5 Things You Need to Know About Raffles

It is not uncommon for nonprofit organizations to hold a raffle or some type of gaming event to raise additional funds.  Bingo events, casino game nights, raffles, festivals, and other gaming activities held by qualified organizations are considered charity gaming.  The Indiana Charity Gaming Commission is responsible for the oversight of these activities.  If your organization is considering holding a raffle or similar type of event, there are a few things that you should know first.

1. Your organization must obtain a license from the Indiana Gaming Commission to conduct the activity.  There is an exception to obtaining a license if the value of all prizes awarded at the activity does not exceed $2,500 for a single activity and not more than $7,500 during a calendar year.  If your organization does hold an activity that meets the licensure exception more than once a year, you are required to file an annual written notice no later than 30 days before the first event of the year.
2. A separate and segregated bank account must be set up for the activity.  All funds need to go directly into this separate account.
3. Raffle tickets cannot be purchased online.  Charity gaming activities cannot be conducted on or through the internet.  Further, charities are restricted from utilizing online vendor companies and/or their software to sell tickets or chances in a charitable gaming activity.
4. Raffle tickets cannot be purchased with a credit card.  They must be purchased with a debit card, cash, or check.
5. If the event has an entry fee that is attached to the purchase of the raffle tickets, then the entry fee cannot be paid with a credit card either.

Make sure your organization is properly set up to hold a raffle so that you meet all of the State requirements.  You can contact the Indiana Gaming Commission at charitygaming@igcin.gov or 317-232-4646 to go over any specific questions you have about your event and they will let you know if the process is acceptable or not.

Contributed by: Carrie Minnich, MAcct, CPA | Partner | DWD CPAs & Advisors