Internal Affairs Minister Chris Tremain is calling for changes to the regulations around spot prize draws.
Chris says 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. In some cases those rules can be overly rigorous and I want to cut the red tape."
He says under the Gambling Act if the prize exceeds $500 in value the competition must be run by a society (rather than an individual or a company) and any proceeds from the activity must go to authorised community purposes.
If the prize exceeds $5000 in value the society running the competition needs a licence.
“Organisers say that because the primary purpose of their event isn’t gambling and the potential for harm is minimal the requirements imposed are too harsh.
“The Department of Internal Affairs has been working with organisations to help them comply and there have been no prosecutions.
"It’s a confusing and difficult space and it’s time the regime imposed on spot prizes was changed.
“A discussion document is necessary because changes to regulations are required. I am looking forward to hearing feedback from event organisers and members of the public.”
Submissions are due by April 4 2013. The consultation document can be found at http://www.dia.govt.nz/Services-Casino-and-Non-Casino-Gaming-News-Press-Releases-&-Consultation#two