The Regulation organises around a small set of recurring legal and operational concepts that determine whether an activity is permitted, how it must be run and how proceeds must be handled. These concepts are given precise definitions and often numeric thresholds.

Permitted gaming activity and authority

• The core construct is the "permitted gaming activity for the purposes of section 10 of the Act." Each category of gaming is declared permitted only if the specified conditions in the relevant clause are complied with (see Pt 2 generally, e.g. cl 4, cl 6, cl 7). Some activities require an authority to be held when prize amounts or other thresholds are exceeded (for example art unions always require an authority, cl 4(d); progressive lotteries exceeding $30,000 in total prizes require an authority, cl 9(b); trade promotion activities with prizes exceeding $10,000 require an authority, cl 14(c)).

Gross proceeds and allocation to benefiting organisations

• Many provisions tie permissibility to the proportion of gross proceeds that must go to a benefiting organisation. For example: draw lotteries, no-draw lotteries, mini-numbers, and "other charitable" activities require not less than 40% of gross proceeds be paid to the benefiting organisation (cl 6(b), cl 7(b), cl 8(b), cl 12(1)(a)); charity housie requires at least 12.5% (cl 5(2)(b)); art unions require at least 30% (cl 4(a)). Clause 50 gives the Secretary power to vary or remove these proceeds requirements in specified circumstances (cl 50).

Prize ceilings and composition

• Prize-value ceilings are central to the permitted-activity test. Examples: art unions require total prizes to exceed $30,000 but caps separate prizes at $30,000 (cl 4(b),(c)); draw lotteries cap total prizes at $30,000 (cl 6(c)); no-draw lotteries cap total prizes at $5,000 and ticket production at 3,000 (cl 7(c),(d)); mini-numbers cap session prizes at $20,000 and require session prize value be at least 50% of gross proceeds (cl 8(c),(d)). Progressive lotteries have a maximum single prize of $7,000 (cl 9(a)). Free lotteries have prize caps of $30,000 and must be free to enter (cl 10).

Recordkeeping, transparency and accessibility

• The person or body conducting a gaming activity must prepare and keep rules that meet detailed transparency requirements (cl 25). Those rules must be made available free on request and published either on a public-facing website or at the place of the activity (cl 26). For activities requiring an authority, records prescribed in cl 30(3)-(4) must be retained for at least seven years after cessation (cl 30(1)). There are enumerated exemptions from records obligations for certain small or free activities (cl 30(5)).

Payments, commissions and deductions

• Deductions from gross proceeds are limited to a defined list of reasonable costs and, where relevant, permitted salaries/wages and commissions (cl 34). For activities requiring authority, a person may not pay remuneration out of gaming funds unless it is for commission/ services, under a written agreement specifying services, remuneration and term (cl 32). Clause 33 further prohibits payments (salary, wage, fee, commission or other benefit) to persons who conduct certain activities (sweeps, calcuttas, social housie, mini-numbers, progressive lotteries), with limited exceptions for assistance promoting sweeps/calcuttas (cl 33).

Prize handling, substitution and unclaimed prizes

• Clauses dealing with prize availability on production errors (cl 38), substitution when prizes are unavailable (cl 44), real property prize upkeep and insurance (cl 45), careful preservation of prizes (cl 46) and redetermination/disposal of unclaimed prizes (cl 48) set operational duties intended to protect participants and preserve entitlement to prizes.

Audit, public register and enforcement

• Accounts must be audited annually by a qualified auditor if gross proceeds exceed $250,000 in a financial year (cl 53(1)). The Secretary will maintain a publicly available register of authorities with scope to publish particulars including enforcement actions (cl 21). Offences are provided with maximum penalty units (for example cl 22 sets a maximum penalty of 50 penalty units for failure to comply with Divisions 2 or 3 requirements) and Schedule 2 lists penalty-notice offences with dollar amounts for infringement notices.

Administrative discretion and processes

• The Secretary has multiple administrative discretions: to approve application forms and fees (cl 15), to require additional information for art union authorities (cl 18), to set the duration of an authority within nominated terms or shorter if in the public interest (cl 16), to restore expired authorities within specified timeframes (cl 19), to vary proceeds requirements (cl 50), to waive or refund fees on hardship or special circumstances (cl 54), and to exempt persons from independent oversight of draws (cl 47(3)). Clause 17 also amends the Licensing and Registration (Uniform Procedures) Act 2002 so that Part 2 of that Act applies to authorities to conduct permitted gaming activities, subject to specified exceptions in how that Act applies (cl 17).

These core concepts interact to form a compliance architecture: categorical permission with numeric caps linking the need for an authority and the level of regulatory oversight (records, audit, independent supervision), monetary flows constrained by proceeds allocation and restricted deductions/commissions, public transparency obligations and Secretary-level administrative levers.

The Regulation assigns obligations and entitlements across several groups. The distribution of duties and costs is explicit in the clauses.

Persons and bodies conducting gaming activities

• Primary responsibility rests with any person or body that conducts a gaming activity. Clause 22(1) imposes a general duty to ensure compliance with every applicable requirement of Divisions 2 and 3, with a maximum penalty of 50 penalty units for breach. Part 5 clarifies that a person who conducts a gaming activity on behalf of another person is also a conductor for the purposes of section 6(2)(e) of the Act (cl 49). Conductor obligations include preparing and publishing rules (cl 25-26), recordkeeping (cl 30), depositing money into an authorised deposit-taking institution within two business days (cl 31), complying with restrictions on commissions and deductions (cl 32-34), and ensuring fairness and impartiality (cl 24).

