Pennsylvania Raffle Laws: Complete Legal Guide for Nonprofits

Pennsylvania regulates raffles under the Small Games of Chance Act, with specific licensing requirements and strict limits on prizes and frequency. This comprehensive guide covers everything nonprofits need to know about conducting legal raffles in the Keystone State.

Who Can Conduct Raffles in Pennsylvania?

Pennsylvania's Small Games of Chance Act restricts raffles to eligible organizations:

Ineligible Organizations

• Organizations with state/national charter limiting games
• Groups existing primarily for gaming purposes
• For-profit businesses
• Political organizations
• Professional fundraising companies

Licensing Requirements

Small Games of Chance License

Before conducting raffles, organizations must obtain:

• Application to: County Treasurer's office
• Fee: Varies by county (typically $25-$100)
• Processing time: 30-45 days
• Valid period: One year from issue date
• Background checks: Required for key officers

Special Raffle Permit

For raffles exceeding normal prize limits:

• Allows single prize up to $50,000
• Maximum one permit per calendar month
• Cannot exceed $150,000 in prizes per year
• Additional application and fee required
• More stringent reporting requirements

Prize and Operating Limits

Ticket Sales Restrictions

• Cannot sell to anyone under 18
• Must sell at fixed price (no discounts)
• Cannot extend credit for purchases
• Sales limited to licensed premises or approved locations
• Door-to-door sales prohibited in many counties

Conducting Your Raffle: Step-by-Step

Required Ticket Information

Each raffle ticket must display:

• Name of licensed organization
• License number
• Date, time, and location of drawing
• Prizes to be awarded and values
• Price of the ticket
• Sequential numbering
• Statement "Must be 18 or older to play"
• Stub portion for purchaser information

Drawing Requirements

• Must be held at time and place advertised
• Must be open to public observation
• Cannot require winner to be present
• Must use impartial selection method
• Winners must be posted publicly
• Unclaimed prizes handled per stated rules

Financial Management & Reporting

Proceeds Distribution

Record Keeping Requirements

Maintain these records for at least 2 years:

• Detailed financial records of each raffle
• List of all prizes awarded and winners
• Inventory of tickets printed and sold
• Bank deposit records
• Receipts for all expenses
• Documentation of public interest use
• Copies of all advertising

Reporting Obligations

• Annual report: Due to county treasurer
• Special permit reports: Additional requirements
• Tax forms: W-2G for prizes over $600
• Public posting: Annual report summary
• Inspection: Records must be available

Special Types of Raffles

Calendar/Daily Raffles

Pennsylvania allows calendar raffles with restrictions:

• Each day's prize counts toward weekly limit
• Cannot exceed $35,000 per week total
• Must track cumulative prizes carefully
• Popular for month-long fundraisers

50/50 Raffles

• Allowed under regular license
• Prize cannot exceed $5,000 (or special permit limit)
• Must clearly advertise as 50/50
• Winner receives exactly 50% of gross

Progressive Raffles

Common Violations and Penalties

Criminal Penalties

• First offense: Summary offense, fine up to $1,000
• Second offense: Misdemeanor, fine up to $2,500
• Subsequent: Misdemeanor, up to 1 year imprisonment
• License revocation: Cannot reapply for 10 years

Common Violations

• Exceeding prize limits
• Operating more than 2 days per week
• Selling to minors
• Failing to use 60% for public interest
• Poor record keeping
• Using unlicensed workers
• Advertising violations

Best Practices for Pennsylvania Raffles

1. Track Everything: Use detailed logs for prizes and dates
2. Calendar Planning: Map out your 2 days per week carefully
3. Prize Strategy: Balance attractive prizes with legal limits
4. Member Training: Everyone must understand the rules
5. County Relations: Build good relationship with treasurer's office
6. Professional Help: Consider CPA familiar with gaming laws
7. Clear Policies: Written procedures prevent violations

Make Your Pennsylvania Raffle a Success

Pennsylvania's Small Games of Chance Act creates a structured framework that, while complex, provides clear guidelines for compliant raffles. The key challenges are managing the daily and weekly prize limits while operating only two days per week. Success requires meticulous planning and record-keeping.

Consider using the special raffle permit option for major fundraising events where you need higher prize values. Remember that each county may have additional local requirements, so always verify specific rules with your County Treasurer's office before proceeding.