Are you breaking the law with your Melbourne Cup celebrations? Authorities warn workers they could be slapped with a $1,000 fine just for entering a sweepstake

  • Office workers have been warned to keep Melbourne Cup sweepstakes legal
  • Violated regulations could lead to fines of up to $1,000, NZ authority claims
  • Permit requirements differ from state to state and for different types of sweep
  • Prizes are also regulated with a number of prohibited items listed 

By Laura Hedges For Daily Mail Australia

Published: 19:37 EST, 5 November 2018 | Updated: 20:13 EST, 5 November 2018

Offices across Australia and New Zealand taking part in sweepstakes, for the Melbourne Cup today.

But bosses have been told to keep their activities legal, or a risk a hefty fine.

Authorities have warned that violating regulations in office sweepstakes for the Melbourne Cup could lead to fines of up to $1,000.

New Zealand's Department of Internal Affairs said that office sweepstake money cannot legally exceed $500 and tickets should not cost more than $20.88.

Authorities have warned that violated regulations in office sweepstakes for the Melbourne Cup could lead to fines of up to $1,000

Authorities have warned that violated regulations in office sweepstakes for the Melbourne Cup could lead to fines of up to $1,000

Further regulations state that the organiser of the sweepstake must not profit from the event, with any excess money returned as prizes.

FindLaw Australia has also provided a list of regulations for a legal office sweepstake.

They state that two types of sweepstakes are allowed – the most common, where a group of people all purchase a ticket at random and the winner is awarded the total prize money, and the Calcutta Sweepstake.

The Calcutta is an auction-style event where participants bid on the particular horse they wish to back, however the rules for these differ from state to state.

Two types of sweep are allowed in Australia – the most common, where a group of people all purchase a ticket at random and the winner is awarded the total prize money, and the Calcutta Sweepstake

Two types of sweep are allowed in Australia – the most common, where a group of people all purchase a ticket at random and the winner is awarded the total prize money, and the Calcutta Sweepstake

‘If you are thinking of running a sweepstake you can – the hurdles are not too hard and make a lot of sense – but do make sure you understand and comply with the rules,’ the DIA said

'If you are thinking of running a sweepstake you can – the hurdles are not too hard and make a lot of sense – but do make sure you understand and comply with the rules,' the DIA said

'In Victoria, for example, a Calcutta can only be conducted under a permit that is issued by the Minster for Racing, while in New South Wales, sweeps and Calcuttas may be conducted without a permit if the total ticket sales are $20,000 or less,' FindLaw Australia said.

NSW Department of Fair Trading states that prizes cannot include tobacco products, firearms or ammunition, prohibited weapons, cosmetic surgery or other procedure to improve personal appearance or liquor prizes more than 20 litres.

'If you are thinking of running a sweepstake you can – the hurdles are not too hard and make a lot of sense – but do make sure you understand and comply with the rules,' the DIA said. 

Sweepstake regulations by state

New South Wales

A permit is required where the lottery promotes a trade or business. A permit is not required if qualified/expert judges are used and the winner is judged against a specific criteria. 

Victoria

No permits required to run online competitions. The cost of entry must not exceed $1. The names of winners of all prizes over $1000 must be published in accordance with the methods set out in the legislation, and winners of prizes must be advised in writing of the prize.

Queensland 

Business and Industry Portal Lotteries are classified into different categories and some categories require a license. Applications for a permit can be made through the QLD Office of Liquor and Gaming. Generally, free entry trade promotions do not require a license.

Western Australia

No permits required to run online competitions. Entry must be free.

South Australia 

A license is not required for lotteries where the prize value is $5,000 or less. 

Tasmania

Permits are not required to run online competitions or trade promotions. Winners will be notified in writing and published on the website approximately 24 hours after the final draw and will remain on the website for a minimum of 30 days.

Northern Territory 

Games of skill do not require a permit. For games of chance, where the total prize value of the trade lottery is less than $5,000, a permit is not required. 

Australian Capital Territory 

Any lottery which includes an element of chance or a mixture of chance and skill requires a permit.

Source: Legal Vision 

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Are you breaking law with Melbourne Cup celebrations? Workers could get $1,000 fine for sweepstake 

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