A raffle is a game in which a participant buys a ticket or other certificate of participation in an event where the prize determination is based on a method of random selection, and all entries have an equal chance of selection.
For licensed organizations, raffle tickets must include the location, date, and time of the selection of the winning entries. See the raffle ticket requirement example.
There are three primary factors used in determining whether your activity is gambling.
1. Consideration (payment) required.2. Chance is involved in the selection of the winner(s).
State law allows chance drawings if the participant is not required to purchase a ticket or provide any other consideration for a chance to win a prize. A chance drawing may not imply that a participant must pay a donation for the chance to win a prize (for example, “Suggested Donation $5”) or coerce a participant to pay a donation for the chance to win a prize.
3. Prize (something of value is awarded to the winner(s).
May our organization give a free meal to everyone who buys one of our $50 raffle tickets? No. Raffle tickets may not entitle the buyer to anything but the raffle, with three exceptions. 1) Fishing/hunting contests may be held in combination with a raffle, but the amount for the contest and the raffle must be separately stated on the ticket. The fishing/hunting contest prizes and expenses may not be paid for with gambling money. 2) Buttons may be given out if the organization’s cost is less than $5, and the buttons are used as certificates of participation in a raffle. 3) Annual membership raffles. (See “Specialized raffles” section for more information.)
We are sponsoring a golf tournament. Participants are awarded prizes based on their scores. The lowest three scores win a prize. Is this activity considered gambling? No. As long as the outcome is based exclusively on skill, then the activity is not gambling.