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.
Legal Disclaimer: This guide provides general information about Kentucky raffle laws as of 2026. Laws change frequently. Always consult with legal counsel or the Kentucky Department of Charitable Gaming for current requirements.
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
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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
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
Warning: Violations of Kentucky's Charitable Gaming Act can result in license revocation, civil fines, and criminal charges. Operating without a license is a Class A misdemeanor. Fraud or theft related to charitable gaming can be charged as a felony.
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.
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.
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