Learn what makes Raffles different from Sweepstakes to determine which one best fits your fundraising needs.
Both Raffles and Sweepstakes allow donors to purchase entries for the chance to win a prize. However, Raffles are prohibited in some areas and Sweepstakes require you to offer a free method of entry in addition to other regulations.
What are the legal requirements for charity Raffles?
Rules regarding charity Raffles will differ depending on where in the world your organization is based.
What do US organizations need to know about running Raffles?
Organizations based in the United States should consider the following:
- State and local requirements: Organizations running Raffles must comply with the state and local raffle laws and regulations that apply. Please check the state and local laws in the area your organization is domiciled.
- States that prohibit online Raffles: Some states prohibit online Raffles, making it very difficult to run an interstate Raffle and impossible to run one nationally:
- Alabama
- California
- Hawaii
- Indiana
- Iowa
- Kansas
- Minnesota
- New Jersey
- New Mexico
- Rhode Island
- Utah
- Washington
- Wisconsin
Insights: See If You’re Eligible to Run a Raffle
If your organization is fundraising in one of these states, you may want to consider running a Sweepstakes instead. They function similarly to Raffles but have fewer restrictions geographically.
Can organizations outside the US run online Raffles?
Please consult your legal counsel before running your Raffle to ensure that it is compliant with all laws and regulations in your country and jurisdiction. If you are an organization domiciled in New Zealand, you won’t be able to run an online Raffle.
Why should I consider running a Sweepstakes instead of a Raffle?
Because they require a free method of entry, Sweepstakes generally have fewer geographic regulatory restrictions than Raffles. Entries can be sold nationally or internationally, so Sweepstakes are an excellent choice for international organizations.
Understand: Charity Sweepstakes
What are the requirements for running a Sweepstakes?
All RallyUp Sweepstakes require:
- Free entry option (limited to one per person)
Understand: Sweepstakes Free Entries
- Official rules displayed on the Campaign Page
Understand: Sweepstakes Official Rules
- Automated drawing (winners must be drawn by RallyUp’s certified randomization algorithm)
Understand: Drawing Raffle and Sweepstakes Winners
- Registration and bonding if the total retail value for all prizes is $5,000 or more
Understand: Sweepstakes Prize Registration and Bonding
- Approximate Retail Value (ARV) of each prize
RallyUp automatically provides a Sweepstakes Review Service to help catch common setup issues after your Sweepstakes is published. Our team reviews key details and suggests updates, if needed. This process typically takes 24 hours or less. Please note that this is a support service, not legal approval. Legal compliance is ultimately the organization’s responsibility, but we’re happy to provide guidance.
What restrictions apply to Sweepstakes Campaigns?
All RallyUp Sweepstakes prohibit the following:
- 50/50 or split-the-pot drawings
- Allowing donors to purchase entries for specific prizes
- Limiting the total number of entries available for purchase
- Manually drawing winners
- The appearance of the word “Raffle” anywhere on your Campaign Page
Frequently Asked Questions
What’s the main difference between a Raffle and a Sweepstakes?
The main difference is that Raffles require donors to pay for entries without a free option, while Sweepstakes must offer a free method of entry. This distinction affects their legal requirements and geographic restrictions.
Which states prohibit online Raffles?
Thirteen states prohibit online Raffles: Alabama, California, Hawaii, Indiana, Iowa, Kansas, Minnesota, New Jersey, Rhode Island, Utah, Washington, and Wisconsin. Organizations in these states should consider running a Sweepstakes instead.
Can I run a 50/50 Raffle as a Sweepstakes?
No, 50/50 or split-the-pot drawings are prohibited for Sweepstakes. If you want to run a cash prize fundraiser where winners receive a portion of proceeds, you must use a Raffle format and comply with all applicable Raffle laws.
What is RallyUp’s Sweepstakes Review Service?
The Sweepstakes Review Service verifies that your Sweepstakes meets all regulatory requirements including official rules, free entry options, and proper prize disclosures. All Sweepstakes are automatically reviewed before going live, typically in 24 hours or less. Please note that the Sweepstakes Review Service does not count as legal approval. Organizations are ultimately responsible for ensuring legal compliance.
Can I manually draw winners for my Sweepstakes?
No, Sweepstakes winners must be drawn using RallyUp’s certified randomization algorithm. Manual drawing is prohibited for Sweepstakes to ensure fairness and legal compliance.