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Minnesota Gambling Control
Board
1711 West County Road B, Suite 300 South
Roseville, Minnesota 55113
651-639-4000
The five forms of lawful gambling are
raffles, bingo, pull-tabs, tipboards, and paddlewheels. |
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We want to conduct a raffle to
help a
friend pay for medical
bills. Are we allowed to conduct a raffle for that purpose?
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If we can't conduct a raffle
because we are
not a nonprofit organization,
what options do we have to raise funds?
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What type of nonprofit organization could we contact to conduct a
benefit raffle for our friend in need?
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A group of my friends are making pledges for a
walk-a-thon fundraiser. We want to raise money through a raffle to
help pay for our walk-a-thon pledges. Are we allowed to conduct a
raffle for that purpose?
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We will award
door prizes at our
fundraising event. Do we need a permit?
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What information must be
printed on a
raffle ticket?
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Do we have to
list all prizes
on the raffle ticket?
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May we award as a raffle prize a
raffle ticket for another raffle?
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May we
discount the
raffle tickets?
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May we print our own
raffle tickets?
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May we sell raffle tickets through our
web site?
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May we accept credit
cards for the purchase of raffle tickets?
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May we use
theatre tickets for our raffle?
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We would like to
change our
raffle date. Do we have to submit a new permit application?
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What kind of
alternative raffles may we conduct?
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May we conduct a
NASCAR board raffle?
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May we conduct an
early bird drawing?
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Are there any age restrictions for
buying
a raffle ticket?
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Are there any age restrictions for
winning a raffle prize?
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Are there any age restrictions for
persons who
sell
raffle tickets?
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Are there any special requirements for
awarding a prize, such as a car, ATV, or shotgun, that requires the payment
of
taxes or fees or
registration
by a government agency?
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Are there any special
IRS requirements for
awarding valuable prizes, such as a car?
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Are we required to
post house rules for our raffle?
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What information must
house rules
contain?
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Are there any restrictions on how we may
spend our raffle proceeds?
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Do we have to keep any
raffle records?
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Our organization has an exempt
permit to conduct a raffle. Does the 5 day limit
for gambling activity include the days we can sell raffle tickets?
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We want to conduct a raffle to help a friend pay for
medical bills. Are we allowed to
conduct a raffle for that purpose?
No, because by state
law only nonprofit organizations may conduct raffles. Raffles may not be
conducted by individuals.
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If
we can't conduct a raffle because we are not a
nonprofit
organization, what options do we have to raise funds?
Suggested alternatives are to conduct other fund-raising activities that do
not require a permit . Examples include:
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silent auction,
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spaghetti or pork
chop dinner,
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pancake breakfast,
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car wash,
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community garage
sale, and so on.
Check with your local unit of government (city or county) regarding any
local requirements for those activities.
Or, you might want to contact a local nonprofit organization and ask them
to conduct a raffle and donate the proceeds to the person in need.
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What type of nonprofit
organization could we contact to conduct a
benefit raffle for our friend in need?
You could contact nonprofit organizations that include:
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Elks, Eagles and Auxiliary, Moose, and Knights of Columbus;
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Churches;
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American Legion or VFW and their auxiliaries; and
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Other nonprofit organizations such as Lions Clubs; Jaycees; associations for
fire relief, hockey, baseball, athletic, snowmobile, rod and gun, and
sportsmen; and community and business/chamber groups.
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A group of my friends are
making pledges for a walk-a-thon fundraiser.
We want to raise money through a raffle or bingo to help pay for our
walk-a-thon pledges. Are we allowed to conduct a raffle or bingo for
that purpose?
No. For walk-a-thons, bike-a-thons, Relay for Life®
and other similar fundraising activities conducted by nonprofit
organizations, pledges may not be paid for or made from raffle, bingo, or
other charitable gambling proceeds. The reason why...according to Minnesota
law, charitable gambling, which includes raffles, bingo, pull-tabs,
tipboards, and paddlewheels, may only be conducted by nonprofit
organizations.
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We will award
door prizes at our fundraising event. Do we need a permit?
It depends. For example, if a person is required to purchase a ticket
for a spaghetti dinner or give a food donation for a food shelf to be
eligible in a drawing for a door prize, then the drawing activity is
considered a raffle and a raffle permit would be required.
REMINDER: Only nonprofit organizations may conduct a raffle.
We would recommend instead that you offer the chance to win door prizes to
anyone without requiring a purchase or contribution. Then the drawing would
not be considered a raffle and no raffle permit would be required.
Frequently asked questions from
organizations authorized to conduct raffles.
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What information must be on a
raffle ticket?
Click here to view a sample
raffle ticket.
