Running a raffle can be a great way to fundraise, build community engagement and generate buzz around a cause. But because raffles are a form of gambling, they’re tightly regulated in Australia - and the rules differ across every state and territory.
If you’re a charity, not-for-profit (NFP), school or sporting club, you’ll generally be able to conduct raffles (subject to permits and conditions). If you’re a for‑profit business, you usually can’t run a traditional raffle for profit - you’re more likely looking at a trade promotion or giveaway with different rules.
In this guide, we’ll walk through what counts as a raffle, who can run one, the key steps to stay compliant, how the rules change by jurisdiction, and what to consider if you’re selling tickets online or promoting nationally. Our aim is to help you run your raffle confidently and legally, so you can focus on your goals.
What Counts As A Raffle In Australia?
A raffle is a type of lottery where people purchase tickets for a chance to win a prize, and the winner is chosen by chance (for example, through a random draw). Because chance is involved and people are paying to enter, raffles fall within gambling legislation administered by state and territory regulators.
Key features that typically indicate a “raffle” include:
- Payment to enter (e.g. a ticket price or consideration), and
- Winners determined by chance (not by skill or judging criteria).
These are important distinctions. If entry is free or tied to buying your product (without a separate ticket fee), and the promotion is used to market your business, you may be looking at a trade promotion rather than a raffle. If the winner is selected based on skill (for example, the best answer to a question), that’s a game of skill and generally regulated differently again.
Understanding which bucket your activity falls into is the first step to compliance. If you’re unsure whether your planned activity is a raffle, a trade promotion or a game of skill, it’s best to get advice before you promote it.
In most jurisdictions, only approved not‑for‑profits and charities can run raffles, and proceeds usually need to support a charitable or community purpose. For‑profit businesses can’t ordinarily run a raffle to generate profit for themselves.
If you’re a business and you want to run a prize draw to promote your brand or drive sales, consider:
- Trade promotions (games of chance): Entry is free or conditional on a purchase, the winner is selected at random, and the activity promotes your goods or services. Permit or notification rules vary across states and territories.
- Games of skill: Winners are selected based on merit or a judging criteria (not chance). These still need clear terms, fair judging and compliance with the Australian Consumer Law (ACL).
If that sounds closer to what you’re planning, draft clear competition terms and conditions and make sure your promotion aligns with local rules. For broader compliance issues around giveaways and promotions, you might also find our overview on giveaway laws in Australia helpful.
How To Run A Compliant Raffle Step By Step
Once you’ve confirmed you’re eligible to conduct a raffle (usually as an NFP or charity), plan the process carefully from ticket design through to the prize draw and reporting. The exact requirements vary by jurisdiction, but the following steps are a useful framework.
1) Confirm Eligibility And Purpose
- Make sure your organisation falls within the eligible categories for your state or territory (for example, a registered charity, community or sporting group).
- Define the charitable or community purpose the funds will support. Many regulators require proceeds to be applied to a stated cause and may limit administration or operating expenses.
2) Check Whether You Need A Permit, Authority Or Licence
- Permit or licence requirements typically depend on factors like total prize value, ticket sales, frequency of raffles and whether you’re selling to the public.
- Apply before you start selling tickets if your jurisdiction requires it. Some states require notification or approval even for smaller raffles; others exempt genuinely low‑risk activities run by eligible groups.
- If your raffle will be promoted or accessible across more than one state or territory, be prepared to meet the rules in each jurisdiction where you sell tickets.
- Write terms that set out who can enter, how to buy tickets, when the draw will occur, how the winner will be selected and notified, and any key exclusions or prize conditions.
- Ensure tickets (including e‑tickets) contain required disclosures such as the organiser’s details, permit number (if any), the draw date, and how proceeds will be applied if your regulator requires that disclosure.
- Keep your advertising accurate and consistent with your terms to avoid issues under the ACL - misleading or inconsistent statements can trigger complaints. If you’re promoting widely, it helps to review your messaging against the principles on misleading or deceptive conduct.
4) Manage Ticket Sales, Records And Funds
- Use uniquely identifiable tickets and reliable systems for numbering, reconciliation and audit trails (physical or digital).
- Retain financial and ticketing records for the period required by your regulator (often several years). Many jurisdictions set out specific record‑keeping obligations.
- Ring‑fence raffle proceeds and apply them to the stated charitable purpose. Some states cap administration costs or require minimum net proceeds to the cause.
5) Conduct A Fair, Verifiable Draw
- Run the draw as described in your terms. Where required, ensure it’s supervised or publicly accessible, and document how the winner was selected.
- Contact winners promptly and deliver prizes as promised. If a winner can’t be contacted, follow your jurisdiction’s rules and your stated redrawing process.
6) Complete Any Reporting Or Notifications
- Some jurisdictions require post‑event returns or financial acquittals for larger raffles or those run under a permit. Lodge these on time.
