Raffle Fundraising Regulations You Should Know in the USA

Running a raffle as part of your fundraiser can be a terrific way to engage supporters and raise money. But it’s essential to keep in mind the regulatory landscape—especially when you’re dealing with wholesale orders, trade-only tickets, and working with a raffle ticket trade printer. Here’s a breakdown of what you must know.

Who can legally run a raffle?

In the U.S., a raffle is considered a form of gambling because participants purchase tickets (i.e., something of value) for a chance to win a prize. DoJiggy+2National Council of Nonprofits+2 Because of that, most states have strict rules. Typically:

• Only qualified nonprofit organizations (often with 501(c)(3) status) may host a raffle. Givebacks Help Center+2DoJiggy+2

• The raffle must benefit charitable, educational, religious or civic purposes. mass.gov+1

• State and local laws vary dramatically. Some states outright ban raffles for fundraising or restrict online ticket sales. RallyUp Support+1

If you’re using a raffle ticket trade printer or ordering wholesale raffle tickets, you’ll want to ensure your paperwork is in order and you're in compliance before you print and sell.

Some Key Regulation Highlights

Here are some typical rules to keep in mind:

• Permits or licenses: Many states require your organization to apply for a raffle permit or registration ahead of ticket sales. For example, in California charities must register before selling tickets. California DOJ Attorney General+1

• Organization history: In some states, you must have been in existence for a certain number of years before conducting a raffle. For example, in Colorado the nonprofit must operate at least five years before applying for a bingo/raffle license. Colorado Secretary of State

• Prize and drawing disclosures: Some states require ticket packs or notices to detail the drawing date, prize description, value of prize, ticket price, etc. mass.gov+1

• Tax & record-keeping: The winner may owe taxes if the prize exceeds certain thresholds; the organization must keep accurate records of ticket sales, expenditures, and prize awards. DoJiggy+1

• Online sales caveats: Some states prohibit or restrict online raffle ticket sales. For example, some states require tickets to be sold in person. Givebacks Help Center+1

Raffle Ticket Price Examples & Practicalities

When budgeting and working with your raffle ticket trade printer (i.e., a company that supplies custom printed tickets for resellers or fundraisers), you should consider:

• Set a ticket price that is appropriate for your audience and prize value. High ticket prices may require more regulatory scrutiny (e.g., the ratio of prize value to ticket cost).

• Example: If you set tickets for $5 each, sell 1,000 tickets → gross receipts $5,000. If prize value is $2,000, check state rules whether prize cost is disproportionate.

• Another example: You order large quantities of custom tickets (bulk or wholesale raffle tickets) from your trade printer. Suppose you order 10,000 tickets at $0.10 cost each; you plan to sell at $2 each → potential revenue ≈ $20,000. Make sure your organization is licensed and compliant for a raffle of that size.

• Keep clear records from your raffle ticket trade printer showing number of tickets printed, cost, series numbers (if applicable), and tie this back to actual sales. This helps your organization demonstrate compliance if required.

Working With a Raffle Ticket Trade Printer

Working with a trade printer gives you access to custom printed tickets — with branding, numbering, tear-offs, etc. Here are some tips:

• Make sure the printer allows for customisation (your organisation’s name, date of drawing, ticket price, terms and conditions).

• Confirm ticket numbering/serialization to match your records.

• Ensure you print sufficient quantity for the size of your raffle (wholesale ordering helps keep costs down).

• Check that your ticket layout can accommodate required disclosures (drawing date, prize description, ticket price) so you comply with state requirements.

• Maintain records of your ticket costs, quantity delivered, price printed on ticket, sales plan and eventual prize award. That record-keeping protects your organisation and demonstrates that you acted responsibly.

Final Checklist Before You Launch

1. Confirm your organisation status (e.g., 501(c)(3) if required).

2. Check your specific state laws – permit, prize limits, ticket sales rules, online vs in-person.

3. Choose a sensible ticket price aligned with your fundraising goal and prize value.

4. Use a capable raffle ticket trade printer that supports custom tickets, numbering, disclosure fields.

5. Keep meticulous records — tickets printed, sold, unsold, prize awarded, expenses.

6. File any required reports post-raffle (some states require a financial report after the drawing). mass.gov+1

By understanding these regulations, pricing wisely (for example, based on wholesale raffle tickets from your trade printer), and staying compliant, your raffle fundraising campaign is far more likely to succeed without legal headache.