Important Disclaimer

This guide is for general educational information only and is not legal or tax advice. Raffle and charitable-gaming rules can change, and some states delegate important details to counties, cities or other local authorities. A nonprofit should verify the current rules that apply to its organization and campaign before selling tickets or accepting paid entries. For organization-specific legal or tax questions, consult a qualified professional.

Quick Answer: Are Raffles Legal in the U.S.?

Yes, charitable raffles are allowed in many states, but the answer is not a simple national yes or no. Raffles are generally regulated as a form of charitable gaming, and each state sets its own eligibility and operating rules. Some states require a license or local permit, some provide limited exemptions, and some impose strict rules on paper tickets, physical drawings, online sales, prize values or how proceeds must be used.

The safest way to use this hub is to identify the state, review the short summary, then open the dedicated state guide or official regulator source before launch. The state pages are where the deeper legal details, application steps and government citations should live.

Key Terms and Definitions

501(c)(3) – A federal tax-exempt status commonly held by charitable organizations. It can help establish eligibility, but it is not a universal raffle license and not every state limits eligibility to 501(c)(3) organizations.

EIN – An Employer Identification Number issued by the IRS.

Raffle permit or license – Government authorization that may be required before a qualifying organization conducts a raffle.

Form W-2G – The federal information return used for certain gambling winnings.

2026 W-2G threshold – For payments made in 2026, the applicable information-reporting threshold for this category of gambling winnings is $2,000. Raffles and similar drawings also use the applicable 300-times-the-wager test.

Federal withholding – Certain larger gambling winnings can be subject to federal withholding. The regular rate is 24% under current IRS guidance.

Form 945 – The annual federal return generally used to report withheld federal income tax from gambling winnings. Earlier drafts that referenced Form 941 for raffle withholding should not be used.

Fair market value – The market value of a prize, including donated noncash prizes.

Schedule G – A schedule used with Form 990 or Form 990-EZ for certain fundraising and gaming activities.

Consideration – Something of value given to participate. In many lottery analyses, prize + chance + consideration are the core elements.

Quick Lookup Table: All 50 States

Use this table to quickly find your state's basic information. Full details for each state appear in the Complete State-by-State Breakdown section below.

IMPORTANT: After using this table, you MUST contact your state's regulatory agency directly to verify current requirements before proceeding with your raffle.

The important point is not to determine which category your raffle belongs to based on a general article. Confirm it directly with the authority responsible for charitable gaming where your organization operates.

Who Can Run a Nonprofit Raffle?

Eligibility is state-specific. A 501(c)(3) determination letter may be useful, but it should not be presented as a universal requirement or as automatic permission to run a raffle.

• Charitable and religious organizations are commonly eligible, but the exact categories differ by state.
• Some states also include veterans, fraternal, civic, educational, service, or other nonprofit organizations.
• Some jurisdictions require a minimum operating history before an organization can qualify.
• Local registration or charitable-solicitation compliance may be separate from a raffle license.
• Some states restrict who may sell tickets or manage the raffle, which can affect whether an outside fundraising platform can be used.

Federal Tax Rules for Raffles in 2026

State raffle permission and federal tax reporting are separate. A raffle can be lawful under state law and still create federal reporting or withholding duties.

Form W-2G Reporting

For payments made in 2026, the federal information-reporting threshold for the applicable category of gambling winnings is $2,000. For raffles and similar drawings, the winnings must also satisfy the applicable 300-times-the-wager test. Because federal thresholds can change, the current IRS instructions should control.

Official IRS reference: Instructions for Forms W-2G and 5754

Federal Withholding

Certain larger raffle winnings can be subject to federal income tax withholding. The regular withholding rate is 24% under current IRS guidance. For noncash prizes, fair market value matters. Gambling withholding is generally reported on Form 945, not Form 941.

Official IRS reference: About Form 945

Raffle Tickets and Tax Deductibility

A raffle ticket purchase generally is not treated as a charitable contribution because the buyer receives a chance to win something in exchange for the payment. Keep ticket purchases separate from true donations in donor communications and receipts.

Official IRS reference: Publication 526, Charitable Contributions

Form 990 and Schedule G

Schedule G Part III generally becomes relevant when an organization reports more than $15,000 of gross income from gaming activities on the applicable Form 990 or Form 990-EZ line. Organizations should use the current Schedule G instructions and tax advice appropriate to their filing situation.

Raffle vs. Sweepstakes vs. Lottery

These terms should not be used interchangeably. A traditional raffle usually combines a prize, chance and consideration. State charitable-gaming laws can create exceptions that allow qualifying nonprofits to conduct raffles under defined conditions.

A sweepstakes is commonly structured without required consideration, but removing a purchase requirement does not automatically make every promotion lawful in every state. Advertising, alternative-entry methods, eligibility, age restrictions and other rules can still apply. For that reason, the hub should not describe a free-entry drawing as a universal workaround.

Online Raffle Ticket Sales

Online ticket sales are one of the areas most likely to be oversimplified. A state may permit charitable raffles but still require paper tickets, a physical stub, local approval, specific payment methods, age controls, geolocation or a member-only sales model.

• California: Internet ticket sales are prohibited under the charitable-raffle statute.
• Illinois: There is no single statewide answer. The licensing authority matters, and local practice can differ.
• Massachusetts: Current Attorney General guidance says there is no law authorizing Internet raffle ticket sales.
• Michigan: Current raffle law is built around a physical ticket stub drawn from a container; a prior online-raffle bill did not become law.
• New York: Online sales have a statutory path, but the requirements are demanding, including age-verification and geolocation controls.
• North Carolina: The statute is silent on online sales and no authoritative published answer was identified in the reviewer research.
• Ohio: The current definition requires a physical ticket-stub draw; a bill to authorize online raffles was still pending in the supplied research.
• Pennsylvania: Paper stubs and current payment rules block a fully online raffle; pending legislation could change this.
• Texas: The statute and Attorney General guidance make a public online storefront impractical under the current framework.
• Virginia: The physical-stub requirement limits a fully digital raffle model.
• Washington: The three raffle frameworks do not provide a general self-serve online ticket-sales path.

