Charitable Lotteries and Fundraising

As an experienced charitable lottery lawyers, we provide advice on licences and permits in each state and territory, demystify requirements, develop compliance guidance, streamline the application process, reduce lead times to market, and minimise demands on internal resources.

Charitable lotteries (Raffles and Art Unions) can be a powerful fundraising tool for charities and community organisations (both big and small); however, they are also highly regulated in Australia, with each jurisdiction presenting its own unique requirements. 

An important form of charitable fundraising involves raffles (also known as ‘art unions’). These are a form of lottery, conducted both online and through in-person sales, for charitable or community purposes. They involve the sale and purchase of tickets for a chance to win prizes where the prize winners are determined by chance (often through the use of computerised random number generators). 

Charitable raffles and art unions in Australia

In most states and territories, some form of approval, licence or permit is required to conduct a charitable raffle depending on the total value of the tickets for sale or prizes to be won.  Even where specific permits (or similar) are not required, regulatory requirements must still be met. There are detailed and prescriptive rules governing the conduct of raffles (which vary by state and territory), including but not limited to: 

• Specific advertising restrictions

• Eligibility of customers

• Ticketing requirements and game rules

• Prize pools and the disposition of prizes (including mandatory processes for dealing with unclaimed prizes)

• The drawing of prizes and publication of results

• Record keeping, reporting and auditing requirements

• Distribution of proceeds from ticket sales

Senet can help charitable and community organisations to comply with these requirements and to identify if they require a licence or permit in the jurisdictions in which they propose to promote sales. We can also assist with obtaining the necessary fundraising permissions and undertaking the required steps to obtain regulatory approvals. At Senet, we are charitable lottery experts, helping charitable and community organisations navigate the complex web of legal requirements that can apply to a fundraising activity being conducted across different states or territories. 

We also work with individuals and organisations seeking to establish a charity to understand the associated legal and regulatory requirements. This includes the provision of structuring and governance advice, charity establishment and support through the ACNC-registration process.   

We pride ourselves on minimising the lead times and administrative burden that can be involved in the fundraising process. 

Can charitable raffles be conducted for a commercial fee or reward? 

In certain circumstances, state and territory laws expressly authorise the engagement of a third-party to assist with the conduct of a charitable raffle subject to strict requirements.

A third party that assists with the conduct of a charitable raffle may be considered an ‘organiser’, ‘promoter’ or ‘trader’ depending on the jurisdiction where the raffle is being promoted and conducted. In some states and territories, the third party may be required to obtain a licence or permit to do so, and is usually subject to statutory obligations regarding their involvement with the raffle.

The commercial fee that may be paid to a third party that assists with the conduct of a charitable raffle is also subject to legislative caps and other requirements. For example, depending on the state or territory where the raffle is conducted, there are statutory requirements that:

• Require any commercial fee being paid to be “fair and reasonable”;

• Require a minimum percentage of the total proceeds from ticket sales to be paid to the relevant benefitting charitable organisation; and

• Limit the total value of tickets that can be sold in Raffles by reference to the value of its prize pool (ie indirectly limiting the quantum of any commercial fee to be paid to a third party).

Gambling compliance training

Through the Senet Compliance Academy, we offer comprehensive gambling compliance training, ensuring your staff remain compliant with Australia’s legal and regulatory standards. Our courses are designed to help businesses cultivate a compliance culture, protect against financial crime and reduce gambling-related harm.