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Do we have to list all prizes on the raffle
ticket?
No. However, at a minimum the three most expensive prizes must be
listed on the raffle ticket. If additional prizes will be awarded,
the raffle ticket must state "A complete list of additional prizes is
available upon request.
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May we award as a raffle prize a raffle ticket for
another raffle?
No. Board rules prohibit awarding raffle tickets as prizes.
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May we discount the raffle tickets?
The same set of raffle tickets may not contain a discounted price, such as
"Tickets $1 each or 6 for $5."
However, raffle tickets may be discounted only if there are separate sets
of raffle tickets that are clearly identifiable from the other set.
For example:
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May we
print our own raffle tickets?
Yes, you may print your own raffle tickets but you must have an invoice
that states the number of tickets printed, the sequential numbers used, and
selling price printed on the tickets.
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May we sell raffle tickets through our organization's
web site?
No. You may not sell tickets through the web site but you are allowed
to advertise the raffle on the web site.
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May we accept credit cards for the
purchase of raffle tickets?
Credit cards may not be accepted. Only cash, personal checks, cashier
checks, money orders, travelers checks, and debit cards may be
accepted.
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May we use theatre tickets for our raffle?
Yes, an organization may use theatre tickets that contain sequential
numbers IF
- a list of prizes and a statement of other relevant information is made
available to persons purchasing tickets, and
- the tickets are sold only at the event and on the date when winning
tickets are drawn.
(NOTE: Licensed organizations may not use theatre tickets for
raffles.)
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We would like to
change our raffle date. Do we
have to submit a new permit application?
No. Just send a letter stating the reasons why the date needs to be
changed and attach a copy of the local unit of government approval (city or
county) for the raffle date change. Send it to the Gambling Control Board,
1711 West County Road B - Suite 300 South, Roseville, Minnesota 55113.
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What kind of alternative raffles may we
conduct?
For information on alternative raffles that have been approved or denied by
the Gambling Control Board,
click here.
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May we conduct a NASCAR
board raffle?
No.
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May we conduct an early
bird drawing?
No. Tickets may not be sold after the first drawing.
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Are there any age
restrictions for buying a raffle ticket?
Yes. A person under 18 may not purchase a raffle ticket.
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Are there any age
restrictions for winning a raffle prize?
Yes. A person under 18 may not win a raffle prize.
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Are there any age
restrictions for persons who sell raffle tickets?
No. A person under 18 may sell raffle tickets for a nonprofit
organization authorized to conduct a raffle.
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Are there any
special requirements for awarding a prize, such as a car, ATV, or
shotgun, that requires the payment of taxes or fees or registration by a
government agency?
Yes. For prizes that require registration with a government agency, a
merchandise certificate must be used to award the prize. Include a
statement on the raffle ticket and merchandise certificate that the winner
is responsible for any taxes and fees.
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Are there special
IRS requirements for awarding valuable prizes such as
a car?
Yes. If the value of a raffle prize, less the amount of the wager (ticket
price), exceeds $5,000, the organization must withhold and pay the federal
income tax, at the rate of 25%, on the prize. If you have
questions, contact the IRS at 651-312-7716 (Metro area) or 1-800-829-1040.
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Are we required to
post house rules for our raffle?
Yes, house rules must be posted where the winning tickets will be selected.
See next question for information required to be posted.
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What information must raffle
house rules contain?
House rules for raffles must contain:
(a) organization's name;
(b) method and policy of selecting or determining winners;
(c) statement that the winner need not be present;
(d) policy of accepting checks;
(e) statement that the purchase of only one ticket or certificate of
participation is required to enter the raffle;
(f) explanation of multiple pricing levels, if any;
(g) persons under age 18 may not purchase a raffle ticket or certificate of
participation;
(h) persons under age 18 may not win a raffle prize; and
(i) persons must be age 21 and older to win any wine, beer, or
intoxicating liquor prizes.
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Are there any restrictions on how we may
spend our raffle proceeds?
Yes. For spending restrictions,
click here.
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Do we have to keep any raffle records?
Yes. The raffle records must include sellers information (tickets
sold and returned, cash received), copy of a complete raffle ticket, and
all winning and unsold tickets or certificates of participation. The
records must be kept for 3-1/2 years.
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Our
organization has an exempt permit to conduct a raffle. Does the 5 day
limit for gambling activity include the days we can sell raffle tickets?
No. Gambling activity
refers to the
actual time gambling takes place. In the case of an exempt raffle, the
gambling activity is when the actual winning tickets are drawn. An
exempt organization may sell tickets in advance of the raffle date as long
as the tickets are in compliance with statute and rule.
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