Do You Need a Permit or License?

There is no reliable national shortcut. Some states use state licenses, some use county or municipal permits, some have exemptions for smaller activities, and a few regulate qualifying raffles without a traditional license. The state page should give the exact authority, threshold and application rule rather than relying on a national count such as '40 states require a permit.'

State-by-State Raffle Rules

The following sections keep the hub concise. The 15 states below include the reviewer-supplied fact-checked details. Other states are summarized cautiously and should link to a dedicated state page as those briefs are completed.

Alabama

Alabama generally does not allow nonprofits to run paid raffles. The state does not have a general license or permit that nonprofits can obtain to legally conduct a raffle, and a paid raffle is generally treated as an illegal lottery under the Alabama Constitution's lottery provision and Alabama Code 13A-12-20. Alabama has local constitutional amendments that allow certain types of bingo in specific jurisdictions, but those provisions should not be understood as permission to run a typical raffle. 

There is also no general authorization for nonprofits to sell paid raffle tickets either online or in person, so organizations should not use raffle software to sell paid raffle tickets unless they have confirmed that a specific legal exception or authorization applies.

Alaska

Alaska allows eligible nonprofits and municipalities to conduct raffles with a charitable gaming permit from the Alaska Department of Revenue. Eligible permit holders may also sell raffle tickets online, provided purchasers confirm they are of legal purchasing age and are not located in an area that prohibits charitable gaming. 

The raffle must be conducted in Alaska, the winner must be determined in Alaska, and the maximum number of available tickets must be stated, although it may be advertised as unlimited. Local communities may also prohibit charitable gaming. Organizations using online raffle software should ensure their platform and sales process comply with the Alaska charitable gaming requirements and the conditions of their permit.

Arizona

Arizona does not have a general state license that nonprofits can apply for to run a raffle. Instead, the raffle must fit within one of the exceptions in Arizona's raffle law. For the main nonprofit exception, the organization generally must be federally tax-exempt, have operated continuously in Arizona for at least one year, and have its local members handle the raffle, including its management and ticket sales. 

Some organizations, including certain hospitals, child-abuse charities, historical societies, clubs, and universities, may qualify under different rules. Arizona's law does not specifically address online raffle ticket sales, so it is better to check that your proposed online raffle platform and sales process comply with the local-member requirements before selling tickets. The Arizona Department of Gaming and Arizona Attorney General guidance can provide additional information. 

Arkansas

Arkansas allows qualifying nonprofits to run raffles with a license from the Arkansas Department of Finance and Administration. Eligible organizations generally include certain tax-exempt nonprofits that have operated continuously in Arkansas for at least five years, and both annual and temporary raffle licenses are available. 

For ordinary charitable raffles, tickets can be sold at the organization's authorized premises or elsewhere by unpaid volunteers, but ticket sales cannot be made online, by email, telephone, mail, fax, or other electronic methods. Organizations may still advertise their raffles online through their website and specified social media accounts. 

A separate exception applies to qualifying higher education institutions and certain affiliated nonprofits conducting sports raffles, which may use an online platform or software application under the Arkansas Sports Raffle Act. Because that exception does not generally apply to other nonprofits, it is better to check that your raffle qualifies under the Sports Raffle Act before using online raffle software. The Arkansas raffle requirements and Arkansas' sports-raffle legislation provide the applicable rules. 

California

California allows eligible private nonprofit organizations to conduct raffles under California Penal Code 320.5. To qualify, the organization generally must have been eligible to conduct business in California for at least one year and hold an eligible California tax exemption. 

Unless an exemption applies, the organization must also register with the California Attorney General before beginning any raffle activity, including selling tickets. For ordinary nonprofit raffles, tickets must be paper tickets with matching detachable stubs, and the winner must be drawn from those stubs at a drawing held in California under adult supervision. 

At least 90% of gross raffle receipts must be used for beneficial or charitable purposes in California; this does not mean that 90% must be given away as prizes. Raffles also cannot be operated or conducted over the internet, and tickets cannot be sold, traded, or redeemed online, although the raffle may be advertised online. 

A separate law covers certain major league sports raffles, but it does not create a general exception for other nonprofits. For ordinary nonprofit raffles, it is therefore better to use online platforms for advertising only, not for selling tickets, issuing digital raffle tickets, or conducting the drawing. The California Attorney General's raffle guidance provides additional information. 

Colorado

Colorado allows qualifying nonprofit organizations to conduct raffles with a bingo-raffle license issued by the Secretary of State. Generally, an organization must meet an eligible nonprofit category, have operated continuously for at least five years, and use the raffle’s net proceeds for lawful purposes. A license is required for all raffle activities, regardless of the ticket price or size of the raffle. 

Licensed organizations may sell raffle tickets online using credit or debit cards. All ticket-sale proceeds must go directly into the organization’s dedicated bingo-raffle account. Organizations must also document how their online system issues, delivers, and tracks raffle tickets. 

Online ticket sales are allowed for licensed organizations, but the Secretary of State requires organizations to provide a raffle plan and screenshots showing the complete purchaser journey. Organizations should contact the Secretary of State before launching online ticket sales to confirm that their proposed platform, ticketing process, and payment method comply with the requirements. The raffle FAQs provide further guidance, while the license application page explains the application process.

Connecticut

Connecticut allows qualifying nonprofit organizations to conduct raffles with a permit issued by the municipality. Since October 1, 2023, every Connecticut town, city, and borough is considered to have adopted the state’s bazaar and raffle provisions, although a municipality may choose to opt out. Organizations should therefore confirm the current local rules before applying. Municipalities issue permits, enforce the requirements, and receive post-event reports. 

A permitted organization may accept raffle payments by credit card, debit card, check, or cash. The law also allows most sponsoring organizations to sell or promote raffle tickets on the sponsoring organization’s own website. However, it states that an organization must not conduct or operate an online raffle. 