Benefiting organisations (charities, non-profits, other approved fund-raising organisations)

• Where activities are conducted for the benefit of a charitable or non-profit organisation, the Regulation imposes allocation requirements on gross proceeds. Benefiting organisations receive specified percentages (e.g. 40% for many lotteries, 30% for art unions, 12.5% for charity housie) and must authorise gaming activities conducted on their behalf in writing (cl 35). If a progressive lottery is run for a charitable organisation, the manner of calculating the amount paid to the organisation must be agreed in writing before conduct (cl 37(2)(b)).

Registered clubs and venue operators

• Registered clubs have a specific permitted category for promotional raffles carried out on their premises to attract patronage, with distinctive conditions (for example at least 90% of gross proceeds must be used to meet the cost of prizes or similar gaming activities, total prize value per session not exceeding $5,000 and prizes cannot include money, cl 11). Club bingo (conducted by or on the authority of a registered club on club premises) has its own prize ceilings and rules prohibiting prizes consisting of money (cl 5(4)).

Individuals participating in or buying tickets for gaming activities

• Participants are protected by fairness rules (cl 24), transparency and availability of rules (cl 25-26), a prohibition on selling liquor-prize tickets to minors and on awarding liquor prizes to minors (cl 40), and prize substitution/availability protections (cl 38-44). For remote participation, the Regulation caps the cost of calls or electronic app use to standard local call/application charges and forbids the activity conductor from receiving the cost paid for providing the telephone or app service (cl 29).

People who sell tickets or act as agents

• Persons who agree to sell tickets for art unions, lotteries, sweeps or calcuttas must return all ticket-butts, drawing dockets, money received and unsold tickets before the draw (cl 23). Clause 30(4)(f) and (g) require lists of ticket sales and, for lotteries, names and contact details of ticket purchasers to be part of records for authority-required activities.

Auditors and professional advisers

• Where required, an auditor must be a "qualified auditor" as defined in cl 53(6), which includes registered company auditors, authorised audit companies, or approved members of professional accounting bodies holding public practice certificates, or approved nominees of the audited person. The auditor reports on whether accounts show a true and fair view, proper records are kept, funds are properly applied and on solvency (cl 53(3)).

The Secretary and regulatory apparatus

• The Secretary is the central decision-maker for authorisations, variations, exemptions and administrative processing: approving application forms (cl 15), accepting application fees (Schedule 1), requesting additional information if applying for art union authority (cl 18), deciding on authority duration and renewal mechanics (cl 16), maintaining and publishing the register of authorities (cl 21), varying proceeds requirements on application (cl 50), exempting persons from independent supervision of draws (cl 47(3)), and waiving/reducing/postponing/refunding fees (cl 54).

Secondary stakeholders and market effects

• Vendors of ticket printing, event venues, app or telephone providers and prize suppliers are affected indirectly because the Regulation defines allowable deductions (cl 34) and forbids certain remunerations out of gaming funds (cl 32-33). For example, a business providing an electronic application used to participate cannot have the gaming organiser receive the money paid for that service (cl 29(4)). Entities that draft rules for gaming activities or provide independent scrutiny for draws will see demand tied to the thresholds for authorities and audit triggers.

Enforcement actors

• The Regulation creates offences and prescribes penalty-notice amounts (Schedule 2) and refers to the Act’s enforcement framework (for example, making many of the offences subject to penalty notices under the Act, Sch 2). Clause 21(3)(e) allows the Secretary to include particulars of enforcement actions in the public register, which can affect reputational and commercial exposure.

In sum, the Regulation primarily affects organisers/conductors of community gaming activities, the benefiting organisations they nominally support, registered clubs and venues, participants, persons selling tickets, auditors, and the Secretary as the administrative gatekeeper. The text assigns specific payment-flow constraints, record and disclosure obligations, and operational limits to these actors, with the Secretary holding multiple discretions that can moderate or intensify those burdens.

This section summarises express duties the Regulation imposes and the principal rights/administrative entitlements it creates. Each duty or right links to the operative clause.

Key duties of conductors and organisers

• Ensure compliance with Division 2 and 3 requirements relevant to the gaming activity and with proceeds obligations in the relevant permitted-activity clause. Clause 22(1) places this overarching duty on any person or body conducting a gaming activity, with a maximum penalty of 50 penalty units for breach and secondary liability for governing body members who knowingly authorised or permitted non-compliance (cl 22(2)).
• Prepare, keep up‑to‑date and make rules for the gaming activity that address entry closure dates, multi-entry allowance, the prizes and their values, claiming costs, limits on number of prizes per participant, age limits, bonus prize rules, dispute resolution and identity of organiser and benefiting organisation, and exclusion of persons involved in the conduct from participation (cl 25(1)(a)-(l)). Conformance with those rules is mandatory (cl 25(2)).
• Make the rules available free of charge on request and publish them either prominently on a publicly available website or at the place of the gaming activity (cl 26).
• Deposit money received into an account at an authorised deposit-taking institution within two business days, and ensure the account is an account of the person/body or (if money is part of proceeds payable to a benefiting organisation) of the benefiting organisation (cl 31).
• Keep prescribed records for at least seven years for activities requiring an authority, including expenses, dates of conduct, dates prizes determined and announced, prize values, gross proceeds, amounts paid to benefiting organisations (including percentage ratio), and, if reasonably practicable, prize winners’ contact details (cl 30(1),(3)). Additional specific records for authority-required activities include statements of income and expenses, numbers of tickets printed and sold, unsold tickets and, for lotteries, names and contact details of all ticket purchasers (cl 30(4)(a)-(f)).
• Limit deductions from gross proceeds to enumerated reasonable costs such as ticket production, advertising, hiring devices or premises, prize cost, reasonable salaries/wages/commissions (if permitted) and reasonable auditing costs (cl 34(2)).
• Ensure compliance with prize-specific duties: preserve prizes carefully until collection, maintain improvements and insure real property prizes, ensure prize substitution rules are followed when applicable (cl 45-46, cl 44), and not deprive a participant of a prize due to producer mistakes (cl 38).
• Observe advertising prohibitions: do not publish ads that encourage law breaking, depict children participating, guarantee winning, or claim participation will definitely improve a person’s financial prospects (cl 52).

