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Gambling Act 2003

Institutions - New Zealand Lotteries Commission - Operation of New Zealand lotteries

252: Lottery prize fund

You could also call this:

"Money from lottery tickets goes into a special account to pay prizes to winners."

Illustration for Gambling Act 2003

When you play a New Zealand lottery, the money for prizes goes into a special account called the lottery prize fund account. You can think of this account as a pool of money that is used to pay out prizes to winners. The Lotteries Commission is in charge of this account and they pay out prizes from it according to rules made under section 243 and provisions specified by the Minister under section 244(1)(a).

The money in the lottery prize fund account is only used to pay prizes, except in certain situations. If there is money in the account that is not needed right away to pay prizes, the Lotteries Commission can invest it according to the Trusts Act 2019.

Any interest earned from these investments, or money made from selling them, goes back into the lottery prize fund account and can be used to create a prize pool for future lotteries, following rules made under section 243 and provisions specified by the Minister under section 244(1)(a).

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM209757.

Topics:
Money and consumer rights > Gambling
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253: Entitlement to prizes, or

"Getting the prizes you win from playing the lottery"

Part 3Institutions
New Zealand Lotteries Commission: Operation of New Zealand lotteries

252Lottery prize fund

  1. All the money that constitutes the prize fund of a New Zealand lottery must be paid into a lottery prize fund account.

  2. The Lotteries Commission must pay out of the lottery prize fund account the prizes set for the relevant type of lottery in accordance with rules made under section 243 and any provisions specified by the Minister under section 244(1)(a).

  3. The money kept in the lottery prize fund account may be applied only towards the payment of prizes in New Zealand lotteries, except as provided in subsection (4).

  4. The Lotteries Commission may invest, in accordance with the Trusts Act 2019, any money kept in the lottery prize fund account that is not immediately required for the payment of prizes.

  5. Any interest accruing from those investments, and any proceeds from the realisation of the investments,—

  6. must be paid into the lottery prize fund account; and
    1. forms, in accordance with any rules made under section 243 and any provisions specified by the Minister under section 244(1)(a), a prize pool for any lottery conducted at a later date.

      Compare
      • 1977 No 84 s 101
      Notes
      • Section 252(4): replaced, on , by section 161 of the Trusts Act 2019 (2019 No 38).