U.S. Raffle Laws Explained: State Legal Guidelines for Charity Raffles
Thinking of running a raffle to raise some funds? You’re in the right place! This guide breaks down the raffle laws for all 50 states so you can stay compliant and focus on raising money for your cause.
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Raffles are an exciting and effective way to fundraise. But, they’re also considered a form of gambling in many states.
In other words, you need to check the fine print before you start selling tickets or advertising your prize.
Read on to do just that!
What is a Raffle?
A raffle is a kind of lottery schools, nonprofits, and individuals use to raise money. The fundraiser sells numbered tickets and then draws from those tickets to determine who wins a prize.
Raffles have been around since the 15th century, when they were used to raise money for government buildings and churches. Today they’re a very popular and exciting way to bring in some funds for a good cause.
Who can host a raffle in the U.S.?
Broadly speaking, 501(c)(3) nonprofits are allowed to host raffles in the U.S. However, many states require you to register and obtain a raffle license or permit – whether you have 501(c)(3) status or not.
Why are Raffles Sometimes Illegal?
Raffles are often considered a form of gambling in the United States. Winners are randomly selected, making it a game of chance. And because participants purchase raffle tickets, they are paying for “consideration” – i.e., pay-to-play gambling.
Gambling is highly regulated by both federal and state law, which means raffles might be illegal in some states or require additional steps to be permitted.
What are Some Legal Raffle Alternatives?
While raffles aren’t illegal in every state and you may just have to take some additional steps before launching yours, there are a couple of options for legal raffle alternatives.
Sweepstakes
Sweepstakes are a great way to generate some buzz about your mission, although they aren’t as effective at raising funds as a raffle.
Participants can enter your sweepstakes by taking some action that doesn’t require a purchase, such as signing up for your emails or sharing your post on social media.
Drawings
Drawings and raffles are very similar. The main difference is that raffles almost always require participants to purchase tickets, whereas some drawings have a free entry option.
When in doubt, offering a free entry option for your sweepstakes or drawing will ensure you’re meeting legal guidelines, as purchase isn’t required.
Raffle Laws By State
1. Alabama
Raffles are considered lotteries, which are illegal under state law.
Nonprofits cannot host raffles, regardless of 501(c)(3) status.
Exceptions: Raffles conducted by nonprofit organizations for charitable purposes are legal in Randolph, Chamber, and Clay counties, as long as no proceeds from these activities are paid to any officer.
In Connecticut, raffles are legal statewide unless a municipality has elected to opt out of the Bazaar and Raffles Act.
Only nonprofits that have been active for at least six months are eligible.
Organizations must submit an application for a municipal permit 15 days in advance, and it must be signed by at least three active members.
Generally, cash and alcohol prizes are not allowed.
Online ticket sales are permitted – if explicitly allowed by the municipality and sealed-ticket permit regulations – but the drawing must be conducted in person.
Permit fees vary (typically between $15-$300) depending on town and raffle type.
Raffles are legal for nonprofits recognized under IRS Section 170 that have operated for at least two years.
A permit is required if the ticket price exceeds $5 for a single drawing or $15 for series draws, or if the total prize is valued at $5,000 or more. Apply here.
DELPROS is responsible for issuing permits, and your nonprofit must get a permit before starting ticket sales or advertising.
Drawings must conclude by 1 a.m.
NPOs must issue IRS 1-2G for prizes over $600, and tax withholding applies for prizes over $5,000.
Registered nonprofits with 501(c)(3), (4), (7), (8), (10), or (19) status can legally hold raffles in Florida.
No state license is required, but there are strict requirements to follow under Section 849.0935 – we go into these in detail in our dedicated Florida raffle laws blog.
No entry fee or donation can be required to enter, and nonprofits must clearly state “no purchase necessary.”
Cash prizes are prohibited; only donated or owned merchandise/property can be awarded.
10. Georgia
Raffles are legal but require a license from the county sheriff where the nonprofit is based.
Eligible organizations must have 501(c)(3) status and be older than two years.
There are two raffle license types: Standard (for 4+ raffles a year) and Special (fewer than 3 raffles per year).
Raffles have to be conducted on premises owned or regularly used by the nonprofit.
Charitable and nonprofit organizations can conduct raffles.
Tax-exempt charitable or nonprofit organizations that have been in existence for at least one year in the county where they intend to conduct a raffle can apply for a raffle license.
The initial license costs $100. License fees for subsequent years depend on the amount of gross annual revenue from conducting raffles.
Nonprofits with 501(c) status can hold raffles but generally require a license from the Office of Charitable Gaming to do so – use this form to register.
Raffles must use sequentially numbered tickets, sold at a single set prize.
