Raffle Rules in Every U.S. State: A Complete Guide for Nonprofits and Event Organizers

Raffles are a popular fundraising tool, especially for nonprofits and community organizations looking to engage their supporters in a fun, chance-based way to raise money for good causes. However, the legality and rules around hosting a raffle vary widely across the United States. In some states, raffles are considered a form of gambling, which can be heavily regulated or even prohibited. Understanding the legal requirements and restrictions is essential for any organization planning a raffle.

In this guide, we’ll walk through who can host a raffle, the steps for legally holding one, alternatives to raffles in states where they’re restricted, and how you can structure a raffle without calling it one.

Understanding Raffles for Nonprofits

For 501(c)(3) and other nonprofit organizations, raffles provide a unique opportunity to generate funds while engaging the community. They often require little upfront cost and can yield significant returns when well-publicized. But raffles also come with specific rules. To protect participants and maintain transparency, many states enforce regulations to ensure nonprofits operate fairly. These regulations may include licensing requirements, prize limitations, and strict record-keeping obligations to verify fair play and proper fund allocation.

Because raffles are a type of chance-based event, they often fall under gambling laws, which means compliance with federal and state regulations is essential. Knowing the differences between state regulations and having the proper licenses in place are critical steps to keep your raffle both legal and effective.

Who Can Host a Raffle?

While raffles may be popular, not everyone is legally allowed to host one. In many states, only registered nonprofits, schools, or other specific groups (such as religious organizations) can legally hold raffles. Businesses, individuals, or for-profit entities often face greater restrictions or outright prohibitions from conducting these events.

Organizations with 501(c)(3) status typically have more leeway and are allowed to host raffles as long as they comply with local regulations. However, even nonprofits must often meet certain criteria. These requirements may include a minimum operational period before holding raffles, or membership restrictions (like having at least a certain number of members). Check your state’s specific requirements to see if your organization qualifies.

Steps to Legally Hold a Raffle in the U.S.

To legally conduct a raffle, follow these steps:

1. Check State-Specific Requirements and Legal Status
   Begin by verifying whether raffles are legal in your state, and if so, under what conditions. Each state has unique rules for raffle operations, often published by state gaming or charitable control boards.
2. Apply for Necessary Licenses and Permits
   In states that allow raffles, nonprofits are typically required to obtain a license or permit. This may involve an application process through state gaming authorities, and in some cases, approval from local governments.
3. Determine Prize Limits and Record-Keeping Obligations
   Some states place limitations on prize values. For instance, you might be restricted from offering cash prizes above a certain amount. Additionally, states may mandate thorough record-keeping, including ticket sales, prize distributions, and detailed financial tracking, to ensure transparency.
4. Ensure Compliance with Both Federal and State Laws
   Certain federal laws may apply if your raffle spans multiple states or if you plan to advertise widely. Staying compliant at both state and federal levels prevents fines or the potential for legal action. When in doubt, consult with a legal advisor who specializes in nonprofit or gaming laws.

Can I have a raffle in Alabama?

• Legal or prohibited: Raffles are considered lotteries, which are illegal under Alabama state law.
• Specific regulations: Nonprofit and 501(c)3 organizations are not permitted to host raffles.
• Are online ticket sales permitted?: Not applicable 
• Cost: Not applicable

Can I have a raffle in Alaska?

• Legal or prohibited: Raffles are lawful activities in Alaska.
• Specific regulations: Nonprofits and 501(c)3 organizations can organize raffles if they have been established for at least three years and have a minimum of 25 members.
• Are online ticket sales permitted?: Yes, they are allowed! 
• Cost: $20.00

Can I have a raffle in Arizona?

• Legal or prohibited: Raffles in Arizona are not regulated, but there are eligibility requirements to consider.
• Specific regulations:some text
  • Raffles must be registered with the Arizona Attorney General's office.
  • The nonprofit must have existed in Arizona for at least one year.
• Are online ticket sales permitted?: Yes! (As long as sales happen on your website.) 
• Cost: $0.00

Can I have a raffle in Arkansas?

• Legal or prohibited: Raffles are permitted in Arkansas with the proper permit.
• Specific regulations: Nonprofits must be tax-exempt and operating for at least five years.
• Are online ticket sales permitted?: No. 
• Cost:some text
  • Annual license: $100.00
  • Single raffle: $25.00

Can I have a raffle in California?

• Legal or prohibited: Raffles are legal activities in California.
• Specific regulations: Any nonprofit that has operated in California for at least one year can host raffles (501(c)3 status not required).
• Are online ticket sales permitted?: No. 
• Cost: $30.00

Can I have a raffle in Colorado?

