Red tape removed from spot prizes

Internal Affairs Minister Chris Tremain says feedback from event organisers and members of the public shows overwhelming support for changes to the rules around spot prize draws which will remove unnecessary red tape.

Currently when spot prizes are used at events, such as fishing competitions and fun runs, they can be classed as gambling under the Gambling Act – which means organisers have to comply with a raft of rules.

“Public consultation on our discussion document showed the rules are too restrictive and the paperwork required onerous. Gambling is not the primary purpose of these events, so all these regulations are not required,” says Mr Tremain.

“However I don’t want a blanket exemption as this would potentially allow for events to be set up for prize draws where there is no community benefit.

“So the proposal is to exempt events from the Gambling Act events if they meet certain criteria such as the prize draw being secondary to the main event, the draw being only available to people participating in the event and the event having a community benefit.

“That will mean organisers will be able to offer spot prizes, regardless of the value of the prize, without needing to apply for a licence.

“The new rules will be in place in time for summer events this year.”