North Dakota regulates charitable gaming through the Attorney General's Gaming Division, requiring organizations to obtain gaming licenses before conducting raffles. This guide covers the licensing process, prize limits, reporting requirements, and compliance steps for running a legal raffle in the Peace Garden State.
North Dakota Raffle Laws: Quick Facts
| Who Can Hold Raffles: | Qualified nonprofit organizations |
| License Required: | Yes, from Attorney General's office |
| Governing Law: | NDCC Chapter 53-06.1 |
| Regulator: | AG Gaming Division |
| Minimum Existence: | 3 years |
| Cash Prizes: | Permitted within limits |
| Online Sales: | Generally not permitted |
| Reporting: | Quarterly reports required |
Who Can Conduct Raffles in North Dakota?
North Dakota Century Code Chapter 53-06.1 governs charitable gaming, including raffles. The Attorney General's Gaming Division administers all licensing and enforcement. For a comprehensive overview of raffle laws in other states, see our complete raffle laws guide.
Eligible Organizations Must:
- Be a bona fide nonprofit organization
- Have been organized and active in North Dakota for at least three years
- Have a primary purpose other than conducting gaming
- Be tax-exempt under applicable IRS sections
- Maintain active registration with the ND Secretary of State
Gaming License Requirements
License Application Process:
- Submit application to the AG Gaming Division
- Provide documentation of nonprofit status and three-year history
- Identify the gaming manager and key personnel
- Describe planned gaming activities and expected revenue
- Select the appropriate license level based on expected gross proceeds
- Pay the applicable license fee
License Levels
North Dakota offers tiered licensing based on expected gross gaming proceeds. Organizations with lower expected revenue face simplified requirements, while larger operations must meet more stringent standards.
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Prize Limits and Restrictions
Key Prize Regulations:
- Individual prizes: Subject to limits based on license type
- Cash prizes: Permitted within established caps
- Annual revenue caps: Vary by license level
- Net proceeds: Must be distributed to eligible uses as defined by law
Conducting Your Raffle: ND Requirements
North Dakota Raffle Compliance Checklist
- Obtain gaming license from AG Gaming Division
- Verify three-year organizational existence requirement
- Designate a qualified gaming manager
- Ensure prizes fall within permitted limits
- Use approved ticket formats
- Set up proper financial tracking
- Conduct drawing fairly and transparently
- File quarterly activity reports
- Distribute net proceeds to eligible uses
- Maintain records for required retention period
Financial Reporting
North Dakota requires licensed gaming operators to file quarterly reports with the AG Gaming Division. Reports must detail all gaming revenue, prizes, expenses, and charitable distributions. The Gaming Division conducts regular audits to ensure compliance.
Online Raffle Rules in North Dakota
North Dakota's gaming laws generally require in-person ticket sales. Online sales are not specifically authorized. Organizations should check with the AG Gaming Division before pursuing digital ticket sales. For more about organizing effective raffle events, see our raffle organizing guide.
Tax Implications
- Winners: Prizes of $600 or more must be reported to the IRS
- North Dakota income tax: Winners owe state income tax on gambling winnings
- Organizations: Must track and report gaming tax obligations
Penalties for Violations
Best Practices for North Dakota Raffles
- Choose the Right License Level: Match your license to expected revenue
- Appoint a Qualified Manager: Designate someone familiar with ND gaming rules
- Separate Gaming Funds: Maintain dedicated bank accounts
- File Quarterly Reports: Never miss a reporting deadline
- Track Distributions: Document how net proceeds are used
- Prepare for Audits: Keep organized records at all times
Official Resources
Make Your North Dakota Raffle a Success
North Dakota's tiered licensing system provides a clear framework for nonprofits to conduct legal raffles. By working with the AG Gaming Division and maintaining proper records, your organization can run successful fundraising events.
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