Spot prize draws exempt from gambling laws, with catch

Red tape cut in time for summer fun  

Internal Affairs Minister Chris Tremain says new rules for spot prize draws have been put in place in time for summer events. 


In a move that slashes red tape, draws have been exempted from the legal definition of gambling. Both commercial and non-commercial organisations can offer spot prize draws provided their events benefit the community


“The primary purpose of these events isn’t gambling so all the restrictive rules in place were unnecessary.  Like barbeques and jandals, spot prizes over the Christmas break are part of the quintessential kiwi summer.


“The community delivered a clear message about wanting change and we have listened and delivered on that.”


To be eligible for the exemption, draws must meet some conditions including:


·         entry is available only to those who purchase a ticket or pay to participate in the primary event

·         the primary event benefits the community (for example, either through community attendance and participation, or through proceeds being raised for the community or a charity)

·         the primary event cannot be gambling as defined in the Act but could be, for example, a sporting or fishing competition, cultural event, fashion show or home and lifestyle show

·         results are determined wholly or partly by chance, must not involve a gaming machine and must be determined within one week of the end of the primary event

The Gambling (Non-gambling Activities) Regulations 2013 took effect on 30 September 2013.