Govt lays down law on World Cup sweepstakes

Rugby World Cup (RWC) sweepstakes should be small and simple - that's the message from the Internal Affairs Department.

Acting director of gambling compliance Debbie Despard said sweepstakes could have a total prize pool of no more than $500, all entry money must be returned as prizes, and no one could be paid for running it.

"This means that the number of teams playing will determine how much can be charged for each ticket; with 20 teams in the RWC, the maximum price of tickets would be $25," Ms Despard said.

Sweepstakes were intended to be small-scale gambling with simple rules which protected employers, clubs and staff.

"To avoid the risk of problems, we suggest it's best to keep it small and keep it simple," she said.

"People can run more than one sweepstake at the same office, pub or club but they must keep the money from each one separate."

People wanting to place bigger bets on the RWC should do so through the go to the TAB.