State Regulations Governing Fundraising Raffles
Fundraising raffles are legal and effective for most types of nonprofit organizations. However, care must be taken to ensure that the raffle is conducted in accordance with all applicable raffle laws and regulations.
Raffles are considered a game of chance. Thus, selling and purchasing raffle tickets is a gambling activity—even for charitable purposes. In the United States, the laws regulating raffles and raffle ticket sales are administered by state and county governments. For the states in which nonprofit raffles are legal, charitable organizations must obtain a raffle permit or raffle license.
There’s a huge variance in the legality and legal requirements for raffles across the United States. Some states allow in-person fundraising raffles but not online charity raffles, and in several states, raffles of any kind are completely illegal.
What is a Legal Alternative to a Raffle?
Charity sweepstakes are legal in almost all 50 states. They are not considered gambling because participants aren’t required to pay an entry fee. Read Charity Sweepstakes or Raffles for more details.
Can Your Charitable Organization Legally Run a Raffle?
Below is a list of links to regulations and laws that govern raffles in each state. Please use it to begin your research and make sure that your raffle drawing is in accordance with your local raffle laws.
Which States Prohibit Raffles?
In most states, qualifying nonprofits can legally run a raffle with the appropriate permit or license. However, three states stand apart:
- Alabama — Raffles are considered illegal lotteries under state law, with no exceptions for nonprofits.
- Hawaii — Raffles are prohibited unless participation is entirely free; paid-ticket raffles are not permitted.
- Utah — Paid-ticket raffles are prohibited. Nonprofits may only conduct a raffle if a clearly advertised free entry option is offered.
In all other states, raffles are legal for qualifying nonprofits, though licensing requirements, permit fees, and eligibility rules vary significantly. Use the state links below to research the specific requirements in your state.
Raffle Laws and Regulations by State
Critical Points to Understand
- Nonprofit raffles may only be run by qualified organizations. Raffles to benefit personal causes are not allowed on Eventgroove Fundraising under any circumstances.
- Nonprofit organizations running fundraiser raffles are regulated by their state and, in some cases, local laws, and therefore are fully responsible for complete legal compliance. The organization must directly consult their state and locality’s specific rules, laws, and regulations.
- We strongly advise seeking guidance from legal counsel and your state attorney general’s office if you are unsure of your area’s raffle regulations.
- The kind of raffle you run may be affected by different laws. Some states may allow in-person raffles but not online raffles, while other prohibit 50/50 raffles.
All Terms of Use, including the roles and responsibilities of all parties, are defined in Eventgroove’s Terms of Use.
We are happy to help you choose what type of fundraiser is best, and even help you set it up. However, we cannot provide legal advice, and strongly recommend speaking to a lawyer if you are unsure about the regulations in your area.
For more raffle information, read What is a 50/50 Raffle? and How to Price Raffle Tickets.
Run an Online Raffle Today
Does your organization check all the legal boxes for raffle laws? Launch your raffle fundraiser now!
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