A member asked over 8 years ago

Legal requirements of a raffle

I'm looking for general legal requirements and guidlines on operating a raffle/lottery, given that every entrant has an equal opportunity of winning one top prize. Where would I find that?
Eg. 1000 people pay $1.10 for the opportunity to win $1000.00.

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. Raffles and lotteries are considered types of gaming in Australia, which means they are regulated by the same laws and agencies as casinos and licensed clubs. In NSW, the relevant rules are contained in the Lotteries and Art Unions Act 1901 (NSW) and associated regulations.

As a general rule, no permit is required in NSW for raffles or lotteries run by non-profit or charitable organisations, where the total prize value does not exceed $30,000. The raffle or lottery must be conducted for the purpose of raising funds to assist the non-profit organisation. At least 40% of the total fundraising proceeds must go to the organisation. Expenses, including prizes, must not exceed 60% of the proceeds. If you want to run a raffle or lottery for profit or if the prize pool exceeds $30,000, then a permit is required and more restrictive rules apply. There are financial penalties (up to $5,500) for persons who do not comply with these lottery and raffle rules.

Suggested way forward

Visit the website of NSW Liquor & Gaming for more information (www.liquorandgaming.justice.nsw.gov.au). You should consider speaking to a lawyer before running a raffle or lottery, especially if you intend to make a profit. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered about 8 years ago   Legal disclaimer

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