Nonprofits must have the prize in hand before starting ticket sales.
Net proceeds must benefit your nonprofit’s charitable purpose.
Eligible nonprofits can legally hold raffles in Maine.
For nonprofits, no registration is required for prizes valued at $10,000 or less.
Registration is required with the Gambling Control Unit for noncash prizes over $10,000 up to $75,000 or cash prizes up to $20,000 (with a max of $10,000 per winner). Find the form here.
Multiple raffles are allowed per year, but only one in the higher registration tier.
Tickets can be sold online but only if registered and run by a licensed operator under strict rules – age and residency checks, no credit card sales, etc.
Raffles are legal statewide for qualified charitable organizations, but requirements can vary depending on the country and type of prize.
For example, raffles of personal property may require a county-level permit or license – so check locally before you start selling tickets or advertising.
County-level permits are required for cash prizes exceeding $200.
Whether you can sell tickets online depends on individual country rules.
Eligible nonprofits older than two years can host raffles in Massachusetts.
Organizations need to obtain an annual permit from the city or town clerk, endorsed by the Chief of Police, before selling tickets.
Only volunteers or members of the organization can sell tickets.
If the ticket price is over $10 or the prize exceeds $10,000 in value, you’ll need to adhere to state-level disclosures and record keeping (under 940 CMR 12.00).
Cash prizes over $25 per individual prize are not allowed – only noncash or low-value prizes are permitted.
Registered nonprofits may run raffles, but they must be generally registered with the Secretary of State or IRS and licensed through the Minnesota Gambling Control Board.
Small raffles, however, are exempt: nonprofits can hold raffles without a permit if the total prizes are less than $1,500 per year across all raffles.
Tickets must be numbered with purchaser info and prize details and can only be sold in person.
“House rules” must also be posted at draws – which must take place in public.
Alcohol prizes are allowed on-site up to six times a year.
The Magnolia State treats raffles under its Charitable Bingo Law – meaning they’re exempt from criminal gambling prohibitions when held by eligible nonprofits active for three or more years.
Raffles must be licensed by the Mississippi Gaming Commission. Apply here.
Online ticket sales aren’t allowed, and raffles must be conducted in person.
Sequential ticket numbering, accounting, and record keeping are enforced under the same rules as bingo.
Some “limited” licenses do exist for emergency or small raffles (e.g. prizes under $15,000 per session) with laxer reporting.
Raffles are permitted, and you do not need a license or permit.
However, if you’d like to sell raffle tickets online, you’ll need to register with the Department of Justice using Form 46.
All raffle terms, including the date of the drawing, name and contact information of the sponsor, locations where sales are prohibited, cost of the raffle tickets, and more, must be available to the public prior to any sale of tickets.
You cannot accept credit card payments but cash, checks, e-checks, and debit cards are fine.
You must file form ENF-116 (no fee) if prize distribution will be under $100,000 in a calendar year, and form ENF-115 ($25 fee per event) if prize distribution will be over $100,000 in a calendar year. Both forms can be found here.
Online ticket sales are allowed within the state of Nevada.
Nonprofits can conduct raffles in New Hampshire as long as they apply and are determined to be eligible.
Organizations must apply for eligibility determination using this form. Nonprofits must have been registered with the Secretary of State for at least two years.
Licenses cost $250 and expire three years after being issued, as long as you file an application to renew no later than December 31st every year.
Raffles are legal for 501(c) or SS21 nonprofits that have registered with NJ’s Legalized Games of Chance Control Commission and hold a biennial certificate.
Nonprofits may conduct raffles once registered with the NY State Gaming Commission and in municipalities that permit them.
No license is needed if total net proceeds stay under $30,000 per year or $5,000 per raffle (just file a verified statement with your town’s municipal clerk and the Gaming Commission).
A license is required if net proceeds exceed the threshold listed above – register with the Gaming Commission using this form and apply for a municipal license.
Online ticket sales are not allowed unless explicitly approved by the state and municipality.
Some prize caps apply: a maximum of $300,000 per individual prize; $500,000 per raffle; and a $3 million maximum annual prize value.
Nonprofits (and certain candidates/political committees) may conduct raffles in North Carolina – no license required.
Organizations are limited to five raffles per year.
Some prize caps apply: maximum of $125,000 cash or noncash prize per raffle; maximum of $250,000 total prizes (cash or noncash) per year; up to $500,000 for real property prizes (per raffle and annually).
At least 90% of the net proceeds must go to charitable purposes.
Raffles are legal for qualified nonprofits that have obtained either a State Gaming License or a local permit.
A state license is required for single prizes over $8,000 or total annual prizes exceeding $40,000. You can apply via this form.