Rights, permissions and administrative entitlements

• The right to apply for an authority to conduct permitted gaming activities in the form approved by the Secretary, accompanied by the fee prescribed in Schedule 1 (cl 15). Applicants may nominate an authority term of one, three or five years (cl 16(1)).
• Where an application for renewal has been lodged but not finally determined, the existing authority continues in force unless suspended or cancelled (cl 16(3)).
• The Secretary may, on application, vary or remove proceeds requirements where the Secretary is satisfied the specified amount is not able to be paid or it is not reasonable to apply that requirement in the circumstances. If varied, payment in accordance with the Secretary’s decision allows the activity to be treated as permitted (cl 50(2)-(3)).
• The Secretary may waive, reduce, postpone or refund fees payable under the Act or Regulation on grounds of financial hardship or special circumstances, such as natural disaster recovery (cl 54).
• Public transparency rights: members of the public have free access to the Secretary’s register of authorities (cl 21(2)), which may list holder names, authority particulars, issue and expiry dates, conditions and particulars of enforcement actions (cl 21(3)(a)-(e)).
• Exemption powers: the Secretary may exempt an organiser from the requirement that an independent person supervise the determination of prize winners for an authority-required activity (cl 47(3)). This creates a discretionary right to relief from an operational duty in certain cases.

Specific procedural duties

• For art union authorities, the Secretary may require applicants to provide additional information about prior art union activities and real property prizes (cl 18(2)).
• An authority is conditional on the Secretary receiving a copy of the rules at least 10 working days before the gaming activity takes place (cl 20).
• If a substantial change occurs to the conduct or rules of a gaming activity, the authority holder must notify the Secretary as soon as reasonably practicable and take reasonable steps to notify participants (cl 28). The Regulation lists examples of substantial changes such as changes to prizes, draw dates or authority-holder details (cl 28(2)(a)-(d)).

Compliance checks and reporting duties

• Where gross proceeds of gaming activities exceed $250,000 in a July-to-June year, accounts must be audited annually by a qualified auditor and the auditor must report on true and fair view, record-keeping, proper application of gaming funds and solvency (cl 53(1)-(4)). The auditor must meet the definition of "qualified auditor" (cl 53(6)-(7)).
• For ticket sellers, there is a duty to return ticket-butts, drawing-dockets (or computer equivalents), money received and unsold tickets to organisers before the draw (cl 23).

Constraints on commercial arrangements

• Written agreements are required for commissions and remuneration paid from gaming funds for activities requiring authority; the agreement must set out services, commission/remuneration and term (cl 32(2)). Clause 33 prohibits payment of salary/wage/fee/commission/other benefit to a person who conducts certain low-regulated activities (sweep, calcutta, social housie, mini-numbers, progressive lottery) subject to narrow exceptions for assistance promoting sweeps or calcuttas (cl 33(2)-(3)).

Sanctions and enforcement entitlements

• The Regulation sets maximum penalty-unit penalties for certain contraventions (for example cl 22, cl 23 and cl 52 provide maximum penalty units) and identifies penalty-notice offences with specified dollar fixed amounts to enable issuing of infringement notices without prosecution in many cases (Schedule 2, and cl 1 of that Schedule). The Secretary can include particulars of enforcement actions on the public register (cl 21(3)(e)).

In all, the Regulation combines prescriptive operational duties with a set of administrative rights and discretionary relief mechanisms. Obligations are numeric and documentary (percentages, dollar limits, retention periods, deposit timelines), while the Secretary has explicit powers to alter or moderate obligations where the Regulation permits.

The Regulation establishes a dual enforcement architecture: criminal penalty units for serious breaches and a systematic penalty-notice regime for many contraventions, together with administrative monitoring tools such as public registers and audit obligations.

Criminal penalties and maximum penalty units

• Clause 22(1) sets a maximum penalty of 50 penalty units for conducting a gaming activity without ensuring every applicable requirement of Division 2 or 3 is complied with. Clause 22(2) extends liability to trustees or governing-body members who knowingly authorised or permitted the failure to comply, also with a 50 penalty-unit maximum.
• Other provisions include maximum penalties specified in‑text. Examples: clause 23 (return of ticket-butts and drawing-dockets) carries a maximum penalty of 20 penalty units; clause 40(1) (selling tickets or giving liquor prizes to persons under 18, or permitting minors to sell tickets or give liquor prizes) establishes a maximum penalty of 10 penalty units; clause 53(4) (failure to ensure accounts audited when required) carries a maximum penalty of 50 penalty units; clause 52 (prohibited advertising) carries a maximum penalty of 50 penalty units. These in‑text maxima are enforceable under the Act and Regulation framework.