Connecticut allows ticket sales through the sponsoring organization’s website but prohibits conducting or operating an online raffle. The distinction is not clearly explained in the statute. Because of this, organizations should confirm with the municipality issuing the permit whether the proposed platform, payment process, and drawing method comply before selling tickets. The Connecticut Department of Consumer Protection also provides guidance for organizations and municipal officials on bingo, bazaars, and raffles.

Delaware

Delaware permits volunteer fire companies, veterans’ organizations, religious or charitable organizations, and fraternal societies to conduct raffles under the state’s raffle requirements. The organization must generally have existed for at least two years, be recognized by the IRS as a qualifying charitable organization, and use the net profits for its organizational purposes.

A permit from the Delaware Board of Charitable Gaming is required if a single-drawing ticket costs more than $5, a ticket for a series of drawings costs more than $15, or the total retail value of the prizes is $5,000 or more. The permit must be received before the organization advertises the raffle or sells tickets. Smaller raffles conducted by qualified organizations may fall outside the permit requirement, subject to the state’s raffle laws and gaming regulations.

Delaware’s raffle statute and published regulations do not clearly state whether online raffle-ticket sales are permitted. Do not assume that online sales are allowed. Organizations should confirm the proposed platform, payment process, and ticketing method with the Board of Charitable Gaming before advertising or selling tickets online. The Board’s raffle FAQs can also be used when confirming the requirements.

Florida

Florida allows qualifying tax-exempt organizations to conduct “drawings by chance” under Florida’s raffle requirements. Eligible organizations generally include those exempt under specified parts of Section 501(c) of the Internal Revenue Code and holding a current IRS determination letter. They must also comply with applicable charitable solicitation requirements.

Florida does not allow standard paid-entry raffles. Organizations may suggest a minimum donation, but cannot require payment, a donation, proof of purchase, or a contribution to enter or win. Non-contributors must have the same chances as contributors. The drawing cannot depend on receiving a minimum number of entries or contributions, and all advertised prizes must be awarded.

Prizes must be secured or fully funded before entries open and cannot be purchased using incoming donations. Promotional materials and entry forms must include required disclosures, including the rules, organization details, prize-funding source, drawing details, and a statement that no purchase or contribution is necessary.

Online entries are not expressly prohibited, but the platform must provide a genuine free-entry option and cannot give contributors better treatment or additional chances. A platform requiring payment to enter should not be used. Confirm the proposed entry, donation, and drawing process complies before launching, using Florida’s guidance for organizations conducting drawings by chance.

Georgia

Georgia allows qualifying nonprofit, tax-exempt organizations to conduct raffles. The organization must obtain a license from the sheriff of the county where it is located before operating a raffle. It must generally have existed for at least 24 months, and the license expires at the end of the calendar year. 

Raffles may only be held on property owned or regularly used by the organization, or on property leased from another nonprofit, tax-exempt organization. The organization must also run the raffle itself—it cannot hire another person or business to operate it, and consulting fees for conducting the raffle are prohibited. 

Georgia’s rules do not expressly address online ticket sales. Because they include requirements about where the raffle is operated and who operates it, it is unclear which parts can be handled online. Before using an online platform, confirm the proposed ticket-sale, payment, and drawing process with the licensing sheriff. 

Hawaii

Hawaii does not provide a general exception for nonprofits to run paid raffles. If participants pay for a chance to win, the activity falls within the state’s definition of a lottery and is subject to Hawaii’s gambling prohibitions. Using the proceeds for charitable purposes does not create an exemption under the state’s gambling laws.

A genuinely free prize drawing may fall outside these rules because participants are not required to give anything of value to enter. The state’s lottery provisions and related gambling provisions should be considered when determining whether a promotion qualifies as a free drawing.

Online software should not be used to sell entries for a paid raffle in Hawaii. If an organization is considering a free prize drawing, it should ensure that entry is genuinely free and that the promotion complies with any other applicable requirements. A legislative discussion of Hawaii’s raffle and lottery rules also addresses these restrictions.

Idaho

Idaho allows qualifying charitable and nonprofit organizations to conduct raffles. The organization must generally have operated in the county where it plans to hold the raffle for at least one year. A charitable gaming license is required when the total fair-market value of merchandise prizes exceeds $5,000, although organizations without a license must still follow Idaho’s raffle rules.

Organizations are generally limited to 12 raffle events per year, with a maximum cash prize of $1,000. At least 80% of net raffle proceeds must go to a qualifying organization for a charitable purpose, while no more than 20% may be used to cover raffle expenses. Different limits may apply to qualifying schools and duck races. The Idaho Lottery’s charitable gaming guidance outlines these requirements.

Idaho law does not specifically prohibit or authorize selling raffle tickets online. Idaho Lottery guidance and FAQs recommend getting legal advice because federal laws and the laws of states where purchasers are located may also apply. An Idaho license should not be assumed to allow ticket sales across the United States.

Illinois

Illinois allows eligible nonprofit organizations to conduct raffles with a local license. Organizations generally must have operated continuously for at least five years. The license comes from the municipality where the winning ticket will be drawn, or from the county if the drawing location is outside a municipality.

Local authorities set the raffle’s ticket prices, prize limits, sales period and other conditions. A license may allow tickets to be sold throughout Illinois.

Illinois law does not clearly allow or prohibit online raffle ticket sales. Rules can vary by location, and Kane County prohibits online sales. Before using an online platform, confirm that the licensing authority allows the proposed ticket sales, payment process and drawing method under its raffle rules.

Indiana

Indiana allows qualified nonprofit organizations to conduct raffles under the oversight of the Indiana Gaming Commission. Organizations generally must have operated continuously in Indiana for at least five years, although exceptions apply. Most raffles require an activity license, while smaller occasional raffles may qualify for an Exempt Activity Notification if prizes are no more than $2,500 per event and $7,500 in total annual prizes.

