Learn what makes Raffles different from Sweepstakes to determine which one best fits your fundraising needs.
This information is provided for general informational purposes only and does not constitute legal advice. Laws change frequently. Last reviewed: June 25, 2026.
When comparing Raffles vs. Sweepstakes for your fundraiser, both 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 along with other regulatory requirements. Here is what you need to know about each option.
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 is a Charity Raffle and How Does It Work?
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 where the online sale of Raffle entries is not currently permitted: If your organization is domiciled in one of the following states, you won’t be able to sell Raffle entries online:
- Alabama
- California
- Hawaii
- Indiana
- Minnesota
- New Jersey
- New Mexico
- Utah
- Washington
Selling Raffle entries online in these states is not permitted under state law, regardless of which fundraising platform you use.
Insights: See If You’re Eligible to Run a Raffle
If your organization is domiciled in one of these states, you may want to consider running a Sweepstakes instead. It functions similarly to a Raffle, is available in more locations, and has fewer geographic restrictions. Note that Sweepstakes on RallyUp are available to US-based organizations only. You may also consider running an Offline Raffle, where entries are sold offline and then manually entered into the system.
How-to: Add Raffle or Sweepstakes Entries You’ve Sold Offline
Can organizations outside the US run online Raffles?
Online Raffles are now available to organizations domiciled outside the US, including New Zealand. Please review the applicable laws and regulations in your country and jurisdiction before running your Raffle, and consult the appropriate official resources for your area.
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. However, Sweepstakes on RallyUp are available to US-based organizations only. Understanding the differences between Raffles and Sweepstakes can help you choose the format that works best for your fundraising goals.
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.
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 (due to legal requirements)
- Manually drawing winners
- The appearance of the word “Raffle” anywhere on your Campaign Page
What is the Raffle/Sweepstakes Eligibility Attestation?
Before you can enable a Raffle or Sweepstakes Component in Campaign Setup, you’ll be asked to complete a brief eligibility attestation. You must agree to this attestation before the Component can be activated.
The attestation asks you to confirm:
- Your organization is properly registered and in good standing, and has obtained any licenses or permits required to conduct a charitable raffle in the jurisdictions where your Campaign will be offered.
- You understand that your organization is solely responsible for complying with all applicable federal, state, provincial, and local laws governing charitable raffles and games of chance.
- You understand that RallyUp does not provide legal advice, does not review or approve your legal compliance, and does not act as your legal representative.
By checking the box in the attestation, you acknowledge that you have read and agree to these terms, as well as RallyUp’s Terms of Use.
If you have questions about your eligibility or legal requirements, we recommend consulting the appropriate official resources for your area.
Frequently Asked Questions
Raffles vs. Sweepstakes: what’s the main difference?
When it comes to Raffles vs. Sweepstakes, the main difference is the entry method. 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 currently do not permit the online sale of Raffle entries?
Nine states currently do not permit the online sale of Raffle entries: Alabama, California, Hawaii, Indiana, Minnesota, New Jersey, New Mexico, Utah, and Washington. 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 reviews key setup details — including official rules, free entry options, and prize disclosures — and suggests updates where needed. 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.