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Lotteries and games of chance

Lotteries and games of chance may be used by businesses to promote a particular product or service, to raise money for non-profit organisations or by registered clubs to increase membership.

You must comply with the requirements of the Lotteries and Art Unions Act 1901. If a lottery is conducted to raise money for a charity, an authority under the Charitable Fundraising Act 1991 may be required. A non-profit organisation is defined as a body of persons which is not formed for private gain, and includes charities, social clubs, registered clubs, political parties and trade unions.

This page contains quick facts on the various types of lotteries and a link to the fact sheet outlining the rules and regulations that apply. Permits may apply for selected lotteries and an application fee may also apply.

Quick links

Art unions

An art union lottery is conducted to raise money for a non-profit organisation when the total prize value is more than $25,000. A minimum of 30% of gross proceeds must go to a not-for-profit organisation.
The total value of money prizes is capped at $25,000.
A permit is required for this lottery. A Games of Chance Application Form – Arts Union must be lodged.

Card jackpot games

This is a free entry lottery and usually involves a pack of 52 playing cards plus a joker laying face-down on a board. Participants are given the opportunity to turn over one of the cards for the chance to win a prize. If the joker card is not drawn, the prize jackpots and the draw is repeated on another occasion.
A card jackpot game is a form of trade promotion and a trade promotions permit is required for this lottery. A Trade Promotion Lottery Application form must be lodged. An application fee applies.
Lottery rules - also known as terms and conditions - must be readily available to all entrants for free. A template for terms and conditions can be found in the Card Jackpot Game and other Similar Games Guidelines.
If a card jackpot game is conducted in conjunction with a raffle, the Card Jackpot Game and other Similar Games forms (Part A, Part B and Part C) must be attached to the trade promotion application. This includes the signed declaration (Part C).
The raffle proceeds must NOT be used to fund the jackpot. A minimum of 40% of gross proceeds must go to the not-for-profit organisation.

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Charity Housie

Housie is also known as bingo and is a game played with tickets or cards bearing numbered squares or symbols, a number or symbol is marked or covered on the ticket or card after the announcer calls that number or symbol which is selected at random by a device. A win is constituted if the player is able to mark or cover certain squares on the ticket or card.
Charity housie can only be conducted for the purpose of raising funds for a charity. A minimum of 12.5% of gross proceeds must go to a charity.
Cash prizes are permitted.
A permit is required for this lottery. An Application to Conduct Fundraising Games of Chance must be lodged.

Read more about charity housie lotteries.

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Chocolate wheels

Chocolate wheels are games of chance where participants are sold numbered tickets. A wheel which has numbers corresponding with those on the tickets is spun. After the wheel has come to rest on a specific number, the participant holding the numbered ticket corresponding with the number on the wheel wins a prize.
Conducted for the purpose of raising funds for a charity. A minimum of 40% of gross proceeds must go to a not-for-profit organisation.
Maximum of $500 can be given away as a prize.
A permit is required. An Application to Conduct Fundraising Games of Chance must be lodged.

Read more about chocolate wheels lotteries.

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Club bingo

This is a lottery that can be conducted at a registered club under the Registered Clubs Act 1976 only to promote patronage of a registered club by its members or guests.
Cash prizes are not permitted.
A single prize value cannot exceed $30 and the total value of prizes in one game is capped at $50.
A permit is not required.

Football doubles

A football double is a lottery in which the ticket contains hidden numbers - the winner is determined by the ticket holder’s numbers corresponding with the football jersey numbers of the scorers of the first two try scorers in a particular football match - similar to no-draw lotteries. Variations of this lottery include Football Triples, Points Margin and Final Score.
Conducted for the purpose of raising funds for a non-for-profit organisation. A minimum of 40% of gross proceeds must go to the non-for-profit organisation.
Total prizes capped at $5,000.
No permit is required.

Read more about football doubles lotteries.

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Gaming nights

The format of gaming nights may vary but normally involve a participant being given or purchasing chips, tokens, play money or similar play pieces which are otherwise valueless. They can be used to play well known casino table games – roulette, blackjack, two-up and crown and anchor.
Conducted as a social entertainment and/or raise funds for a not-for-profit organisation.
These types of games are illegal under the Unlawful Gambling Act if players risk a stake on the outcome eg at the conclusion of the event using the chips to bid in an auction, if the player with the highest number of chips receives a prize and the chips cannot be redeemed for money or anything of value.
A permit is not required.

Gratuitous lotteries (also known as ‘lucky door’ or ‘lucky seat’ promotions)

A gratutious lottery is often used by non-profit organisations to raise money.
Total value of prizes is capped at $25,000 and money prizes are prohibited.
No permit is needed.
The gratuitious lottery cannot be conducted for the purposes of promoting any trade or business.
To promote a trade or business, a trade promotion permit must be obtained.

Guessing competitions (refer to Raffles)

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Hundred clubs (refer Progressive lotteries)

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Lucky envelopes

This is a game of chance in which participants win a prize if they expose a hidden number that is the same as a winning number displayed on a chart at the point of sale.
Conducted for the purpose of raising funds for a charity . A minimum of 40% of gross proceeds must go to a charity.
An Application to Conduct Fundraising Games of Chance must be lodged.
Ticket cost determines prize value with lucky envelopes - $4, $10 or $20.
A permit is required.

