New rules have been put in place exempting spot prize draws from the strict regulations that apply to gambling activities.
Under the law, gambling operators must have a licence and allow only those over 18 to participate.
Internal Affairs Minister Chris Tremain said on Friday that spot prize draws do not require the same level of regulation.
Mr Tremain said commercial and non-commercial organisations can hold spot prize draws, provided that the events are benefiting their community.
To be eligible, people must have bought a ticket to enter the draw, and the results must be wholly determined by chance; for example they can't be determined by something like a gaming machine.
The result must also be determined within a week of people entering the draw.