The two key rules that make a Melbourne Cup sweep legal

If you’re running a Melbourne Cup sweep this year, there are two key rules to follow if you are stay withing the law. Firstly, the total prize pool cannot exceed $5,000, and secondly every dollar collected must be returned as prize money.

The independent regulator of Victoria’s gambling industry, the Victorian Gambling and Casino Control Commission, issued guidance early this year, related to Melbourne Cup sweeps.

As workplaces, pubs and clubs across Australia gear up for the first Tuesday in November, the sweep remains one of the most popular traditions of Cup Day.

A sweep is a simple game of chance where each entrant is randomly allocated one of the 24 runners in the race, with prizes paid out depending on the horse’s finishing position.

Under gambling regulations, organisers cannot keep any money for costs or administration, and all funds must go back to participants as prizes.

While there are no strict rules on how the prizes are distributed, the most common structure rewards the horses that finish first, second, third and last.

Sweeps can be run on an “all-in” basis – where no refunds are issued if a horse is withdrawn – or organisers can opt to refund affected entrants and adjust the prize list accordingly.

Organisers should communicate the terms for withdrawals upfront.

There is no minimum or maximum entry fee for a sweep, and they can be held anywhere – from offices and factory floors to pubs and racetracks.

The rules for a Melbourne Cup sweep differ from those for a Calcutta Sweepstake, which requires a permit issued by the Minister for Racing. Clubs wishing to conduct a Calcutta in Victoria must apply for a permit through the Department of Racing’s approval process.