- Keep your governance documents up to date if you run raffles regularly - your committee or board should approve procedures and oversee compliance.
7) Put The Right Documents And Policies In Place
- Raffle or competition terms: Clear rules minimise confusion and disputes. If you’re not a charity and intend to promote your business, you’ll usually need tailored competition terms and conditions for a trade promotion rather than raffle rules.
- Privacy Policy: If you collect any personal information (names, emails, phone numbers, payment details), you should have a Privacy Policy and follow privacy and data security obligations.
- Website or platform terms: If you sell tickets online or host your rules on a website, include Website Terms and Conditions to set expectations for users.
Getting the documents right at the start saves time later and helps keep your draw fair and transparent.
Raffle Rules By State And Territory
Each state and territory has its own legislation, regulator and thresholds for permits or approvals. Because the details change periodically, always check the current rules before you launch. Here’s how to think about the major jurisdictions, with links to practical guides.
New South Wales (NSW)
Raffles in NSW are regulated under community gaming laws administered by NSW Fair Trading. Eligibility, required disclosures, draw procedures and record‑keeping are set out in the community gaming framework. Whether you need an authority or other approval depends on factors like the size and nature of your activity.
For a practical overview of what’s required in NSW (including typical disclosures and advertising rules), see our guide to raffle laws in NSW.
Victoria (VIC)
Victorian community and charitable gaming is regulated by the Victorian Gambling and Casino Control Commission (VGCCC). Declared community or charitable organisations can generally conduct raffles, and permits or notifications may be required depending on the size of your draw and total ticket sales.
For a step‑by‑step overview of raffles in Victoria, head to Raffle Regulations in Victoria.
Queensland (QLD)
In Queensland, community gaming (including raffles run by eligible associations) is regulated by the Office of Liquor and Gaming Regulation (OLGR). Licensing and permit categories depend on the type and scale of your activity, and there are detailed rules for ticketing, draws and applying proceeds.
We’ve covered the essentials in our Raffle Laws in Queensland guide.
Western Australia (WA)
WA regulates raffles through the Department of Local Government, Sport and Cultural Industries (DLGSC). Eligible organisations can run “standard lotteries” and similar community gaming activities. Permit requirements, advertising rules and record‑keeping obligations apply based on the scale of the promotion and prizes offered.
South Australia, Tasmania, ACT And Northern Territory
These jurisdictions also allow raffles for eligible not‑for‑profits and set their own thresholds for approvals, disclosures and audit requirements. If you’ll sell tickets into more than one jurisdiction, you must comply with the rules in each place where participants are located.
Tip: Before you announce your raffle publicly (especially online), map out where your tickets will be sold and confirm the local rules. This avoids last‑minute changes and helps you budget for any applications or reporting.
Many fundraisers now sell tickets and draw winners online. You can do this legally, but there are extra practical and compliance considerations.
- Geo‑target your audience: Make sure your website, checkout or ticketing tool limits sales to the places you’re authorised to sell. Some organisations set state‑based eligibility in their terms and use address validation at checkout.
- Be clear and accessible: Host your raffle terms in a prominent location, and require entrants to confirm they’ve read them before they buy. If your promotion changes by jurisdiction, make that obvious.
- Platform ≠ compliance: Third‑party platforms can streamline ticketing, but you remain responsible for permits, disclosures and lawful conduct. Build compliance into your process from the start.
- Privacy and security: Collect only the personal information you need, store it securely and explain how you’ll use it in your Privacy Policy. If you’re promoting via email, keep an eye on email marketing laws (consent, unsubscribes and accurate sender details).
- Advertising accuracy: Keep your social posts, websites and ads consistent with your terms. Avoid inflated price claims or unclear odds, which can raise issues under the ACL’s rules against misleading conduct.
If you plan to sell nationwide, the simplest approach is to design your raffle to meet the most stringent set of rules you’ll face, then document and implement that process consistently.
Key Takeaways
- Raffles are a form of gambling, so they’re regulated by state and territory laws - eligibility, permits and processes differ across jurisdictions.
- In most cases, only charities and not‑for‑profits can run raffles; for‑profit businesses typically use trade promotions or games of skill with tailored competition terms.
- Plan your raffle end‑to‑end: confirm eligibility, check whether a permit or licence is needed, prepare clear terms and ticket disclosures, run a fair draw and complete any required reporting.
- If you sell tickets online or across state borders, build geo‑targeting, privacy, and multi‑jurisdiction compliance into your process from day one, supported by a current Privacy Policy and Website Terms.
- Keep advertising accurate and consistent with your rules to avoid issues under the ACL, especially around prize descriptions and odds of winning.
- For jurisdiction‑specific guidance, check our summaries for NSW, VIC and QLD, or speak with a lawyer if you’re unsure.
If you’d like a consultation on running a raffle, trade promotion or prize competition in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