• Legal or prohibited: Colorado requires nonprofit organizations to obtain a license for each raffle they wish to host.
• Specific regulations:some text
  • Nonprofits must operate without profit.
  • Must have been active for 5 years prior to applying for a bingo-raffle license.
• Are online ticket sales permitted?: Yes. 
• Cost: $100.00

Can I have a raffle in Connecticut?

• Legal or prohibited: Nonprofit organizations can host raffles in Connecticut with the proper permit.
• Specific regulations:some text
  • Nonprofits must have been operating for at least one year prior to applying.
  • Check with local municipalities to confirm raffles are allowed in your area.
• Are online ticket sales permitted?: Yes! 
• Cost: $15.00 - $300.00 (depending on the size of the raffle)

Can I have a raffle in Delaware?

• Legal or prohibited: Nonprofit organizations can host raffles if they are 501(c) certified by the IRS.
• Specific regulations:some text
  • If the raffle ticket price is $5 or less and the prize value is under $5,000, a permit is not required from the Board of Charitable Gaming.
• Are online ticket sales permitted?: No. 
• Cost: $15.00

Can I have a raffle in Florida?

• Legal or prohibited: Raffles are allowed for qualified nonprofit organizations with 501(c)(3) status.
• Specific regulations: No registration, license, or permit is required, but organizations must follow set rules.
• Are online ticket sales permitted?: Yes, as long as there are no explicit restrictions. 
• Cost: $0.00

Can I have a raffle in Georgia?

• Legal or prohibited: Georgia allows raffles, but nonprofits must apply for a permit from the county's Sheriff's Office.
• Specific regulations: Only nonprofit, tax-exempt organizations such as churches, schools, or civic groups can host a raffle.
• Are online ticket sales permitted?: No. 
• Cost: $100.00

Can I have a raffle in Hawaii?

• Legal or prohibited: Raffles are prohibited activities in Hawaii.
• Specific regulations: Nonprofits cannot use raffles for fundraising unless participation is free and donations are voluntary.
• Are online ticket sales permitted?: Yes, but participation must be free.
• Cost: $0.00

Can I have a raffle in Idaho?

• Legal or prohibited: Charitable and nonprofit organizations can conduct raffles in Idaho.
• Specific regulations:some text
  • Organizations must have existed for at least one year in the county where the raffle will occur.
  • Must have IRS tax-exempt status or be certified by the Secretary of State.
• Are online ticket sales permitted?: Yes. 
• Cost: $100.00 for the first year, $100.00–$300.00 in subsequent years.

Can I have a raffle in Illinois?

• Legal or prohibited: Nonprofit organizations can host raffles in Illinois.
• Specific regulations: Raffles are controlled by counties or municipalities, so nonprofits must apply through local authorities.
• Are online ticket sales permitted?: Yes and no (depends on local regulations). 
• Cost: Starting at $25.00 for a license.

Can I have a raffle in Indiana?

• Legal or prohibited: Nonprofit organizations can host raffles in Indiana.
• Specific regulations: Only tax-exempt organizations with 501(c) status may conduct raffles.
• Are online ticket sales permitted?: No (cannot accept credit card payments). 
• Cost: $50.00

Can I have a raffle in Iowa?

• Legal or prohibited: Nonprofits can hold raffles in Iowa.
• Specific regulations:some text
  • A license from the Department of Inspections and Appeals (DIA) is required before gambling takes place.
  • A State of Iowa Sales Tax Permit Number is also necessary.
• Are online ticket sales permitted?: Yes, but only with a two-year license. 
• Cost: $15.00–$150.00, depending on raffle size and duration.

Can I have a raffle in Kansas?

• Legal or prohibited: Charitable raffles are legal activities in Kansas.
• Specific regulations: Only qualified, tax-exempt nonprofits with 501(c) status can conduct raffles.
• Are online ticket sales permitted?: Yes. 
• Cost: $25.00 - $100.00

Can I have a raffle in Kentucky?

• Legal or prohibited: Nonprofits can host raffles in Kentucky.
• Specific regulations: Charitable organizations conducting gaming in Kentucky must be licensed by the Department of Charitable Gaming.
• Are online ticket sales permitted?: No. 
• Cost: $25.00

Can I have a raffle in Louisiana?

• Legal or prohibited: Raffles are legal activities in Louisiana.
• Specific regulations: Charitable organizations conducting gaming in Louisiana need to be licensed by the Office of Charitable Gaming.
• Are online ticket sales permitted?: Yes. 
• Cost: $75.00

Can I have a raffle in Maine?

