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Intro

Disclaimer

This policy is designed to provide information regarding the subject matter covered, and with the understanding that the Gaming and Wagering Commission is not passing legal opinion or interpretation or other professional advice. The information is provided on the understanding that all persons undertake responsibility for assessing the relevance and accuracy of its contents.

Introduction

Eligible organisations who wish to raise funds for purposes other than private gain or commercial undertaking may apply for a standard lottery permit. This policy provides guidance as to the legislative requirements relating to these permit types.

Legislative basis

Gaming in Western Australia is defined under the Gaming and Wagering Commission Act 1987 (the Act) as:

“means the playing of a game of chance for money or money’s worth, whether or not any person playing the game is at risk of losing any money or money’s worth or not”

A game of chance is defined as:

“does not include any athletic game or sport but, with that exception, includes a pretended game of chance and a game or pretended game which includes a degree of chance, whether or not combined with a skill or degree of skill”.

Lottery includes:

“a scheme or device for the sale, gift, disposal, or distribution of any property depending upon or to be determined by lot or chance, whether by the throwing or casting of dice, or the drawing of tickets, cards, lots, numbers or figures, or by means of a wheel, or otherwise howsoever; and

a scheme or device for the disposition of property of the kind commonly known as an art union, raffles, guessing competitions, and the like.”

The fundamental basis of the Act is that certain types of gaming may be conducted under the authority of a permit, provided it is not promoted or conducted for private gain or commercial undertaking.

The permitted activity must be conducted for the purposes of raising money for the active promotion, support or conduct of any sporting, social, political, literary, artistic, scientific, benevolent, charitable or other like activity.

The funds cannot be used for commercial or private gain. Private gain is defined as anything that will benefit an individual rather than the community. For example, fundraising to send a particular individual overseas to compete in a sporting event would be considered private gain, whereas fundraising to send a team to compete in a sporting event would not be considered private gain.

Permit

A standard lottery is another name for a raffle. Tickets or chances in the lottery are offered for sale to the general public and the lottery is decided after conclusion of ticket sales by the drawing of tickets or by some other random means. A permit is required to conduct a standard lottery and it is issued subject to a number of standard conditions, including:

  • ticket requirements
  • pricing
  • age participation
  • maintenance of financial records and
  • selling restrictions.

Standard lottery permits may be issued to eligible organisations in other states of Australia and may be conducted outside WA, subject to the requirement that they are not conducted for private gain or commercial undertaking and are subject to the same conditions.

A permit can be issued for up to a maximum of three months, during which time lottery tickets can be sold. If an extension of time is required for the closing date of the lottery, a written request must be lodged with the commission at least 14 days before the original closing date. An approved extension must be advertised in the publication in which the results were to have appeared.

Permit holder

The applicant for a standard lottery permit must be concerned in the administration of, and make application on behalf of a club, society, institution, organisation, association or other body of persons. Where the applicant comprises a body of persons, a nominee ‘permit holder’ is appointed to hold the permit and will be responsible for the conduct of the lottery.

Random number generating devices

Where it is intended that a random number-generating device (RNG) will be used to select the winning ticket(s) of a standard lottery, the applicant must provide independent and competent certification specifying that the RNG application software is capable of selecting numbers purely at random. In this respect, certification of the device may be sought from a University, or from a reputable accounting firm that offers such a service.

The cost of certification is to be borne by the applicant and is required prior to any permit being granted. RNG devices that have been tested and certified in other regulatory jurisdictions do not have to be re-tested. Applicants should provide evidence of previous certification.

Professional fundraisers

Professional fundraisers assist organisations in the conduct of standard lottery permits by being involved in all aspects of the lottery, such as:

  • offering ticket sales by telephone marketing methods or by direct selling over shop counters or sales booths in shopping centres, preparing budget forecasts, and undertaking marketing and advertising strategies while the beneficiary organisation has minimal involvement; or
  • Providing a digital platform to sell and promote tickets on the internet.

Professional fundraisers charge organisations a fee for this service. Applications which include the use of professional fundraisers, must be accompanied by a budget projection detailing the proposed method of sales and all costs and projected income for the lottery. The application cannot be granted unless the organisation is to receive not less than 23 per cent of gross proceeds. From 1 January 2024, this will increase to 30 per cent.

Notwithstanding the above, the professional fundraiser is not required to lodge a proposed budget projection if it is:

  • providing a digital platform only; and
  • charging a nominal 'setup' fee for its use and up to 5.5% of the proceeds of any tickets sold in the lottery; and
  • depositing the remaining proceeds into the applicant's bank account on a weekly basis and within two working days of the lottery being drawn.

Professional fundraisers are not to be confused with suppliers of individual services that only involve some aspects of the lottery, e.g. an accounting firm that provides financial services in relation to the reconciliation of ticket sales.

Bank guarantee

Where the total prize value is $30,000 or more, organisations are required to provide the commission with a bank guarantee for the total retail value of the prizes. Applicants for permits where the lottery will/may be conducted outside WA may be exempted from this requirement if they can demonstrate that the prize or prizes will be guaranteed in some other manner or they have provided a surety to another regulatory jurisdiction. 

Financial returns

New standard lottery gaming permit will not be issued to any organisation that has outstanding financial returns, unless exceptional circumstances apply.

A financial return must be lodged within 14 days of the lottery draw date and financial records must be retained for a period of 12 months. These requirements may be modified where the commission is satisfied there are valid reasons for doing so.

Lodging applications

Applications for a standard lottery permit must lodged with the Gaming and Wagering Commission c/o Department of Local Government, Sport and Cultural Industries within 14 days from the commencement of ticket sales. Applications are lodged online via the Department's portal . Applications are lodged online via the online portal.

To assist applicants in lodging their application, application kits are available from the department’s website.

Licensing officers are available by telephoning (08) 6551 4888 at any time during office hours to assist applicants understand the legislative requirements relating to the lodgement of an application. 

Page reviewed 09 December 2024