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.
⚠️ Legal Disclaimer: This guide provides general information about New York raffle laws as of 2025. Laws change frequently. Always consult with legal counsel or the New York State Gaming Commission for current requirements specific to your situation.
New York Raffle Laws: Quick Facts
Who Can Hold Raffles:
Authorized organizations only
License Required:
Yes, Games of Chance license
License Source:
Local municipality/county
Single Prize Limit:
$100,000
Event Prize Total:
$100,000
Annual Prize Limit:
$500,000
Events Per License:
Varies by municipality
Ticket Price Limit:
No state limit
Who Can Conduct Raffles in New York?
New York law strictly limits who can conduct Games of Chance (including raffles):
Authorized Organizations Must Be:
Bona fide religious or charitable organizations
Bona fide educational, fraternal, or service organizations
Bona fide organizations of veterans, volunteer firefighters, or volunteer ambulance workers
In existence and actively operating for at least 3 years
Operating without profit to members
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
Prize Value Limits:
Single prize maximum: $100,000
Per event total: $100,000 all prizes combined
Annual maximum: $500,000 in total prizes
Cash prizes: Allowed within limits
Real property: Not addressed in statute
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
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Conducting Your Raffle: Step-by-Step
New York Raffle Compliance Checklist
Verify organization qualifies under statute
Obtain registration certificate from Gaming Commission
Apply for local Games of Chance license
Ensure prize values within limits
Design tickets with required information
Use only members to conduct raffle
Set up proper financial controls
Plan public drawing procedure
Prepare financial report forms
Arrange record retention system
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
Special Games of Chance Account:
Must maintain separate bank account
Deposit all proceeds within 7 days
Cannot commingle with other funds
Withdrawals only for prizes and approved expenses
Requires two signatures on checks
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
Important: New York law is unclear on internet raffle sales. Many municipalities prohibit online ticket sales. Always check local regulations.
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
Start Early: Begin licensing process 60+ days before event
Know Your Limits: Track prizes carefully to stay within caps
Train Volunteers: Ensure all helpers are qualified members
Document Everything: Over-document rather than under-document
Segregate Funds: Never mix raffle money with other accounts
File Reports Promptly: Missing deadlines can jeopardize future licenses
Consult Municipality: Local rules often exceed state requirements
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.
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