Oregon Raffle Laws 2025: Complete Legal Compliance Guide

Oregon's unique gaming landscape combines traditional charitable gambling regulations with considerations for tribal casino operations, creating a distinctive framework for nonprofit raffles. With 4.3 million residents and strong community-focused values, Oregon provides clear pathways for charitable organizations to conduct compliant fundraising while navigating both state Gaming Commission rules and local tribal gaming considerations.

Oregon Gaming Commission Framework

Oregon Revised Statutes Chapter 464 establishes the regulatory foundation for charitable gaming, administered by the Oregon Gaming Commission. Oregon's approach balances support for charitable fundraising with proper oversight and coordination with tribal gaming interests.

Key Oregon raffle regulations include:

• Licensing Requirements: Most charitable gambling requires Gaming Commission licensure
• Organizational Standards: Strict eligibility criteria for participating organizations
• Prize Limitations: Specific caps on individual and aggregate prize values
• Geographic Restrictions: Rules governing where gambling may occur
• Tribal Coordination: Considerations for tribal gaming compact compliance

Oregon Organization Eligibility Requirements

Oregon maintains comprehensive eligibility standards designed to ensure charitable gambling benefits legitimate charitable causes while maintaining public trust.

Qualified Organization Types

Organizations eligible for Oregon charitable gambling licenses include:

• 501(c)(3) Nonprofits: Federally recognized tax-exempt charitable organizations
• Religious Organizations: Churches and religious institutions serving charitable purposes
• Educational Institutions: Schools, colleges, and educational foundations
• Veterans Organizations: Groups chartered by Congress serving veterans
• Fraternal Organizations: Lodge-based organizations with charitable programs
• Service Clubs: Community service organizations like Rotary, Lions, Kiwanis

Operational Requirements

Eligible organizations must demonstrate:

• Continuous Oregon operation for at least two years
• Active charitable, religious, or educational programs
• Proper corporate structure and governance
• Financial stability and management capability
• No gambling-related legal violations
• Compliance with state registration requirements

Licensing Process and Requirements

Oregon requires formal licensing for most charitable gambling activities, with specific procedures and documentation requirements.

Charitable Gaming License Application

Required Documentation:

• Completed Gaming Commission license application form
• IRS determination letter confirming tax-exempt status
• Current articles of incorporation and bylaws
• Financial statements from the previous fiscal year
• List of officers, directors, and key personnel
• Detailed description of charitable programs and beneficiaries
• Proposed gambling activity plans and procedures
• License fee: $150 for initial application, $75 for renewals

License Categories and Restrictions

Oregon offers different license types based on activity scope:

• Limited Gaming License: For small-scale activities under $50,000 annually
• General Gaming License: For larger operations up to $500,000 annually
• Special Event License: For one-time or infrequent charitable gambling events

Oregon Raffle Operational Limits

Oregon imposes specific operational limits designed to maintain the charitable nature of gambling while preventing commercial exploitation.

Prize and Revenue Limitations

• Individual Prize Limit: No single prize may exceed $10,000 in value
• Total Prize Limit: Total prizes per event cannot exceed $50,000
• Annual Revenue Cap: Organizations limited to $500,000 in gross gaming revenue annually
• Prize-to-Revenue Ratio: Prizes cannot exceed 50% of gross receipts
• Administrative Expense Cap: Operating expenses limited to 15% of gross receipts

Operational Requirements

Oregon mandates specific operational procedures:

• Qualified Personnel: Licensed individuals must supervise all gambling activities
• Approved Locations: Gambling permitted only at approved premises
• Age Verification: Participants must be 21 years or older
• Time Restrictions: No gambling between midnight and 7:00 AM
• Alcohol Limitations: Specific rules for alcohol service during gambling

Record-Keeping and Reporting Standards

Oregon requires comprehensive documentation and regular reporting to ensure transparency and regulatory compliance.

Required Financial Records

Organizations must maintain detailed records including:

• Revenue Records: Complete documentation of all gambling receipts
• Prize Documentation: Records of all prizes awarded and claimed
• Expense Tracking: Detailed accounting of all gambling-related expenses
• Charitable Distributions: Documentation of how net proceeds were used
• Ticket Records: Complete audit trail of ticket sales and distribution
• Personnel Records: Information on all individuals involved in operations

Reporting Requirements

Quarterly Reports: Due within 30 days of each quarter end, including:

• Gross receipts from all gaming activities
• Total prizes awarded and administrative expenses
• Net proceeds and charitable distributions
• Changes in organization status or operations

Annual Reports: Comprehensive yearly summary including audited financial statements for organizations with gross receipts over $100,000.