Indiana allows raffle chances to be purchased online by credit card, but any electronic system, web application, or process used to offer or manage raffle chances must be approved by the Gaming Commission. The system must verify that buyers are at least 18 and physically located in Indiana and block purchases from outside the state. Winners must also be selected at a live, in-person event. Organizations should confirm that their specific platform and process have Commission approval before selling tickets online, based on the Commission’s charity gaming rules and requirements.

The Indiana Gaming Commission provides charity gaming guidance and the state’s current gaming laws for organizations planning a raffle.

Iowa

Iowa allows eligible nonprofit organizations to run raffles under charitable gambling licenses issued by the Department of Inspections, Appeals, and Licensing. A qualifying organization can hold one small raffle per calendar year without a license, as long as it meets the legal requirements. Raffles that are larger or held more often require the appropriate charitable gambling license.

Organizations that want to run electronic raffles generally need a two-year qualified organization license. This usually means the organization has been operating for at least five years, although some local branches of national organizations may have different eligibility requirements.

Iowa does not allow organizations to use any online raffle platform they choose. Electronic raffle systems must be supplied by a manufacturer or distributor licensed by the department. Credit cards cannot be used to buy raffle entries, although debit cards and certain other payment methods may be accepted. Electronic raffles must also follow the drawing process required by Iowa law. Before launching an electronic raffle, confirm that the software provider, payment method, and drawing process meet Iowa’s requirements.

Kansas

Kansas allows eligible nonprofit religious, charitable, fraternal, educational, and veterans’ organizations to hold raffles. A state license is not needed if the organization’s total raffle income stays at or below $25,000 during the July–June fiscal year. If the organization expects to go over that amount, it must get a license from the Kansas Department of Revenue before selling tickets. These requirements are covered in the state’s charitable gaming rules.

Kansas allows raffle tickets to be sold online as long as the other raffle requirements are followed. However, the organization cannot hire a professional raffle or lottery company to run or manage the raffle. The nonprofit must remain responsible for conducting the raffle itself. Before selling tickets online, confirm with the Department of Revenue that the proposed platform and its role do not conflict with this restriction. The applicable Kansas raffle law also sets out the relevant requirements.

Kentucky

Kentucky allows eligible charitable organizations to conduct raffles. Organizations generally need a charitable gaming license. However, organizations with $25,000 or less in total charitable gaming receipts per year may qualify for exempt status. Exempt organizations must notify the Office of Charitable Gaming and submit an annual financial report, but they do not have to pay the license fee or submit quarterly reports. These requirements are covered by Kentucky’s charitable gaming rules and state law.

Kentucky allows raffle tickets to be sold online through an approved electronic raffle system. The system must come from a Kentucky-licensed distributor, use software from a licensed manufacturer, pass independent testing, and receive approval for use in Kentucky. A raffle must use either paper tickets or an electronic system for the entire raffle—the two cannot be combined. Before using an online platform, confirm that both the provider and system have the required Kentucky approvals.

Louisiana

Louisiana allows eligible charitable organizations to conduct raffles under the oversight of the Office of Charitable Gaming. A state charitable gaming license is generally required, and the relevant municipality or parish must allow charitable raffles in the area. Local licensing may also be required. Organizations holding a single raffle with prizes worth $10,000 or less may qualify for a limited raffle license. Certain organizations and raffle purposes may also qualify for statutory exemptions under Louisiana’s charitable gaming laws.

All net raffle proceeds must be used for educational, charitable, patriotic, religious, or public-spirited purposes. Licensed raffles generally must also be run by members of the organization, rather than outside operators. These requirements are addressed in the state’s raffle provisions.

Louisiana’s published rules do not clearly establish a general process for selling raffle tickets online. Requirements around member-operated raffles, designated responsible members, and local approval also make the use of third-party platforms uncertain. Before selling tickets online, confirm the complete ticket-sale, payment, and drawing process with the Office of Charitable Gaming and the relevant municipality or parish.

Maine

Maine allows eligible nonprofit charitable, educational, civic, fraternal, patriotic, and religious organizations to conduct raffles. A raffle generally does not need to be registered if the total prize value is $10,000 or less. Raffles with higher-value prizes are subject to registration and prize limits under Maine’s charitable gaming rules.

Maine allows regulated Internet raffles, but specific requirements apply. The raffle must be registered, operated through a licensed Internet raffle operator, and use an approved or certified raffle system. Buyers must be 18 or older and physically located in Maine, and credit cards cannot be used. An Internet raffle operator may receive up to 10% of the raffle proceeds for operating the raffle. The relevant Internet raffle requirements set out these conditions.

Maine also permits an approved payment management system to process online payments for certain raffles that do not qualify as Internet raffles. This option has its own requirements for age verification, location, system approval, and record-keeping. Organizations should confirm with the Gambling Control Unit which type of online raffle applies and whether the proposed platform is approved.

Maryland

Maryland generally regulates nonprofit raffles at the county or Baltimore City level, rather than through one statewide raffle license. Local rules determine which organizations can run raffles, whether a permit is needed, and how the raffle must be conducted. In some cases, a permit may be required both where the drawing takes place and where tickets are sold, even if those locations are in different counties.

A separate set of state requirements applies when an organization raffles real estate. In that situation, the organization must file a disclosure statement with the Maryland Secretary of State before advertising or conducting the raffle.

Maryland does not have one statewide rule that clearly permits or prohibits online raffle-ticket sales. Requirements can vary by county, and the limited electronic-sales provisions in state law apply only to certain professional sports raffles. Before selling tickets online, confirm the applicable local raffle rules with every county or Baltimore City jurisdiction where tickets will be offered or sold.

Massachusetts

Massachusetts allows certain veterans’, religious, fraternal, educational, charitable, civic, and other nonprofit organizations to conduct raffles. Organizations generally must have operated as a Massachusetts nonprofit for at least two years and obtain a permit from the city or town clerk where the drawing will take place. Raffles must be run by unpaid, qualified members of the organization under the state’s raffle rules.

