How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Chris The Lawyer Your Own Question
Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22976
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
32702153
Type Your New Zealand Law Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

I'm wanting to create a website that allows users to list an

Customer Question

Hi, I'm wanting to create a website that allows users to list an item for sale using the raffle method. An example, a seller list an iPhone for sale for $600 and allows 10 raffle tickets to be purchased. This means the users can purchase a raffle ticket for $60 for 1 in 10 chance (10 raffle tickets) to win the iphone. The raffle draw starts then all 10 tickets is sold. This means that the seller will get $600 regardless and the buyer has a chance to win it for cheap. In my position being the person who runs the site, I would charge a listing fee and success fee. Would it be possible to run this website in New Zealand and comply with the gambling act?
Submitted: 4 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 4 months ago.

Under the Gambling Act raffles are covered under a number of sections and divided into classes, which affect all forms of gambling, Smaller scale games or raffles do not need a licence but there are conditions before this can be met.

Expert:  Chris The Lawyer replied 4 months ago.

So for example

22 Meaning of class 1 gambling

In this Act, class 1 gambling is gambling that satisfies the following criteria:

(a) either—

(i) the turnover of the gambling plus interest or other investment return on those proceeds less any actual, reasonable, and necessary costs incurred in conducting the gambling is applied to reward the winners of the gambling if the gambling is conducted by a person other than a society; or

(ii) the net proceeds from the gambling are applied or distributed to authorised purposes if the gambling is conducted by a society; and

(b) the total value of prizes offered or awarded to the winners of the gambling activity, or to the winners in 1 session (if the gambling is conducted in sessions of more than 1 game), does not exceed $500; and

(c) the potential turnover involved in the gambling activity, or in 1 session of gambling (if the gambling is conducted in sessions of more than 1 game), does not exceed $500; and

(d) if the gambling is conducted in sessions of more than 1 game, a society conducts no more than 1 session per day; and

(da) there are game rules for the gambling; and

(e) the gambling, and the conduct of the gambling, satisfies relevant regulations and game rules; and

(f) the gambling does not utilise or involve a gaming machine, directly or indirectly; and

(g) no commission is offered or paid to, or received by, a person for conducting the gambling; and

(h) no remuneration is offered or paid to, or received by, a person for conducting the gambling, except a caller of housie or an authorised representative of a society if the gambling is conducted by a society; and

(i) the Secretary has not categorised the gambling as another class of gambling.

Expert:  Chris The Lawyer replied 4 months ago.

If you get a commission and are not a society that would offend against (i) and (h)

Expert:  Chris The Lawyer replied 4 months ago.

Class 2 has similar restrictions for larger scale gaming. So you would need a licence, although in fact it would be difficult to obtain a licence for this sort of raffle if it is for profit for you

Customer: replied 4 months ago.
In my situation, what can I do to make this business possible and legal? Is it even possible to run this business?
Customer: replied 4 months ago.
What if I was to charge a listing fee instead of taking a % of the sales price. Would that still be counted as comission ?
Customer: replied 4 months ago.
In this case, what makes a society?
Expert:  Chris The Lawyer replied 4 months ago.

A society is a not for profit organisation, like a sports club or a hobby society. It isnt really possible to do this as a business unless this is on alarger scale, and those are rationed and highly regulated, like casinos. The listing fee would still be a profit for your business

Expert:  Chris The Lawyer replied 4 months ago.

Your idea may be a good one but gaming is highly regulated under New Zealand law