What you need to know about the Class 3 Lottery Licence Rule Change

Updated 4 November 2024

Class 3 fundraising raffles and lotteries can continue to operate online and raise funds for good causes.

From 1 November  2024, all licenced class 3 raffles and lotteries can be run online.

Previously there was a temporary exemption for class 3 raffles to be run online – introduced as part of the Covid 19 response – which made it easier for people to participate in fundraising activities during Covid-19. This exemption has now become permanent.

What this means for those who participate in fundraising

Tickets can continue to be purchased online. Participants in your raffle or lottery can choose to pay using a range of online payment options like internet banking, credit card over a mobile or website, or by using payment facilities like PayPal. All from the comfort of their home, on their couch, at their desk. In fact, anywhere they have internet access.

What the rule change means for licensed class 3 operators

You must have a current Class 3 license to operate a raffle or lottery.

Ticket purchasers no longer need to be physically present to pay for their ticket. You can accept remote payment in a variety of digital ways like internet banking, credit card or through payment facilities like PayPal.

You can still accept payment methods like EFTPOS or cash from purchasers who are physically present.

Class 3 licence holders can choose to run their entire operation remotely too, as tickets can also be issued digitally.

Planning on applying for a class 3 License to run a lottery or raffle?

Some key things you’ll need to know

If your fundraising raffle has a total retail value of all prizes (including non-cash prizes) of $5,000 or above, then you will need to apply for a class 3 licence.

What’s the criteria to get a class 3 licence?

• class 3 raffles can only be run by a society and the society must have a licence.
• The purpose of the raffle must be to raise money for an 'authorised purpose'.
• The gambling activity must comply with the relevant game rules.
• The costs of running the raffle must be minimised and returns to the community maximised.
• Prizes must be at least 20% the value of the tickets sold.

What is a Society?

A Society is a group formed for non-commercial purposes and undertakes activities for authorised purposes.

Groups may be an incorporated society or registered charitable trust. Societies may also be unincorporated which means they are not registered as a corporate society or charitable trust.

Authorised purposes you can fundraise for are

• A charitable purpose,
• A non-commercial purpose that is beneficial to the whole or a section of the community, or
• An electioneering purpose.

The Gambling Act 2003 stipulates that all funds raised from a raffle must benefit the whole or a portion of the community. Here are all the game rules for running a lottery or raffle

Can I use a third-party provider to help manage the sale of tickets online?

Yes. As a class 3 licence holder you can engage a third-party to help you to conduct gambling including issuing tickets online and managing the payment of these.

If you choose to engage the services of a third-party provider, you must ensure that no commission is paid out for these services. Class 3 licence holders cannot offer to pay a commission to any person other than licensed promoter under the Gambling Act 2003.

What does it cost to apply for a Class 3 Lottery Licence?

The total prize value determines your licence fee cost – check out the fee schedule Class 3 Licence Fees

If you decide to apply for a class 3 gambling licence you’ll need to allow a minimum of 20 working days for your application to be processed.