Massachusetts maintains some of the strictest raffle regulations in the United States, requiring careful compliance for any organization conducting charitable gaming activities. With over 7 million residents and a strong tradition of community support, Massachusetts offers excellent fundraising opportunities for organizations that properly navigate the regulatory requirements.
Legal Disclaimer
This guide provides general information about Massachusetts raffle laws as of 2025. Laws can change, and specific situations may require legal counsel. Always consult with a qualified attorney or contact the Massachusetts Gaming Commission for official legal advice before conducting any raffle.
Massachusetts Raffle Law Overview
Massachusetts regulates charitable gaming under Massachusetts General Laws Chapter 271, Section 7A and associated regulations administered by the Massachusetts Gaming Commission. The state takes a restrictive approach to ensure charitable gaming serves legitimate charitable purposes.
Strict Compliance Required
Massachusetts has zero tolerance for raffle law violations. Organizations that fail to comply face significant penalties including fines, criminal charges, and permanent prohibition from conducting future charitable gaming activities.
Eligible Organizations in Massachusetts
Only specific types of organizations can legally conduct raffles in Massachusetts:
- 501(c)(3) Charitable Organizations - Must be federally tax-exempt
- Educational Institutions - Schools, colleges, and universities
- Religious Organizations - Churches and religious institutions
- Civic Organizations - Rotary, Lions Club, etc.
- Veterans' Organizations - VFW, American Legion chapters
- Fraternal Organizations - Fraternal and social organizations
Critical Requirements
- Organization must be registered in Massachusetts for minimum of 2 years
- Must have active IRS tax-exempt determination letter
- Cannot conduct raffles primarily for private benefit
- Must demonstrate legitimate charitable purpose
Massachusetts Raffle Permit Requirements
Raffle and Bazaar Permit
All raffles in Massachusetts require a permit from the local police chief or licensing authority in the municipality where the raffle will be conducted.
Permit Application Requirements
- Application Form: Must be filed at least 30 days before event
- Organization Charter: Articles of incorporation or constitution
- IRS Documentation: Current tax-exempt determination letter
- Financial Statements: Recent audited financial statements
- Event Details: Complete description of raffle and prizes
- Insurance Certificate: Liability insurance documentation
- Permit Fee: $25-100 depending on municipality
Important: Each municipality has authority to impose additional requirements
Multi-Municipality Considerations
For raffles conducted across multiple cities or towns:
- Separate permits required for each municipality
- Drawing location determines primary jurisdiction
- All participating municipalities must approve
- Coordinated compliance across all locations required
Massachusetts Raffle Restrictions and Limitations
Prize Value Limitations
Massachusetts imposes strict limits on raffle prizes:
Prize Restrictions
- Single Prize Maximum: $5,000 per individual prize
- Total Prize Pool: Cannot exceed 50% of total ticket sales
- Cash Prizes: Limited to $1,000 maximum
- Vehicle Prizes: Subject to special documentation requirements
- Alcohol Prizes: Generally prohibited
Ticket Sales Restrictions
Massachusetts regulates how and where raffle tickets can be sold:
- Geographic Limitation: Tickets can only be sold in Massachusetts
- Online Sales: Generally prohibited except under very strict conditions
- Minimum Age: Purchasers must be 18 years or older
- Sales Period: Limited to 30 days before drawing
- Sales Locations: Must be specified in permit application
- Ticket Price Minimum: Must be at least $1.00 per ticket
Required Disclosures
All raffle tickets and promotional materials must include:
- Organization's legal name and address
- Permit number and issuing authority
- Drawing date, time, and location
- Complete prize description and value
- Number of tickets to be sold
- Winner notification method
See Compliant Raffle Management for Massachusetts
Watch how rafflr helps Massachusetts nonprofits navigate strict compliance requirements
Massachusetts Tax Requirements
Winner Tax Obligations
Prize winners in Massachusetts face both state and federal tax obligations:
Tax Reporting Requirements
