Understanding Raffle Laws In NSW: Permit Rules And Checklist

In NSW, you usually don't need a raffle permit if your total prize value is $30,000 or less, but you must be an eligible not-for-profit or community organisation and follow the NSW community gaming rules. If the total prize value is over $30,000, you generally need a community gaming authority from Liquor & Gaming NSW before you run the raffle.

That means the legal answer isn't just about the prize amount. You also need to check who is running the raffle, what the money is being used for, how tickets are sold, what prizes are offered, and what records you keep after the draw.

Do You Need A Permit To Hold A Raffle In NSW?

For most small NSW raffles, no separate raffle permit is needed if the total prize value is $30,000 or less. These are often run by schools, charities, sporting clubs, P&Cs, community groups and other not-for-profit organisations.

Once the total prize value is more than $30,000, you should treat the raffle as a higher-risk activity and check whether you need a community gaming authority from Liquor & Gaming NSW. The authority is the NSW approval that applies to larger community gaming activities, rather than a general business licence.

There can also be a separate fundraising question. If your organisation is raising money for a charitable purpose in NSW, you may need to hold a charitable fundraising authority or fall within an exemption under NSW charitable fundraising rules. That's separate from the community gaming rules for the raffle itself, so charities and community groups should check both sets of requirements before selling tickets.

If you're selling tickets outside NSW, don't assume the NSW rules are enough. Each state and territory has its own raffle and lottery rules. For an Australia-wide snapshot, see this guide to raffle laws in Australia and check the requirements for every place where tickets will be sold.

What Counts As A Raffle In NSW?

A raffle is a game of chance where people buy tickets for the chance to win a prize, and the winner is chosen randomly. It might be a small meat tray raffle at a local club, a school hamper raffle, a sports club prize draw, or a major fundraising raffle with a car, holiday or cash prize.

In NSW, raffles sit within the community gaming framework. Liquor & Gaming NSW regulates these activities and sets rules for eligible organisations, ticket sales, prizes, draw methods, use of proceeds and record keeping.

It's important to separate raffles from business promotions. If your business is giving customers a chance to win a prize to promote sales, newsletter sign-ups or brand awareness, that's usually a trade promotion rather than a community raffle. NSW generally doesn't require permits for trade promotions, but Australian Consumer Law, privacy and competition terms still matter. See this overview of giveaway laws if you're running a promotional competition for your business.

Who Can Run A Raffle And Can You Do It For Personal Gain?

NSW raffle rules are designed to support genuine community and charitable fundraising. They aren't designed for private profit. In practice, raffles are usually run by eligible organisations such as:

• registered charities, including charities registered with the Australian Charities and Not-for-profits Commission
• not-for-profit incorporated associations, clubs and community organisations
• schools, P&Cs, sporting clubs and similar community bodies
• organisations formed for charitable, social, educational, religious, cultural or community purposes

A private individual generally can't run a raffle in NSW for personal gain. For example, selling raffle tickets to pay your own holiday costs, personal debts or private business expenses isn't the kind of fundraising the community gaming rules are intended to allow.

A business also needs to be careful. If your business wants to support a charity, the safer structure is usually for the eligible charity or community organisation to conduct the raffle, with your business acting as a sponsor, prize donor or promotional supporter. The arrangement should be clear about who is responsible for compliance, who owns the ticket revenue, how the funds will be applied, and how your business can use the charity's name or logo.

NSW Raffle Rules For Selling Tickets, Prizes And Draws

Even when no authority is needed, you still need to follow the operating rules. The most common compliance issues come from unclear ticket information, changing the draw after tickets are sold, or failing to show where the money went.

Your ticket and promotional information should clearly state the ticket price, prize details, draw date, draw time, draw location or method, how winners will be notified, and where results will be published. If there's a maximum number of tickets, say so upfront. If the raffle has a community gaming authority, include the authority details where required.

Tickets should be controlled carefully. Numbered tickets, a secure online ticketing system, reconciliation of ticket books, and a clear record of who sold what will all help if questions are raised later. If you offer bundles or discounted ticket packages, make sure the pricing is clear before sales begin and don't change the rules halfway through the campaign.

Prizes must be described accurately. Don't exaggerate prize values or use vague descriptions like luxury holiday if the prize is actually a limited accommodation voucher with blackout dates. The Australian Consumer Law applies to misleading or deceptive conduct, so your advertising should be accurate, verifiable and consistent across posters, social media, emails and your website.

Some prizes are restricted or need extra care. Before offering alcohol, tobacco products, weapons, cosmetic procedures, animals, travel, vehicles or regulated goods, check the specific NSW rules and any industry-specific requirements. If alcohol is part of the prize or served at the event, make sure you comply with relevant alcohol laws in NSW, including age restrictions and licensing issues.

The draw must be fair and random. Include all eligible tickets, hold the draw as advertised, and keep a record of the method used. If you use an electronic random draw system, make sure it's reliable and that someone can explain how it selected the winner. If a prize is unclaimed, follow the redraw process you disclosed before tickets were sold.

For ordinary raffles, you should plan for the required minimum proportion of gross proceeds to go to the approved charitable or community purpose. In NSW, organisers commonly work on the basis that at least 40% of gross proceeds should reach the benefiting organisation or purpose, unless a specific authority condition or rule says otherwise. Keep expenses proportionate and transparent.

