Raffle Business Legal Requirements In Australia

Running raffles can be a powerful way to raise funds, engage your community and build buzz around a brand or cause. Whether you’re a charity planning regular fundraising raffles or a business running trade promotions as part of your marketing, you’ll need to follow specific rules to stay compliant in Australia.

The tricky part is that raffle and lottery rules sit mostly at the state and territory level. The exact requirements change depending on who’s running the promotion, the prize value, whether tickets are sold, and how the draw is promoted and conducted.

In this guide, we’ll walk through what a “raffle business” can look like, when permits and licences are required, the key laws that apply, the steps to set up a compliant promotion, and the essential documents you’ll need. The aim is to make the legal side practical and easy to follow so you can run lawful promotions with confidence.

What Is A Raffle Business In Australia?

“Raffle business” can describe a few different models. Your legal pathway depends on which model you choose and where you operate.

• Charitable or community raffles: Tickets are sold and the proceeds support a charity, sporting club, school P&C or other not‑for‑profit cause. These are regulated gaming activities. Eligibility is usually limited to not‑for‑profits, and above certain prize thresholds you’ll need a permit or authority in the relevant state or territory.
• Trade promotion lotteries: A free-to-enter prize draw conducted to promote goods or services (for example, “buy any product this month and get an automatic entry” where there’s no extra fee to enter beyond the ordinary product price). These are also regulated, but because entry is free, a different set of rules applies. Some jurisdictions require permits for higher‑value promotions, while others don’t require permits at all (but still impose conditions).
• For‑profit paid raffles: In most jurisdictions, it’s unlawful for a for‑profit business to sell raffle tickets for its own profit unless the raffle is conducted by an eligible organisation (or in partnership with one). If you’re a commercial operator, you’ll typically need to partner with a registered charity and comply with fundraising and gaming laws.

Because the rules are state‑based, it can help to begin with a national overview of raffle laws in Australia, then drill into the specific requirements where your entries are received.

Do You Need A Permit Or Licence To Run Raffles?

Often yes-especially if you’re selling tickets or your prizes are over a set value. The exact authorisation you need (and whether you can run the promotion at all) depends on the jurisdiction and the type of promotion.

Here’s a high‑level snapshot. Always check the current rules in each place you’ll accept entries before you launch.

New South Wales (NSW)

NSW distinguishes between community gaming (including raffles) and trade promotions. Not‑for‑profits can usually run low‑value raffles without a permit, but higher‑value raffles and specific formats may require registration, set ticketing rules and reporting. Trade promotions generally do not require a permit in NSW, but strict conditions apply to how you advertise, conduct the draw and publish results. Explore the details in raffle laws in NSW.

Queensland (QLD)

Queensland has prize thresholds and eligibility rules for charitable raffles and requires approved fundraising status for certain activities. Trade promotions in QLD do not require a permit, but you must still follow the conditions on chance determination, disclosures and winner notification. See the key requirements in raffle laws in Queensland.

Victoria (VIC)

In Victoria, community raffles are regulated charity gaming with rules around who can run them, prize caps, ticket sales and record‑keeping. Trade promotions generally do not require a permit in VIC; however, you still need to comply with advertising transparency, chance determination and unclaimed prize rules. More detail is set out in raffle regulations in Victoria.

South Australia (SA) and Australian Capital Territory (ACT)

Both SA and the ACT require permits for many trade promotion lotteries above specified prize value thresholds, as well as for various charitable raffles. If you’re planning a national promotion that includes residents of SA and the ACT, factor in lead times to apply for trade promotion permits where required.

Western Australia (WA), Tasmania (TAS) and Northern Territory (NT)

These jurisdictions do not require permits for trade promotions, but they impose conditions on how the promotion is run, advertised and drawn. Charitable raffles have separate rules and may require authorisations above certain thresholds.

If you’re running a national campaign, you must comply with the rules in every jurisdiction where entries are received. Plan your mechanics, terms, timelines and budget with a state‑by‑state checklist so you don’t miss a permit window or mandatory disclosure.

