- The law
- Gambling Act 2003, sections 4 and 19; Fair Trading Act 1986, section 17
- Who enforces it
- Department of Internal Affairs (DIA) for gambling; Commerce Commission for fair trading
- Penalties
- Illegal gambling: up to 1 year in prison or a fine of up to $20,000 for an individual, and a fine of up to $50,000 for a company. Fair Trading Act: up to $600,000 per offence for a business.
What it means for your email
- A sales promotion must be run to promote particular goods or services, and entering must cost nothing extra beyond their normal price.
- Where the qualifying purchase is made online or by phone, the DIA says only lotteries (draws) are allowed, not instant wins or prize competitions.
- All conditions, including the period of the promotion, must be clear in the promotional material before it runs. The email should give the closing date, how to enter and the prizes, and link to the full terms.
- The Commerce Commission expects closing dates to be shown clearly on all promotional material.
- Section 17 of the Fair Trading Act bans offering gifts or prizes with the intention of not providing them, or not providing them as offered.
Do
- Describe prizes accurately.
- State every condition and time limit clearly.
- Pick prizes that the Gambling Act allows.
- Stop promoting the draw once it has closed.
Don't
- Don't charge anything extra to enter.
- Don't offer alcohol, tobacco, firearms, explosives or restricted weapons as prizes. The DIA lists these among prohibited prizes.
- Don't make the chance of winning seem better than it is.
- Don't hide the cost of a "free" prize in the price of the goods.
Good to know
- A draw that doesn't require buying the promoted goods or services isn't a sales promotion under the Gambling Act (section 4), so it needs to fit another lawful class of gambling.
- Overseas promotions can run in New Zealand if local entrants have the same chance to enter and win, the qualifying product is sold here, the business has a New Zealand address for enquiries, and New Zealand winners pay nothing extra to collect their prize.
- Normal postage or standard-rate text costs can be charged to entrants.
Sources
- Gambling Fact Sheet #9 - Sales Promotions (Department of Internal Affairs)
- Running competitions and promotions (Commerce Commission)
- Supermarket fined for offering prize after competition had closed (Commerce Commission)
- Laws we enforce (Commerce Commission)
- Gambling Act 2003 (New Zealand Legislation)
Researched by Mailfois · 2026/27 edition · checked 20 October 2026
Not legal advice. This is a plain-English summary. Check the sources for anything specific, or take professional advice. Spotted something out of date? Email [email protected] and we'll credit you if you'd like.