Raffle Regulations In New Zealand Under The Gambling Act

Running a raffle can be a great way to raise funds, launch a new product, build your community, or support a cause that aligns with your brand.

But in New Zealand, raffles aren’t just a marketing idea - they can be a regulated form of gambling. That means there are legal rules around how you sell tickets, how you promote the raffle, how you run the draw, and what you do with the proceeds.

If you’re a small business owner, getting these details right early can save you time, avoid complaints, and protect your brand reputation. This guide breaks down the key rules around raffle regulations in New Zealand, with a practical focus on compliance under the Gambling Act 2003.

Are Raffles Legal In New Zealand For Businesses?

Raffles can be legal in New Zealand, but they’re regulated - and whether your business can run one (and on what terms) depends on how it’s structured.

Under the Gambling Act 2003, gambling generally includes paying (or staking) money (or something of value) on an outcome that depends partly or wholly on chance, with the possibility of winning a prize.

A raffle usually fits this definition because:

• people pay money (buy a ticket);
• the winner is chosen by chance (the draw); and
• a prize is awarded.

So the key question isn’t “is a raffle legal?” - it’s “what category does this raffle fall into, and what compliance requirements apply?”

In practice, many raffles are run as “class gambling” (Class 1–4). A critical point for businesses is that class gambling is generally designed for fundraising for authorised or community purposes - not for private commercial gain. If the raffle is intended to benefit the business (for example, proceeds going to profit), it may not fit neatly within class gambling and you should get advice on the correct legal pathway before launching.

Before you jump into ticket sales, it’s also smart to document your promotion clearly in writing - especially if you’re pairing the raffle with sales, customer sign-ups, or partners. Many businesses do this through clear Competition Terms & Conditions so entrants can easily understand the rules from day one.

How Are Raffles Regulated Under The Gambling Act 2003?

The Gambling Act 2003 is the main law that regulates gambling activities in New Zealand, including many raffle-style promotions.

While the details can get technical depending on your exact model, the practical takeaway for most small businesses is:

• you need to work out whether your raffle is class gambling (and if so, which class) or whether it sits outside that and needs a different approach;
• some activities that look like promotions can instead be treated as a sales promotion scheme (which is generally exempt from the Act if it meets the statutory conditions);
• even where a raffle is allowed, you still need to run it fairly and transparently; and
• your advertising and ticket sales process must not mislead people.

Why The Category Matters

Different types of gambling have different rules - and different approval or licence requirements.

For example, the compliance pathway can differ depending on whether your raffle is run:

• as a small fundraising raffle for an authorised/community purpose (often “class gambling”);
• as a sales promotion scheme (for example, “buy a product and go into the draw” - but only if it meets the Act’s requirements, including that entry is genuinely incidental to buying at the normal price and no extra amount is paid to enter); or
• as a larger-scale raffle with significant proceeds or ongoing activity (which may require a licence and additional reporting/oversight).

This is why it’s important not to copy another business’s raffle format without checking whether it’s lawful for your specific situation.

Don’t Forget Consumer And Advertising Law

Even if your raffle is “allowed” under gambling rules, you still need to market it properly.

If you promote a raffle in a way that’s misleading or unclear, you can create risk under consumer and advertising laws (including the Fair Trading Act 1986). This can happen when:

• the prize is described inaccurately;
• key eligibility rules aren’t disclosed upfront;
• the draw date or mechanics keep changing without proper notice; or
• you imply “everyone wins” or create fake urgency.

Clear written rules aren’t just “nice to have” - they’re often your best protection if someone complains later.

What Counts As A Raffle (And What Doesn’t)?

When people search for raffle regulations in New Zealand, they’re often dealing with one of these scenarios:

• your business wants to sell tickets to raise money for a cause;
• you want to run a giveaway to promote your business; or
• you’re partnering with a charity, influencer, or supplier and want to do a joint raffle-style campaign.

It’s worth pausing here because not every “giveaway” is automatically a raffle under the Gambling Act.

Raffle-Style Promotions

A promotion starts to look like a raffle (and trigger gambling compliance issues) when people must provide payment or some other form of valuable consideration to enter.

