Indiana Raffle Laws: Complete Legal Guide for Nonprofits
Indiana regulates raffles under its charity gaming laws, administered by the Indiana Gaming Commission. Organizations must obtain a charity gaming license before conducting any raffle, and compliance requirements are more structured than in many other states. This guide covers everything you need to know about running a legal raffle in the Hoosier State.
Legal Disclaimer: This guide provides general information about Indiana raffle laws as of 2026. Laws change frequently. Always consult with legal counsel or the Indiana Gaming Commission for current requirements specific to your situation.
Indiana Raffle Laws: Quick Facts
Governing Body:
Indiana Gaming Commission
License Required:
Yes - Charity Gaming License
Who Can Hold Raffles:
Qualified nonprofits (5+ years in Indiana)
Prize Limits:
No per-prize cap; gross receipt limits apply
Online Ticket Sales:
Generally not permitted
Reporting Required:
Yes - Annual financial reports to IGC
Application Lead Time:
At least 15 days before event
Who Can Conduct Raffles in Indiana?
Indiana restricts raffle operations to qualified organizations, which are defined under IC 4-32.3. To be eligible, your organization must meet specific criteria set by the Indiana Gaming Commission.
Eligible Organizations Must:
Be a bona fide religious, charitable, fraternal, veterans, civic, or educational organization
Have been in continuous existence in Indiana for at least 5 years, or be affiliated with a parent organization that meets this requirement
Operate without profit to its members
Be exempt from federal income tax under Section 501 of the Internal Revenue Code
Have a principal office or chapter located in Indiana
Understanding the different types of raffles can help you determine which format best suits your organization's needs and ensures compliance with Indiana law.
Indiana Charity Gaming License Requirements
Unlike some states that allow raffles without prior registration, Indiana requires a charity gaming license before you can conduct any raffle event.
License Types
Type I License: For events with gross receipts up to $2,000 per event
Type II License: For events with gross receipts exceeding $2,000 per event
Application Process
Steps to Obtain a License:
Complete the charity gaming license application from the Indiana Gaming Commission
Submit at least 15 days before the planned event
Pay the applicable license fee
Designate a qualified operator who is a member of the organization
Provide proof of tax-exempt status and organizational history
Indiana Raffle Restrictions
Prize Rules
No specific cap on individual prize values
Gross receipts from all charity gaming events are monitored
Prizes valued at $600 or more require winner reporting to the IRS (Form W-2G)
Cash prizes are permitted
Operational Requirements
Only members of the licensed organization can manage the raffle
No one under 18 may purchase raffle tickets
Raffle workers cannot be compensated for their efforts
All proceeds (minus prizes and reasonable expenses) must go to the organization's charitable purpose
Cannot use professional promoters or managers
Simplify Your Indiana Raffle
See how rafflr helps you run compliant raffles with proper tracking and transparent drawings
Conducting Your Raffle: Indiana Requirements
Indiana Raffle Compliance Checklist
Obtain charity gaming license from Indiana Gaming Commission
Verify organization meets 5-year existence requirement
Designate a qualified operator (organization member)
Indiana requires detailed financial records for all charity gaming events:
Total gross receipts from ticket sales
Number of tickets printed, sold, and unsold
Itemized list of prizes awarded and their values
All expenses related to the raffle
Net proceeds and how they were used
Names and addresses of all prize winners
Reporting Requirements
Reports Due to Indiana Gaming Commission:
Event-specific financial reports after each raffle
Annual summary of all charity gaming activities
Reports must be filed within 15 days after the event
Maintain records for a minimum of 3 years
Online Raffle Rules in Indiana
Indiana takes a conservative approach to online raffle ticket sales. Under current law, selling raffle tickets over the internet is generally not permitted, as it could be classified as unlicensed gambling. Organizations should sell tickets in person to remain compliant. For a broader look at how different states handle digital raffles, see our comprehensive guide to online raffle laws.
Penalties for Violations
Warning: Conducting an unlicensed raffle in Indiana is considered illegal gambling, which can be charged as a Level 6 felony punishable by 6 months to 2.5 years in prison and fines up to $10,000.
Common Violations
Operating without a valid charity gaming license
Compensating raffle workers or using professional operators
Selling tickets to minors
Failing to file required financial reports
Diverting raffle proceeds from charitable purposes
Misrepresenting the organization's eligibility
Frequently Asked Questions
Do I need a license to hold a raffle in Indiana?
Yes. Indiana requires qualified organizations to obtain a charity gaming license from the Indiana Gaming Commission before conducting raffles. The license application must be submitted at least 15 days before the event.
Who can legally conduct a raffle in Indiana?
Only qualified organizations can conduct raffles in Indiana, including bona fide religious, charitable, fraternal, veterans, civic, or educational organizations that have been in continuous existence in Indiana for at least 5 years or are affiliated with a parent organization that has existed for at least 5 years.
What are Indiana's raffle prize limits?
Indiana does not set a specific maximum prize value for individual raffle prizes. However, the total gross receipts from all charity gaming events are monitored, and organizations must ensure proper reporting for prizes valued at $600 or more.
Can I sell raffle tickets online in Indiana?
Indiana law is restrictive regarding online raffle ticket sales. Generally, raffle tickets must be sold in person within the state. Online sales may be considered illegal gambling, so consult legal counsel before attempting online ticket sales.
What are the penalties for running an illegal raffle in Indiana?
Conducting an unlicensed raffle can be charged as a Level 6 felony punishable by 6 months to 2.5 years in prison and fines up to $10,000. The Gaming Commission can also impose civil penalties and revoke licenses.
Indiana's charity gaming laws require careful attention to licensing and reporting, but with proper planning, your organization can run a successful and fully legal raffle. The key is obtaining your license early, keeping detailed records, and ensuring all workers are unpaid volunteers.
rafflr makes it easy to manage your raffle drawing, track winners, and maintain proper records for Indiana compliance. Get started with rafflr today and run your next raffle with confidence.