New Jersey Raffle Laws: Complete Legal Guide for Nonprofits
New Jersey operates a unique dual licensing system for nonprofit raffles, requiring both state registration and municipal permits. This comprehensive guide covers everything nonprofits need to know about navigating the Garden State's raffle regulations, from initial registration to compliance requirements.
⚠️ Legal Disclaimer: This guide provides general information about New Jersey raffle laws as of 2025. Laws change frequently. Always consult with legal counsel or the New Jersey Legalized Games of Chance Control Commission for current requirements specific to your situation.
New Jersey Raffle Laws: Quick Facts
Regulatory Authority:
Legalized Games of Chance Control Commission (LGCCC)
Who Can Hold Raffles:
Qualified 501(c)(3) nonprofits only
Registration Required:
Yes, dual system (state + municipal)
Initial Registration Fee:
$100 (LGCCC registration)
Prize Limit (Single Raffle):
$100,000
Annual Prize Limit:
$500,000 (12-month aggregate)
Online Sales:
Prohibited
Remote Drawings:
Allowed with location verification
Reporting Deadline:
15th of month following raffle
Who Can Conduct Raffles in New Jersey?
New Jersey's raffle laws are overseen by the Legalized Games of Chance Control Commission (LGCCC), which regulates approximately 12,000 registered nonprofit organizations throughout the state.
Eligible Organizations Must Be:
Qualified 501(c)(3) nonprofit organizations
Veterans' associations or auxiliary units
Religious organizations
Charitable organizations
Fraternal organizations
Educational institutions
Volunteer fire companies
First aid/rescue squads
Ineligible Organizations
The following CANNOT conduct raffles in New Jersey:
For-profit businesses or corporations
Individuals (even if donating proceeds to charity)
Political organizations or campaigns
Government entities
Newly formed organizations without proper registration
Organizations in municipalities that prohibit raffles (22 municipalities)
New Jersey's Dual Licensing System
New Jersey requires a unique two-step licensing process that distinguishes it from most other states:
Step 1: LGCCC State Registration
Purpose: Obtain statewide identification number
Fee: $100 initial registration
Authority: Legalized Games of Chance Control Commission
Requirement: Must be completed before applying for municipal licenses
Step 2: Municipal License Application
Purpose: Permission to conduct specific raffle events
Fee: Varies by municipality (sliding scale based on prizes)
Authority: Local municipality where raffle will be operated
Requirement: Separate license needed for each raffle event
Important: 22 New Jersey municipalities do not permit raffles within their borders. Verify your intended location allows raffles before beginning the licensing process.
Prize Limits and Financial Restrictions
New Jersey Raffle Prize Limits
Single Raffle: Maximum $100,000 in prizes
Annual Aggregate: Maximum $500,000 in total prizes over 12 months
Ticket Pricing: Must be uniform - no bulk discounts allowed
Fee Structure: Municipal licensing fees based on prize amounts
Important 2021 Legislative Changes
Effective 2021, New Jersey removed the previous restriction that prohibited nonprofits from using raffle profits for general operations. Organizations can now use proceeds for:
General operational expenses
Program funding
Administrative costs
Capital improvements
Any legitimate charitable purpose
Streamline Your New Jersey Raffle
See how rafflr simplifies raffle management while ensuring compliance with New Jersey's dual licensing requirements
Online Sales and Remote Operations
Prohibited Activities
Online Ticket Sales: Cannot sell raffle tickets online as a charitable organization
Social Media Sales: No ticket sales through social media platforms
Credit Card Processing: Generally not permitted for ticket sales
Third-Party Platforms: Cannot use commercial raffle platforms for sales
Allowed Remote Activities (2021 Update)
New Jersey legislation passed in 2021 allows for remote raffle operations with specific requirements:
Remote Raffle Requirements
Organization must verify each participant's physical location
All participants must be located within municipalities that authorize raffles
Proper documentation of location verification required
Drawing can be conducted remotely if properly witnessed
Conducting Your Raffle: Step-by-Step Process
New Jersey Raffle Compliance Checklist
Verify 501(c)(3) status is current and recognized in New Jersey
Complete LGCCC state registration ($100 fee)
Receive LGCCC identification number
Research municipal raffle permissions in intended location
Apply for municipal raffle license (fees vary)
Design tickets with all required information
Establish in-person ticket sales procedures
Set up location verification for any remote participants
New Jersey's dual licensing system makes it one of the more complex states for nonprofit raffle operations, but the detailed regulations also provide clear guidelines for compliance. By understanding both state and municipal requirements, maintaining proper documentation, and following reporting deadlines, your organization can successfully conduct legal and profitable raffles.
The key to success in New Jersey is preparation and attention to detail. Start your planning process early, maintain meticulous records, and never hesitate to seek guidance from the LGCCC or legal counsel when questions arise.
Ready to Navigate New Jersey's Raffle Requirements?
rafflr helps you manage raffle drawings, participant tracking, and record-keeping while ensuring compliance with New Jersey's dual licensing system.