NZ Raffle Rules: Licences, Class Limits and Running Raffles Online

New Zealand keeps raffle law refreshingly simple compared with Australia's state-by-state maze: one national law (the Gambling Act 2003), one regulator (Te Tari Taiwhenua, the Department of Internal Affairs), and three classes of gambling that determine whether you need a licence. Most school, club and community raffles need no licence at all. This guide explains where the lines sit, what a Class 3 licence involves, and how the rules apply when you sell tickets online.

This is general information, not legal advice. Thresholds and game rules can change, so confirm current requirements on the DIA website before selling tickets.

The three classes that decide everything

Under the Gambling Act 2003, a raffle is a lottery, and which class it falls into depends on two numbers: the total value of prizes (retail value for non-cash prizes) and the turnover (total ticket sales) for a session.

Class 1: the small raffle

Both turnover and total prize value are $500 or less. No licence is needed, and this is the only class an individual can run without being part of a society. One session per day is the limit. The classic classroom raffle or morning-tea draw lives here.

Class 2: the standard community raffle

Prizes over $500 up to $5,000, and turnover over $500 up to $25,000. Still no licence, but only a society can run one: an incorporated or unincorporated group such as a school, sports club, church or charity, not an individual. Point-of-sale requirements under section 25 of the Act apply, net proceeds must go to authorised purposes (non-commercial, charitable or community benefit), and nobody can be paid remuneration or commission for running the raffle. The large majority of fundraising raffles in New Zealand sit in this class.

Class 3: the licensed raffle

Prizes over $5,000, or turnover over $25,000 per session. A Class 3 licence from the DIA is required before tickets are printed or sold, and only a society can hold one. The application covers the society's details, key people, the raffle structure and how proceeds will be used, and the licence fee scales with the total prize value. If your car raffle, house lottery or major prize draw is heading past $5,000 in prizes, apply well before you plan to launch.

Running a raffle online in New Zealand

This is where the rules changed recently, and where most older guides are out of date. From 1 November 2024, all licensed Class 3 raffles and lotteries can be run online permanently. What began as a temporary COVID-era exemption is now the standard: participants can buy tickets from anywhere via internet banking, card or online payment services, with no need to be physically present.

Class 3 licence holders can also engage a third party to help conduct the raffle, including issuing tickets online and managing payments. One condition attaches: no commission can be paid for these services to anyone other than a licensed promoter under the Act, so check how any provider charges before you sign up.

For Class 1 and 2 raffles, online sales are similarly practical, and the same class limits apply regardless of channel. Whatever the class, the operational obligations are identical: know what was sold, to whom, draw the winners as advertised on the date and in the order promised, and account for the proceeds. Platforms such as GalaBid handle the ticketing, payment records and draw, with certified random number generation answering the fairness question before anyone asks it. The society remains the operator of the raffle and holder of any licence; the platform provides the tools. New to this? Start with the step-by-step raffle guide and the guide to running an online raffle draw.

Prizes, proceeds and the other rules that still apply

No licence does not mean no rules. Across all classes:

• Proceeds must go to authorised purposes: non-commercial uses that are charitable or benefit the community.
• Some prizes are prohibited or restricted, including firearms and tobacco, with conditions around alcohol. Check the DIA's prohibited prizes list before advertising anything.
• The draw must happen as advertised: on the promised date, in the promised order, after all entries are in.
• Nobody involved in running a Class 1 or 2 raffle can take remuneration or commission from it.

Quick reference: NZ raffle classes

Figures current as at August 2026. Confirm current thresholds with the DIA before selling tickets.

Frequently asked questions

Do I need a licence to run a raffle in New Zealand?

Usually not. If total prizes are $5,000 or less and ticket sales are $25,000 or less, no licence is required. Above either figure, your group must be a society and hold a Class 3 licence from the Department of Internal Affairs before selling tickets.

Can an individual run a raffle, or does it have to be a group?

An individual can only run a Class 1 raffle, where both prizes and ticket sales are $500 or less. Anything larger must be run by a society such as a club, school, church or charity.

Can I sell raffle tickets online in NZ?

Yes. Since 1 November 2024, licensed Class 3 raffles can be run online permanently, and smaller Class 1 and 2 raffles can also sell digitally. The class limits and game rules apply the same way regardless of how tickets are sold.

Can I pay someone to run our raffle?

No remuneration or commission can be paid for conducting a Class 1 or 2 raffle. Class 3 licence holders can engage third-party services such as online ticketing, but commission cannot be paid to anyone other than a licensed promoter under the Act.

What can raffle proceeds be used for?

Authorised purposes only: non-commercial uses that are charitable or benefit the community. A business cannot run a raffle for its own profit.

What about raffles in Australia or the UK?

Different rules entirely. Australia regulates raffles state by state, which we cover in our guide to Australian raffle rules by state, and the UK has its own national framework covered in our guide to UK raffle rules and licences.

Last reviewed August 2026 against Department of Internal Affairs game rules and guidance. Rules can change; confirm current requirements with the DIA before your draw.

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