Running a raffle can be a great way to raise funds for your club, school, charity or community project. It’s engaging, easy to promote and often a crowd favourite at local events.
But in New South Wales (NSW), raffles are regulated as “community gaming” and there are clear rules you’ll need to follow. Getting those rules right matters - it protects your supporters, keeps your fundraiser on track and reduces the risk of fines or disruption.
In this guide, we’ll walk through what counts as a raffle in NSW, who can run one, when an authority is required, and the key rules around tickets, prizes, draws and record keeping. We’ll also share a practical step-by-step checklist and the core documents that help you stay compliant.
What Counts As A Raffle In NSW?
A raffle is a type of lottery where you sell tickets that give purchasers a chance to win prizes, and winners are selected by a random draw. This covers everything from a simple meat tray at the local club to a large draw with higher-value prizes.
In NSW, raffles sit within the broader “community gaming” framework (games of chance). Liquor & Gaming NSW administers these rules and sets different requirements depending on the size and type of activity.
It’s helpful to distinguish raffles from other promotions. If you’re a business offering an “enter to win” prize to promote sales (for example, a draw linked to buying a product or joining a mailing list), that’s usually a trade promotion rather than a charity raffle. NSW generally does not require permits for trade promotions, but conditions still apply - see our overview of giveaway laws if you’re running a promotional competition.
Who Can Run A Raffle And When Is An Authority Needed?
NSW raffle laws are designed to support genuine community and charitable fundraising. This means raffles are typically limited to “eligible organisations”, such as:
- Charities registered with the Australian Charities and Not‑for‑profits Commission (ACNC)
- Community or not‑for‑profit groups (for example, sporting clubs, P&Cs, registered associations)
- Organisations formed for charitable, social, educational or community purposes
Raffles run by individuals or businesses for private profit are generally not permitted under the community gaming framework. If you’re thinking of conducting a draw through a business, ensure it genuinely supports a charitable or community purpose and that your organisation is eligible.
Do You Need An Authority In NSW?
Whether you need an authority (approval) from Liquor & Gaming NSW normally depends on your total prize value:
- Up to $30,000 in total prizes: Small raffles of this size typically do not require an authority, provided you’re an eligible organisation and you follow the standard raffle rules.
- Over $30,000 in total prizes: Larger raffles usually require an authority. You’ll be expected to meet stricter conditions and keep more detailed records.
If you plan to fundraise across multiple states or sell tickets interstate, keep in mind that rules vary. For an Australia‑wide snapshot, see our guide to raffle laws in Australia and check the local requirements for each state or territory you’ll sell into.
The Core Rules For Tickets, Prizes And Draws
Even if your raffle doesn’t need an authority, you must still follow NSW’s operating rules. These are the essentials most organisers need to know.
Ticket Pricing And Sales
- Fixed ticket price: Tickets should be sold at a set price so that every eligible ticket has the same chance of winning. If you offer bundles (for example, 1 for $5 or 3 for $12), make sure it’s clearly disclosed and each individual ticket still carries an equal chance in the draw.
- Clear disclosures: Promotional materials should state the ticket price, the draw date and time, how and where the draw will occur, and how winners will be notified or results published. If tickets are limited, state the maximum number to be sold.
- Online sales: You can sell tickets in person or online. If you sell online, ensure your website terms, payment process and data handling comply with Australian law. Having Website Terms and Conditions and accurate prize and pricing information helps you stay on the right side of the Australian Consumer Law (ACL).
Prizes And Restrictions
- Prize descriptions: Describe all prizes clearly and fairly, and use a reasonable retail value. If prizes are donated, disclose the donor where appropriate.
- Restricted items: Some prizes (for example, alcohol, weapons or minors‑only items) carry additional limitations. If offering alcohol as a prize or serving it at an event, ensure you comply with relevant alcohol laws in NSW, including age restrictions and any licensing requirements.
- Cash equivalents: Cash, gift cards or vouchers are generally allowed, subject to the usual fairness and disclosure requirements.
Drawing The Raffle
- Fair and random: The draw must be random and include all eligible tickets. Hold the draw as advertised and keep a note of the method used (for example, manual barrel draw or approved electronic randomisation).
- Announcing winners: Publish or announce results in the way you promised in your promotional materials, and contact winners promptly. Include reasonable timeframes and a fair redraw process if prizes go unclaimed (and disclose that process up front).
Use Of Proceeds And Record Keeping
- Use of funds: Proceeds must go to the stated charitable, social or community purpose. Avoid any private benefit outside reasonable costs of running the raffle.
- Records: Keep financial and ticketing records for at least 3 years under NSW community gaming requirements (your organisation’s rules, ACNC obligations or tax needs may require a longer period). Keep enough detail so you can clearly show ticket sales, expenses, prizes awarded and proceeds applied to the cause.
Step‑By‑Step: Running A Compliant Raffle In NSW
Breaking the process into steps makes it manageable. Use this checklist as a starting point and tailor it to your event.
1) Confirm Eligibility And Purpose
Make sure your organisation is eligible (for example, a registered charity or community group) and that the funds will be used for a clear community or charitable purpose. This clarity guides your planning and disclosures.
2) Plan Ticketing, Prizes And The Draw
- Set a fixed ticket price and consider whether you’ll cap the number of tickets.
- Lock in the draw date, time and method (for example, in‑person event, livestream, or supervised electronic draw).
- List and value your prizes; note any restrictions (for example, alcohol prizes must comply with liquor laws).
