Michigan Raffle Laws: Complete Legal Guide for Nonprofits
Michigan regulates raffles through the Bureau of State Lottery under the Charitable Gaming Act, offering multiple license types for different fundraising needs. This comprehensive guide covers small raffles, large raffles, and millionaire parties, helping nonprofits navigate Michigan's charitable gaming regulations.
⚠️ Legal Disclaimer: This guide provides general information about Michigan raffle laws as of 2025. Laws change frequently. Always consult with legal counsel or the Michigan Bureau of State Lottery for current requirements specific to your situation.
Michigan Raffle Laws: Quick Facts
Who Can Hold Raffles:
Qualified nonprofits
Small Raffle Limit:
$25,000 in prizes per event
Large Raffle License:
No prize limit
Millionaire Party:
Special event license
Online Sales:
Not permitted
50/50 Raffles:
Allowed with license
License Cost:
$15-$150 depending on type
Minimum Existence:
2 years (with exceptions)
Who Can Conduct Raffles in Michigan?
Michigan restricts raffles to qualified organizations meeting specific criteria:
Eligible Organizations Must:
Be organized for religious, educational, service, senior citizens, fraternal, or veterans purposes
Have federal tax-exempt status under 501(c)
Have been in existence for 2+ years (with exceptions)
Have a dues-paying membership engaged in the organization's purposes
Be licensed by the Bureau of State Lottery
Two-Year Rule Exceptions
The following can qualify without 2 years existence:
Component of national organization in existence 2+ years
Newly created through merger of qualifying organizations
Charter school or public school organization
License Types and Requirements
Small Raffle License
Small Raffle Specifications:
Prize limit: $25,000 total per event
Ticket price: Maximum $100 per ticket
License fee: $15 per raffle
Processing time: 3-4 weeks
Valid period: Single event only
Large Raffle License
Prize limit: No maximum
Ticket price: No limit
License fee: $50-$150 based on prize value
Bond required: May need surety bond
Additional oversight: More detailed reporting
Special Event License (Millionaire Party)
Combines multiple gaming activities
Can include raffles with other games
Limited to 4 events per year
Specific venue requirements
Professional suppliers may be used
Simplify Your Michigan Raffle
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Conducting Your Raffle: Step-by-Step
Michigan Raffle Compliance Checklist
Verify organization meets 2-year requirement
Obtain federal tax-exempt status
Determine raffle size (small vs. large)
Apply for appropriate license type
Submit application 6-8 weeks before event
Design tickets with required information
Set up separate bank account
Train volunteers on regulations
Plan drawing procedures
Prepare financial reporting system
Required Ticket Information
Each raffle ticket must display:
Name of licensed organization
License number
Date, time, and location of drawing
Price of ticket
Prizes offered with retail value over $100
Whether winner must be present
Consecutive numbering
Stub for purchaser information
Operational Rules
Only members can sell tickets and work event
No compensation for raffle work
All workers must be 18+
Cannot sell tickets on credit
Must use Michigan-licensed suppliers for equipment
Financial Management & Reporting
Banking Requirements
Financial Controls:
Maintain separate charitable gaming account
Deposit all proceeds within 2 business days
Two signatures required on checks
No commingling with other funds
Detailed records of all transactions
Use of Proceeds
Michigan requires that net proceeds be used for:
Organization's stated lawful purposes
Cannot benefit any individual
Allowable expenses limited to actual costs
Must spend profits within 18 months
Reporting Requirements
Financial report: Due within 60 days of event
Contents: Gross receipts, prizes, expenses, net profit
Annual report: Summary of all charitable gaming
Record retention: Minimum 3 years
Available for audit: Bureau can inspect anytime
50/50 Raffles in Michigan
Michigan allows 50/50 raffles with specific guidelines:
Warning: Violations can result in license revocation, fines up to $10,000, and criminal charges. The Bureau conducts regular audits and investigations.
Common Violations
Operating without proper license
Exceeding prize limits on small raffle license
Using unlicensed suppliers
Improper financial record keeping
Paying workers or providing compensation
Failing to file required reports
Misuse of charitable gaming proceeds
Best Practices for Michigan Raffles
Apply Early: Submit applications 6-8 weeks in advance
Choose Right License: Don't try to squeeze under small raffle limits
Separate Accounting: Keep meticulous financial records
Train Everyone: All volunteers must understand rules
Use Licensed Suppliers: Only work with Michigan-approved vendors
File Reports Promptly: Late reports risk future licenses
Consider Millionaire Parties: Combine raffles with other gaming
Michigan offers flexible options for charitable raffles, from simple small raffles to elaborate millionaire parties. The key is choosing the right license type for your fundraising goals and maintaining strict compliance with financial reporting requirements.
Consider starting with small raffles to build experience, then graduating to large raffles or millionaire parties as your organization grows. Michigan's detailed regulations provide clear guidelines that, when followed properly, create successful and compliant fundraising events.
Ready to Run a Compliant Michigan Raffle?
rafflr provides the tools you need to manage drawings, track sales, and maintain the detailed records Michigan requires.