Raffle laws by state what you need to know before you sell a ticket.
Raffle laws are state-by-state, they change more often than most people realize, and getting this wrong can cost your organization its nonprofit status. Here is what we know with confidence and where to find the complete 50-state breakdown.
Why we don't publish a full 50-state table here
We've been building online raffle tools and managing nonprofit raffle campaigns since 2005. At one point early on, we did a deep dive into every state's requirements and documented them in detail. Within a year, most of it was outdated.
Raffle laws move. States revise permit thresholds. Enforcement priorities shift. During COVID, New Jersey ruled online raffles were permissible as long as money and tickets physically changed hands. South Carolina banned online charitable raffles, then reversed it, then partially re-instated it. Laws that look settled get revisited by legislatures on no predictable schedule.
Publishing a detailed 50-state table we can't actively maintain would do you more harm than good. The full, actively-maintained version lives at raffleticketgenerator.com/raffle-laws-by-state/ our dedicated resource site for raffle legal guidance. What we can give you here is the baseline framework and the key facts we're confident about.
The complete raffle laws by state guide
State-by-state permit requirements, filing deadlines, prize reporting thresholds, and regulatory authority contacts. Actively maintained by the same team updated when laws change, not just when we remember to.
See Full State-by-State Guide →The three elements that make a raffle legal (or illegal)
US law treats a raffle as a form of gambling because it contains three elements. When all three are present in a for-profit context, it is an illegal lottery. For nonprofits in states that permit charitable gaming, the same three elements are allowed with restrictions.
| # | Element | What It Means | Why It Matters Legally |
|---|---|---|---|
| 1 | Prize | Something of value cash, goods, experiences, gift cards. | Even a small prize counts. A raffle with no prize is not a raffle it is a donation. |
| 2 | Chance | The winner is selected randomly, not by skill or merit. | This is what separates a raffle from a contest. A skill-based competition with an entry fee is not a raffle and follows different rules. WPRaffle Platinum's pre-purchase quiz feature converts a raffle into a skill-based competition in jurisdictions where that matters. |
| 3 | Consideration | Participants pay something to enter money, typically. | This is why online raffles must offer a free entry method via mail-in request. Removing the "consideration" element for anyone who requests it prevents the event from being classified as an illegal lottery for out-of-state participants. |
States that prohibit fundraising raffles
Five states currently prohibit raffles even for qualified charitable nonprofits. If your organization is based in one of these states, a raffle is not a legal option regardless of your tax status.
Alabama
Raffles are classified as illegal lotteries under Alabama law. No exemption exists for charitable or nonprofit organizations.
Utah
Utah prohibits fundraising raffles. Chance2Win does not operate in Utah for this reason.
Kansas
Raffles are generally prohibited in Kansas, with very limited exceptions that do not apply to most nonprofits.
Washington State
Washington prohibits most charitable raffles. There are narrow exceptions for licensed organizations check with the Washington State Gambling Commission.
Hawaii
Hawaii prohibits paid raffles. Chance2Win does not operate in Hawaii. Organizations may explore donation-based alternatives.
This list reflects our understanding as of April 2026. State legislatures revisit charitable gaming laws regularly. Before making any organizational decision based on this information, verify directly with your state's gaming commission or Secretary of State. This is not legal advice.
States with notable requirements
Most states that allow nonprofit raffles require some form of permit or registration before tickets go on sale. A few have requirements worth calling out specifically because they affect how online raffles can operate.
Florida
Any organization conducting fundraising including raffles must register with the Florida Department of Agriculture and Consumer Services as a Solicitor of Contributions before any solicitation begins. Approximately 75% of Florida nonprofits are unaware of this requirement. Fines apply for non-compliance.
Colorado
Colorado requires that raffle drawings be conducted with a physical process. Electronic-only draws may not satisfy the requirement. Chance2Win's printable paper ticket mode creates a physical draw component while still supporting online ticket sales this is the compliance-aware workaround.
Kentucky
Kentucky similarly requires a physical drawing process. Same compliance approach as Colorado: Chance2Win's paper ticket mode satisfies this requirement while online sales continue normally.
California
California law requires that 90% of net proceeds from a raffle go to the organization's charitable purpose. There is ongoing ambiguity about whether credit card processing fees and prize values count toward this calculation attorneys give different answers. Document everything and err toward transparency.
What most permitting states require
For the roughly 40+ states that allow nonprofit raffles with some form of permit or registration, the requirements typically include one of two structures:
Charitable Gaming License
Common for organizations that plan to hold multiple raffles per year. Usually requires proof of 501(c)(3) or equivalent status, an application fee, and annual renewal. Ongoing recordkeeping requirements apply throughout the license period.
Single-Event Permit
For one-time raffles or small local events. Typically faster to obtain. Usually requires: location and date of the raffle, prize descriptions and fair market values, names of officers or raffle committee members, and a statement of how proceeds will be used.
After the raffle
Many states require a short financial summary report after the raffle closes. Records of ticket sales, expenses, and disbursements must typically be kept for one to three years. Regulators can request these records and they do.
When in doubt, call your state's gaming or charitable licensing authority directly. Most have nonprofit-specific FAQ sheets and staff who will point you in the right direction for free. It takes twenty minutes and is far better than guessing. If you can't find the right office, call us at (813) 699-9325 we can usually point you to the correct agency.
Online raffles and the no-purchase-necessary rule
When a paid raffle accepts entries across state lines which any online raffle does by definition US consumer protection law requires a free entry method to prevent the raffle from being classified as an illegal lottery.
The standard approach: publish a mail-in address where participants can send a self-addressed, stamped envelope with their name and contact information to receive a free entry. You are not required to offer a free online entry form only a viable physical alternative. Include the full instructions in your official raffle rules and on the raffle page itself.
A typical rules disclosure looks like: "No purchase necessary to enter or win. To participate without purchase, mail a self-addressed, stamped envelope with your full name, address, and phone number to: [Organization Name], [Raffle Name], [Mailing Address]. Requests must be postmarked by [Date]. Limit one entry per envelope."
Common questions
We handle compliance review as part of setup. You focus on promotion.
Chance2Win's compliance review process is built into every setup not an afterthought. We know which states need what. Call us if you're unsure.