NSW community gaming records should generally be kept for at least 3 years. Your organisation's constitution, ACNC obligations, grant conditions or accounting requirements may require longer retention, so check your internal governance rules and speak with your accountant about financial record periods.

NSW Raffle Permit Check And Worked Example

If you're checking whether a NSW raffle is legitimate, start with the basics. Who is running it? What organisation benefits? What is the total prize value? Is there an authority number if the prize pool is over $30,000? Do the published terms match the ticket information?

For larger raffles, you can ask the organiser for the authority details and check those details with Liquor & Gaming NSW. If an organiser can't tell you who benefits from the raffle, when it will be drawn, or what authority applies to a large prize pool, that's a red flag.

Here is a simple example. A NSW netball club wants to raise money for new uniforms and court hire. A local bike shop donates an electric bike worth $2,800, a cafe donates a $200 voucher, and parents contribute hamper items worth $500. The total prize value is $3,500, so the raffle is well below the $30,000 authority threshold.

The club plans to sell 1,000 tickets at $10 each, so the maximum gross proceeds are $10,000. Printing, online ticketing and promotion will cost $700. Because the prizes are donated, the club expects net funds of about $9,300. That easily supports the community purpose and leaves a strong record showing how funds will benefit the club.

The club should still publish clear terms. Those terms should say the raffle is conducted by the netball club, list the prizes and values, state the ticket price and maximum tickets, confirm the draw date and method, explain how winners will be contacted, and say what happens if a prize isn't claimed. After the draw, the club should record ticket sales, expenses, the winning ticket numbers, winner notifications and how the money was applied.

Now change one fact. If the same club later receives a donated car worth $38,000 and adds it as first prize, the total prize value is now over $30,000. Before continuing ticket sales, the club should check the community gaming authority requirements and update its terms, advertising and record-keeping process.

How To Organise And Run A Raffle Legally

A good raffle is planned before the first ticket is sold. Use this checklist as a practical starting point.

1. Confirm The Purpose: Write down the charitable, community or not-for-profit purpose that will receive the proceeds.
2. Check Eligibility: Confirm that the organisation running the raffle is eligible and has any separate charitable fundraising authority it needs.
3. Value The Prizes: Add up the total retail value of all prizes, including donated prizes, to check whether the $30,000 authority threshold is crossed.
4. Set Ticket Rules: Decide the ticket price, maximum ticket numbers, sales period, sales channels and whether tickets will be paper, online or both.
5. Prepare Terms: Put the raffle rules in writing before sales begin, including eligibility, draw method, winner notification and unclaimed prize steps.
6. Check Advertising: Make sure posters, emails, social posts and website pages all match the terms and don't overstate prize values or odds.
7. Control Sales: Reconcile ticket books, online sales and cash regularly so you can track proceeds and unsold tickets.
8. Run The Draw: Draw winners fairly and randomly, exactly when and how you said you would.
9. Publish And Record Results: Notify winners, publish results where promised, deliver prizes and keep records for at least 3 years.

If you're running several fundraising activities at once, a broader compliance review can help you spot gaps in contracts, privacy, advertising and governance. This legal health check is a useful starting point for small organisations and growing businesses.

Documents And Online Compliance For NSW Raffles

The documents you need depend on the size and style of your raffle. A small paper-ticket raffle at a school fete may only need concise raffle terms and solid records. An online raffle with sponsors, email marketing and higher-value prizes will usually need more structure.

Many organisers use tailored Competition Terms & Conditions to set the rules for entry, ticket sales, eligibility, draw method, winner notification, unclaimed prizes, liability and complaints. A lawyer should tailor these terms to your exact prize structure, sales channels and NSW obligations.

If you sell tickets online, your website should clearly explain the purchase process, payment terms, refund position, raffle rules and contact details. Having Website Terms and Conditions can also help manage site use, payment issues, intellectual property and liability.

You may also collect names, phone numbers, email addresses and payment information from ticket buyers. If you're an APP entity under the Privacy Act 1988, such as many organisations with annual turnover above $3 million or organisations handling particular types of sensitive information, you'll generally need a compliant Privacy Policy. Even if you aren't legally required to have a full policy, a clear Privacy Collection Notice is good practice.

If you email supporters about the raffle, make sure your messages comply with the Spam Act and relevant email marketing laws. This usually means having consent, identifying your organisation clearly and including a functional unsubscribe facility for commercial electronic messages.

Sponsors and volunteers should also be documented where the arrangement is more than informal. A Sponsorship Agreement can cover prize donations, logo use, acknowledgements and promotional obligations. A Volunteer Agreement can clarify roles, conduct expectations, confidentiality and how money or ticket books must be handled.

Key Takeaways

• In NSW, raffles with total prizes of $30,000 or less usually don't need a community gaming authority, but the NSW raffle rules still apply.
• Raffles are generally for eligible charities, clubs and community organisations, not private personal gain or ordinary business profit.
• If the total prize value is over $30,000, check the Liquor & Gaming NSW authority requirements before selling tickets.
• Ticket information, prize descriptions, draw details, winner notification and unclaimed prize rules should be clear before sales begin.
• Keep records of ticket sales, expenses, prizes, draw results and use of proceeds for at least 3 years, and longer if your organisation's rules require it.
• If your activity promotes a business rather than raising funds for a community purpose, it may be a trade promotion instead of a raffle.

If you'd like help with raffle terms, online ticketing documents, sponsorship arrangements or privacy compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.