A raffle is defined as a means of raising money by selling numbered tickets, one or some of which are subsequently drawn at random, the holder or holders of such tickets winning a prize.
A small sample of the differing state laws include:
- In California, a nonprofit organization must register with the Attorney General's Registry of Charitable Trusts before the raffle.
- In the state of New York, there are three categories of Raffle Tickets, each with their own rules and regulations.
- In Pennsylvania, and other states, proceeds from games of chance have to be kept in a special bank account.
- North Carolina law states: "None of the net proceeds of the raffle may be used to pay any person to conduct the raffle, or to rent a building where the tickets are received or sold or the drawing is conducted."
So make sure to check and follow your applicable laws before attempting a raffle.