A friend asked me my opinion on raising money by hosting an online raffle. According to the law – raffle = gambling and is governed by all sorts of regulations. GoodDogz.org did a free raffle as part of a paid event, which was probably pushing the envelope, and we’ve never done it since. It made me nervous.
Gambling laws are different from state-to-state and although the raffle may be taking place online, typically, you are still governed by the laws of your state. According to this article, it is now legal for non-profits to hold raffles in OK.
I found these tips on Squidoo:
The one problem that many organizations have is, “How do I get started?” I will give you the steps to take to setup your raffle:
Step 1: Contact your State Attorney General’s office.
Step 2: Ask the registration details for conducting a raffle.
Step 3: Organize your raffle with your volunteers and other people associated with your organization.
Step 4: Get your raffle prizes donated to your organization.
Step 5: Market your raffle locally or on the internet.
Since every state and county have their own set of rules and regulations it is just a matter of contacting your State Attorney General’s office to get more information about registering your raffle.
I guess the short answer is – you don’t want to break the law. Take a few minutes to contact your state’s AG to find out how the laws apply to what you are trying to do. You wouldn’t want to earn a bad name for your organization by engaging is what amounts to illegal gambling. That would be bad. Do a little homework and make an informed decision for your organization.
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I think doing an Online Raffle is much more beneficial and rewarding when part of the money put into it is donated to charities. That may also be a way to make the raffle not become gambling since it is benefiting an organization. But I would agree, check with officials to ensure no laws have been broken.