Arkansas Raffle Laws: Complete Legal Guide for Nonprofits
Arkansas legalized charitable raffles through the Charitable Raffle Act (Arkansas Code 23-114), giving qualifying nonprofits a clear framework for conducting legal raffles. The state does not require a specific license but does impose eligibility criteria including a 2-year existence requirement. This guide covers the rules for running a compliant raffle in the Natural State.
Legal Disclaimer: This guide provides general information about Arkansas raffle laws as of 2026. Always consult with legal counsel for current requirements specific to your situation.
Arkansas Raffle Laws: Quick Facts
License Required:
No specific state license
Who Can Hold Raffles:
Tax-exempt nonprofits (2+ years old)
Prize Limits:
No state-imposed caps
Cash Prizes:
Permitted
Online Ticket Sales:
Not specifically addressed
Governing Law:
Arkansas Code 23-114 (Charitable Raffle Act)
Who Can Conduct Raffles in Arkansas?
The Charitable Raffle Act limits raffle operations to qualifying organizations. Understanding the basics of raffles helps plan effective events.
Eligible Organizations Must:
Be tax-exempt under Section 501(c) of the IRC
Have been in continuous existence for at least 2 years
Be organized for charitable, religious, educational, or civic purposes
Use net proceeds exclusively for the organization's stated purpose
Not have gambling as a primary activity
Arkansas Raffle Restrictions
No specific state-imposed prize limits
Cash and non-cash prizes are permitted
Only organization members can manage the raffle
Workers cannot be compensated
Proceeds must go to the organization's charitable mission
Federal tax reporting applies for prizes $600+
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Conducting Your Raffle: Arkansas Requirements
Arkansas Raffle Compliance Checklist
Verify organization has 501(c) tax-exempt status
Confirm organization has existed for at least 2 years
Use only unpaid organization members to conduct the raffle
Design tickets with organization name, drawing details, and price
Maintain detailed financial records
Conduct drawing at announced time and place
Report prizes of $600+ to the IRS
Dedicate net proceeds to charitable purposes
Online Raffle Rules in Arkansas
Arkansas law does not specifically address online raffle ticket sales. For more on digital regulations, see our online raffle laws guide.
Penalties for Violations
Warning: Conducting raffles outside the Charitable Raffle Act's exemption can result in criminal charges under Arkansas gambling laws. Organizations that fail to meet eligibility criteria risk prosecution.
Frequently Asked Questions
Are raffles legal in Arkansas?
Yes, through the Charitable Raffle Act for qualifying nonprofits.
Do I need a permit?
No specific state permit is required, but all eligibility criteria must be met.
Who can hold a raffle in Arkansas?
Tax-exempt nonprofits with at least 2 years of existence.
What are the prize limits?
No state-imposed caps. Federal reporting applies at $600+.
Can tickets be sold online?
Not specifically addressed. Consult legal counsel.
Arkansas's Charitable Raffle Act provides a clear path for qualifying nonprofits. Meet the eligibility requirements, maintain good records, and direct proceeds to your mission.
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