Raffles are a well-known method of raising funds for a good cause. Whether the proceeds are distributed towards various charities or used to make improvements to a community that needs help, raffles can easily raise enough money to cover such needs. However, although anyone can print numbered raffle tickets and hold a raffle, there are certain regulations that must be met in order for the raffle to be legal.
In Australia, any type of fundraising raffle is considered a “gaming event” and must abide by certain laws and regulations. Similar to other countries from around the world, the Australian government allows each region to have its own rules and regulations.
New South Wales is no different. Every raffle and similar gaming events must abide strict regulations that are set in place by the New South Wales Office of Liquor, Gaming, and Racing. Knowing the laws will help you avoid an accidental illegal raffle that could have unpleasant repercussions.
Similar to casinos and other licensed clubs, a raffle event is subject to laws and regulations that are meant to protect both the consumer and the organizers of the event.
Important Raffle Regulations
Charitable and nonprofit organizations do not need to apply for a license if the total prize value does not exceed $30,000. In this case, the raffles are considered lotteries and are subjected to certain regulations.
If a charitable organization plans on holding a raffle with a prize value which exceed $30,000, it must apply for a license from the NSW Office of Liquor, Gaming, and Racing. In these cases, the raffles are referred to as “art unions”, and the regulations are different from those for lotteries.
A minimum of 40% of the gross ticket proceeds must be used by the nonprofit organization. Expenses, including the purchasing of prizes, must not exceed 60% of the total gross proceeds.
If the organizing party offers all its prizes in cash, the total value of the cash prize must not exceed $30,000.
Moreover, if the prizes include alcoholic beverages, tickets cannot be sold to or bought by people under the age of 18. In all other cases, selling tickets to minors is permitted by the NSW law.
Printed Ticket Guidelines
In order to be able to advertise the raffle, a company must print numbered raffle tickets. Each ticket must have a stub that remains with the organizer and a part that remains with the ticket purchaser.
The stub must contain the number of the ticket and a large-enough area for the purchaser to be able to write his or her name and address.
The part that is retained by the ticket purchaser must contain the following details:
- Ticket price
- Name of the organization that will benefit from the proceeds of the raffle
- Details regarding the prizes and their retail value
- Details about how the winners will be notified
- The date, time, and place of the raffle draw
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