• Legal or prohibited: Raffles hosted by nonprofit organizations are legal in Maine.
• Specific regulations: Organizations don't need to register with the Gambling Control Unit if the prize value is under $10,000.
• Are online ticket sales permitted?: Yes. 
• Cost: $15.00 - $700.00

Can I have a raffle in Maryland?

• Legal or prohibited: Raffles are permitted in Maryland, governed by individual counties.
• Specific regulations: Nonprofits must contact their local county for requirements before hosting a raffle.
• Are online ticket sales permitted?: Varies by county. 
• Cost: $10.00 - $56.00 per raffle.

Can I have a raffle in Massachusetts?

• Legal or prohibited: Nonprofit organizations can hold raffles in Massachusetts.
• Specific regulations:some text
  • Nonprofits must be actively functioning in Massachusetts for at least two years.
  • Organizations must obtain a raffle permit from the local city or town.
• Are online ticket sales permitted?: No. 
• Cost: Determined by local authorities.

Can I have a raffle in Michigan?

• Legal or prohibited: Nonprofit organizations can hold raffles in Michigan.
• Specific regulations: Organizations must be qualified by the Charitable Gaming Division and hold a valid raffle license.
• Are online ticket sales permitted: No. 
• Cost: $15.00 - $50.00

Can I have a raffle in Minnesota?

• Legal or prohibited: Raffles can be held by nonprofits in Minnesota.
• Specific regulations:some text
  • No permit is required if the total prize value is under $1,500.
  • Nonprofits with 501(c)(3) status can hold one event with total prize value not exceeding $5,000 without a permit.
• Are online ticket sales permitted: No. 
• Cost: $100.00 - $150.00

Can I have a raffle in Mississippi?

• Legal or prohibited: Nonprofits can hold raffles in Mississippi.
• Specific regulations: It's recommended to contact the Mississippi Gaming Commission, as laws are primarily based on bingo but do reference raffles.
• Are online ticket sales permitted?: No. 
• Cost: $0.00

Can I have a raffle in Missouri?

• Legal or prohibited: Nonprofits can hold raffles in Missouri.
• Specific regulations: Any organization recognized as charitable or religious under federal law may sponsor raffles, but contacting local authorities is recommended.
• Are online ticket sales permitted?: Yes. 
• Cost: $0.00

Can I have a raffle in Montana?

• Legal or prohibited: Raffles are legal in Montana, and no license or permit is required.
• Specific regulations: Nonprofits must register with the state if they wish to sell raffle tickets online.
• Are online ticket sales permitted?: Yes, but approval is required (Form 46). 
• Cost: $0.00

Can I have a raffle in Nebraska?

• Legal or prohibited: Nonprofits can hold raffles in Nebraska.
• Specific regulations:some text
  • No license is needed if cash prizes are under $1,000 or merchandise prizes under $5,000.
  • For larger raffles, a license is required.
• Are online ticket sales permitted?: Yes. 
• Cost: $30.00

Can I have a raffle in Nevada?

• Legal or prohibited: Nonprofits can hold raffles in Nevada.
• Specific regulations: Qualified organizations must get approval from the Gaming Control Board.
• Are online ticket sales permitted?: Yes, with approval. 
• Cost:some text
  • Prizes under $100,000: $0.00
  • Prizes over $100,000: $25.00

Can I have a raffle in New Hampshire?

• Legal or prohibited: Raffles can be held by registered nonprofits in New Hampshire.
• Specific regulations:some text
  • Nonprofits must have been registered with the Secretary of State for at least two years.
• Are online ticket sales permitted?: No. 
• Cost: $25.00 per game date, up to 10 games per year.

Can I have a raffle in New Jersey?

• Legal or prohibited: Nonprofits can hold raffles in New Jersey.
• Specific regulations:some text
  • The municipality where the gaming will be conducted issues the license.
  • Organizations must register with the Legalized Games of Chance Control Commission to obtain an ID number.
• Are online ticket sales permitted?: No. 
• Cost:some text
  • Identification number: $100.00
  • Municipal fee: $20.00 - $400.00 depending on location.

Can I have a raffle in New Mexico?

• Legal or prohibited: Qualified nonprofits can host raffles in New Mexico.
• Specific regulations: If the prize value is over $75,000, the Gaming Control Board must be notified 10 days before ticket sales or advertising begins using Form BR-024.
• Are online ticket sales permitted?: No. 
• Cost: Unclear.