Mini-numbers

A mini-numbers lottery where subscribers choose a smaller set of numbers from a larger set of numbers with the chance of winning prizes. It is similar to the game of Lotto.
A mini-numbers lottery can only be conducted to raise funds for a not-for-profit organisation. A minimum of 40% of gross proceeds must go to a not-for-profit organisation.
Not more than one mini-numbers lottery may be conducted for the benefit of an organisation a any one time and in any period of seven days.
Not more than one mini-numbers lottery may be conducted on the premises of a registered club or hotel at any one time.
Total value of cash prizes capped at $5,000.
No permit is required.

Lotto-style lotteries (refer No-draw lotteries)

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No-draw lotteries

No-draw lotteries are also called break-open or scratch lotteries.
A no-draw lottery is a lottery conducted to raise money for a non-profit organisation.
The tickets used in the promotion contain a hidden symbol or a number of hidden symbols that may be exposed by removing or scratching a covering of paper or other opaque material and are very similar to NSW scratch lottery tickets.
Total value of prizes capped at $5,000.
No permit is required.

Progressive Lotteries

Progressive lotteries are lotteries or games of chance in which a number of draws may be conducted on various dates over a stipulated period of time. The most common types of progressive lotteries are 'hundred clubs' and 'silver circles'.

Conducted as a social entertainment and/or raise funds for a not-for-profit organisation.
If the total sales exceed $20,000, an Application to Conduct a Progressive Lottery must be lodged.
Total value of money prizes is capped at $5,000.
No authorising permit is required unless total sales exceed $20,000.

Promotional raffles

A promotional raffle can only be conducted at a registered club only under the Registered Clubs Act 1976 for the purpose of entertaining patrons. This is different to a raffle which is used to raise funds for a registered club.
Maximum prize value is $100 with a one off single major prize not exceeding $500.
No cash prizes are permitted.
No permit is required for a promotional raffle.

Read more about promotional raffles. For more information on raffles, see below.

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Raffles

A raffle is a lottery held by a non-profit organisation for the purpose of raising funds and has a total prize value not exceeding $25,000.
A minimum of 40% of gross proceeds must go to a not-for-profit organisation.
No permit is required for a raffle.

Silver Circles (refer Progressive lotteries)

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Social Housie

Social housie can be conducted for the purposes of social entertainment and/or raising funds for a charity.
Social housie cannot be conducted on the premises of a registered club or licensed premises.
Cash prizes are permitted.
Total value of an ordinary game cannot exceed $30 and the jackpot cannot exceed $150.
A permit is not required for this lottery.

Sweeps/Calcuttas

A sweep is a game in which a person (a player) buys a ticket for a chance to win, by lot, a participant in an approved event.
A calcutta follows the same method as a sweep up to the completion of the draw. On completion of the draw, an auction takes place at which all ticket purchasers are entitled to bid for each participant as it is offered. Players who were successful in the draw may choose between selling the participant and receiving half of the proceeds of the sale, or retaining the participant by making (and paying half of) the highest bid.
Anyone may conduct a sweep or calcutta for social entertainment or raising funds for a prescribed organisation. View the list of approved events.
A permit is required when the total ticket sales will be more than $20,000. An Application to Conduct a Sweep or Calcutta must be lodged.
Persons under 16 are not allowed to play or assist in a sweep or calcutta lottery.

Read more about sweeps or calcutta lotteries.

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Tipping Competitions

A tipping competition is whereby a participant predicts or forecasts the outcome or results of a sporting or other contingency, where points are awarded for successful predictions. The prize pool is distributed to the people who accumulate the most number of points over a stipulated period.
If conducted for the benefit of a charity, the promoter or organiser must also comply with the requirements of the Charitable Fundraising Act 1991.
No trade promotions permit is required if the prize pool comprises the total amount paid as entrance fees less any costs and expenses properly incurred in connection with the conduct of the tipping competition or the prizes are less than $20,000.
A trade promotions permit is required when there is no entry fee or the prize pool exceeds the total amount paid as entrance fees less any costs and expenses properly incurred in connection with the conduct of the tipping competition or the prizes are more than $20,000.

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Trade promotions

This is a free-entry lottery conducted to promote goods and services supplied by a business. This is sometimes called a sweepstake, competition, contest or giveaway.
If an element of chance determines the award of a prize, a trade promotions permit is required for the competition. An application fee applies.
Lottery rules also known as terms and conditions must be readily available to entrants for free.

Further information

Charitable Fundraising Act 1991 – outlines the requirements when a lottery or game of chance is used to raise money for a charity.

Conduct of interstate lotteries – gives guidance to persons and organisations wanting to further the conduct of an interstate-based lottery in New South Wales.

Prohibited prizes or prizes subject to restrictions – lotteries and games of chance may also have specific restrictions. Refer to the Money prizes - prohibited prizes fact sheet or individual fact sheets.

Ready reference (PDF 312kb) - Summary of the various types of lotteries and games of chance that may be conducted.

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