Charity sweepstakes and legality
In New South Wales (NSW), charity raffles are regulated by the Community Gaming Act 2018 and overseen by Liquor & Gaming NSW. The law defines such sweepstakes as gambling events held not for the purpose of making a profit for the organizer, but to finance specific public, charitable or non-profit purposes.
1. Who can conduct
Registered charities.
Non-profit associations and clubs officially recognised in NSW.
Duly registered religious and social groups.
2. Licensing and Notifications
For small draws with low value prizes, a license may not be required, but compliance with the established rules is mandatory.
For large draws where the prize pool exceeds the legal threshold (usually several thousand dollars), a permit application must be made to Liquor & Gaming NSW.
The application indicates the goals of the event, the structure of prizes, the cost of tickets and the procedure for holding.
3. Requirements for performance
Clear and transparent rules of participation available to all players.
Income from ticket sales should be directed to declared charitable purposes.
Reporting on ticket sales, expenses and prize distribution.
The draw must be conducted honestly - using certified mechanical or electronic draw systems.
4. Restrictions
Ticket sales are prohibited for under-18s if the prizes involve alcohol or gambling.
Prohibition on the use of the funds received for the commercial benefit of the organizers.
Restrictions on advertising that is misleading or targeted at vulnerable categories of the population.
5. Control and sanctions
Liquor & Gaming NSW has the right to conduct audits and require reporting.
For violation of the rules, fines, suspension or revocation of permission are provided.
In the event of fraud or embezzlement of funds, criminal liability is possible.
Conclusion:
1. Who can conduct
Registered charities.
Non-profit associations and clubs officially recognised in NSW.
Duly registered religious and social groups.
2. Licensing and Notifications
For small draws with low value prizes, a license may not be required, but compliance with the established rules is mandatory.
For large draws where the prize pool exceeds the legal threshold (usually several thousand dollars), a permit application must be made to Liquor & Gaming NSW.
The application indicates the goals of the event, the structure of prizes, the cost of tickets and the procedure for holding.
3. Requirements for performance
Clear and transparent rules of participation available to all players.
Income from ticket sales should be directed to declared charitable purposes.
Reporting on ticket sales, expenses and prize distribution.
The draw must be conducted honestly - using certified mechanical or electronic draw systems.
4. Restrictions
Ticket sales are prohibited for under-18s if the prizes involve alcohol or gambling.
Prohibition on the use of the funds received for the commercial benefit of the organizers.
Restrictions on advertising that is misleading or targeted at vulnerable categories of the population.
5. Control and sanctions
Liquor & Gaming NSW has the right to conduct audits and require reporting.
For violation of the rules, fines, suspension or revocation of permission are provided.
In the event of fraud or embezzlement of funds, criminal liability is possible.
Conclusion:
- Charity raffles in NSW are legal as long as they are run by authorised organisations, meet established requirements and direct all proceeds towards stated purposes. The legislation provides for strict controls to prevent abuse and ensure fair conduct.