Common examples include:

• selling $5 tickets online with a random draw winner;
• “buy any item this weekend and go in the draw” (this may be a sales promotion scheme if it meets the Act’s criteria - otherwise it can still be gambling);
• charging an entry fee to attend an event where entry includes a raffle ticket.

Free Giveaways

Many simple promotions are structured as free giveaways (for example, “comment to enter” or “sign up to our newsletter”), which may avoid being “gambling” under the Gambling Act - but they can still carry obligations under privacy and consumer law.

If you collect personal data during the campaign (names, emails, phone numbers, delivery addresses), your business should think about whether it needs a clear Privacy Policy and a compliant way to handle entrants’ information.

Also remember: “free” doesn’t automatically mean “risk-free”. You still need clear rules so the promotion is fair and your decision-making is defensible.

Do You Need A Licence Or Permit To Run A Raffle?

This is usually the biggest compliance question for small businesses: do you need a licence to run a raffle in New Zealand?

The answer depends on your structure, the purpose of the raffle, and the scale of what you’re doing - and in particular, whether it qualifies as a sales promotion scheme, or falls within class gambling (and which class).

In many cases, smaller fundraising raffles may be able to run as Class 1 or Class 2 gambling if they meet the Act’s requirements. However, larger raffles (or those with higher turnover/prize values or ongoing activity) may move into Class 3 or Class 4 and require a licence. Importantly, raffles that are effectively for commercial gain may not be permissible as class gambling, even if they’re promoted alongside a “good cause”.

Because the threshold and classification can turn on specific facts (like total proceeds, frequency, how funds are applied, and whether entry is tied to a purchase), it’s worth getting tailored advice before you launch - especially if you’re planning a high-volume campaign or partnering with others.

A Practical Checklist To Work Through

Before you publish your raffle page or print tickets, ask yourself:

• Who is running it? (Your company? A charity? A joint venture?)
• What is the purpose? (Fundraising for an authorised/community purpose vs marketing for profit?)
• How are tickets sold? (In person, online, via social media, through a platform?)
• How big will it be? (Expected ticket sales and total proceeds.)
• Where is the money going? (Costs, expenses, donation, profit.)
• How often will you run raffles? (One-off vs recurring.)

If any of those answers are unclear, that’s usually a sign you need to document the promotion properly before you go live - and check the correct legal category and any regulator guidance.

If You’re Running The Raffle With Another Business

Co-hosted raffles can be great for reach - but they’re also where things can go wrong quickly if you don’t agree on roles.

At a minimum, you’ll want clarity on:

• who is legally responsible for running the draw;
• who holds the funds (and when they’re paid out);
• who supplies the prize and what happens if it’s unavailable;
• who handles customer complaints and disputes.

Where there’s a genuine collaboration, putting it in writing through a Collaboration Agreement can prevent misunderstandings later - especially if the raffle gets bigger than you expected.

How Do You Run A Compliant Raffle? (Practical Rules For Small Businesses)

Even when your raffle is permitted, you still need to run it properly. Most legal issues we see come from basic process problems - not from the idea itself.

Here are practical compliance steps that help keep your raffle clean and defensible.

1. Put Clear Terms In Place Before You Sell Tickets

Your raffle terms should be written, easy to find, and consistent across your website, social media posts, and ticketing materials.

At a minimum, cover:

• Promoter details: your legal business name and contact details
• Eligibility: who can enter (age limits, location limits, employee exclusions)
• Entry method: how to buy a ticket or enter
• Ticket limits: any cap per person, if applicable
• Prize details: what the prize is, any restrictions, and whether it’s transferable
• Draw details: date, time, location/method, and how the winner is selected
• Winner notification: how and when they’ll be contacted
• Publication: whether winner names will be announced (and where)
• Refund policy: what happens if the raffle is cancelled or rescheduled
• Dispute process: how complaints will be handled

For many businesses, these rules sit neatly in a set of Competition Terms & Conditions that can be reused and updated for future campaigns.

2. Be Careful With “Buy To Enter” Mechanics

One common small-business approach is: “Buy a product and go into the draw.”

This can be a powerful sales driver - but it’s also where you need to be very careful about:

• whether the promotion qualifies as a sales promotion scheme (or whether it becomes gambling);
• how you describe the promotion (so customers aren’t misled); and
• whether you need an alternative free entry route (depending on your structure and risk appetite).