Penalty-notice (infringement) regime

• Schedule 2 identifies a table of penalty-notice offences with specified dollar amounts that correspond to certain provisions of the Act and this Regulation. The Schedule is expressed to be used "for the purposes of section 46 of the Act" (Schedule 2, cl 1). It lists dollar amounts for various offences so that infringement notices can be issued in lieu of prosecution (Schedule 2 table and Schedule 2, cl 1(1)).
• Examples from Schedule 2 include: offences under the Act listed (section 8(1)-(4) and others) with $550 penalties; certain Regulation offences such as clause 22(1) ($1,100), clause 23 ($220), clause 52 ($550), and clause 53(5) ($550). The Schedule thus provides a quick enforcement instrument for specific contraventions.

Administrative oversight and information disclosure

• The Secretary maintains a public register of authorities that may include particulars of enforcement actions taken against authority holders in respect of any gaming activity (cl 21(1)-(3)). Public listing of enforcement actions can function as reputational and market discipline in addition to statutory penalties.
• Clause 47 requires independent supervision of prize determinations for authority-required activities and permits the Secretary to grant exemptions from that requirement; this is an operational control that reinforces integrity and supports evidentiary records of compliance (cl 47(1)-(3)).

Audit and reporting duties as enforcement enablers

• The Regulation triggers statutory audit obligations for gaming persons/bodies whose gross proceeds in a financial year (1 July to 30 June) exceed $250,000. Audits must be annual and undertaken by a qualified auditor as defined (cl 53(1),(6)). Auditors must report on whether accounts present a true and fair view, whether records have been properly kept, whether money received has been properly applied under the Act and Regulation, and on solvency (cl 53(3)). Failure to comply with auditing obligations is itself a penalised offence (cl 53(4)-(5)).

Enforcement mechanics and discretionary relief

• The Secretary’s discretion under cl 50 to vary or remove proceeds-payment requirements on application introduces an administrative remedy to bring activities into compliance without criminal sanction, provided the Secretary is satisfied with the circumstances. Similarly, cl 54 allows fee waiver/reduction/postponement or refund in designated hardship or special circumstances.
• Clause 20 makes the Secretary’s receipt of rules a condition of an authority, with a 10-working-day lead time; failure to observe this administrative pre-condition may expose a holder to enforcement if the activity is run without the Secretary having had the rules required (cl 20).

Procedural safeguards and exceptions

• The Regulation sets out defences in particular circumstances: for instance, clause 42 states that it is a defence to a prosecution under section 13 of the Act if the person complied with requirements of cl 44 or 48, or if the person did not award the prize because of unforeseeable or other special circumstances (cl 42(1)-(2)). The Secretary may also exempt persons from the independent supervision requirement (cl 47(3)).

Monetary measures and indexation

• The Schedule 1 indexing of fee units (Schedule 1, cl 3) and Schedule 2 penalty-notice dollar amounts create practical economic figures for enforcement and compliance costs. The Schedule 1 editorial table provides fee unit amounts for financial years 2021-22 through 2025-26, which informs the monetary scale of application fees (Schedule 1, cl 1 and cl 3).

In short, the Regulation combines criminal provisions, a broad penalty-notice schedule and administrative oversight mechanisms. Enforcement is backed by audits and reporting, with the Secretary holding a range of powers to exempt, vary or refuse. The combination of monetary penalties, public register disclosures and audit requirements forms a layered enforcement model anchored in specific operational duties throughout Pt 4.

The Regulation is explicitly framed as an instrument that applies in conjunction with the Community Gaming Act 2018 (the Act) and several other NSW and Commonwealth Acts by reference. The text makes specific cross‑references and amendments which shape the practical legal interface.

Primary statutory relationship: the Act

• The Regulation repeatedly phrases permitted activities as such "for the purposes of section 10 of the Act" (e.g. cl 4 heading and multiple clauses in Pt 2). Many operational obligations implement or operationalise obligations in the Act (for example, rules, prize entitlement, recordkeeping and offences reference sections of the Act, and clause 42 expressly provides defences to prosecution under section 13 of the Act conditional on compliance with specified clauses). The Regulation is therefore subordinate and operational to the Act and is intended to be read alongside statutory provisions (see cl 3 note that "the Act ... contain definitions and other provisions that affect the interpretation and application of this Regulation").

Amendment and procedural overlay into Licensing and Registration (Uniform Procedures) Act 2002

• Clause 17 specifically amends the Licensing and Registration (Uniform Procedures) Act 2002 (LRUP Act) by inserting "Community Gaming Act 2018 section 11(1), authority to conduct permitted gaming activity" into the list of licences to which Part 2 of the LRUP Act applies. Clause 17 also modifies how Part 2 applies: it allows authorities to be amended under the LRUP Act but removes the application of LRUP Act sections 10(1), 15 and 18 to authority applications and extends the period within which further information must be provided from 14 to 21 days (cl 17(1)-(2)). This integrates authority applications into the LRUP procedural regime but with particular exceptions, so applicants must track both the Regulation and the adjusted LRUP Act rules.

