Yes, raffles are legal in Australia, but who can run them, and how, depends on the state and on whether entrants pay to enter. Charities and community groups can run raffles under state gaming laws. A for-profit business generally cannot sell raffle tickets for its own profit. Instead, it must run a free-entry trade promotion or partner with an eligible organisation.
For five years we were the development and operations partner to an online prize competition business across Australia and New Zealand. We replaced its original core with an improved platform and helped scale and run it until the business was acquired by NASDAQ-listed Golden Matrix Group. That work gave us a practical view of how these rules shape the software. This guide summarises them as at September 2026. It is general information, not legal advice. Rules change, so always confirm with the regulator in each state you operate in.
Raffle or trade promotion? The distinction that matters
- Raffle, art union or lottery: people pay specifically for a chance to win. This is gaming, and it is generally limited to charities, community and not-for-profit organisations.
- Trade promotion lottery: a business gives free entries to promote its goods or services. Entry must be free apart from buying the product at its normal price. If entrants pay extra for the chance to win, it is no longer a trade promotion.
Most online “prize competition” businesses in Australia operate under one of two models: partnering with a registered charity that runs the raffle, or selling a genuine product or membership at its normal price with entries given as a bonus. Getting this structure wrong is the most common and most expensive mistake new operators make.
Trade promotion permits by state
| State or territory | Permit needed for a trade promotion? | Regulator |
|---|---|---|
| New South Wales | Yes, if the total prize value exceeds $10,000 | NSW Fair Trading |
| South Australia | Yes, if the national prize pool exceeds $5,000 | Consumer and Business Services |
| Australian Capital Territory | Yes, if the prize pool for ACT residents exceeds $3,000 | ACT Gambling and Racing Commission |
| Northern Territory | Yes, if the prize pool exceeds $5,000, unless another state’s permit covers the same national promotion | Licensing NT |
| Queensland | No, for free-entry “Category 4” promotional games that meet the conditions | Office of Liquor and Gaming Regulation |
| Victoria | No, if the conditions are met | Victorian Gambling and Casino Control Commission |
| Western Australia | No, if prescribed conditions are met | Gaming and Wagering Commission |
| Tasmania | No, if entry is only through buying goods at their normal price | Tasmanian Liquor and Gaming Commission |
Thresholds and conditions are summarised from state guidance and industry permit guides. A national promotion must satisfy the rules of every state where entrants live.
Raffles in Queensland
Queensland regulates charitable raffles and art unions by the value of ticket sales, according to Business Queensland:
- Category 1: up to $2,000 in ticket sales. No licence required.
- Category 2: raffles between $2,000 and $50,000 in ticket sales. No licence required.
- Category 3: raffles and art unions over $50,000 in ticket sales. A gaming licence is required.
- Category 4: free-entry promotional games run by businesses. No licence required.
For raffles, the total prize value must be at least 20 percent of estimated ticket sales.
Running an online raffle business in Australia
If you are planning a prize competition or raffle platform, these are the areas to get right before launch:
- Legal structure. Decide between a charity partnership and a product-led trade promotion, with advice from a lawyer who specialises in gaming and promotions.
- Terms and conditions. Clear, state-compliant terms for every draw, including how and when winners are drawn and notified.
- Draw integrity. A random, auditable draw process with records kept for the period each state requires.
- Payments. Payment providers have their own rules on games of chance. Confirm your model is acceptable before you build checkout.
- Consumer law. Under the Australian Consumer Law, advertised prizes must be accurate and actually awarded.
- Marketing consent. Email and SMS campaigns must comply with the Spam Act and your privacy policy.
Planning a raffle or prize competition platform?
Tell us your entry model and markets. We will map out what the platform needs to handle draw-night traffic, payments and compliance mechanics.
What a raffle platform needs technically
Launch-day traffic is spiky, and failures are public. From our work on this kind of platform, the essentials are:
- An entry engine that can handle large draws. The platform we rebuilt and helped scale processed 128,940 entries in a single draw.
- Reliable payment processing with automatic retries and clean refunds.
- Membership tiers and bonus-entry logic that match your legal model.
- Automated SMS and email notifications for entries, draws and winners.
- Hosting that stays up when a promotion goes viral.
- An audit trail that can prove who entered and who won.
Frequently asked questions
Can a business run a raffle in Australia?
A business can run a free-entry trade promotion. Selling raffle tickets for the business’s own profit is generally not permitted, unless the raffle is conducted by or with an eligible organisation.
Do I need a permit for an online raffle in Queensland?
Charitable raffles in Queensland need a licence only when ticket sales exceed $50,000. Free-entry business promotions do not need a permit if they meet the conditions for Category 4 promotional games.
Are online raffles legal in Australia?
Yes, when they are run by an eligible organisation or structured as a compliant trade promotion, and when they meet the rules of every state where entrants live.
Building a raffle or prize competition platform?
We have helped scale and run one, so we know where these platforms come under pressure. See our raffle platform development service, read our guide to custom software costs in Australia, or book a scoping call. Get your legal structure confirmed first, and we will build to it.
Five years of live draws behind every build
Entry engines, memberships, payments and SMS for competition businesses across Australia and New Zealand.