Raffles can be a fun and effective way to raise money—but they’re also subject to specific rules and regulations. Here’s what you need to know before you get started.
Raffle FAQ
Are raffle tickets tax deductible?
No. The purchase of raffle tickets, regardless of whether or not the raffle is being held by a charitable organization, is considered by the IRS to be a form of gambling - not a charitable donation.
Are raffle tickets gambling?
Yes. Raffles are considered to be a form of gambling in the United States, and raffles are regulated at both the federal and state levels. See our list below for state-specific rules.
Can raffle tickets be mailed?
Generally, no. According to the U.S. Postal Service, raffles that involve a.) awarding a prize, b.) a chance-based winner selection, and c.) payment for the ticket (or offering the organization any other “consideration” in exchange) are considered “lotteries” and cannot be mailed.
However, if no payment or donation is required to enter the raffle, mailing the tickets may be allowed.
Can raffle tickets be sold online?
It depends on the state. Some allow online sales; others require special permits. Check the list below for rules in your state.
Not sure where to start?
Raffle Instructions for School and Nonprofit Auctions
At their core, raffles are simple: participants buy a ticket for a chance to win a prize or cash and a random drawing takes place to determine the winner.
But the rules surrounding how you run and sell those tickets can be surprisingly complex. It’s important for PTAs, booster clubs, and other charities to understand a few key points:
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In the U.S., raffles are regulated at the state level. The laws that apply are based on the physical location where the raffle is conducted—not where your nonprofit is registered or where your supporters live.
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Most states require a license. Many states mandate a license or registration to legally hold a charitable raffle. Some states offer exemptions for smaller raffles (which raise less than some defined amount).
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How you sell your raffle tickets matters. Most states distinguish between in-person ticket sales (where the seller can see the ticket buyer and verify their age) and online sales (where verification may not be possible).
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Online sales may trigger stricter rules. In some states, selling tickets online is classified as “online gambling,” and requires a separate license or may be prohibited entirely.
| State | Who is allowed | License/Registration | Key limits / notes | Online ticketing | Reporting / recordkeeping | Primary sources (official) |
|---|---|---|---|---|---|---|
| Alabama | N/A — lotteries prohibited (no charitable raffle authorization). | State constitution prohibits lotteries; paid raffles generally illegal unless a specific local constitutional amendment applies. | Not permitted. | law.justia.com | ||
| Alaska | “Qualified organization” with charitable gaming permit (AS 05.15). | State charitable gaming permit (Dept. of Revenue). | Permit required; charitable gaming chapter controls raffles and drawings; follow game‑specific rules. | Allowed in limited circumstances; see AS 05.15.640 and state guidance. | Yes — state forms/guidance. | tax.alaska.gov ; law.justia.com |
| Arizona | 501‑series tax‑exempt org meeting A.R.S. §13‑3302(B) conditions. | No state raffle license; must meet §13‑3302 conditions. | No paid staff to manage; no outside vendor for a fee; other conditions apply. | No explicit authorization for online ticket sales; follow §13‑3302 conditions. | Varies — see statute/regulator. | https://www.azleg.gov/ars/13/03302.htm ; gaming.az.gov |
| Arkansas | “Authorized organization” under Charitable Bingo & Raffles Enabling Act. | State license (Dept. of Finance & Administration). | Printed, pre‑numbered tickets; compliance with enabling act required. | Not permitted for fully electronic tickets; printed tickets required. | Yes — state reports/forms. | dfa.arkansas.gov ; law.justia.com |
| California | “Eligible organization” (Penal Code §320.5) — qualified, tax‑exempt nonprofit. | Annual registration with CA DOJ (Charitable Raffles Program). | At least 90% of gross receipts must be used for charitable purpose; advertising online is allowed, but online ticket sales are prohibited. | Online sales prohibited; online advertising permitted. | Yes — annual aggregate report to DOJ. | https://oag.ca.gov/charities/raffles ; codes.findlaw.com |
| Colorado | Nonprofit in existence ≥5 years prior to license (Bingo‑Raffles Law). | State bingo/raffles license (CO Secretary of State). | Eligibility duration; follow rules and game conduct standards. | Permitted with conditions for licensed orgs (see SOS FAQ). | Yes — periodic reports per license type. | sos.state.co.us ; sos.state.co.us |