Can I have a raffle in New York?

• Legal or prohibited: Nonprofits can hold raffles in New York.
• Specific regulations: No license is needed for raffles with net proceeds under $5,000 per raffle or under $30,000 total annually.
• Are online ticket sales permitted?: Yes, but an application is required.
• Cost: $25.00

Can I have a raffle in North Carolina?

• Legal or prohibited: Nonprofits can host raffles in North Carolina.
• Specific regulations: Organizations recognized as charitable or religious under federal law can sponsor raffles. Contact local authorities for further information.
• Are online ticket sales permitted?: No. 
• Cost: Unclear.

Can I have a raffle in North Dakota?

• Legal or prohibited: Nonprofits can apply to hold raffles in North Dakota.
• Specific regulations: Local permits are required from the city or county. For prizes exceeding $8,000 per item or $40,000 annually, a State Gaming License is needed.
• Are online ticket sales permitted?: Yes. 
• Cost: $175.00 per license.

Can I have a raffle in Ohio?

• Legal or prohibited: Nonprofits with 501(c)(3) status can conduct raffles in Ohio.
• Specific regulations: No license or report is required for eligible organizations.
• Are online ticket sales permitted?: No. 
• Cost: $0.00

Can I have a raffle in Oklahoma?

• Legal or prohibited: Nonprofits are permitted to hold raffles in Oklahoma.
• Specific regulations: No license or report is required for conducting raffles.
• Are online ticket sales permitted?: No. 
• Cost: $0.00

Can I have a raffle in Oregon?

• Legal or prohibited: Raffles are legal for nonprofits in Oregon.
• Specific regulations: Only organizations exempt from federal income taxes can conduct raffles. A license is needed if total raffle sales exceed $10,000 annually.
• Are online ticket sales permitted?: No. 
• Cost: $40.00 - $100.00

Can I have a raffle in Pennsylvania?

• Legal or prohibited: Eligible nonprofit organizations can hold raffles in Pennsylvania.
• Specific regulations: Nonprofits must have been active for at least one year to qualify for a games of chance license.
• Are online ticket sales permitted?: Yes (as of May 2023).
• Cost:some text
  • Monthly license: $25.00
  • Annual license: $125.00

Can I have a raffle in Rhode Island?

• Legal or prohibited: Charities can have raffles in Rhode Island.
• Specific regulations: Submit an application and $5 fee to the Chief of Police in the city/town where the raffle will be held.
• Are online ticket sales permitted?: Yes, if the platform is licensed by the Superintendent of Rhode Island.
• Cost: $5.00 per application.

Can I have a raffle in South Carolina?

• Legal or prohibited: Registered nonprofits can hold raffles in South Carolina.
• Specific regulations:some text
  • Annual registration with the Division of Public Charities is required.
  • Registration is not needed if noncash prizes are valued at $950 or less or if it's a 50/50 raffle with proceeds under $950.

• Are online ticket sales permitted?: Yes.
• Cost: $50.00

Can I have a raffle in South Dakota?

• Legal or prohibited: Nonprofits can hold raffles in South Dakota.
• Specific regulations:some text
  • Raffles must be registered at the county/city level 30 days before selling tickets. 
  • If tickets are sold statewide, written notice must also be provided to the South Dakota Secretary of State.

• Are online ticket sales permitted?: Yes.
• Cost: $50.00

Can I have a raffle in Tennessee?

• Legal or prohibited: Registered nonprofits can hold raffles in Tennessee.
• Specific regulations: Only 501(c)(3) or 501(c)(19) organizations that have applied to the Division of Charitable Solicitations and Gaming and have received approval from the Tennessee General Assembly can hold a raffle.
• Are online ticket sales permitted?: No.

• Cost: $150.00 - $600.00

Can I have a raffle in Texas?

• Legal or prohibited: Nonprofits can host raffles in Texas.
• Specific regulations: Qualified nonprofits don't need to register or obtain a license/permit to host a raffle.
• Are online ticket sales permitted?: Unclear.
• Cost: $0.00

Can I have a raffle in Utah?

• Legal or prohibited: Raffles are not permitted for fundraising in Utah.
• Specific regulations: Fundraising raffles are considered a form of gambling, which is illegal in the state.
• Are online ticket sales permitted?: No.
• Cost: Not applicable

Can I have a raffle in Vermont?

• Legal or prohibited: Nonprofits can hold raffles in Vermont.
• Specific regulations: Organizations must have been engaged in charitable activities for at least one year. No license is required to host a raffle.
• Are online ticket sales permitted?: No.
• Cost: $0.00

Can I have a raffle in Virginia?