After each raffle, the organization must file a return within 10 days and pay 5% of gross proceeds as tax. Additional ticketing and record-keeping requirements apply when tickets cost more than $10 or prizes are worth more than $10,000 under the state’s raffle regulations.

Massachusetts does not specifically authorize online raffle-ticket sales, and the seller and purchaser must sign the ticket. Do not use standard self-service online raffle sales without legal advice confirming that the process complies with Massachusetts law. See the applicable raffle law.

Michigan

Michigan licenses raffles through the Charitable Gaming Division under the Bingo Act.

The law defines a raffle around a physical ticket stub randomly drawn from a container. Small and large raffle licenses are distinguished by prize value, with a narrow no-license exception for a small single gathering with no advance sales.

A 2020 bill that would have authorized online raffles did not become law in the supplied research.

Practical takeaway: treat Michigan as a physical stub-and-container raffle state unless the law changes.

Official reference: Michigan Charitable Gaming: Raffles

Minnesota

Minnesota allows registered nonprofits to conduct raffles under the state’s raffle rules. A raffle generally does not need a state license if the total annual prize value is under $1,500. A 501(c)(3) organization may instead hold one raffle with prizes of up to $5,000. Other raffles generally require an exempt permit or gambling license, and local rules may also apply.

An organization generally cannot conduct both excluded and exempt gambling in the same calendar year, so organizations planning multiple raffles should choose the appropriate route before their first event.

Minnesota does not allow raffle ticket sales online. Raffles may be advertised online, but tickets cannot be sold over the internet under the state’s gambling rules.

Mississippi

Mississippi allows raffles conducted by and benefiting qualifying nonprofit civic, educational, wildlife conservation, and religious organizations. All proceeds must go to the nonprofit under the state’s raffle rules.

Using online raffle software: Mississippi does not clearly state whether raffle tickets can be sold online. Before using an online platform, confirm the proposed ticket sales, payment, and drawing process with the Mississippi Gaming Commission’s Enforcement Division. The Commission’s guidance can help clarify the requirements.

Missouri

Missouri allows organizations recognized as charitable or religious under federal law to sponsor raffles and sweepstakes under Missouri’s constitutional provisions. The state’s gambling law also excludes constitutionally authorized activities from its general gambling prohibition. The sources reviewed do not set a specific state license, prize limit, or ticket-selling process for raffles.

Missouri’s gambling law does not specifically address online raffle sales or third-party platforms. This should not be assumed to mean online raffles are permitted. Confirm the proposed online ticket-sales and drawing process before launching.

Montana

Montana allows nonprofit organizations to conduct raffles. Raffle money may only be used for charitable purposes or prizes—not to cover the costs of running the raffle. Qualifying nonprofits are also not subject to the usual rules requiring prizes to be owned before ticket sales or limiting an individual prize to $5,000. Organizations must publish the raffle rules before selling tickets and keep required records for 12 months after the drawing.

Montana allows nonprofits to sell raffle tickets online, including by credit card, after completing the Department of Justice’s one-time online raffle registration. Tickets may also be sold to people outside Montana when the purchase is legal where the buyer is located. Organizations can review the online raffle registration requirements and gaming FAQs before launching.

Nebraska

Nebraska allows qualifying nonprofit organizations to conduct raffles. Raffles generating $15,000 or less in gross proceeds can generally operate without a state license under the Small Lottery and Raffle Act. Raffles exceeding that amount require a license from the Department of Revenue and must follow additional raffle requirements, including rules on prizes, expenses, reporting, and taxes.

Licensed organizations may sell raffle tickets through their own website and accept debit cards, but credit cards are not authorized. Nebraska still requires a physical-ticket process: online buyers receive a scanned ticket stub, while the winner is selected from the corresponding physical tickets. Make sure the raffle system requirements are supported by the platform before selling tickets online.

Nevada

Nevada allows qualifying charitable, civic, educational, religious, and other nonprofit organizations to conduct raffles as charitable lotteries. The organization must register with the Nevada Gaming Control Board before operating. Organizations offering less than $100,000 in prizes per calendar year can use the annual registration process. Total prizes are generally capped at $500,000 per year, buyers must be 18 or older, and net proceeds must support charitable or nonprofit activities in Nevada under the state’s charitable lottery rules.

Online ticket sales require approval from the Chair of the Gaming Control Board. Buyers must be physically located in Nevada when purchasing tickets. The registration must explain the proposed platform, sales process, audit controls, and participating vendors. A vendor may charge no more than 8% of gross proceeds. Organizations can review the Board’s registration requirements before using an online platform.

New Hampshire

New Hampshire allows eligible charitable organizations, including IRS-recognized 501(c)(3) organizations, to conduct raffles. Other organizations qualifying under the state’s charitable-purpose definition generally must have existed for at least two years.

A permit is usually required from the town or city where the drawing takes place. However, no permit is needed when all tickets are sold during an event lasting 12 hours or less. Tickets may only be sold to people 16 or older and generally must be sold by organization members or unpaid designated sellers. See the state’s raffle requirements.

New Hampshire law does not clearly allow or prohibit online ticket sales. Because the rules require printed tickets with specific information and limit who can sell tickets, confirm with the permitting municipality that the proposed online payment, ticketing, and drawing process is acceptable before selling tickets online.

New Jersey

New Jersey uses a two-step system: state registration with the Legalized Games of Chance Control Commission, then a municipal raffle license where the drawing will occur.

The reviewer research identifies hard statutory prize caps and notes that municipalities must have adopted the raffle law before they can issue licenses.

A general online-sales path for ordinary nonprofits was not identified. The remote-raffle provision located in the research is narrow and tied to large sporting venues during a declared public health emergency.

Practical takeaway: plan for in-person sales unless the Commission confirms a current lawful remote path.

Official reference: NJ Legalized Games of Chance Control Commission

New York

New York allows raffles for authorized organizations in municipalities that have opted into games of chance. Smaller raffles can fall below licensing thresholds.

