More ways to pay makes fundraising easier:Easy, Fast, Convenient

What you need to know about the new Class 3 Lottery License Rule Changes

The rule change for a Class 3 lottery has come about as part of the New Zealand Government’s Covid-19 response, with Parliament realising the difficulty lottery operators were having during a period of Covid-19 restrictions. This change is for a fixed period and will make it easier for people to participate in fund-raising activities that benefit communities.

The rule change is temporary and valid for 3 years from October 2021 through to October 2024.

What’s changing?

Ticket purchases can now be made from anywhere - digitally. Participants in your lottery or raffle can choose to pay using a range of payment options like internet banking, credit card over a mobile, 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 digital access.

What the rule change means for existing Licensed Class 3 Lottery Operators

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

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, but purchasers need to be physically present to pay this way.

You can choose to run your entire lottery or raffle 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 lottery or raffle has a total retail value of all prizes (including non-cash prizes) of $5,000 or above, then you will need to be a Licensed Class 3 Lottery holder. Prizes must be at least 20% the value of the tickets sold.

Can anyone run a raffle or lottery?

No. You must be a Society to operate a Class 3 lottery or raffle under the Gambling Act 2003.

What is a Society?

A Society is a group formed for a non-commercial purpose and undertakes activities to solely meet their authorised purpose. The Society must be incorporated under one of these Acts:  The Societies Act; Charitable Trusts Act or Friendly Societies and Credit Unions Act; or the Companies Act.

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
  • An electioneering purpose.

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

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

The total prize value determines your License Fee cost – check out the schedule Class 3 Lottery License Fees

If you decide to apply for a Class 3 Lottery License you’ll need to allow a minimum of 20 working days for your application to be processed.