The Department of Internal Affairs is cracking-down on expensive spot prizes at sports competitions, warning organisers they could be breaching gambling laws.
It has written to 15 organisers of professional tournaments, informing them prizes worth more than $5000 cannot be given away at events with an entry fee.
The crackdown was prompted by a complaint from a gaming trust about some fishing competitions giving away large prizes.
The department says spot prizes are still permitted so long as organisers comply with the law.