Learn about regulations for running Raffles in the United States.
Raffles are an excellent way to raise money for your cause, but you should be aware of any legal restrictions. In the United States, Raffle regulations often differ by state or region. Other countries may also have restrictions, but this article specifically applies to organizations in the United States.
Am I eligible to run a Raffle in the United States?
The following states prohibit online Raffles:
- Alabama
- California
- Hawaii
- Indiana
- Iowa
- Kansas
- Minnesota
- New Jersey
- New Mexico
- Rhode Island
- Utah
- Washington
- Wisconsin
Please also note that while some states allow charity Raffles, you may need to acquire additional licenses or permits.
How do I ensure my Raffle is legally compliant?
RallyUp doesn’t offer legal advice or monitor individual Raffles. Instead, it’s up to your organization to make sure your Raffles are compliant. Exercise due diligence and do your own research. If necessary, consult with legal counsel to ensure you’re obeying federal, state, and local laws.
Should I run a Sweepstakes instead of a Raffle?
If your organization operates in one of the states listed above, or you aren’t sure about your eligibility or legal compliance, you shouldn’t run a Raffle. Instead, you may want to consider running a Sweepstakes. In the United States, Sweepstakes must offer free entries, so they have fewer restrictions. Sweepstakes also have fewer geographic regulations, and entries can usually be sold nationally or internationally. This allows you to run charity drawings that have a much wider reach.
Frequently Asked Questions
Which states prohibit online Raffles?
Thirteen states prohibit online Raffles: Alabama, California, Hawaii, Indiana, Iowa, Kansas, Minnesota, New Jersey, New Mexico, Rhode Island, Utah, Washington, and Wisconsin. Organizations in these states should consider running a Sweepstakes instead.
What type of organization can legally run a Raffle?
Organization requirements differ depending on your state or region. Legal counsel should be able to provide full clarification.
Does RallyUp provide legal guidance for my Raffle?
No, RallyUp doesn’t offer legal advice or monitor individual Raffles. It’s your organization’s responsibility to ensure compliance with federal, state, and local laws. If needed, consult with legal counsel to confirm your Raffle is compliant.
Why are Sweepstakes less restricted than Raffles?
In the United States, Sweepstakes must offer free entries. This makes them subject to fewer restrictions and allows for wider geographic reach, including national and international entries.
Do I need a license or permit to run a Raffle?
Requirements vary by state, but some states do require additional licenses or permits. Research your state’s specific requirements or consult legal counsel to ensure full compliance.
Additional Knowledge Base Articles
Understand: Charity Sweepstakes
Understand: Raffles vs. Sweepstakes