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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's run by an organisation on its own behalf
- the gross proceeds don't exceed $2,000
- the prizes don’t include banned goods or services.
Who can run a sweepstake
To run a sweepstake 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 its members
- a written constitution.
Entry
You must be 18 years or older to participate in a sweepstake.
Proceeds
Funds raised through a sweepstake must 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 sweepstakes 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 of conducting the lottery.
At least 35% of the gross proceeds of the sweepstake 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 and draws
Each ticket in a sweepstake must be of equal value and have an equal chance of being drawn.
If tickets in the sweepstakes are being sold before the day of the draw or at places other than the place at which the draw will be carried out:
- the following information must be printed on each ticket or be made available to the purchaser at the time of purchase
- the name of the organisation conducting the sweepstakes
- the name of the race
- the date, time and place of the draw
- how the purchaser may ascertain the winner of the sweepstakes
- the butt of each ticket must have the name and address (or telephone number or email address) of the purchaser of the ticket clearly written on it
- the draw must be carried out on the day, time and place specified.
Draw
Each person who has been successful in the draw must be notified personally of the name they have drawn before the race is to be run.
A list of the names of the persons successfully drawn must be read out and exhibited immediately after the draw has been carried out.
Prizes
The total value of the prizes in the sweepstakes must not be less than 20% of the gross proceeds of the sweepstakes.
If a prize is not delivered to the winner at the time the race is run, the winner must be notified in writing within 7 days of the prize they have won and how it can be collected. Winner(s) must be provided with a reasonable opportunity to claim a prize.
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.
Banking and record-keeping
Accurate records must be kept of:
- the gross proceeds of the sweepstakes
- the administrative expense of conducting the sweepstakes
- the distribution of all prizes to the prize winners and the details of any unclaimed prizes.
These records must be kept for at least three months from when the race was run.
Records must be made available for inspection by CBS during that period.
Incentives
A person conducting a sweepstakes must not offer any gift, reward or other benefit (other than the prizes) as an incentive to enter or participate.
Contact CBS Lotteries
Email
LotteryLicensing@sa.gov.au
Phone
131 882 (option 7)
You can also book a lottery appointment for further assistance.
