Do I need a license to run a raffle?

If you are running a raffle where tickets are not sold before the event, it falls under the terms of an 'incidental lottery'. As such, you will not require a licence or any specific permissions. However, you must adhere to the following rules: All tickets must be sold at the location during the event.

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USLegal Pamphlet on How to Conduct a Raffle

California USLegal Pamphlet on How to Conduct a Raffle

Name: California USLegal Pamphlet on How to Conduct a Raffle
Brand: US Legal Forms
Rating: 4.64 (467 reviews)

Category:

Corporations - Nonprofit

State:

Multi-State

Control #:

US-PMPH-04

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Instant download

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This pamphlet provides an overview of the general requirements for conducting a raffle. A link is included for finding specific information on the legal requirements for conducting a raffle in your state.

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How to fill out California USLegal Pamphlet On How To Conduct A Raffle?

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FAQ

An opportunity drawing is a prize where everyone who comes to the event has an equal chance of winning and no one pays for a ticket. A raffle is defined as a lottery in which each participant buys a chance to win a prize.

In California, only nonprofit organizations can legally conduct raffles. Before holding a raffle, you must file a raffle registration form. You must also file an annual raffle report form that reports on the raffles your organization conducts in a given year.

Gambling is illegal in California unless it is permitted by statute. A raffle is defined as gambling unless it meets all of the criteria set forth in Penal Code section 320.5.

If you are running a raffle where tickets are not sold before the event, it falls under the terms of an 'incidental lottery'. As such, you will not require a licence or any specific permissions. However, you must adhere to the following rules: All tickets must be sold at the location during the event.

Running a Legal Raffle in the United States Currently, raffles are legal with various restrictions in 47 of the 50 states. The states that prohibit raffles altogether are Alabama, Hawaii and Utah. So to find out what you need to do to run a legal raffle, you need to check the raffle laws for your state.

Fundraising, raffles, and lotteries are all forms of gambling and you must follow the rules for the type of lottery you plan to run, otherwise you may be breaking the law. You can run a lottery or raffle to raise money for charity.

The 90/10 rule applies to 50/50 raffles, in which 50 percent of ticket-sale revenue is awarded as the prize and 50 percent of the revenue is retained by the organization conducting the raffle. 50/50 raffles are illegal because 90 percent of the gross ticket-sale revenue is not used for charitable purposes.

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California USLegal Pamphlet on How to Conduct a Raffle

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