• Legal or prohibited: Raffles are allowed in Virginia.
• Specific regulations: To apply, organizations must have been in existence and meeting regularly for at least three years.
• Are online ticket sales permitted?: Yes, with approval.
• Cost: $200.00

Can I have a raffle in Washington?

• Legal or prohibited: Nonprofits can host raffles in Washington State.
• Specific regulations: No license is required for up to two unlicensed raffles annually, with total gross revenue under $5,000.

• Are online ticket sales permitted?: Yes, with approval.
• Cost: $70.00

Can I have a raffle in West Virginia?

• Legal or prohibited: Nonprofits can host raffles in West Virginia.
• Specific regulations: Organizations must have been active in West Virginia for at least one year. No license is required if ticket sales do not exceed $15,000 annually and individual prizes do not exceed $4,000.
• Are online ticket sales permitted?: Yes.
• Cost: $0.00

Can I have a raffle in Wisconsin?

• Legal or prohibited: Nonprofits can hold raffles in Wisconsin.
• Specific regulations: Raffle licenses are granted only to local religious, charitable, service, fraternal, veterans, or 501(c)(3) organizations that have existed for at least one year or are chartered by a state or national organization with three years of existence.
• Are online ticket sales permitted?: No. 
• Cost: $5.00 - $25.00

‍Can I have a raffle in Wyoming?

• Legal or prohibited: Nonprofits can hold raffles in Wyoming.
• Specific regulations: No state-level licensure is required for charitable gaming in Wyoming.
• Are online ticket sales permitted?: Unclear.
• Cost: $0.00

Alternative Fundraising Ideas if Raffles Are Not Allowed

If you’re in a state where raffles are prohibited (like Hawaii or Utah), or if your organization doesn’t meet the requirements, consider alternative fundraising methods. Here are a few ideas:

• Silent Auctions: Silent auctions allow participants to bid on items without violating gambling restrictions. These events can often be held in-person or online, making them flexible and accessible.
• Door Prizes: You can distribute tickets for free or as part of a larger event, such as a gala or community gathering, and offer a door prize to one or more attendees.
• Donations with Rewards: Encourage donations with the chance to receive small gifts or services. Be cautious to avoid phrasing that may imply a raffle or gambling.

These alternatives offer similar excitement to raffles but are less likely to require the same legal scrutiny, especially in states with stringent gambling laws.

Running a Raffle Without Calling It a Raffle

In certain cases, you may be able to run a similar fundraising event without officially calling it a raffle. This approach can be useful in states where raffles are heavily regulated or restricted. Here’s how:

• Host a “Free” Entry Event: Instead of charging for raffle tickets, consider offering free participation and encourage donations instead. This can comply with state laws if participation is not directly tied to a payment.
• Offer a “Door Prize”: For events with general admission, include a random drawing as part of the event experience, selecting winners from attendees rather than ticket purchasers.
• Be Transparent and Ethical: Clearly state the terms and rules of any prize drawing, avoiding language that implies gambling or paid entry requirements where prohibited.

These methods allow you to engage with supporters, generate interest, and raise funds without triggering specific raffle regulations.

Frequently Asked Questions

What’s the Difference Between a Raffle and a Lottery?

A raffle typically involves selling tickets for a chance to win a prize, while lotteries often involve broader gaming elements and may be more heavily regulated. Lotteries are often state-run, with proceeds going toward public funding.

How Do I Get a Raffle License?

Raffle licenses are usually issued by state gaming authorities or charitable divisions. Check your state’s official website for specific instructions, fees, and requirements.

What Are the Record-Keeping Requirements?

Many states require nonprofits to keep detailed records of raffle ticket sales, prize distributions, and financial tracking. These records are essential for maintaining transparency and may be requested by regulators.

Can I Sell Raffle Tickets Online?

Online ticket sales are permitted in some states, but not all. When allowed, it’s usually restricted to ticket sales through the organization’s website. Always verify online sales permissions before including this option.

Following state and federal rules when hosting a raffle is essential to avoid legal issues and ensure a fair, transparent process. By understanding the regulations, applying for necessary licenses, and adhering to prize limitations, you can host a successful and legally compliant raffle.

Whether you're hosting a raffle, exploring alternative fundraising options, or structuring a prize event that sidesteps traditional raffle restrictions, this guide should help you navigate the legal landscape. For more specific requirements, visit your state’s official gaming or charitable control websites, and ensure you’re fully informed before your next fundraiser!

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