner isn't present when the lottery is drawn, notify them in writing within seven days of the draw, and tell them how the prize can be delivered or collected.

Anyone who acts dishonestly in connection with the lottery is guilty of an offence. The maximum penalty is $50,000 or 2 years imprisonment.

If the organisation is guilty of an offence and receives a penalty, the same applies to:

• each member of the management committee
• board of directors
• chief executive officer
• any employee responsible for the conduct of the lottery.