New South Wales regulates giveaways and prize promotions under a clear legal framework designed to protect consumers and ensure promotional transparency. Trade promotion lotteries, raffles, and giveaway clubs can operate successfully in NSW as long as they follow the rules set out in the Community Gaming laws.

This guide explains exactly how to run a compliant trade promotion, trade lottery, raffle, or giveaway club in NSW so your business can grow safely and confidently in 2025.

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NSW at a glance

• A Trade Promotion Authority is needed when the total prize value for a single promotion exceeds 10,000 dollars. Authorities may last 1, 3, or 5 years, and you can run multiple promotions under one authority.

• When an authority is required, you must submit your promotion rules at least 10 working days before the promotion begins.

• Entry must always be free. You may link entry to a purchase at normal retail price, but you cannot charge a separate entry fee.

• Some prizes are prohibited, including weapons, tobacco, vaping products, cosmetic surgery, and large quantities of alcohol.

• Promotional raffles can only be run at licensed club venues, must be for members and guests, have a maximum prize value of 5,000 dollars, and require that at least 90% of gross proceeds fund prizes.

• Charity art unions require an authority when the prize pool exceeds 30,000 dollars and must return at least 30% of gross proceeds to the benefiting non-profit.

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What counts as a trade promotion in NSW

A trade promotion lottery is a game of chance used to promote goods or services. Anyone may participate unless your rules specify exclusions. Staff running the promotion and individuals managing the benefiting business are not allowed to enter.

Key rules:

• Entry fees are not permitted.

• Purchasing at ordinary retail value may trigger entry.

• Children may enter unless the rules set a minimum age.

• The purpose must be commercial promotion, not fundraising.

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Giveaway clubs and membership-based promotions

Giveaway clubs may operate as trade promotions if:

• Entries are provided as a bonus, not sold.

• Memberships or products offer real value on their own, independent of entry.

• The prize pool structure follows NSW trade promotion rules.

• The authority threshold is observed.

• All advertising and rule requirements are met.

This structure is commonly used for subscription-based giveaway ecosystems, provided membership is not simply a disguised entry fee.

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When you need a Trade Promotion Authority

You must hold a Trade Promotion Authority when:

• The total prize value of a promotion exceeds 10,000 dollars.

One authority can cover multiple promotions during its validity period.

Mandatory 10-day notification rule

If your promotion requires an authority, you must:

• Submit your gaming rules for review at least 10 working days before the promotion begins.

• Wait for confirmation before advertising or accepting entries.

This timeline must be factored into your promotional schedule.

Interstate and online operators

If NSW residents can enter your promotion, you must comply with NSW rules regardless of where your business is located.

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Rules, advertising, and disclosures

Your Terms and Conditions must be clear, complete, and easily accessible. If your advertisement cannot fit the full rules, you must clearly state where they can be found.

Advertising must not:

• Show children participating in the gaming activity.

• Suggest winning is guaranteed.

• Claim that participation will improve financial circumstances.

• Encourage illegal or irresponsible behaviour.

If a Trade Promotion Authority is required, the authority number must appear on all promotional advertising.

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Prize rules and prohibited prizes

There is no maximum prize limit for trade promotions, but NSW prohibits certain items. You cannot offer:

• Firearms, ammunition, or imitation weapons

• Tobacco, smoking, or vaping products

• Cosmetic surgery or similar procedures

• Liquor exceeding specific volume limits

• Any item prohibited under other NSW or Commonwealth laws

Unclaimed prizes

Your rules must state what happens to unclaimed prizes. If no timeframe is included, you must hold the prize for at least 3 months before conducting a redraw. Perishable items such as food platters require special handling.

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Record keeping and financial rules

Although detailed record keeping is not compulsory for every trade promotion, it is strongly recommended for transparency.

If money is collected in connection with a gaming activity:

• Proceeds must be deposited within 2 business days.

• If annual gross proceeds exceed 250,000 dollars, the accounts may require auditing.

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Promotional raffles at licensed NSW clubs

A promotional raffle is a special raffle conducted:

• Only at a venue with a club licence

• Only for members and guests

• For the purpose of attracting or entertaining patrons

Rules include:

• Maximum total prize value 5,000 dollars

• At least 90% of gross proceeds must fund prizes

• No authority is required

• Standard advertising and prohibited-prize rules still apply

Promotional raffles are not trade promotions and cannot be used for general commercial giveaways.

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Charity art unions

Art unions are large charity lotteries with total prize values that exceed 30,000 dollars. They require an authority and must meet charity-specific rules:

• A minimum of 30% of gross proceeds must go to the beneficiary.

• Strict ticketing, disclosure, and record keeping rules apply.

• Funds must be handled through appropriate charity processes.

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Free lotteries and lucky door promotions

Free entry games such as:

• Lucky door prizes

• Lucky seat draws

• Volunteer-only free lotteries

can be legally run if:

• No money changes hands

• Prize values fall within the lawful limits

• The activity complies with the free-lottery conditions in the Regulations

These promotions must never be misrepresented as trade promotions.

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NSW trade promotion compliance checklist

Use this before launching any giveaway or promotion:

1. Calculate the prize pool.
   If it exceeds 10,000 dollars, apply for an authority.

2. Draft full Terms and Conditions.
   Include eligibility, entry method, start and end dates, draw mechanics, prize details, winner contact method, publication requirements, and unclaimed prize procedures.

3. Submit rules and notify at least 10 working days in advance if an authority is required.

4. Design compliant advertising.
   Display the authority number if applicable and avoid misleading claims.

5. Run a transparent draw.
   Use a fair random method and document the process.

6. Contact winners promptly and hold unclaimed prizes for the required time period.

7. Maintain sensible records, especially if funds are collected or if your organisation crosses audit thresholds.

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NSW FAQ for giveaways, raffles, and trade promotions

Do I need a permit for every giveaway in NSW?
No. You only need a Trade Promotion Authority when the prize pool exceeds 10,000 dollars.

Can I charge an entry fee?
No. Entry fees are prohibited. Purchases at normal retail value are allowed.

Do I need to submit my rules?
Yes, when an authority is required. You must notify and submit rules 10 working days before the promotion starts.

Do NSW rules apply if I run a giveaway from another state or country?
Yes. If NSW residents can enter, you must comply with NSW rules.

Are there banned prizes?
Yes. Weapons, tobacco, vaping products, cosmetic surgery, and large alcohol volumes are prohibited.

How are promotional raffles different?
They are ticketed raffles run only at licensed clubs, must be for members and guests, have a 5,000 dollar prize limit, and 90% of proceeds must fund prizes.

What about charity mega draws?
These are art unions. An authority is required when the prize pool is over 30,000 dollars, and 30% of proceeds must benefit the charity.