Step‑By‑Step: Set Up A Compliant Raffle Or Trade Promotion

1) Choose Your Model And Scope

Decide whether you’re running charitable raffles (ticket sales for a cause) or a trade promotion lottery (free entry to promote your goods or services). If you’re a for‑profit entity that wants to sell tickets, consider partnering with an eligible charity under a clear services arrangement.

2) Pick A Business Structure

If you’re building a dedicated promotions or fundraising services business, consider starting as a sole trader and moving to a company as you grow for limited liability and credibility. If you’re ready, a streamlined company set up can position you for scale and partnerships.

Where there are co‑founders or investors, put a well‑drafted Shareholders Agreement in place so roles, decision‑making and equity are clear before you launch larger campaigns.

3) Confirm Eligibility And Permits

Check whether you (or your charity partner) meet the eligibility rules to run the raffle in each state or territory. Determine if a fundraising authority or a gaming/lotteries permit is required based on prize value and format. For trade promotions, verify if permits are needed in SA and ACT and note any notification and reporting obligations.

4) Draft Your Legal Terms And Disclosures

Before opening entries, prepare robust Competition Terms & Conditions. Cover eligibility, entry methods, opening and closing dates, prize descriptions and values, the draw method, winner notification and publication, unclaimed prize procedures, and any excluded entrants (for example, employees or contractors).

If you collect personal information, publish a compliant Privacy Policy that explains how you collect, use, store and share entrant data, including direct marketing consents. If entries are taken online, ensure your site has clear Website Terms and Conditions and that all key disclosures are visible before someone enters.

5) Build Fair And Auditable Draw Mechanics

Plan how you’ll receive entries, verify eligibility, randomise the draw and record results. Some jurisdictions specify draw methods (for example, supervised draws or auditable random number generators). Keep an audit trail showing the draw was random and conducted exactly as described in your terms.

6) Market Responsibly

Advertising must be accurate and consistent with your terms. Avoid statements that could mislead consumers about odds, prize values or eligibility. The Australian Consumer Law (ACL) prohibits misleading or deceptive conduct, so make sure your headlines, imagery and fine print align with what you’re actually offering.

If you promote via email or SMS, comply with Australia’s spam and consent rules (clear consent, sender identification and easy unsubscribe). Align any direct marketing with the consents you collected and your Privacy Policy.

7) Run The Draw, Publish Results And Close Out

Conduct the draw exactly as your terms describe. Notify winners within the promised timeframe, publish results where required, and keep records for the mandated period. For charitable raffles, complete any financial reporting, auditing and beneficiary remittances on time. Where permit conditions apply (for example, SA/ACT trade promotions), meet any post‑draw reporting obligations.

What Laws Apply To Raffle Businesses?

Depending on your model and location, several legal frameworks can apply at once. Keep the following on your radar.

Fundraising And Charity Laws

If you’re selling tickets to raise money for a cause, you’ll likely need to be (or partner with) an eligible not‑for‑profit and comply with state fundraising laws. These rules cover transparency in advertising, how funds are handled and reported, and how beneficiaries are disclosed. In many jurisdictions, you’ll need an authority to fundraise before you start selling tickets.

Gambling (Gaming) Regulations

Raffles, sweepstakes and trade promotions are regulated forms of gambling. Rules typically cover who can run them, prize caps, chance determination, draw procedures, and record‑keeping. Unauthorised for‑profit raffles are commonly prohibited-so choose your model carefully and obtain the right approvals where required.

Australian Consumer Law (ACL)

All promotions must comply with the ACL. That means being transparent, not misleading consumers, honouring your published terms, and ensuring your advertised prize pool is accurate and actually awarded. Clear, accessible Competition Terms & Conditions help you meet these obligations and manage risk if a dispute arises.

Privacy And Data Protection

Collecting entrants’ names, emails and phone numbers triggers privacy obligations. Many businesses choose to adopt best‑practice privacy standards even if they are not strictly required to under threshold tests. A well‑drafted Privacy Policy, secure data handling and limited data collection are key. If you process ticket payments, apply strong payment security controls and avoid storing full card details unless you have a clear, compliant reason to do so.