- Federal Reporting: Form W-2G required for prizes $600+ that exceed 300x wager
- State Reporting: Massachusetts requires reporting for prizes $600+
- Winner Information: Must collect Social Security numbers for large prizes
- Withholding: May be required for non-residents or missing TIN
Organizational Responsibilities
Conducting organizations have specific tax obligations:
- Unrelated Business Income: Raffle proceeds may be subject to UBIT
- Sales Tax: Generally exempt for qualified charitable organizations
- Record Keeping: Detailed financial records required
- Annual Reporting: Must report gaming activities on tax returns
Compliance Best Practices for Massachusetts
Pre-Event Planning Checklist
Essential Pre-Launch Steps
- File permit application minimum 30 days in advance
- Verify organization has been registered in MA for 2+ years
- Confirm all prizes comply with value limitations
- Prepare all required disclosures and documentation
- Train all volunteers on legal requirements
- Establish compliant record-keeping systems
- Obtain required liability insurance
Required Documentation
Maintain detailed records throughout the raffle process:
- Permit Documentation: Original permits and approvals
- Ticket Records: Serial numbers, sales logs, unsold inventory
- Financial Records: All revenue, expenses, and profit calculations
- Winner Documentation: Contact information, prize acceptance, tax forms
- Volunteer Records: Names and roles of all staff involved
- Retention Period: All records must be kept for minimum 3 years
Common Massachusetts Violations and Penalties
Frequent Compliance Failures
Organizations commonly violate these requirements:
Common Violations
- Operating Without Permits: Conducting raffles without proper authorization
- Exceeding Prize Limits: Prizes over $5,000 individual/$1,000 cash limits
- Online Sales: Selling tickets over the internet without approval
- Out-of-State Sales: Selling tickets outside Massachusetts
- Improper Disclosures: Missing required information on tickets
- Record Keeping Failures: Inadequate documentation
Penalties and Consequences
Massachusetts enforces raffle laws strictly:
- Criminal Charges: Illegal gambling charges for violations
- Fines: Up to $1,000 per violation
- Permit Revocation: Loss of current and future gaming privileges
- Organization Sanctions: Potential loss of tax-exempt status
- Personal Liability: Individual organizers may face charges
Local Municipality Variations
Boston Requirements
Boston imposes additional requirements beyond state law:
- Higher permit fees and longer processing times
- Additional insurance requirements
- Stricter venue and sales location restrictions
- Enhanced reporting and oversight requirements
Other Major Cities
Key variations in other Massachusetts cities:
- Worcester: Additional venue inspection requirements
- Springfield: Enhanced security and volunteer screening
- Cambridge: Stricter environmental and accessibility standards
- Lowell: Additional community notification requirements
Professional Support and Resources
Official Government Resources
- Massachusetts Gaming Commission
- Phone: (617) 979-8400
- Website: massgaming.com
- Address: 101 Federal Street, 12th Floor, Boston, MA 02110
Legal and Professional Support
Given Massachusetts' strict requirements, consider consulting:
- Gaming Law Attorneys: Specialized legal guidance
- Nonprofit Consultants: Compliance and best practices
- Tax Professionals: Tax reporting and obligations
- Insurance Brokers: Required liability coverage
Modern Compliance Solutions
Technology for Compliance
Professional raffle management software helps ensure Massachusetts compliance:
- Automated Record Keeping: Detailed transaction tracking
- Compliance Monitoring: Built-in limit checks and alerts
- Reporting Tools: Generate required documentation automatically
- Audit Trails: Complete documentation for regulatory review
Success Strategy
Given Massachusetts' strict enforcement, professional raffle management tools can be the difference between successful compliance and costly violations.
Digital Solutions and Restrictions
While online sales are generally prohibited, approved platforms can help with:
- Permit application management
- Compliance tracking and monitoring
- Record keeping and reporting
- Winner verification and tax reporting
Ready to navigate Massachusetts' strict raffle requirements? Explore professional compliance tools designed to help you meet all state requirements automatically.