Cross-references to other NSW legislation

• The Regulation references other NSW Acts when defining terms or setting limits. Examples include:
  • "Registered club" is defined by reference to the Liquor Act 2007 (cl 3).
  • "Approved fund raising organisation" for sweeps and calcuttas includes entities such as clubs registered under Rules of Racing of Racing NSW, and greyhound and harness racing clubs under their respective Acts (cl 13(6)(d)-(f)).
  • Prohibited prizes include "a tobacco, smoking or vaping product (within the meaning of section 23 of the Public Health (Tobacco) Act 2008)" and refer to the Poisons and Therapeutic Goods Act 1966 for certain substances (cl 41(1)(a),(c)). The note in cl 41 also references section 45 of the Gaming Machines Act 2001 concerning promotional prizes.
• These cross-references mean that compliance with the Regulation may require alignment with obligations and prohibitions under these other Acts.

Interaction with Commonwealth law and standards for auditors

• Clause 53(6) defines "qualified auditor" by reference to the Corporations Act 2001 (Commonwealth) and to membership of professional accounting bodies within the Australian Securities and Investments Commission Act 2001 jurisdiction. Auditors and audit standards are therefore linked to Commonwealth statutory definitions and professional regulation.

Recordkeeping and privacy considerations

• Clause 30(4)(f) requires that, in the case of a lottery for which an authority is required, the names and contact details of all persons who bought tickets be retained as shown on ticket-butts or corresponding computer records. That obligation may engage privacy regulatory frameworks and record-handling legislation; while those frameworks are not named in the Regulation, the retention and use of personal data must be considered in conjunction with applicable privacy law.

Administrative procedural interactions

• Clause 20 conditions authorities on provision of rules at least 10 working days before the activity; failure to provide rules in that timeframe may have consequences under the Act and the LRUP Act amendments contained in clause 17 concerning application processing. Clause 21 requires the Secretary to publish register information on the internet for free access, which interacts with public‑access and FOI administrative practices.

Penalty-notices and enforcement across statutes

• Schedule 2 operates "for the purposes of section 46 of the Act", aligning the Regulation’s penalty‑notice framework with the Act’s enforcement provisions. This means specified offences under the Act and Regulation can be enforced by penalty notices rather than prosecution, consistent with the Act’s enforcement architecture.

In sum, the Regulation is an implementing instrument that sits within a web of NSW and Commonwealth statutes. It modifies and interfaces with the LRUP Act for licensing procedures, relies on definitions and prohibitions in other NSW Acts (Liquor Act, Public Health (Tobacco) Act, Poisons and Therapeutic Goods Act, Gaming Machines Act), and uses Commonwealth statutory definitions for audit qualifications. Organisers must therefore ensure compliance not only with the Regulation itself but also with the directly referenced statutes and the LRUP Act procedural overlay.

The text provided includes limited but concrete amendment and commencement information and operational provisions that themselves amend or interact with other statutes.

Commencement and publication

• Clause 2 states that the Regulation commences on 1 July 2020 and is required to be published on the NSW legislation website. The name is fixed as "Community Gaming Regulation 2020" (cl 1 and cl 2).

Amendments to other legislation

• Clause 17 contains an explicit amendment to the Licensing and Registration (Uniform Procedures) Act 2002 by inserting into its Schedule 1 the authority to conduct permitted gaming activity under the Community Gaming Act 2018 section 11(1). Clause 17 further sets how Part 2 of the LRUP Act applies to such authorities, including exclusion of certain LRUP provisions (sections 10(1), 15 and 18) and altering the period for providing further information under section 14(3) from 14 to 21 days (cl 17(2)(a)-(c)). That clause therefore represents an amendment made by the Regulation to the LRUP Act’s application.

Fee unit indexing and published editorial table

• Schedule 1 contains a mechanism for calculating the fee unit by reference to the Consumer Price Index (All Groups Index) for Sydney (Schedule 1, cl 3). It sets the fee unit for 2020-21 at $105.48 and prescribes a formula for subsequent financial years tied to CPI numbers for the March quarter. The Schedule includes an editorial note listing fee unit amounts for financial years 2021-22 through 2025-26 (Schedule 1, cl 3 editorial note). That note is included in the text provided and operationally informs the fee scale employers will face.

Regulatory insertion into administrative processes

• Clause 17 operationally inserts the new authority into the LRUP Act licence list and makes procedural adjustments to how that Act applies. This is a substantive administrative amendment, embedding the Community Gaming authority into the uniform licensing procedures framework while specifying exceptions and adaptations.

No further historical amending instruments or prior versions are contained in the provided text, and no revocation or repeal history is included. The Regulation itself, by virtue of clause 17, effects an amendment of the LRUP Act which has operational consequences for application processing and timelines. The Schedule 1 indexing mechanism also establishes a rolling amendment method for fees that will produce future adjusted fee amounts each financial year on CPI publication, with notice obligations in Schedule 1, cl 5 requiring the Secretary to notify Parliamentary Counsel and publish the indexed fee unit.

Because the provided text contains no separate legislative history, amendment dates or prior versions beyond the commencement date and the clause amending the LRUP Act, readers should treat the stated commencement and the Schedule 1 indexing method as the operative amendment history included within the instrument itself.