| Connecticut | Eligible orgs listed in CGS §7‑172 (veterans, religious, civic, fraternal, educational/charitable, volunteer fire, political, municipal centennial committees). | Municipal raffle permit (local clerk). | Raffles are handled locally; state‑level permitting repealed. | No explicit statewide authorization for online sales; follow local rules. | Local (municipal) reporting as applicable. | portal.ct.gov ; law.justia.com |
| Delaware | Qualified charitable/fraternal/volunteer organizations (under Board of Charitable Gaming). | State charitable gaming permit (Board of Charitable Gaming). | Board will not approve online raffles or third‑party payers. | Not allowed (per Board guidance). | Yes — state forms. | dpr.delaware.gov ; regulations.delaware.gov |
| Florida | Organizations conducting “drawings by chance” under §849.0935, F.S. | No state license; must comply with §849.0935 requirements. | Strict disclosure and free‑entry requirements; prize restrictions apply. | Statute does not expressly authorize online sales; consult counsel and ensure compliance. | Varies — see statute. | leg.state.fl.us |
| Georgia | Nonprofit, tax‑exempt organizations (O.C.G.A. §16‑12‑22.1). | County sheriff permit required. | Local permitting; restrictions on prizes/frequency. | No explicit statewide authorization; consult county sheriff. | Local reporting (sheriff/licensing authority). | law.justia.com |
| Hawaii | N/A — gambling/lotteries prohibited; no charitable raffle exception. | Raffles treated as illegal lotteries. | Not permitted. | ag.hawaii.gov ; capitol.hawaii.gov | ||
| Idaho | Charitable/nonprofit organizations under Idaho Lottery oversight (ch. 67‑77). | State charitable gaming license (Idaho Lottery). | Charitable gaming code governs conduct, tickets, and records. | No clear authorization for web sales; confirm with regulator. | Yes — state forms. | idaholottery.com ; idaholottery.com |
| Illinois | Licensed organization under the Raffles and Poker Runs Act (230 ILCS 15). | Local raffle license. | Local ordinances implement the Act; requirements vary by jurisdiction. | Often not allowed by local rules; confirm with licensing authority. | Local reporting. | ilga.gov |
| Indiana | Qualified nonprofit/candidate’s committee under IC 4‑32.3 (charity gaming). | State charity gaming license (Indiana Gaming Commission). | Raffles are charity gaming; licensing tiers and rules apply. | Internet‑based sales not authorized; follow IGC rules. | Yes — IGC reports. | https://www.in.gov/igc/charity-gaming/ |
| Iowa | “Qualified organization” under Iowa Code ch. 99B. | Charitable gambling license (DIAL). | Raffle rules under 99B; multiple license types exist. | Electronic raffles allowed through licensed manufacturers/distributors (see DIAL). | Yes — state reporting. | dial.iowa.gov |
| Kansas | “Qualified charitable organization” under the Charitable Raffle Act. | Raffle registration (Dept. of Revenue). | Electronic devices may not be used to sell tickets; other limits apply. | Online/electronic ticketing not allowed (per statute). | Yes — per registration rules. | ksrevenue.gov ; ksrevisor.org |
| Kentucky | “Charitable organization” (KRS ch. 238). | State charitable gaming license (Dept. of Charitable Gaming). | Rules on who may sell, how tickets are printed/numbered, etc. | Permitted via licensed/approved electronic raffle systems (820 KAR 1:050). | Yes — DCG reporting. | https://dcg.ky.gov/Pages/index.aspx ; apps.legislature.ky.gov |
| Louisiana | “Charitable organizations” licensed by Office of Charitable Gaming. | State license (LA State Police – OCG). | Training and seller rules apply; member sellers only, etc. | No explicit authorization for web sales; printed tickets emphasized. | Yes — OCG reporting. | https://lsp.org/ocg/ ; ocg.louisiana.gov |
| Maine | “Eligible organization” under 17 M.R.S. §1837‑A. | Permit through Gambling Control Unit (as applicable). | Internet raffle operators and systems may be licensed. | Permitted via licensed Internet raffle operator/system (17 M.R.S. §1837‑B). | Yes — per GCU forms. | mainelegislature.org ; mainelegislature.org |
| Maryland | County‑regulated; typically 501(c) orgs per county rules. | Local permit (county/city). | Heavily county‑specific; state SOS lists local contact links. | Follow county rules; state does not set online standard. | Local reporting. | sos.maryland.gov |
| Massachusetts | Nonprofits with local raffle/bazaar permit (M.G.L. c.271 §7A). | Local permit via city/town. | AG guidance; local control for tickets and procedures. | Not expressly authorized statewide; local practice requires printed tickets. | Local reporting. | mass.gov |