New York has a real statutory route for online and mobile sales, but it is heavily conditioned. The reviewer research identifies Commission approval, age controls, purchaser accounts, self-exclusion checks, data protections, supplier licensing and geolocation requirements.

Two requirements are especially important for GalaBid: controls to ensure purchasers are at least 18, and competent geolocation procedures to ensure the purchaser is physically located in New York at the time of purchase.

GalaBid should not be presented as satisfying these requirements unless the product and licensing position are formally confirmed. For now, the hub should say that New York online sales are legally possible but not necessarily compatible with GalaBid.

Official reference: NY Gaming Commission: Raffles

North Carolina

North Carolina permits raffles for specified entities without a state raffle license or permit under the reviewer research.

The statute sets hard limits, including a maximum number of raffles and prize caps. The research also raises a meaningful question about whether an outside platform can 'conduct' the raffle when the statute names the authorized entities and restricts paying others to run it.

The statute is silent on online ticket sales, and the reviewer did not find authoritative published guidance resolving the question.

Practical takeaway: treat online sales as unresolved and get a written answer from the appropriate North Carolina authority before using a self-serve online raffle model.

Official reference: NC General Assembly: G.S. 14-309.15

North Dakota

North Dakota allows eligible organizations to conduct raffles with a charitable gaming license from the Attorney General. Organizations generally must have actively carried out their main purpose in North Dakota for at least two years, although exceptions apply. Cities and counties may also issue local or restricted event permits. Raffle prizes can be cash or merchandise, but not real estate. Cash prizes are generally capped at $25,000 per prize and $25,000 total per day, with a limited exception under the state’s charitable gaming rules.

Organizations licensed by the Attorney General may sell raffle tickets online and accept electronic payments. The system must verify that buyers are at least 18 and physically in North Dakota. Credit-card purchases are limited to $500 per person per day and $1,500 per week. This online option applies specifically to Attorney General-licensed organizations, so those using only a local or restricted event permit should confirm their eligibility first.

Important: Electronic 50/50 raffle tickets must be sold and drawn onsite on the event date and cannot be conducted online. Organizations can review the Attorney General’s charitable gaming requirements before using an online platform.

Ohio

Ohio allows qualifying tax-exempt organizations and schools to conduct nonprofit raffles without a separate bingo license. Under Ohio law, a raffle winner is selected by drawing a ticket stub or other detachable part from a container holding the matching parts of all tickets sold. See the state’s raffle rules.

Ohio currently does not allow raffles to be conducted entirely online using a random-number generator because the law requires winners to be drawn from a container holding ticket sections. The Ohio Attorney General’s charitable gaming guidance reflects this requirement.

House Bill 476 would create a system for online raffle sales. Although it passed the Ohio House in November 2025, it had not become law as of August 2026. The current status can be checked through the Ohio Legislature.

Oklahoma

Oklahoma allows qualified organizations—including churches, qualifying schools and school groups, fire and police departments, and organizations exempt under Section 501(c) of the Internal Revenue Code—to conduct raffles. Raffles must use numbered tickets tied to voluntary contributions, with the drawing overseen by an organization official under the state’s raffle requirements.

The raffle must be run by organization members without raffle-specific payment. Salaried employees may participate voluntarily as long as their regular pay is not connected to the raffle and they receive no additional raffle-related incentive.

Oklahoma allows qualified organizations to use a third-party platform for online raffles, including ticket orders, payments, and the random-number generator. However, the organization must remain in control and direct how the raffle is conducted. It cannot outsource the actual raffle, ticket sales, or solicitation of contributions to another party. These requirements are explained in the Oklahoma Attorney General’s opinion.

Oregon

Oregon allows eligible nonprofit, tax-exempt organizations to conduct raffles. An organization generally must have held tax-exempt status and operated for its charitable, fraternal, or religious purpose for at least one year. A Department of Justice raffle license is normally required, but organizations with $10,000 or less in total raffle-ticket sales per calendar year are exempt from licensing under the state’s charitable gaming rules.

A Class B license allows up to $10,000 in ticket sales for a single raffle. A Class A license is needed when a raffle is expected to exceed $10,000. For Class A raffles over that amount, the organization must submit notice and a sample ticket to the Department at least two weeks before sales begin.

Oregon’s standard raffle format uses physical tickets with detachable stubs placed into a drawing container. A different format, such as using a random-number generator, requires written approval from the Department of Justice before tickets are sold—even if the organization does not otherwise need a license. Because the rules do not give blanket approval for fully online raffles, organizations should obtain Department approval before using an online platform.

Pennsylvania

Pennsylvania allows eligible organizations to conduct raffles under the Local Option Small Games of Chance Act. However, raffles may only be held in municipalities that have approved small games of chance by local referendum. license are generally issued by the county treasurer or other applicable licensing authority. Organizations must follow the state’s small games of chance rules.

Raffle tickets generally must be consecutively numbered and have detachable sections. The sold sections must be returned to the organization and placed in a physical container for the drawing, unless another legally permitted method is used.

Pennsylvania does not currently provide a clear general framework for fully online raffles. The physical-ticket requirements make standard digital ticket sales difficult to use. House Bill 107, introduced in 2025, would allow online raffle sales but was still pending in committee when reviewed. Its current legislative status should be checked before relying on it.

Rhode Island

Rhode Island allows eligible religious, charitable, civic, educational, fraternal and similar nonprofits to conduct raffles. Organizations generally must have been registered as a Rhode Island nonprofit for at least one year.

A raffle application must go through the local police department where the drawing will take place and receive approval from the Rhode Island State Police. The application fee is $5, plus any local fee. While the statute and application say 30 days, the current regulation calls for applications at least 60 days before the raffle, so applying 60 days ahead is the safer option. The raffle application provides the required process.

Raffles must be run without compensation by bona fide members who have belonged to the organization for at least one year. After permitted expenses, net proceeds must be used solely for charitable purposes.

