Warning to Liquor Stores

18/01/2007

The Department of Internal Affairs has warned liquor stores operating customer loyalty schemes that they are breaching the law if points won in draws are used to purchase alcohol.

The Director of Gambling Compliance, Mike Hill, says that under the Gambling (Prohibited Property) Regulations 2005, liquor cannot be a gambling prize.

“We became aware that some liquor stores with loyalty schemes, also run a weekly draw with loyalty points as the prize,” Mike Hill said. “In turn, the points may be redeemed by purchasing goods and services. But liquor is a ‘prohibited property’ under the regulations and cannot be used to reward a winner of gambling.

“We have advised the outlets that they can avoid the breach by incorporating a rule in their promotions that loyalty points won in a draw cannot be used to purchase alcohol.

“Loyalty schemes can be operated but they must comply with law.”

Media Contact:
Trevor Henry, communications adviser, Department of Internal Affairs
Ph 04 495 7211; cell 0275 843 679