Kentucky Raffle Laws: Complete Legal Guide for Nonprofits
Kentucky regulates charitable raffles through the Charitable Gaming Act, administered by the Kentucky Department of Charitable Gaming. The state requires a license before conducting any raffle and has specific rules about eligible organizations, prize limits, and reporting. This guide covers what nonprofits need to know to run a legal raffle in the Bluegrass State.
Kentucky Raffle Laws: Quick Facts
| Governing Agency: | KY Department of Charitable Gaming |
| License Required: | Yes - Charitable Gaming License |
| Who Can Hold Raffles: | Qualified nonprofits (3+ years in KY) |
| Prize Limits: | Varies by license type |
| Reporting Required: | Quarterly and annual reports |
| Online Ticket Sales: | Not specifically authorized |
| Governing Law: | KRS Chapter 238 |
Who Can Conduct Raffles in Kentucky?
Kentucky's Charitable Gaming Act limits raffle operations to qualifying organizations. Understanding the fundamentals of raffles can help you determine the best format for your event.
Eligible Organizations Must:
- Be a bona fide charitable, religious, fraternal, veterans, or educational organization
- Have been in continuous existence in Kentucky for at least 3 years
- Be tax-exempt under Section 501(c) of the Internal Revenue Code
- Not have gambling as its primary purpose
- Use net proceeds for charitable, religious, or educational purposes
Kentucky Charitable Gaming License
License Types
- Standard License: For organizations conducting regular charitable gaming events including raffles
- Limited License: For smaller events with lower prize thresholds
- Special One-Time License: For organizations conducting a single event per year
License Application Requirements:
- Complete the application form from the Department of Charitable Gaming
- Provide proof of tax-exempt status
- Document 3+ years of continuous existence in Kentucky
- Pay the applicable license fee
- Designate a licensed gaming operator
- Submit background check information for key personnel
Simplify Your Kentucky Raffle
See how rafflr helps you run compliant raffles with proper tracking and transparent drawings
Kentucky Raffle Restrictions
Prize Rules
- Prize limits vary by license type
- Cash prizes are permitted within established limits
- Prizes of $600 or more require IRS reporting (W-2G)
- Vehicle and property prizes have additional requirements
Operational Rules
- Only members of the licensed organization can manage the raffle
- Raffle workers cannot be compensated
- No one under 18 may purchase tickets
- Cannot use professional gambling operators
- All net proceeds must benefit the organization's charitable purpose
Conducting Your Raffle: Kentucky Requirements
Kentucky Raffle Compliance Checklist
- Obtain charitable gaming license from the Department
- Verify organization meets 3-year existence requirement
- Designate a licensed gaming operator
- Ensure all raffle workers are unpaid volunteers
- Design tickets with required information
- Restrict ticket sales to persons 18 and older
- Maintain detailed financial records
- File quarterly reports with the Department
- File annual report
- Report prizes of $600+ to the IRS
Financial Management & Reporting
Kentucky has some of the more detailed reporting requirements in the country for charitable gaming:
- Quarterly reports: Due to the Department of Charitable Gaming, detailing all gaming activities
- Annual reports: Comprehensive summary of the year's charitable gaming activities
- Record retention: Maintain all records for at least 3 years
- Financial tracking: Gross receipts, expenses, prizes, and net proceeds
For tips on ticket design, check our raffle ticket templates guide.
Online Raffle Rules in Kentucky
Kentucky does not specifically authorize online raffle ticket sales under the Charitable Gaming Act. Tickets are generally expected to be sold in person. For more on digital raffle regulations, see our online raffle laws guide.
Penalties for Violations
Frequently Asked Questions
Do I need a license to hold a raffle in Kentucky?
Yes. Kentucky requires a charitable gaming license from the Department of Charitable Gaming. There are different license types depending on the scale of your event.
Who can hold a raffle in Kentucky?
Bona fide charitable, religious, fraternal, veterans, and educational organizations that have existed in Kentucky for at least 3 years and are tax-exempt.
What are Kentucky's raffle prize limits?
Prize limits vary by license type. Check with the Department of Charitable Gaming for current thresholds.
Can raffle tickets be sold online in Kentucky?
Kentucky does not specifically authorize online sales. Tickets are generally expected to be sold in person.
What reports are required for Kentucky raffles?
Quarterly reports detailing gross receipts, prizes, expenses, and net proceeds, plus annual reports. Records must be maintained for at least 3 years.
Official Resources
Ready to Run a Compliant Kentucky Raffle?
Kentucky's Charitable Gaming Act provides a clear framework for nonprofit raffles. The key is obtaining your license, meeting the reporting requirements, and using only unpaid volunteers.
rafflr makes it easy to manage your raffle drawing, track winners, and maintain proper records for Kentucky compliance. Get started with rafflr today and run your next raffle with confidence.