Rhode Island prohibits buying raffle tickets or chances over the internet. Organizations may advertise raffles online, but tickets must be purchased in person or by mail. Online ticket sales through a raffle platform are therefore not permitted under the state raffle rules.

South Carolina

South Carolina allows qualifying tax-exempt nonprofits to hold raffles for charitable purposes. Most organizations must register annually with the Secretary of State and pay a $50 fee. Registration is not required for donated noncash prizes worth $950 or less, or certain members-and-guests-only 50/50 raffles collecting no more than $950.

Registered organizations can hold up to four raffles per year. At least 90% of net proceeds from a standard raffle must support the organization’s charitable purpose. A single prize can be worth up to $80,000, while total prizes for one raffle cannot exceed $300,000. Real estate cannot be offered, and tickets may cost up to $300 under the current rules. See the Secretary of State’s raffle requirements.

South Carolina law does not clearly authorize online ticket sales. It treats a raffle ticket as tangible evidence and requires the nonprofit to run the raffle itself rather than through an agent or third party. Because the rules do not clearly address standard online platforms, organizations should confirm with the Secretary of State before using one under the state raffle law.

South Dakota

South Dakota allows certain organizations—including religious, charitable, educational, fraternal, veterans’, civic and service groups, and volunteer fire departments—to conduct raffles. Before selling tickets, the organization must give at least 30 days’ written notice to the county or municipality where the drawing will occur. If tickets will be sold statewide, the Secretary of State must also be notified. A raffle can run for no more than 18 months after the first ticket is sold. See the state’s raffle requirements.

Using online raffle software: South Dakota law does not expressly prohibit online ticket sales or specify payment methods. However, raffles are handled locally, and state law places restrictions on using third parties for raffle-related equipment or services. Organizations should confirm that both the online sales process and platform arrangement are acceptable to the relevant local authority before selling tickets online.

Tennessee

Tennessee allows qualifying 501(c)(3) and 501(c)(19) organizations that have operated continuously in the state for at least three years to apply for one charitable gaming event each year. Applications are due to the Secretary of State by January 31 and must then be approved by a two-thirds vote of both houses of the General Assembly. See the charitable gaming application requirements.

The event generally must take place in a county where the organization has a physical presence or in a neighboring county. Tickets can only be sold after approval and no earlier than 120 days before the event. At least 25% of gross proceeds must support the organization’s stated charitable purpose, and an audited financial statement is required when gross revenue exceeds $75,000. Certain individuals connected to the organization, government, or event suppliers cannot buy tickets.

Tennessee’s current guidance does not clearly authorize general online raffle-ticket sales. Approval of the raffle itself does not necessarily approve an online sales process, so organizations should confirm the proposed ticketing, payment, and drawing process with the Secretary of State before using an online platform. The state’s charitable gaming FAQs provide additional guidance.

Texas

Texas allows qualified organizations to conduct up to four raffles per calendar year without a separate raffle license or state registration under the Charitable Raffle Enabling Act.

Prizes: Cash and easily convertible prizes are prohibited. Different limits apply to purchased and donated prizes.

Texas restricts statewide ticket sales and advertising. Organizations can promote raffles on their own website and to previously identified supporters, but the Attorney General notes that “statewide” may include the Internet. A public self-service online ticket store should therefore not be assumed to be allowed. 

Tickets must be sold by authorized organization members or representatives, and no one may be paid for selling tickets or running the raffle.

Utah

Utah does not provide a general legal route for nonprofit raffles. State law treats a raffle where participants give something of value for a chance to win as a lottery, and gambling Including online gambling—is prohibited. See the state’s lottery and gambling rules.

A genuinely free prize drawing may be treated differently because participants do not pay or provide something of value to enter. The promotion should not require a purchase, donation, or other payment.

An online platform cannot be used to get around Utah’s prohibition. Paid raffle entries should not be sold online in Utah.

Vermont

Vermont allows qualifying nonprofits to conduct raffles to raise money for charitable, religious, educational, or civic purposes. After permitted costs and prizes are paid, the remaining money must support these purposes under the state’s raffle rules.

Prize limits: The standard limit is $400 per game. One game per day can offer up to $1,000, and one game per month can offer up to $5,000. Once a year, a nonprofit may offer a motor vehicle, firearm, motorcycle, or watercraft worth up to $50,000.

Vermont does not clearly authorize online raffle-ticket sales, and other laws restrict electronically communicated offers to sell lottery tickets. Because the nonprofit exception does not clearly address online sales, confirm the proposed ticketing and payment process with the appropriate Vermont authority before using an online platform.

Virginia

Virginia allows qualifying organizations to conduct raffles. Organizations expecting $40,000 or less in gross raffle receipts over any 12-month period are generally exempt from the state’s permit and reporting requirements. Organizations exceeding that amount must obtain a charitable gaming permit and follow the applicable raffle rules.

Tickets may be sold inside or outside the area covered by the permit, but every ticket must still produce a physical stub or detachable section for the drawing. A fully digital raffle would therefore not meet the drawing requirements. If using online ticketing, confirm the process with VDACS and ensure each online entry has a corresponding physical stub.

Washington

Washington has three raffle types: standard raffles, electronic raffles for qualifying sports-team home games, and enhanced raffles for certain organizations serving people with intellectual disabilities.

For standard raffles, tickets may be sold by organization members or supervised volunteers, but Internet and telephone sales are not allowed. Winners are selected through a physical drawing. Electronic raffles are limited to qualifying sports-team home games, must use an approved on-site system, and still require a manual drawing. Enhanced raffles allow sales by mail, fax, or telephone; a downloadable order form on a website does not make online sales permissible. See the state’s raffle guidance.

 Washington does not provide a general route for nonprofits to sell raffle tickets through an online platform. Do not use one unless the organization has confirmed that its raffle type, sales process, and technology meet the applicable raffle rules.

West Virginia

West Virginia allows eligible tax-exempt charitable and public-service organizations to hold raffles. Smaller raffles may be exempt from licensing if no prize exceeds $4,000 and annual gross raffle proceeds stay at or below $15,000. Larger raffles generally require a state license.

