Texas Raffle Laws: Legal Guidelines & Rules for Charity Raffles in Texas
Thinking about hosting a nonprofit raffle in Texas? Before you start selling tickets, make sure you understand these Texas raffle laws that could make or break your fundraiser.
Lydia Wohlgemuth
Thinking about hosting a nonprofit raffle in Texas? Before you start selling tickets, make sure you understand these Texas raffle laws that could make or break your fundraiser.
You might be surprised to learn that Texas, like many other states, has specific raffle laws governing how charity raffles can be run.
With all the rules and restrictions, it can feel a bit overwhelming to know where to begin.
That’s why we’ve created this simple, easy-to-follow guide to help you understand raffle laws in Texas, avoid common mistakes, and successfully host your next raffle.
Let’s get started!
Yes, raffles are legal in Texas, but only for certain organizations. While individuals and for-profit businesses aren’t allowed to host raffles, many qualifying tax-exempt nonprofits can.
If your nonprofit meets the state’s requirements, you’re allowed to hold up to four raffles per calendar year.
Because raffles involve the exchange of money for a chance to win prizes, they fall under gambling laws that require oversight to prevent fraud and keep the process transparent.
That means if your nonprofit wants to host a raffle in Texas, there are important rules you’ll need to follow.
These rules are outlined in the Charitable Raffle Enabling Act (CREA), which spells out who is eligible to hold a raffle and the rules you must follow.
Keep reading to discover the main CREA requirements you need to know.
To legally hold a raffle in Texas, your nonprofit must fit into one of these categories:
If your organization falls into one of these categories, you’re eligible to host a raffle! Now let’s walk through the steps to do it legally and successfully.
Ready to host a raffle in Texas? We’ll walk you through six steps to get your nonprofit to your drawing day!
While you don’t need to register or apply for a permit to host a raffle in Texas, your organization must be a qualified nonprofit.
See the section above to better understand which organizations may legally operate a raffle.
Once that’s confirmed, you’re ready to move forward with your raffle planning!
Now for the fun part: prizes! Just make sure your prizes follow Texas law.
According to CREA, cash prizes are strictly prohibited in Texas raffles. CREA defines “money” as coins, paper currency, or any negotiable instrument that can easily be converted into cash.
So checks, Venmo, and gift cards with cash value are all off-limits.
There are also prize value limits. Purchased prizes must not exceed $75,000, and if you’re raffling off a residential property, its purchase value can’t exceed $250,000.
To stay compliant, stick with tangible raffle prizes like gift baskets, experiences, or items donated by local businesses.
Since there’s no cash involved and CREA places no limits on the value of donated prizes, it’s a win for both your fundraiser and your budget!
Another rule to note, your nonprofit must already own or possess the prize at the time of the raffle drawing. If you don’t have the prize yet, you’re required to post a bond with the county clerk in the county where the raffle is being held.
Once your raffle is confirmed, it’s time to design your tickets, and Texas law has a few details to include on your tickets to keep your raffle legal.
Each ticket must clearly list:
Need help designing your raffle ticket? Check out our blog on free raffle ticket templates for nonprofits!
Now it’s time to invite potential donors to your event. Every raffle needs winners, after all!
But before you dive into social media ads or public promotions, it’s important to know that CREA sets clear limits on how raffles can be advertised.
You’re not allowed to advertise statewide unless it’s through your nonprofit’s own website or in communications that go directly to your existing supporters – like newsletters, emails, or social media posts meant for your donor base.
While this can make spreading the word a bit more challenging, there are still plenty of creative ways to promote your raffle.
Make the most of what’s allowed by using your website, sharing handouts in person at events, and sending personalized email invitations to your supporters.
In addition to limiting how you promote your raffle, Texas law also places restrictions on how you can sell tickets.
Nonprofits are not allowed to sell raffle tickets online, so you’ll need to get creative with in-person options.
Try selling tickets at your next fundraising event or community gathering. Alternatively, partner with a local business willing to help you spread the word and collect sales.
Also keep in mind: all the money raised from your raffle needs to go directly toward supporting your nonprofit’s charitable goals. This ensures your fundraiser truly benefits the mission you’re passionate about.
Now for the big moment: giving away your prizes! Before your raffle drawing, make sure your nonprofit already owns or has possession of the prize.
If you don’t have the prize yet, Texas law requires you to post a bond with the county clerk in the county where the raffle is being held.
We all stumble on misinformation from time to time, so let’s set the record straight on some common assumptions nonprofits make about raffle rules in Texas.
It’s a common assumption, but in Texas, nonprofits are not allowed to sell raffle tickets online. Raffle ticket laws in Texas require all ticket sales to happen in person.
But there are still plenty of fun and effective ways to spread the word face to face! Sometimes, those personal connections go even further than a click online.
Not quite. Texas law prohibits nonprofits from giving out cash prizes for raffles.
Instead, focus on physical raffle prizes. Whether donated or purchased (within the allowed limits), creative non-cash items can still generate excitement and support your cause!
Actually, there is! In Texas, qualified nonprofits can only hold up to four raffles per calendar year.
Be strategic! Plan your raffles around key events or seasons to maximize participation and impact.
We hope this breakdown of Texas state raffle laws gives you the clarity and confidence to host a successful raffle for your nonprofit.
To make planning even easier, Donorbox Events can help you streamline your next fundraiser by managing event ticket sales and keeping donor information organized in one place. Then, use Donorbox Live™ Kiosk to collect cashless payments for in-person raffle ticket sales.
Sign up for free today and start using Donorbox’s full suite of online fundraising features to support your mission.
Yes, raffles are legal in Texas for qualified nonprofits that meet specific eligibility requirements. The organization must fit into one of the approved categories outlined in the Charitable Raffle Enabling Act (CREA).
To legally hold a raffle in Texas, your nonprofit must be eligible under the CREA and follow all state guidelines on prizes, ticket sales, and promotion. This includes limits on the number of raffles per year, restrictions on cash prizes, and proper prize ownership.
No, nonprofits may not sell raffle tickets online in Texas. All ticket sales must take place in person to comply with state law.
With a background in professional writing, Lydia has over five years in nonprofit communications under her belt. Lydia’s passion for supporting nonprofits sparked during her college internships with global mission organizations, where she gained valuable insights into fundraising marketing strategies. These experiences have continued to fuel her dedication to empowering nonprofits through her writing.
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