| Michigan | Nonprofit orgs qualified by Charitable Gaming Division. | State raffle license (Charitable Gaming Division). | License required except narrow exemptions; printed tickets typical. | No explicit authorization for online ticket sales. | Yes — CGD forms and reports. | https://www.michigan.gov/cg/raffles |
| Minnesota | Licensed nonprofit organization under lawful gambling. | State license (MN Gambling Control Board). | Raffle is a lawful gambling activity; follow conduct standards. | Internet sales not allowed; online advertising permitted. | Yes — GCB reporting. | https://mn.gov/gcb/raffles/ |
| Mississippi | Licensed “charitable organization” under Charitable Bingo Law (raffles generally outside bingo statute). | Bingo license framework; raffles addressed separately in guidance. | Certain charitable raffles exempt from bingo law; see MGC materials. | No explicit authorization for online sales. | Varies — see regulator. | msgamingcommission.com |
| Missouri | Organizations recognized as charitable or religious (Mo. Const. art. III §39(f)). | No state raffle license; constitution/statute authorizes raffles. | Enabling statutes govern conduct; confirm with counsel/local authorities. | Not expressly addressed statewide. | Varies — see statute. | revisor.mo.gov |
| Montana | Nonprofit organizations (Gambling Control Division). | No state raffle license; online raffle registration (Form 46) required for internet sales. | Raffles are authorized gambling activity with specific rule requirements. | Permitted for online raffles if Form 46 filed first. | Yes — as required by GCD. | https://dojmt.gov/gaming/forms/ ; dojmt.gov |
| Nebraska | Nonprofit organizations under the Nebraska Lottery and Raffle Act. | State license (Dept. of Revenue – Charitable Gaming). | Online Lottery & Raffle permit enables web sales via org website. | Permitted with online lottery/raffle authorization. | Yes — Dept. of Revenue. | revenue.nebraska.gov ; revenue.nebraska.gov |
| Nevada | “Qualified organization” registered with Gaming Control Board (NRS ch. 462). | Registration/approval per NRS 462 and Regulation 4A. | Charitable lotteries/raffles allowed; compliance with Reg 4A. | Permitted with conditions; purchasers must be physically in Nevada. | Yes — per GCB rules. | law.justia.com ; gaming.nv.gov |
| New Hampshire | “Charitable organization” authorized under RSA 287‑A. | Municipal permit/notice (local control). | Printed tickets required; limited permit‑free events ≤12 hours. | Not expressly authorized; treat as in‑person unless local rules allow. | Local reporting. | law.justia.com |
| New Jersey | “Qualified organization” (LGCCC). | State registration (LGCCC) + municipal license. | State commission + municipal clerks oversee. | Online ticket sales not permitted (LGCCC guidance). | Yes — per LGCCC. | njconsumeraffairs.gov |
| New Mexico | Licensed organization under the Bingo & Raffle Act (NMAC Title 15, Ch. 4). | State license or exemption (Gaming Control Board). | Printed, consecutively numbered ticket rules apply. | Not expressly authorized for online. | Yes — GCB. | srca.nm.gov |
| New York | “Authorized organization” under Gen. Mun. Law Art. 9‑A. | Registration/approval with NYS Gaming Commission; local license. | Online sales allowed only via Commission approval process. | Permitted with prior Commission approval (Internet Raffle). | Yes — Commission forms. | https://gaming.ny.gov/raffles ; gaming.ny.gov |
| North Carolina | Nonprofit organization, candidate, political committee, or government entity (G.S. 14‑309.15). | No state license; must comply with statute. | Limits on number of raffles and prize values per year. | No explicit authorization for online sales (advertising permitted). | Varies — see statute. | ncleg.net |
| North Dakota | “Licensed organization” under NDCC ch. 53‑06.1 and NDAC 99‑01.3. | State charitable gaming license (AG – Gaming Division). | Detailed conduct rules; approvals required for certain changes. | Permitted with conditions; AG pre‑approval required for online systems. | Yes — AG reports. | attorneygeneral.nd.gov ; ndlegis.gov |
| Ohio | Organizations listed in ORC 2915.092(A) (e.g., 501(c)(3)/(4)/(6)/(7)/(8)/(10)/(19), schools). | No raffle license; must meet ORC 2915 requirements. | Raffles permitted if statutory conditions met; other 2915 rules apply. | No explicit authorization for online ticket sales. | Varies — see statute. | codes.ohio.gov ; charitable.ohioago.gov |
| Oklahoma | “Qualified organization” (e.g., church, accredited school, charitable/fraternal/religious/veteran orgs). | No state raffle license; follow statute and AG guidance. | AG 2024‑7 authorizes third‑party electronic raffle platforms for qualified orgs. | Permitted per AG 2024‑7 (conditions apply). | Varies — see AG guidance. | oklahoma.gov |
