New York Raffle Laws: Complete Legal Guide for Nonprofits

New York regulates raffles under its Games of Chance laws, requiring licenses and imposing strict limits on prizes and frequency. This comprehensive guide covers everything nonprofits need to know about conducting legal raffles in the Empire State.

Who Can Conduct Raffles in New York?

New York law strictly limits who can conduct Games of Chance (including raffles):

Additional Requirements

• Must have charter, constitution, or bylaws
• Membership must actively participate in organization
• Cannot be organized solely for gaming purposes
• Must conduct activities other than gaming

Licensing Requirements

Games of Chance License

Before conducting any raffle, organizations must obtain:

• License from: City, town, or village clerk where raffle occurs
• Application includes: Organization details, officer list, financial info
• Processing time: Submit at least 30 days before event
• Valid period: Up to one year
• Multiple events: One license can cover multiple raffles

Registration Certificate

• Required from New York State Gaming Commission
• Identifies organization as authorized
• Must be obtained before local license
• Valid for specific calendar year

Prize and Financial Limits

Net Proceeds Requirements

• No more than 15% for reasonable administration expenses
• No more than 15% for reasonable prizes
• Remaining proceeds must go to lawful purposes
• Cannot benefit any member or officer

Conducting Your Raffle: Step-by-Step

Required Ticket Information

Each raffle ticket must display:

• Name of authorized organization
• License number
• Price of the ticket
• Prizes to be awarded
• Date, time, and place of drawing
• Statement of whether winner must be present
• Sequential numbering

Operational Requirements

• Who can help: Only active members (no paid workers)
• Member requirement: Must be member for 6+ months
• Age requirement: All workers must be 18+
• Compensation: No one can be paid for raffle work
• Location: Must conduct within licensing municipality

Financial Management & Reporting

Banking Requirements

Record Keeping Requirements

Maintain these records for at least 3 years:

• Number of tickets printed and sold
• Gross receipts from ticket sales
• Prizes awarded and winner information
• Itemized expenses
• Net proceeds and disposition
• Bank statements for special account
• All advertising materials

Reporting Requirements

• Financial statement: Due within 7 days after each event
• Annual report: Due to municipality by stated deadline
• Additional reports: May be required by Gaming Commission
• Public inspection: Reports must be available

Special Considerations

Bell Jar Tickets (Pull Tabs)

New York allows bell jar tickets with additional rules:

• Must be purchased from licensed suppliers
• Subject to separate prize limits
• Specific record-keeping requirements
• Cannot exceed $5,000 in prizes per occasion

50/50 Raffles

• Allowed under Games of Chance license
• Prize cannot exceed $100,000
• Winner receives 50% of gross receipts
• Popular at sporting events and gatherings

Internet and Electronic Raffles

Common Violations and Penalties

Criminal Penalties

• Class A Misdemeanor: Operating without license
• Fines: Up to $1,000 per violation
• Imprisonment: Up to one year
• Civil penalties: Additional fines possible

Common Violations

• Exceeding prize limits
• Using non-members to sell tickets
• Failing to maintain separate bank account
• Late or missing financial reports
• Improper use of net proceeds
• Operating outside licensed municipality

Best Practices for New York Raffles

1. Start Early: Begin licensing process 60+ days before event
2. Know Your Limits: Track prizes carefully to stay within caps
3. Train Volunteers: Ensure all helpers are qualified members
4. Document Everything: Over-document rather than under-document
5. Segregate Funds: Never mix raffle money with other accounts
6. File Reports Promptly: Missing deadlines can jeopardize future licenses
7. Consult Municipality: Local rules often exceed state requirements

Make Your New York Raffle a Success

While New York's Games of Chance laws are complex, they provide a clear framework for charitable gaming. Success requires careful attention to licensing, prize limits, and financial management. The dual oversight—state registration plus local licensing—means extra planning time is essential.

Remember that local municipalities often impose additional restrictions beyond state law. Always check with your local clerk's office for specific requirements, forms, and deadlines. With proper planning and compliance, your New York raffle can be both profitable and problem-free.