The Regulation text provided does not reference any case law, judicial decisions, or litigation outcomes. There are no judicial interpretations, contested decisions, or published determinations included within the body of the Regulation. As such:

• There are no cases named in the Regulation text whose holdings clarify the operation or scope of specific clauses.
• The Regulation instead establishes administrative and statutory obligations that will be enforced under the Act’s enforcement framework. Any judicial treatment, appeals or injunctions arising from enforcement, licence refusals, or contested administrative decisions are not included here.

Implications for legal practice and compliance advisers

• In the absence of reported litigation in the instrument itself, legal practitioners and compliance officers must rely on the textual clarity of the Regulation’s provisions and on analogous statutory and administrative law principles when advising clients.
• Interpretation points that are likely to attract litigation risk (and which, in other contexts, courts have commonly clarified) include the meaning of "public interest" as it relates to granting or shortening an authority term (cl 16(2)), the circumstances in which the Secretary must be satisfied that proceeds requirements cannot be met (cl 50(2)), what constitutes a "substantial change" to the conduct of a gaming activity requiring notice to the Secretary (cl 28), and the application of defences to prize non-award due to "unforeseeable or other special circumstances" (cl 42(2)). These are textual areas that, absent explicit judicial gloss in this instrument, remain open to administrative practice and potential judicial review if contested.
• Auditing and enforcement provisions such as the requirement to have accounts audited when gross proceeds exceed $250,000 (cl 53) may give rise to disputes about the scope of "gross proceeds", aggregation rules across multiple activities or affiliated entities, and the auditor’s reporting obligations; again, no judicial guidance is supplied in the Regulation itself.

For authoritative litigation history or judicial interpretations, one must consult external case law databases and the Act’s enforcement records, which are not part of the provided Regulation text. The Regulation’s public register power (cl 21(3)(e)) may, however, create a track record of administrative enforcement decisions that could be relevant in future disputes, but those entries and any appeals are not contained in the Regulation.

This section highlights specific, concrete traps, hidden constraints and operational features likely to generate compliance slips, implementation costs or unintended behaviour if overlooked. Each item is traceable to a clause.

Prize-value thresholds and authority triggers

• Many permitted categories hinge on prize-value ceilings or gross-proceeds allocations. An organiser who exceeds a ceiling (for example offering total prizes above $30,000 for a draw lottery cl 6(c), or offering separate prizes above $30,000 in an art union cl 4(c)) may immediately require an authority (or render the activity not permitted). Clause 4(d) mandates that art unions be conducted under an authority. Failure to secure an authority where required exposes organisers to criminal penalty units and potential penalty notices (cl 22, Schedule 2). It is therefore easy to transgress by incremental prize top-ups or by combining sessions whose aggregate exceeds thresholds.

Proceeds allocation and Secretary discretion

• Multiple clauses require a percentage of gross proceeds to be paid to the benefiting organisation (commonly 40%, but 30% for art unions and 12.5% for charity housie). Clause 50 allows the Secretary to vary or remove such requirements if satisfied that the specified amount cannot be paid or it would not be reasonable to apply the requirement. The "satisfied" standard is administratively discretionary; organisers relying on such a variation should not assume automatic relief and must submit an application and persuasive evidence (cl 50(1)-(3)). Absent a formal variation, non-payment risks rendering the activity non-permitted.

Ticket records and privacy exposure

• Clause 30(4)(f) mandates retention of names and contact details of all people who bought lottery tickets where an authority is required. That creates data-handling obligations that intersect with privacy law and information security obligations. Failure to safeguard this data could produce regulatory exposure under privacy regimes or reputational risk; the Regulation does not set privacy standards, so organisers must apply applicable privacy law when handling that personally identifying information.

Strict timelines for deposit of proceeds

• Clause 31 requires money to be paid into an authorised deposit-taking institution within two business days of receipt. The short deposit window increases bank-handling and reconciliation operational costs and raises error risks (lost cash, misallocation, delays). Small groups or volunteer-run fundraisers may find the two-day rule operationally burdensome unless suitable bank arrangements are in place.

Limits on deductions and commissioned payments

• Clause 34 restricts the amounts deductible from gross proceeds to a narrow list. Clause 32 requires written agreements that precisely specify services, remuneration and term for any commissions or remuneration taken from gaming funds for authority-required activities. Clause 33 then prohibits payments to people who conduct certain activities (sweeps, calcuttas, social housie, mini-numbers, progressive lotteries), except for assistance promoting sweeps and calcuttas. The combined effect is that commercial arrangements with promoters, tech providers or venue operators must be carefully structured to comply; organisers cannot simply treat gaming proceeds as general revenue to fund arbitrary fees without meeting the written-agreement condition and the list of permissible deductions.

Advertising prohibitions

• Clause 52 bans ads that depict children participating, encourage unlawful acts, or suggest winning is definite or that participation will definitely improve financial prospects. This creates a restrictive advertising test that may catch marketing language commonly used in commercial promotions. Clubs and businesses promoting raffles or trade promotions must vet promotional copy and imagery accordingly.

Liquor prize constraints and age restrictions

• Liquor prize components are capped (cl 39). Further, tickets for prizes with a liquor component cannot be sold to persons under 18, nor can prizes containing liquor be given to a person under 18 or be sold/given by a person under 18 (cl 40). Events that mix family attendance and liquor-prize promotions must segregate ticket sales and prize awards or risk contravening the age-specific prohibitions.

