Compliance for sales promotion prize draws in New Zealand

You do not need a permit to run a sales promotion scheme, as defined by the Gambling Act 2003.

However, for the chance based component of the sales promotion, it is important that the method of selecting the winners is actually random and that all entrants have an equal chance of winning. This is a key aspect of running a legal promotion.

Some operators print out the entries and perform a manual (non-electronic) draw. This is generally allowed if the process is fair and objective. However, in most cases, this is cumbersome and makes it difficult to keep records of the draw (it is important that you keep a record of the draw should you be reviewed by a relevant authority including the Department of Internal Affairs).

It is also a potential perception issue. Your entrants are likely to feel more confident about the objectivity of the draw knowing that it was performed electronically. It is generally fine to use a random function within a spreadsheet application. However, you would be advised to take screenshots of the process showing the input, the draw, and the output.

randomdraws.co.nz™ meets the requirements of NZ laws with respect to the "randomness" of the draw process. And you are assured that you are keeping proper records should you need evidence of a proper draw. You will receive a certificate of compliance with each draw with all draw and approval details.

If you have questions about our methodology or would like to discuss any compliance issues, visit the FAQ section, or contact us.

How can I show entrants that my draw is legitimate?

Using our third party service adds credibility to your draw. If you want entrants to be confident about the independence of the draw, you can:

• Show them the certificate of compliance after the draw
• Publish the winners on our hosted URL
• Hold a live draw
• Set up a page that allows entrants to check if their entry is in the draw
• Add our approved logo^* to the draw or your promotion page

^* Please do not publish logos of our clients (we are not allowed to share these)