Raffles and games of chance

Typically

• Class 1: total prizes and potential turnover (tickets printed × ticket price) are each $500 or less. Anyone can run one with no licence, but if an individual runs it, all the money (less actual costs) must go back as prizes.
• Class 2: prizes up to $5,000 (at retail value) and potential turnover up to $25,000. Only a society, such as a club, school or trust (incorporated or not), can run it. The net proceeds must go to authorised purposes: charitable, community or electioneering. No licence is needed, and no one can be paid a commission.
• Prizes worth more than $5,000 make it Class 3. Only a society can run it, and it needs a DIA licence before the tickets are printed. Allow at least 20 working days for DIA to process the application.
• In any raffle, the prizes must be worth at least 20% of the potential ticket income.
• Class 1 and Class 2 raffle tickets have to be sold in person. DIA says selling tickets online needs a Class 3 licence; otherwise, use social media only to tell people where they can buy a ticket. Our safe practice, and a condition of using our raffle tool: give every buyer a numbered paper ticket, face to face. Taking a number in a Facebook comment or message is selling remotely.
• Banned prizes: alcohol, tobacco products, firearms, explosives (including ammunition), restricted weapons, airguns, taonga tūturu, and vouchers for any of these or for commercial sexual services.
• Raffle money must go to community or charitable purposes, not to benefit an individual or a business. (A society helping people in need can count as a charitable purpose: check with DIA first.) In housie, prizes are cash, at least 70% of card sales must go back as prizes, and cards must be sold at the venue on the day.
• Businesses can run prize draws as sales promotions ("buy and go in the draw") without a licence, if entry costs nothing beyond the normal price, the business gains nothing beyond normal trading, and the dates and how the winner is chosen are set out before it starts. Free-entry draws are usually outside the Gambling Act. The banned-prize list still applies.

Checked against the official pages on 8 October 2026.

Ideas this applies to

• 50/50 draw
• Guess the lollies in the jar
• Sweepstake (Melbourne Cup, Rugby World Cup, etc.)
• Meat raffle at the pub or club
• Chocolate wheel
• Small class or team raffle (Class 1, up to $500)
• Pick-a-square board (100 squares)
• Scratchies or mystery envelopes
• Raffle on the night (quiz night, gala, prizegiving)
• Footy tipping competition (paid entry)
• Hamper raffle (class-contributed or donated)
• Housie (bingo) night