Without a state license, tickets must be sold in person as numbered tickets or board squares – and they must include the buyer’s name/contact info on the stub.
State-licensed organizations can sell raffle tickets online, but there are a few requirements to note.
Raffles are legal, but nonprofits must be licensed by their country treasurer (or local licensing authority) to host them.
License types and fees vary: annual license is $100 and allows frequent games; monthly license is $25 and covers up to 30 days; special raffle permit is $25 per permit for prizes over $1,000 and allows up to 8 raffles (10 for fire/rescue orgs).
At least 60% of gross proceeds must go to charitable causes, and up to 40% may cover license fees and other costs.
Proceeds exceeding $40,000 must be held in a separate bank account.
Tickets must be sold in person, and only cash and check purchases are allowed.
Eligible nonprofits that have been registered in Rhode Island for at least one year can host raffles.
Nonprofits must obtain a $5 raffle license – through this form – from the local Chief of Police, then forward it to the State Police Charitable Gaming Unit.
Ticket sales can be conducted in person or by mail, but online sales are prohibited.
Your nonprofit must file a financial report within 60 days of the drawing with both local and state police.
Raffles are legal for IRS-recognized charitable nonprofits that are registered or exempt under the Solicitation of Charitable Funds Act.
Exempt raffles (no registration required) include: those with single noncash prizes under $950 and 50/50 raffles under $950 sold only to members or their guests.
Registration is needed for: nonprofits holding more than one raffle per week; total prizes exceeding $950; and raffles open to the public.
Qualified nonprofits that have been operating for at least three years may conduct raffles in Virginia.
No permit is required if your organization expects less than $40,000 in yearly raffle gross receipts.
If gross receipts exceed that threshold, your nonprofit must obtain a $200 Charitable Gaming Permit via this form.
Online ticket sales are allowed for permitted organizations, but OCRP and Code provisions apply.
Tickets must: be numbered with detachable stubs; include purchaser name/address/phone details; feature ticket price, prize details, and the permit number if applicable.
Raffles are legal for charitable or public service nonprofits, but a license is generally required.
Only eligible nonprofits with at least two years in WV may apply using this form.
One exemption to the licensing rule is if annual ticket sales are less than $15,000 and no individual prizes exceed $4,000.
Online raffles are allowed, but only with a specific online raffle license – they must also be geo-fenced to WV and income capped at $15,000 per year unless fully licensed.
You can sell in-person raffle tickets online, but only through WV-licensed platforms, and mailing tickets across state lines is discouraged.
Qualified nonprofits older than one year can hold raffles in Wisconsin. If you’re a local chapter of a national organization, you must be older than three years.
Applying for a license is required for any raffle, and there are two categories: Class A, where tickets can be sold in advance; and Class B – where tickets are sold the same day as the drawing.
The license fee for both is $25 per year, and each category allows for up to 365 raffles.
Online ticket sales are not allowed.
Tickets must list the license number, organization name/address, ticket price, purchaser information, drawing date, and prize list for items over $1,000 (for Class A).
Check your state laws. Use our list above to determine whether you’re eligible to host a raffle and understand any additional steps you need to take to remain compliant.
Pick your raffle prize. Choose something unique, desirable, and compliant with your state’s requirements. Need inspiration? Check out these 15 raffle prize ideas!
Create raffle tickets. Use our free, printable raffle ticket templates to create custom tickets. Be sure to check your state’s requirements for tickets!
Choose an online raffle platform. If you’re able to sell tickets online, choose a platform like Donorbox Events that makes selling and managing tickets easy.
Spread the word. Post on social media, email your supporters, and ask your network to tell their friends about your raffle. Follow any guidelines your state has posted about advertising your raffle tickets.
Draw a winner! Make sure to draw your winner fairly, using a qualified online drawing tool or doing it the old-fashioned way – drawing out of a hat!
Over to You
We know that figuring out your state’s raffle laws may feel daunting. Trust us – you aren’t alone!
But with a little patience and the right resources, you can figure out the best, most legal way to conduct a raffle in your state.
Organizations from all over the country have used Donorbox Events to streamline event ticketing for raffles, galas, wine tastings, and more. Learn how to create your event and sign up to get started!
Disclaimer: This guide is for general informational purposes only and does not constitute legal advice. Raffle laws can vary widely and change frequently. Always consult your state’s gaming authority or a qualified attorney to ensure compliance before hosting a raffle in your U.S. state.
Fern is a journalist-turned-editor with 8 years of writing experience, now using that skill set to help nonprofits share their stories and connect with donors. Along with her editorial work, Fern volunteers with animal welfare organizations and has spent years fostering and rehabilitating rescue parrots.
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