Advertising And Electronic Marketing Rules

Promotions must present key terms clearly and avoid bait advertising or unfair practices. If you communicate by email or SMS, ensure your campaigns follow consent and unsubscribe rules and align with the privacy consents you collected.

Age‑Restricted And Special Prizes

Prizes such as alcohol, tobacco, firearms, vehicles and gift cards can trigger extra rules. For example, minors are generally ineligible to win alcohol, and you may need alternative equivalent prize provisions. Always check the relevant state requirements if your prize falls into a special category.

What Legal Documents Will You Need?

Your documents should be clear, compliant and tailored to the jurisdictions where you operate. Most raffle operators will need several of the following:

• Competition Terms & Conditions: The core rules of your raffle or trade promotion. They set out eligibility, entry method, opening and closing times, prize details and values, draw method, winner notification/publication and how unclaimed prizes are handled.
• Privacy Policy: Explains what personal information you collect, how it’s used and stored, whether you share it with partners, and how entrants can access or opt out of marketing.
• Website Terms and Conditions: Sets the rules for using your website or landing page, covers acceptable use, IP ownership, disclaimers and liability limits.
• Memorandum of Understanding (MOU) or Services Agreement: If you partner with a charity, formalise responsibilities, reporting, branding approvals and fee arrangements so the relationship is clear and auditable.
• Sponsorship Agreement: If a business is supplying prizes or funding in exchange for promotion, document deliverables, branding rights, timing and approvals.
• Shareholders Agreement (if you have co‑founders): Outlines ownership, roles, decision‑making and exits so the business behind your promotions is stable as you grow.

You may not need every item on this list, but having the right documents in place from day one can prevent disputes, streamline audits and demonstrate compliance if a regulator asks questions.

Common Pitfalls And Practical Tips

• Opening entries Australia‑wide without state‑by‑state compliance: If your promotion accepts entries nationally, your terms and any permits must cover each relevant jurisdiction. One permit or set of rules rarely covers all situations.
• Charging a fee in a trade promotion: If entry isn’t genuinely free (beyond the ordinary purchase price), you may have created a paid lottery-which a for‑profit business usually can’t run without specific authority. Double‑check your mechanics.
• Missing mandatory disclosures in ads: Short social posts still need key information like opening/closing dates, eligibility limitations and clear prize descriptions. Keep your marketing consistent with your terms and the ACL.
• Loose record‑keeping: Regulators can require entry lists, draw records and prize fulfilment evidence to be kept for a set period. Set up simple record‑keeping before you launch.
• Restricted prizes without age checks: Alcohol and other restricted items require special handling, and minors generally can’t win them. Include equivalent prize or redraw rules where needed.
• Unclear partnerships: If you’re raising funds for a charity, formalise the arrangement so roles, approvals, branding and reporting are explicit and documented.
• Overlooking SA/ACT permit timing: If your campaign includes SA or the ACT, build in lead time to apply for trade promotion permits and factor in any approval conditions.

Tip: Create a pre‑launch checklist covering eligibility, permits, terms, disclosures, draw logistics, winner publication and post‑draw reporting. Reuse and refine that checklist for each campaign to save time and reduce risk.

Key Takeaways

• Raffle rules are state‑based and depend on your model-charitable ticket sales versus free‑entry trade promotions-and your prize values.
• Trade promotion permits are generally not required in NSW, VIC, QLD, WA, TAS and NT, but SA and the ACT do require permits for many higher‑value promotions; charitable raffles have separate thresholds and rules in every jurisdiction.
• Set yourself up with clear Competition Terms & Conditions, a visible Privacy Policy and appropriate site terms before you open entries.
• Your advertising must be accurate and consistent with your terms, and any email/SMS campaigns must follow Australian consent and unsubscribe rules.
• If you’re scaling a promotions service, consider a company set up and a Shareholders Agreement so your business is structured for growth and risk management.
• Keep good records, plan for SA/ACT permit lead times where relevant, and build a repeatable compliance checklist for every campaign.

If you’d like a consultation on setting up a raffle or trade promotion business in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.