Real property prize obligations

• Clause 45 requires maintenance of improvements, full-value insurance, payment of accrued expenses and compliance with legal transfer requirements before a real property prize is transferred. Organisers promising real property must make arrangements to meet these obligations and must disclose such constraints early, particularly because art unions and some large sweep/calcuttas may include real property prizes, and the Secretary may request additional information regarding proposed real property prizes under clause 18(2)(b).

Prize substitution and high-value notice requirement

• Clause 44 allows prize substitution in unforeseeable circumstances but imposes a special prior-notice/choice regime where specified prize value exceeds $100,000: participants must be notified in writing of the substitute prize and offered the choice to continue participating or receive a refund of the entry fee (cl 44(2)). Organisers offering high-value prizes must be prepared to provide pre-draw notices and a refund mechanism, which complicates logistics and cashflow.

Independent supervision exemption

• Clause 47 requires independent supervision of prize determination for activities requiring an authority but permits the Secretary to exempt a person or body from this requirement (cl 47(2)-(3)). Reliance on an exemption should not be assumed; organisers must assume independent supervision is required unless and until a formal exemption is granted.

Record retention period and scope of required records

• For authority-required activities, the seven-year retention requirement applies to a broad set of records (cl 30(1),(3)-(4)). The list includes financial statements, ticket numbers, and purchaser contact details, which raises storage, archiving and possible auditing burdens. The requirement also distinguishes between activities requiring authority and those that do not, so intentional splitting of events to avoid authority thresholds may trigger legal and reputational scrutiny if undertaken purely to avoid recordkeeping/audit obligations.

Audit trigger threshold

• Clause 53 mandates annual audit when gross proceeds across activities in a year exceed $250,000. Organisers operating multiple activities should therefore aggregate proceeds to determine audit triggers. Non-compliance with audit duties is itself penalised (cl 53(4)-(5)).

Penalty-notice dichotomy

• Schedule 2 lists many offences as penalty-notice offences with fixed dollar amounts. But the Regulation also retains maximum penalty units for many offences. Organisers need to navigate whether an infringement notice will be issued or a prosecution pursued; absence of administrative practice statements in the Regulation means parties must assume both possibilities exist.

Authority application procedural traps

• Application forms must be in a form approved by the Secretary and accompanied by the Schedule 1 fee (cl 15). Clause 16 allows nomination of a 1, 3 or 5-year term but permits the Secretary to grant a shorter term "if satisfied it is in the public interest" (cl 16(1)-(2)). Applicants should therefore expect potential imposition of shorter terms and fee adjustments/refunds under cl 16(4).

In short, the Regulation contains many discrete numeric and documentary requirements. Small variances in prize value, ticket numbers, or proceeds allocation can change the regulatory status of an activity and trigger authority, audit or prohibition rules. Organisers, benefiting organisations and auditors need a checklist approach to avoid these concrete "gotchas".

This section gives a concrete compliance roadmap keyed to the principal operative clauses and practical sequencing for organisers, benefiting organisations, registered clubs and advisors. The steps assume an organiser contemplates a gaming activity and will determine whether an authority is required, and, if so, obtain it and manage ongoing compliance.

1. Classify the activity and check thresholds (Pt 2)

• Identify the activity type (art union, draw lottery, no-draw, mini-numbers, progressive, housie/bingo variant, sweep/calcutta, free lottery, trade promotion, promotional raffle or other charitable activity). Each category in Pt 2 contains precise eligibility and threshold criteria (cl 4-14).
• Check prize-value ceilings, ticket-count limits and required payments to benefiting organisations. If the activity is an art union, an authority is always required (cl 4(d)). If prize totals exceed thresholds noted (for example progressive lotteries over $30,000, trade promotions over $10,000, or draw lotteries over $30,000), an authority may be required (cl 6(c), cl 9(b), cl 14(c)). If in doubt, treat the activity as potentially authority‑required and consult the Secretary.

2. Obtain written authorisation from benefiting organisation (if applicable)

• If the gaming activity is conducted wholly or partly for the purpose of raising funds for a charitable or non-profit organisation, obtain written authorisation from the benefiting organisation before conducting the activity (cl 35).

3. Apply for authority where required (Pt 3)

• Use the application form approved by the Secretary and include the prescribed fee in Schedule 1 (cl 15; Schedule 1, cl 1). Nominate a term (1, 3 or 5 years) on the application (cl 16(1)). Be prepared for the Secretary to grant a shorter term if satisfied it is in the public interest; if that happens, a partial refund of fees applies (cl 16(2),(4)).
• For art union authority applications, expect that the Secretary may request additional information about past conduct of art unions or proposed real property prizes (cl 18(2)(a)-(b)). Ensure complete disclosure to avoid application delays.

4. Prepare rules and submit them timely

• Draft rules that address the required list in cl 25(1)(a)-(m): entry closure date, multiple entries, prizes and values, prize-claim costs, limits on prize wins per participant, age limits, bonus prizes, dispute resolution, agent exclusions, prize-determination and notice procedures, and publication if prize winners cannot be found.
• For activities under authority, give the Secretary a copy of the rules at least 10 working days before the gaming activity takes place (cl 20). Ensure the rules are clearly expressed and up to date (cl 25(1)(a)).

5. Make rules available publicly and on request

• Publish rules on a prominent, publicly available website if the organiser maintains one, or display rules at the place where the gaming activity is being conducted. Ensure participants can request the rules free of charge and be informed of their location (cl 26(1)-(2)).