There isn’t a one-size-fits-all answer here, so it’s worth getting advice before you build a whole marketing campaign around the mechanic.

3. Handle Customer Data Properly

Raffles often involve collecting personal information, including:

• names and email addresses;
• phone numbers;
• postal or delivery addresses;
• payment details (if you’re selling tickets online).

Under the Privacy Act 2020, you generally need to collect, store, and use personal information in a fair and transparent way, and keep it secure.

If you’re collecting entries via your website or an online form, a properly tailored Privacy Policy and/or Privacy Collection Notice can help you tell people what you’re doing with their data (and reduce the risk of complaints).

4. Run The Draw Fairly And Keep Records

This sounds obvious, but it’s a major source of disputes.

To keep things clean:

• run the draw on the stated date (or clearly communicate changes);
• use a transparent method for selecting the winner;
• keep a record of entries and the winning ticket/entry;
• keep a record of how you contacted the winner.

If someone challenges the result, being able to show that you followed your published rules can save a lot of headaches.

5. Don’t Ignore Payment And Sales Processes

If you’re selling tickets (especially online), you’re taking money from the public - so your sales process should be legally tidy.

Think about:

• what happens if a customer pays twice;
• what happens if payment fails but the customer thinks they’re entered;
• how you handle refunds if you cancel;
• whether your website terms cover ticket sales clearly.

Depending on your setup, having proper Business Terms can help set expectations about payments, refunds, and customer communications.

Common Raffle Compliance Mistakes (And How To Avoid Them)

Most raffle problems aren’t caused by bad intentions - they happen when a business moves fast, posts on social media, and only thinks about legal compliance after entries start coming in.

Here are common pitfalls we see, and what to do instead.

Mistake 1: Not Stating The Draw Date (Or Changing It Repeatedly)

If you’re going to change the draw date (for example, because you didn’t sell enough tickets), you need to handle that transparently and in line with your terms.

Fix: include clear rules upfront about whether the draw date can change, how notice will be given, and any back-up draw date.

Mistake 2: Vague Prize Descriptions

“Win a holiday!” sounds great - until the winner discovers flights aren’t included, blackout dates apply, or the prize is actually a voucher with strict conditions.

Fix: describe the prize accurately, including key limitations. If it’s a voucher, say so. If it’s a product bundle, list what’s included.

Mistake 3: Not Checking Whether You’re Actually Allowed To Run It

Some businesses assume raffles are always permitted as long as they’re “for a good cause” or “just a small promo”. But the legal position depends on the facts and on how the activity is categorised under the Gambling Act (including whether it’s truly a sales promotion scheme, or which class of gambling applies).

Fix: work through the compliance questions early (purpose, proceeds, frequency, promoter, and entry mechanics). If the raffle is a major campaign, get legal advice before launch.

Mistake 4: Poor Privacy Practices

It’s surprisingly common for raffle entry data to be reused for marketing without telling entrants, or stored insecurely in shared spreadsheets.

Fix: collect only what you need, tell people what you’ll do with it, store it securely, and have a clear privacy approach in writing.

Mistake 5: Not Having A Clear Agreement With Partners

If a supplier is donating the prize or another business is co-promoting, confusion can quickly turn into conflict - especially if something goes wrong (like the prize being unavailable).

Fix: get roles and responsibilities agreed in writing before you promote the raffle.

Key Takeaways

• Raffles can be a regulated form of gambling in New Zealand, and the key compliance framework is the Gambling Act 2003.
• Whether (and how) you can run a raffle depends on the raffle’s purpose, scale, frequency, and entry method - including whether it’s a sales promotion scheme or a form of class gambling (and which class), so check your model before selling tickets.
• Clear written rules are essential - strong terms and conditions help show your raffle is fair, reduce disputes, and support compliance.
• Even if your raffle is permitted under gambling law, you still need to follow consumer and advertising rules and avoid misleading promotions.
• If you collect entrant data, your raffle also touches privacy compliance, so you should handle personal information transparently and securely.
• Partner raffles can create extra risk, so make sure responsibilities are clearly agreed before launch.

If you’d like help setting up a compliant raffle (including drafting your terms and conditions or checking how your promotion is categorised under the Gambling Act), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.