West Virginia has separate online raffle rules. Larger online raffles generally require a license, with applications normally due at least 60 days before sales begin. The Tax Division also requires charitable online raffles to use a licensed online raffle platform provider. Because some requirements are inconsistent, organizations should confirm eligibility and platform requirements with the Tax Division before selling tickets online.

Wisconsin

Wisconsin requires eligible nonprofit organizations to obtain a raffle license from the Division of Gaming. Generally, an organization must have operated for at least one year, with some exceptions for organizations affiliated with qualifying state or national groups. Raffle proceeds must support the organization’s purposes in Wisconsin.

Wisconsin allows licensed organizations to sell raffle tickets online, including through websites, email or text. However, raffles cannot be fully electronic. Paper tickets and a physical drawing are still required. Class A raffles require paper tickets to be created and retained, while Class B raffles can take orders online but must issue the physical tickets at the event.

Organizations also cannot pay another company to operate the raffle. Before using third-party software, confirm that the raffle licensing rules and online ticket requirements are met.

‍Wyoming

Wyoming allows charitable raffles without a state raffle license because they are excluded from the state’s definition of gambling. The raffle must be for a charitable purpose, and after the prize cost is deducted, all remaining proceeds must go to charity. Raffles for non-charitable purposes may be treated as illegal gambling.

Wyoming law does not specifically address online raffle ticket sales. It also does not clarify whether platform fees can be deducted from the proceeds. Organizations should confirm that their charitable raffle and any online platform or fees comply with the rules before selling tickets online.

Practical Compliance Checklist

1. Identify the state and local jurisdiction where the raffle will operate.
2. Confirm that the organization is eligible.
3. Check whether a license, registration, permit or local approval is required.
4. Confirm the permitted ticket format and sales methods, especially online sales.
5. Review prize limits, use-of-proceeds rules, drawing mechanics and required disclosures.
6. Check current federal W-2G and withholding rules for the planned prize.
7. Keep raffle purchases separate from charitable donations in donor communications.
8. Maintain records of ticket sales, prizes, winners, permits, approvals and expenses.

Common Raffle Compliance Mistakes

• Using an outdated $600 W-2G threshold instead of the 2026 $2,000 threshold.
• Using Form 941 language for raffle withholding instead of checking Form 945.
• Assuming a 501(c)(3) can automatically run a raffle in every state.
• Calling online ticket sales legal without checking the exact state or local rule.
• Assuming a free-entry promotion is automatically lawful everywhere.
• Treating a donated prize as having no fair market value.
• Describing raffle ticket purchases as tax-deductible donations.
• Using last year's permit or license without confirming it is still valid.
• Claiming GalaBid automates W-2G, SSN collection, tax reporting, geolocation, age verification or legal compliance without confirmed product support.

What to Include on a Raffle Ticket

Ticket requirements vary by jurisdiction. Some states require physical stubs, serial numbers, permit numbers, seller or buyer signatures, prize details or other disclosures. Do not publish one universal 'required ticket' template as if every state uses the same rules.

• Organization name and contact information
• Ticket or chance number where required
• Ticket price or entry terms
• Prize description
• Drawing date, time and location
• Permit or license number where required
• Purchaser details or detachable stub where required
• Any state-mandated tax, donation or eligibility disclosure

Multi-State Raffle Operations

A multi-state raffle can create obligations in more than one jurisdiction. The earlier draft was too simple when it said only the state where the drawing happens matters. Ticket solicitation, buyer location, Internet activity, local authorization and where the organization operates can all affect the analysis.

If a campaign reaches participants in multiple states, identify every relevant jurisdiction, check whether participation is permitted there, and obtain legal advice when the rules are unclear. Federal reporting requirements can apply independently of state raffle authorization.

Frequently Asked Questions

Can a 501(c)(3) legally run a raffle?

Often, but not automatically. Eligibility, operating history and permit requirements vary by state and sometimes by local jurisdiction.

Are raffle tickets tax-deductible?

Generally, no. The buyer receives a chance to win in exchange for the ticket payment.

What is the federal W-2G reporting threshold in 2026?

For payments made in 2026, the applicable information-reporting threshold is $2,000, with the applicable 300-times-the-wager test also relevant to raffles and similar drawings.

Can nonprofits sell raffle tickets online?

Sometimes. Some states prohibit or effectively block online sales, some leave the question to local authorities, and a few provide a regulated online path. Check the exact state and local rule.

Does every raffle need a permit?

No. Some jurisdictions use licenses or permits, some have exemptions, and some regulate qualifying raffles without a traditional license.

Can GalaBid guarantee raffle compliance?

No. GalaBid proivdes an extensive online raffle platform, but the nonprofit remains responsible for legal, licensing, tax and reporting compliance. Fundraisers is some states use GalaBid's online silent auction software when raffles are prohibited.

Can a free-entry drawing replace a raffle?

Potentially, but not automatically. Free-entry promotions have their own legal requirements and should be verified in every jurisdiction where people can participate.

What if the raffle winner lives in another state?

Do not assume only the drawing state's rules matter. Interstate participation can raise additional state-law questions, especially for online sales.

Final Thought

The goal of this hub is not to reproduce every statute on one page. It is to give nonprofits a clear starting point, answer the most important questions, and direct readers to the relevant state guide and official government authority. This keeps the page useful without making it so dense that readers cannot find the information they need.

Once an organization has reviewed the rules that apply to its location and confirmed that its planned fundraising activity is permitted, it can explore GalaBid’s raffle fundraising platform to learn more about creating and managing a raffle campaign. Organizations remain responsible for making sure their raffle structure and use of the platform comply with applicable state and local requirements.

Legal Disclaimer

This guide provides general educational information and is not legal or tax advice. Raffle laws and charitable-gaming requirements can change and can differ by state and local jurisdiction. Before conducting a raffle or similar campaign, verify current requirements with the appropriate government authority and consult qualified professionals where necessary.