How to Legally Run a Raffle in New Zealand (Class 1, 2 & 3 Explained)

Raffles are one of New Zealand's most popular fundraisers — but they're also regulated. Run one wrongly and you could face fines, so it's worth getting the basics right before you sell a single ticket.

Here's the short answer: in New Zealand, raffles are "lotteries" under the Gambling Act 2003, and which class yours falls into depends on the value of prizes and the turnover (total ticket sales) per session. Small raffles up to $500 need no licence; medium raffles up to $5,000 in prizes and $25,000 in turnover have rules to follow but no licence; anything bigger needs a Class 3 licence from the Department of Internal Affairs (DIA).

Please note: this guide is practical information, not legal advice. Always check the current DIA lottery game rules and Police guidance on raffles before running a raffle — the law can change, and your group's situation is unique.

What the law says

Under the Gambling Act 2003, a raffle is a form of "lottery" — gambling where people pay to enter a draw for prizes. The Act divides lotteries into three classes based on the size of the prizes and the turnover per session:

Class	Total prize value per session	Total turnover per session	Licence needed?
Class 1	Up to $500	Up to $500	No
Class 2	$500–$5,000	$500–$25,000	No, but rules apply
Class 3	Over $5,000	Over $25,000	Yes — DIA licence

"Turnover" means the total value of tickets sold, and "prizes" means the total value of all prizes on offer — not just the top prize. A "session" is generally one raffle (or one event, for things like housie).

Who can run each class

The class also determines who is allowed to run the raffle:

• Class 1 can be run by individuals and informal groups — the classic school fair or community stall raffle.
• Class 2 and Class 3 can only be run by a "society" — a club, school, charity, church or community organisation — and only for an authorised community purpose. The proceeds must benefit the community, not an individual or business.

That's why a sports club can run a $2,000 raffle but an individual generally can't — the law reserves bigger raffles for organised community groups.

The rules that apply even without a licence

Even if you don't need a licence, Class 1 and Class 2 raffles still have rules. The key ones to know:

• Proceeds must go to an authorised community purpose. You can't run a raffle for private profit.
• The draw must be fair and transparent. Tickets sold, draw conducted, prizes awarded — the community should be able to see it was done properly.
• Keep records. Who ran it, ticket sales, prize values, how proceeds were used. Records protect you if anyone asks.
• No sale to minors where restricted. Age restrictions can apply — check the current guidance.
• Prize rules apply. Under DIA lottery game rules, prizes must meet minimum return requirements — for example, prizes in a lottery must generally be worth at least a set percentage of the gross potential income. Check the current figures before setting your prize structure.

Running a raffle online

Online raffles are increasingly common — tickets sold through a website, draw conducted live or recorded. The same class and licensing rules apply, and the paper trail is often better, which makes record-keeping easier.

If you run your raffle through a fundraising platform, make sure the platform handles the payments securely and keeps a proper record of ticket sales. On Generous.nz, raffle listings are treated carefully: a licensed raffle requires the licence details to be recorded and verified before ticket sales are allowed — sales stay paused until that's done. That's deliberate: it keeps you on the right side of the law and protects supporters. See how we keep fundraising safe.

When you need a Class 3 licence

If your prizes are worth more than $5,000, or your ticket turnover will exceed $25,000, you need a Class 3 licence from DIA before you sell tickets. The application involves rules about how the raffle is run, how proceeds are used, and how records are kept. Apply well ahead of your planned draw date — licensing takes time.

A simple checklist before you sell tickets

• Confirm who's running it (individual or society) and which class applies.
• Check the total prize value and estimated turnover against the thresholds above.
• Confirm your purpose qualifies as community benefit.
• Get a licence first if you're in Class 3 territory.
• Set your prize structure to meet the minimum prize-return rules.
• Plan your records — tickets sold, money in, prizes out, proceeds used.
• Check the current DIA lottery game rules and Police guidance one more time.

Frequently asked questions

Can an individual run a raffle in New Zealand?

Only a Class 1 raffle — prizes and turnover up to $500 per session. Anything bigger must be run by a society (club, school, charity, church or community group) for community benefit.

How much can we raise without a licence?

For a Class 2 raffle, turnover can be up to $25,000 per session with prizes up to $5,000 — no licence required, though the rules still apply. Beyond that, you need a Class 3 licence.

What counts as "turnover"?

The total value of all tickets sold for that raffle — not just the profit after prizes.

Can we run an online raffle?

Yes — online ticket sales are fine, and often easier to record. The same class and licensing rules apply.

Where do I check the current rules?

The Department of Internal Affairs (DIA) and NZ Police publish the authoritative guidance. This guide is a starting point — always verify against their current material before running your raffle.