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"Start Simple" and Excluded Raffles 

For nonprofit organizations interested in conducting charitable gambling on a very limited scale, the Minnesota Legislature carved out a small "exclusion" to the normal requirement that the nonprofit have either a license or a permit. This option is called an "excluded raffle." (There is also a similar "excluded" version of bingo).

In a nutshell, if you accept a much lower limit on the value of your annual prize package(s), you are not required to get a license, permit, or application from the MN Gambling Control Board (but make sure to check with your local authorities to see if they have their own requirements).

The full range of options is listed below, but the Gambling Control Board has also created two, straight forward, checklist-based variations we call "Start Simple" raffles. They are the easiest—yet still fully legal—way to get started in charitable gambling:

Start Simple: One-day Event
Click here for Start Simple: One-Day (tickets sold only on day and at site of event)

Start Simple: Multi-day Event
Click here for Start Simple: Multi-Day (tickets sold prior to day of drawing or at other locations)

If Start Simple raffles aren't a good fit for you, here are more details on other options for conducting a raffle. It can be a little confusing, so please feel free to contact the Licensing Specialist for your county with any questions—they will be happy to make sure you start off on the right foot.

For registered nonprofits that are NOT a 501(c)(3):

  • if selling tickets exclusively on the day of raffle, and at the same site, you can use theater-style tickets
  • if selling tickets before the day of the raffle, or at other locations, you must use printed tickets (an example of a ticket with all the required details can be found in the Start Simple: Multi-day materials)
  • you can do multiple, small events in one calendar year
  • your cumulative prize package value across all events, cannot exceed $1500 (in a calendar year)

For registered nonprofits that ARE a 501(c)(3)

  • if selling tickets exclusively on the day of raffle, and at the same site, you can use theater-style tickets
  • if selling tickets before the day of the raffle, or at other locations, you must use printed tickets (an example of a ticket with all the required details can be found in the Start Simple: Multi-day materials)

But, as a 501(c)(3), you have two options for your prize packages:

Option A:

  • you can do multiple, small events in one calendar year
  • your cumulative prize package value across all events, cannot exceed $1500 (in a calendar year)

Option B:

  • you can have a $5000 prize package limit BUT you can only do one event per year

Record Keeping
Even though "excluded" raffles don't need a license, permit, or application from the Gambling Control Board, you are still required to maintain records from your gambling events for 3.5 years. Here's what you'll need to hang on to:

  • the winning ticket stubs
  • any unsold tickets
  • a record of prizes, prize values, and all income generated by the raffle
  • any other records you kept
  • a list of where you donated your proceeds

Important Note: Only One Kind of Raffle Per Year!
The Gambling Control Board currently interprets Minnesota statute to allow an organization to participate in only one "category" of charitable gambling in any calendar year.

The categories are:

  • Licensed: activity requires a gambling license
  • Exempt: charitable gambling activity that requires each event to obtain a permit
  • Excluded: limited gambling activity that does not require a license or a permit

So, if you conduct "excluded" gambling (for example, a Start Simple raffle), you would NOT be allowed to get an exempt permit OR a full license for other kinds of charitable gambling in that same calendar year.

If you conduct gambling under an "exempt" permit, you would NOT be allowed to pursue a full license or conduct excluded gambling during that same calendar year.

Carefully plan your fundraising activities to avoid unintentionally limiting your options.

For more information, contact the Licensing Specialist for your county.

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