Tribal Gaming Considerations

Oregon's unique relationship with tribal gaming creates additional considerations for charitable gambling organizations.

Tribal Gaming Compact Implications

Oregon's tribal gaming compacts provide exclusive casino gaming rights to federally recognized tribes, which affects charitable gambling:

• Activity Restrictions: Certain gaming activities may be limited to avoid compact conflicts
• Geographic Considerations: Proximity to tribal casinos may affect charitable gambling approval
• Coordination Requirements: Communication with tribal gaming authorities in some cases
• Revenue Sharing: Potential coordination on certain gaming activities

Cooperative Approaches

Oregon encourages cooperation between charitable organizations and tribal gaming:

• Partnership opportunities for charitable fundraising events
• Shared community benefit initiatives
• Coordination on problem gambling prevention programs
• Joint promotional activities for charitable causes

Tax Compliance and Obligations

Oregon imposes specific tax obligations on charitable gambling that organizations must understand and manage properly.

State Tax Requirements

• Gaming Tax: 8% tax on net receipts exceeding $10,000 per quarter
• Corporate Income Tax: Potential impact on organizational tax obligations
• Sales Tax Exemption: Generally applies to qualified charitable organization activities
• Property Tax: Gambling equipment may affect property tax assessments

Federal Tax Considerations

• Unrelated Business Income: Gaming proceeds may constitute UBIT
• Employment Taxes: Applicable to paid gaming personnel
• Winner Reporting: Form 1099-MISC required for prizes over $600
• Tax Withholding: May be required for large prize winners

"Oregon's charitable gaming framework balances support for nonprofit fundraising with respect for tribal gaming rights, creating opportunities for community-focused charitable activities." - Oregon Gaming Commission

Technology and Digital Compliance

Oregon addresses modern technology use in charitable gambling with specific requirements for digital systems and online participation.

Electronic Gaming Systems

Organizations using electronic raffle systems must ensure:

• System Certification: Gaming Commission approval of electronic systems
• Security Standards: Robust protection against unauthorized access
• Audit Capabilities: Complete transaction logging and reporting
• Fair Play Assurance: Random number generation certification
• Data Privacy: Compliance with Oregon privacy laws

Online Participation Requirements

• Age Verification: Robust systems to ensure participants are 21+
• Location Confirmation: Verification that participants are in Oregon
• Payment Security: Secure, traceable payment processing
• Prize Fulfillment: Proper documentation and delivery systems

Common Compliance Challenges

Understanding common pitfalls helps Oregon organizations maintain proper compliance and avoid regulatory issues.

Frequent Violations

• Exceeding Prize Limits: Offering prizes above statutory maximums
• Inadequate Record-Keeping: Failing to maintain required documentation
• Improper Revenue Use: Using gaming proceeds for non-charitable purposes
• Unlicensed Operations: Conducting gambling without proper licenses
• Age Verification Failures: Allowing underage participation

Best Practices for Compliance

• Professional Training: Ensure staff understand all applicable regulations
• System Integration: Use certified gaming management software
• Regular Auditing: Conduct periodic compliance reviews
• Legal Consultation: Maintain relationships with experienced gaming attorneys
• Documentation Standards: Implement comprehensive record-keeping protocols

Professional raffle management software can significantly simplify Oregon compliance while improving operational efficiency and fundraising outcomes.

Getting Started with Oregon Charitable Gaming

Successfully launching charitable gambling in Oregon requires systematic preparation and careful attention to regulatory requirements.

Implementation Steps

1. Eligibility Assessment: Verify organizational qualifications and prepare documentation
2. License Application: Submit complete application to Gaming Commission
3. System Development: Establish compliant record-keeping and operational systems
4. Staff Training: Educate personnel on regulations and procedures
5. Compliance Review: Conduct final pre-launch compliance assessment
6. Operations Launch: Begin gambling activities with ongoing compliance monitoring

Timeline Expectations

• License Processing: 6-12 weeks for Gaming Commission review
• System Setup: 2-4 weeks for operational system implementation
• Staff Training: 1-2 weeks for comprehensive personnel education
• Total Timeline: Plan for 3-4 months from application to operations