Raffles

Do we need to be registered to conduct a raffle in Victoria?

Yes. To conduct any raffle in Victoria, your organisation needs to be ‘declared' (in effect, registered) as a community organisation or charitable organisation by the Victorian Commission for Gambling Regulation (VCGR). For details on how to do this see our Raffles & other minor gaming activities overview page.

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In addition to being ‘declared’, do we need to have ‘minor gaming permit’ to conduct a raffle?

The answer to the question depends on the ‘prize pool' of the raffle. Only raffles with a prize value of greater than $5,000 are required to have a permit.

For general information on minor gaming permits, see our Raffles & other minor gaming activities overview page. To apply for a minor gaming permit for a raffle over $5,000 see the VCGR's Raffle Pack publication in the Related Resources section below.

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What other legal obligations do we have if we conduct a raffle?

In all raffles (whether a permit is required or not):

• the method of the draw must allow each ticket in the draw a random and equal chance of being drawn; and
• if there is more than one prize, the first ticket drawn must win the first prize (the most valuable prize).

However, the other legal requirements for running a raffle depend on the prize value of the raffle. In Victoria raffles are divided into 3 types according to the total prize value of the raffle, each type with differing legal requirements. The raffle types are:

• small raffles - raffles with a prize pool of $500 or less where the first ticket is sold on the same day the raffle is drawn (no permit required);
• raffles with a prize pool of less than $5,000 (no permit required but conditions apply, see below); and
• raffles with a prize pool of $5,000 or over (permit required).

The kinds of conditions that attach to each kind of raffle include:

• the ratio of tickets sold to the value of the prize pool;
• whether printed tickets are required and the information that must be printed on them;
• whether ticket purchaser's details need to be collected;
• how long the tickets can be sold for;
• how soon after the end of the ticket sales the raffle must be drawn;
• whether tickets must be sold and drawn on the same day or within a given time period; and
• what happens when winners do not come forward within a reasonable amount of time.

In general, the bigger the prize pool the more onerous the conditions. There are also requirements for the bank accounts in which raffle money must be deposited.

For a full list of the conditions that attach to each of the three types of raffles, see the VCGR's Raffle Pack publication. A link has been included in the Related Resources section below.

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What are the requirements for raffle prizes?

Victoria's gambling laws provide that money (cash), stocks and shares cannot be offered as prizes in a raffle except where there is a travel or accommodation prize (then you can say travel or accommodation to the value of $XX.XX). Prizes such as motor vehicles, motorcycles, boats, trailers or horse flats must include all on-road costs.

Prizes must be given to winners within 28 days after the raffle draw, unless winners cannot be identified or located, or do not wish to accept the prize. There may be requirements to notify the VCGR of unclaimed prizes.

Depending on the value of the prize pool, your community organisation may have to print details of the prizes on the tickets, and the results of the raffle draw must be published and winners notified in the manner printed on the tickets.

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What are your community organisation's ongoing record-keeping obligations?

Different types of raffles have different record-keeping requirements. In general there are stricter record-keeping obligations for community organisations required to hold permits (see above). Permit holders must keep accurate records for a period of three years, which demonstrate:

• the manner in which raffle tickets were sold and how sales were publicised;
• the details of people to whom tickets were sold;
• the time and manner in which the raffle was drawn; and
• the names and addresses of the winners and a description of the prizes won.

If you require further information about the methods for raffle draws, record-keeping requirements, details of information that must be printed on raffle tickets, or application packs, see the guidelines provided by the VCGR's Raffle Pack (See Related Resources below).

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Can someone else run a raffle on behalf of our community organisation?

A person or organisation can only run a raffle on behalf of your community organisation:

• if your organisation has been ‘declared' (see Raffles & other minor gaming activities overview page for details); and
• the governing body of your organisation (for example, the committee of management or board of directors) has given them written consent to do so).

If the person or organisation that is going to conduct a raffle on your behalf (whether conducting a raffle in whole or in part) is being paid for their services, they will need to obtain a ‘Commercial Raffle Organisers Licence' form the VCGR. This requirement will not apply if the person is an employee of your organisation or a volunteer.

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How are raffle ticket sales treated for tax purposes?

Income Tax

Briefly, if your organisation is exempt form paying income tax it will be exempt from paying income t ax on proceeds it receives from a raffle. For more information about whether your organisation is one that is exempt from paying income tax see Getting Started > Tax Issues > Income Tax.
If the organisation is not exempt form income tax, raffle sales will generally be included as assessable income for the purposes of income tax, although there may be some deductions available. For more information, see the ATO's Fundraising Guide or seek specific legal or accounting advice.

Goods and services tax (GST)

If your community organisation has been specifically endorsed by the ATO as a tax concession charity (TCC) or a deductible gift recipient (DGR) it will be not required to pay GST on the price of raffle tickets sold. If your organisation is not endorsed as a TCC or DGR, whether it is required to pay GST will depend on whether the organisation is registered, or required to be registered, for GST. For more information on TCC, DGR and GST see the Getting Started > Tax Issues section of this website.

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Related Resources

Related legislation

Related links - Victorian Commission for Gambling Regulation (VCGR) resources

Related links - Australian Tax Office (ATO) resources

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