| Oregon | Qualified, tax‑exempt nonprofit organizations (Oregon DOJ). | State raffle license (DOJ). | Class A/B raffle licenses; alternative formats require DOJ approval. | Alternative/online formats require pre‑approval. | Yes — annual reporting. | doj.state.or.us |
| Pennsylvania | “Eligible organization” under Small Games of Chance (county license). | County treasurer license (Small Games of Chance). | Raffles are SGOC; special raffle permits available. | No explicit statewide authorization for online sales. | Yes — per county/state SGOC rules. | pa.gov |
| Rhode Island | Organizations licensed under R.I. Gen. Laws ch. 11‑19 (State Police). | Local police application; State Police review/approval. | Apply ≥60 days before event; $5 fee noted in guidance. | No express authorization for online sales. | Yes — per RISP. | https://risp.ri.gov/cgu ; webserver.rilegislature.gov |
| South Carolina | “Qualified nonprofit organization” (S.C. Code §33‑57‑120(A)). | Annual registration with SC SOS (unless exempt). | “Ticket” defined as tangible evidence; rules on internal 50/50 and sales. | Not authorized as pure online‑only raffles. | Yes — annual raffle financial report. | sos.sc.gov ; scstatehouse.gov |
| South Dakota | Nonprofit/charitable organizations (statewide/local notice required). | SOS notice and/or local approval depending on scope. | Raffles/bingo exempted from gambling prohibition; definitions in SDCL. | No statewide online authorization; follow local/notice rules. | Local/SOS reporting as applicable. | consumer.sd.gov ; sdsos.gov |
| Tennessee | Only 501(c)(3) or 501(c)(19) orgs approved for a single annual event. | Must apply to the Division; one approved event per year. | Unauthorized raffles are illegal; strict application windows. | Not expressly authorized for online sales. | Yes — post‑event reporting. | sos.tn.gov |
| Texas | “Qualified organization” under Charitable Raffle Enabling Act (Occ. Code ch. 2002). | No state raffle license; must meet CREA requirements. | Limits on number per year, advertising, prize types; two raffles/yr typical. | Online ticket sales not authorized; advertising allowed with limits. | Varies — see statute/AG. | statutes.capitol.texas.gov ; texasattorneygeneral.gov |
| Utah | N/A — gambling/lotteries prohibited; no charitable raffle authority. | Fundraising raffles generally illegal; limited social gaming exceptions unrelated to fundraising. | Not permitted. | le.utah.gov | ||
| Vermont | Nonprofit organization per 31 V.S.A. §1201(5) (13 V.S.A. §2143). | No state raffle license; follow Title 13, Ch. 51; local practice applies. | Frequency, prize, and compensation limitations in statute. | No express statewide authorization for online sales. | Reporting may apply at thresholds; see statute/Tax. | legislature.vermont.gov |
| Virginia | “Qualified organization” (Va. Code §18.2‑340.16 et seq.) under VDACS. | Permit or registration based on gross receipts thresholds. | Charitable gaming transitioned to VDACS; new rules/forms. | No explicit statewide authorization for online ticket sales. | Yes — annual reports (e.g., Form 101). | vdacs.virginia.gov ; law.lis.virginia.gov |
| Washington | Bona fide charitable/nonprofit organizations (RCW 9.46). | License required unless exempt (WSGC). | Exemptions for small raffles; enhanced raffles have special rules. | Standard raffles: no web sales. Enhanced raffles: in person/mail/fax/phone only. | Yes — if licensed. | https://wsgc.wa.gov/raffles ; wsgc.wa.gov |
| West Virginia | Charitable or public service organizations (licensed). | State raffle license (Tax Department). | 2021 law authorizes virtual raffles/bingo over the Internet with conditions. | Permitted with license and conditions (SB 263). | Yes — state reporting. | https://code.wvlegislature.gov/47-21-16/ ; code.wvlegislature.gov |
| Wisconsin | Qualified local organizations licensed under ch. 563. | State raffle license (Dept. of Administration). | Two license classes (A/B) with differing rules. | Electronic/internet sales allowed only with printed tickets and conditions; fully electronic raffles not permitted. | Yes — DOA reports. | docs.legis.wisconsin.gov ; doa.wi.gov |
| Wyoming | Nonprofit/charitable orgs (charitable raffles exempted under statute). | No state raffle license; charitable raffle exception. | 100% of proceeds (less giveaway expenses) must be used for charitable purpose per guidance. | No explicit statewide authorization for online sales. | Varies — see statute/regulator. | wyoleg.gov |
Raffles are a powerful fundraising option—as long as you follow the rules. Since every state has its own requirements and exceptions, doing a bit of homework upfront will save you headaches later. With the right prep, you’ll be set up for a smooth, successful event your community will love.
