Ohio Raffle Laws: Complete Legal Guide for Nonprofits
Ohio regulates raffles through its charitable gaming laws, requiring specific licenses and imposing limits on prizes and frequency. This comprehensive guide covers everything nonprofits need to know about conducting legal raffles in the Buckeye State.
Ohio Raffle Laws: Quick Facts
| Who Can Hold Raffles: | Charitable organizations only |
| License Required: | Yes, from Attorney General |
| License Type: | Bingo license covers raffles |
| Single Prize Limit: | $5,000 (standard) |
| Special Raffle Prize: | Up to $55,000 (once per year) |
| 50/50 Limit: | $2,500 to winner |
| Online Sales: | Not permitted |
| Minimum Existence: | 2 years |
Who Can Conduct Raffles in Ohio?
Ohio law restricts raffles to charitable organizations meeting specific criteria:
Eligible Organizations Must:
- Be a charitable organization exempt from federal taxation under 501(c)(3)
- OR be a veteran's, fraternal, or sporting organization exempt under 501(c)(4), (7), (8), (10), or (19)
- Have been in continuous existence in Ohio for 2+ years
- Maintain a dues-paying membership of at least 15 people
- Be actively engaged in charitable activities
Additional Requirements
- Must operate without profit to members
- Cannot be organized primarily for gaming
- Must conduct activities other than gaming
- Religious organizations may qualify without 2-year requirement
Licensing Requirements
Bingo License for Raffles
In Ohio, raffles are regulated under bingo laws:
- License type: Charitable organization bingo license
- Issuing authority: Ohio Attorney General
- Application fee: $500 for new applications
- Renewal fee: $500 annually
- Processing time: 30-60 days
- Background checks: Required for key personnel
License Restrictions
- Valid for specific location only
- Cannot transfer between organizations
- Must renew annually
- Subject to audit and inspection
Prize Limits and Restrictions
Standard Raffle Limits:
- Regular prize: Maximum $5,000 per prize
- Special annual raffle: One prize up to $55,000 per year
- 50/50 raffle: Winner's share cannot exceed $2,500
- Total annual limit: Subject to gross receipts restrictions
- Cash prizes: Allowed within limits
Special Annual Raffle
Organizations can conduct one special raffle per year with higher limits:
- Single prize up to $55,000
- Must designate as special raffle in advance
- Additional reporting requirements
- Cannot combine with other gaming events
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Conducting Your Raffle: Step-by-Step
Ohio Raffle Compliance Checklist
- Verify organization has 2+ years existence
- Confirm 501(c) tax-exempt status
- Apply for bingo license from Attorney General
- Complete background checks
- Determine if using special annual raffle
- Design tickets with required information
- Set up financial tracking system
- Train volunteers on regulations
- Plan drawing procedure
- Prepare reporting documents
Required Ticket Information
Each raffle ticket must display:
- Name of charitable organization
- License number
- Date, time, and place of drawing
- Prizes to be awarded
- Price of ticket
- Sequential number
- Statement that winner need not be present
Operational Requirements
- Workers: Must be volunteer members
- Compensation: No one may be paid for raffle work
- Age requirement: All workers must be 18+
- Sales location: Limited to Ohio
- Credit sales: Prohibited
Financial Management & Reporting
Record Keeping Requirements
Maintain These Records:
- Itemized list of gross receipts
- Itemized list of all expenses
- Name and address of each prize winner
- Amount of each prize awarded
- Number of tickets sold
- Copies of all advertisements
- Bank statements and deposit records
Financial Restrictions
- Must use net profit for charitable purposes
- Cannot use more than 50% of gross profit for expenses
- Must distribute profits within reasonable time
- Cannot accumulate profits year to year
Reporting Requirements
- Quarterly reports: Due to Attorney General
- Annual report: Comprehensive financial statement
- Record retention: Minimum 3 years
- Audit rights: AG can audit at any time
50/50 Raffles in Ohio
Ohio allows 50/50 raffles with specific restrictions:
50/50 Raffle Rules:
- Winner receives 50% of gross receipts
- Winner's share cannot exceed $2,500
- If pot would exceed $5,000, must cap sales
- Popular at sporting events and festivals
- Must follow all standard raffle rules
Common Violations and Penalties
Common Violations
- Exceeding prize limits
- Conducting raffles without license
- Using paid workers
- Poor financial records
- Failing to file reports
- Misuse of proceeds
- Selling tickets online
Enforcement Actions
- Warning letters
- License suspension or revocation
- Civil penalties
- Criminal prosecution
- Restitution orders
Best Practices for Ohio Raffles
- Plan Early: License applications take 30-60 days
- Stay Small: Regular $5,000 prizes are easier than special raffles
- Document Everything: Ohio AG conducts regular audits
- Train Thoroughly: All volunteers must understand rules
- Track 50/50s: Monitor totals to avoid exceeding $5,000 pot
- File On Time: Late reports risk license renewal
- Use Technology: Digital tools help track limits and sales
Official Resources
Make Your Ohio Raffle a Success
While Ohio's raffle regulations are restrictive compared to some states, they provide a clear framework for compliant charitable gaming. The key is understanding that raffles fall under bingo licensing and staying within the established prize limits.
Focus on building engaging raffles within the $5,000 regular prize limit, and save your one special $55,000 raffle for your biggest annual fundraising event. With proper licensing and careful adherence to the rules, your Ohio raffle can successfully support your charitable mission.
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rafflr helps you track prize limits, manage drawings, and maintain the detailed records required for Ohio compliance.
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