Winged Mermaid
10-28-2013, 09:24 PM
There have been a lot of people either doing or contemplating raffles lately. One of our members brought up a very good point so I thought I'd make a thread so no one missed it in a multi page thread.
Having a raffle without a license to do so is actually illegal.
It's defined as charitable gaming- laws vary state to state on the details. You can, however, obtain a license through your State's Department of Justice with a fee. Usually the only way around the fee is if you're doing so with a licensed non profit organization. From what I saw, a license via a non profit needs proof that they've been exempt from federal income tax for a period of at least one year. Even then, there can be limitations on how much you can make or give away under that license. Also if you start selling tickets before you obtain you license you're still breaking the law.
I just wanted everyone to be aware of this. Before you host anything that can be considered gambling, check your state laws. Doing one without can be a misdemeanor or a felony, depending on which state you're in. You don't want to end up in jail over a raffle.
Having a raffle without a license to do so is actually illegal.
It's defined as charitable gaming- laws vary state to state on the details. You can, however, obtain a license through your State's Department of Justice with a fee. Usually the only way around the fee is if you're doing so with a licensed non profit organization. From what I saw, a license via a non profit needs proof that they've been exempt from federal income tax for a period of at least one year. Even then, there can be limitations on how much you can make or give away under that license. Also if you start selling tickets before you obtain you license you're still breaking the law.
I just wanted everyone to be aware of this. Before you host anything that can be considered gambling, check your state laws. Doing one without can be a misdemeanor or a felony, depending on which state you're in. You don't want to end up in jail over a raffle.