Is Selling Raffle Tickets for Profit Legal?
- If an individual, for-profit group or government entity conducts a contest that requires participants to buy a ticket, the contest is considered a lottery. Some states permit state-run lotteries, but private lotteries are generally prohibited.
- Arkansas, Hawaii and Kansas prohibit raffles of any kind.
- Even states that permit raffles impose restrictions. Check state law (see Resources below) and local ordinances for those that apply in your community.
- While many charitable organizations conduct online raffles, their legality is unclear. The Unlawful Internet Gambling Enforcement Act of 2006 prohibits certain online gambling activities but leaves the definition of those activities to the states.
- It may be possible to raffle off something you own if you partner with a nonprofit organization. The organization must own the item at the time of the raffle. Consult an attorney to determine the legality of this option in your state.