- Decide whether you’ll sell tickets in person, online, or both. If online, prepare appropriate website terms and a straightforward purchase flow.
3) Prepare Your Disclosures And Terms
Your promotional materials should be accurate, easy to read and consistent across channels. It’s also wise to publish clear entry terms that set the rules for participants, including eligibility, draw details, winner contact method, timeframes to claim prizes and what happens if a prize isn’t claimed.
For raffles and competitions, many organisers use tailored Competition Terms & Conditions to capture these rules and reduce the risk of disputes.
4) Check If You Need An Authority
If your total prize value exceeds $30,000, prepare an authority application and supporting documents in line with Liquor & Gaming NSW requirements. Factor in application lead time and record‑keeping expectations.
5) Set Up Sales Channels And Data Practices
For in‑person sales, keep secure control of ticket books and reconcile sales regularly. For online sales, ensure your website terms and disclosures are clear, your payment process is secure, and your communications comply with the Spam Act and relevant email marketing laws.
If you’re an APP entity (for example, most organisations with annual turnover above $3 million, or those handling certain types of sensitive information), you’ll need a compliant Privacy Policy. Even if you’re below that threshold, it’s best practice to provide a concise Privacy Collection Notice explaining what personal information you collect from ticket buyers, why you collect it and how it will be used and stored.
6) Conduct The Draw And Publish Results
Hold the draw as advertised and document the process. Notify winners, publish results in the nominated place and timeframe, and arrange prize delivery. Keep copies of communications and prize acceptance records.
7) Bank Proceeds, Apply Funds And Retain Records
Deposit proceeds promptly and apply them to the stated purpose. Keep records (for at least 3 years in NSW) showing ticket sales, expenses, prizes and distributions. This transparency builds trust with your supporters and makes any future audits or questions easier to handle.
Do You Need Any Documents Or Policies?
The right paperwork supports compliance and helps prevent misunderstandings. The documents you need will depend on how you run your raffle, but many organisers consider the following.
- Competition Terms & Conditions: Sets the rules for entry, eligibility, draw method, winner notification, unclaimed prizes, liability limits and complaint handling. Clear terms reduce the risk of disputes and help you meet ACL obligations. See Competition Terms & Conditions.
- Website Terms and Conditions: If you sell tickets online, terms that explain how the site can be used, payment rules, IP rights and limitations of liability help protect your organisation. See Website Terms and Conditions.
- Privacy Policy or Collection Notice: APP entities should publish a compliant Privacy Policy. If you’re not legally required to have a full policy, a clear Privacy Collection Notice still sets expectations around how you handle personal information from ticket buyers.
- Sponsorship Agreement: If a sponsor or local business is donating prizes or funding, a written Sponsorship Agreement can capture deliverables, branding, acknowledgements and any use of logos or content.
- Volunteer Agreement: If volunteers help sell tickets or run the event, a simple Volunteer Agreement clarifies roles, conduct and confidentiality.
Not every raffle needs all of the above, but having the right mix of documents - and making sure they match how you operate - will make your raffle smoother and more compliant.
Common Pitfalls And How To Avoid Them
Most raffle issues arise from unclear disclosures, poor record keeping or mixing up raffle and trade promotion rules. These practical tips help you stay on track.
- Unclear ticket info: Always include ticket price, draw date and time, draw method, prize details and how winners will be notified or results published. Consistent information across posters, social posts and your website prevents confusion.
- Misleading advertising: Avoid statements that could mislead entrants about odds, prize values or eligibility. The Australian Consumer Law applies to your promotions - claims must be accurate and verifiable.
- Forgotten authority: If your prize pool creeps above $30,000 after donations or upgrades, pause and check whether you need an authority before proceeding.
- Online compliance gaps: If you’re selling online, align your on‑site disclosures, ticket purchase flow and customer communications with your terms and privacy notices. Make refunds or redraw processes clear in your entry terms.
- Mixing up raffle vs trade promotion: If a business benefit is the main driver (for example, an “enter with purchase” offer), you’re likely in trade promotion territory. NSW doesn’t generally require permits for trade promotions, but conditions still apply - check our giveaway laws guidance to stay compliant.
- Loose record keeping: Keep sales, expenses, prize and draw records organised for at least 3 years in NSW (longer if your organisational or tax rules require it). Good records make it easy to evidence compliance and answer supporter questions.
If you’re unsure at any point - particularly when your prize pool is large, you’re selling interstate, or you’re combining a raffle with other fundraising activities - it’s a smart time to get tailored legal guidance.
Key Takeaways
- Raffles in NSW are part of “community gaming” and are generally limited to eligible charitable or community organisations, not private profit ventures.
- Small raffles (up to $30,000 in total prizes) usually don’t need an authority, but must follow strict rules on pricing, disclosures, fair random draws and the proper use of proceeds.
- Large raffles (over $30,000 in total prizes) typically require an authority from Liquor & Gaming NSW and come with added compliance and record‑keeping expectations.
- Be precise with your ticket and prize information, keep the draw fair and random, and retain clear records for at least 3 years in NSW.
- If you’re promoting a business rather than fundraising for a cause, you’re likely running a trade promotion - different conditions apply even though permits are generally not required in NSW.
- Support compliance with practical documents such as Competition Terms & Conditions, Website Terms and Conditions, a Privacy Policy or Collection Notice, and Sponsorship or Volunteer Agreements where relevant.
If you’d like a consultation on navigating raffle laws in NSW and setting up compliant documents for your next fundraiser, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