6. Financial systems: receipting, banking and deposits

• Use an account at an authorised deposit-taking institution and ensure receipts are deposited no later than two business days after receipt (cl 31). If proceeds include funds due to a benefiting organisation, the account may be that organisation’s account (cl 31(b)(ii)). Maintain robust cash-handling and reconciliation protocols to meet the two-day deposit requirement.

7. Deductions, commissions and written agreements

• Only deduct the specified items in cl 34(2) from gross proceeds (ticket production, advertising, hiring devices/premises, prize cost, reasonable salaries/wages/commission if permitted, auditing costs, and other permitted amounts under an authority). Structure any commissions or remuneration to comply with cl 32: written agreement specifying services, commission/remuneration and term. For activities listed in cl 33, avoid paying remuneration to persons who conduct the activity unless such payments fit the narrow exception (assistance promoting sweeps/calcutta).

8. Recordkeeping and retention

• For authority-required activities, maintain records for at least seven years after the gaming activity ceases and include items prescribed in cl 30(3)-(4): expenses, dates, prize determinations, prize lists and values, gross proceeds, proceeds paid to benefiting organisations (with percentage ratios), names/contact details of prize winners and, where applicable, statements of income and expenses, ticket counts, unsold tickets and purchaser details. For non-authority activities, keep appropriate records as the organiser thinks fit (cl 30(2)). Implement secure record-keeping and archiving protocols, mindful of privacy obligations applicable to purchaser contact details.

9. Audit preparation and qualified auditor selection

• If gross proceeds across the 1 July-30 June year exceed $250,000, arrange an annual audit by a "qualified auditor" as defined in cl 53(6). The auditor’s report must address true and fair view, recordkeeping, application of funds under the Act and Regulation, and solvency (cl 53(3)). Ensure the auditor is independent under cl 53(7).

10. Prize management: availability, substitution and preservation

• Preserve prizes carefully until winners take possession or prizes are disposed of in accordance with the Part (cl 46). Maintain real property prize requirements: preserve improvements, insure for full market value, pay accrued expenses prior to conveyance and comply with legal transfer requirements (cl 45). If a specified prize above $100,000 is to be substituted, provide written notice to participants before winners are determined and give the option to continue or withdraw and receive a refund (cl 44(2)). Ensure errors in ticket production do not improperly deprive participants of prize rights (cl 38).

11. Supervision of prize determination

• For authority-required activities, arrange for prize determination to be carried out in the presence and under the supervision of a person independent of the organiser and benefiting organisation (cl 47(2)). If independence is impractical, consider applying to the Secretary for an exemption (cl 47(3)).

12. Unclaimed prizes

• Deal with unclaimed prizes in accordance with cl 48. Allow for redetermination as per rules or at least three months after initial determination. Perishable unclaimed prizes may be sold or otherwise disposed of (cl 48(3)-(4)).

13. Advertising compliance

• Ensure advertising does not encourage breach of law, depict children participating, imply definite winning or promise definite improvement to financial prospects (cl 52). Display the authority number clearly on any advertising material associated with the gaming activity (cl 27).

14. Ticket sales agent compliance

• If agents sell tickets for lotteries, sweeps or calcuttas, ensure agents return ticket-butts, drawing-dockets (or computer equivalents), all money received and unsold tickets to organisers before the draw (cl 23). Maintain contractual and procedural controls over agents.

15. Remote participation cost limits

• If participation requires a telephone call or use of an electronic application, inform the person of the cost and ensure the cost does not exceed standard local call or app charges; the organiser must not receive money paid for provision of the telephone service or electronic application (cl 29).

16. Seek Secretary variations when necessary

• If proceeds allocation percentages cannot be met, apply to the Secretary under cl 50 for variation or removal of the requirement, and ensure payment occurs in accordance with any Secretary decision to maintain permitted-activity status (cl 50(2)-(3)). Seek fee waivers or postponement under cl 54 where financial hardship or special circumstances apply.

17. Monitor for substantial changes and notify

• If there is a substantial change to the conduct of the gaming activity, including rules, prizes, draw dates or changes in authority-holder details, notify the Secretary as soon as reasonably practicable and take reasonable steps to notify participants (cl 28(1)-(2)).

18. Prepare for enforcement and penalty exposure

• Track penalty-notice offences in Schedule 2 and understand the financial exposure of both penalty notices and maximum penalty-unit sanctions under the Regulation. Implement internal controls to minimise the risk of contraventions that attract penalty notices (Schedule 2; cl 22; cl 52).

19. Documentation for audits and potential enforcement

• Maintain an audit file containing copies of rules, authority documents, bank statements, ticket receipts, agreements with agents or service providers (including written commission agreements), insurance policies for real property prizes, correspondence with the Secretary (including any variations or exemptions), and auditor reports. These documents support compliance and will be required in any audit or enforcement review.

20. Legal and accounting advice

• Where prize values, ticket numbers, or proceeds aggregation approach thresholds, obtain timely legal and accounting advice to assess whether an authority is required, whether audit thresholds will be crossed, and to draft compliant agreements with promoters and service providers.

Following these steps, mapped to clauses in the Regulation, will address the principal compliance obligations: authority application and documentation (cl 15-21), operational rules and transparency (cl 24-28), financial handling and recordkeeping (cl 30-34, cl 31), prize-management duties (cl 38-48), audit and reporting (cl 53), advertising and remote-participation constraints (cl 27, cl 29, cl 52) and Secretary interactions (cl 16, cl 18, cl 50, cl 54).