Vermont allows qualified nonprofit organizations to conduct raffles under the oversight of the Department of Liquor and Lottery. While the Green Mountain State takes a structured approach to charitable gaming, its licensing process is straightforward for organizations that meet the eligibility requirements. This guide covers everything you need to know about running a legal raffle in Vermont.
Vermont Raffle Laws: Quick Facts
| Who Can Hold Raffles: | Qualified nonprofit organizations |
| License Required: | Yes, from Dept. of Liquor and Lottery |
| Governing Law: | 31 V.S.A. Chapter 22 (Lotteries) |
| Organization Status: | Must be registered nonprofit |
| Prize Limits: | Vary by license type |
| Net Proceeds to Charity: | Required by statute |
| Online Sales: | Consult Department before proceeding |
| Reporting: | Post-event financial reports required |
Who Can Conduct Raffles in Vermont?
Vermont permits raffles as a form of charitable gaming, but only for organizations that meet specific qualifications. The state's lottery statutes (31 V.S.A. Chapter 22) define which entities may apply for a raffle license and under what conditions. For a broader overview of how different states handle raffle regulations, see our complete guide to raffle laws by state.
Eligible Organizations Must:
- Be a bona fide nonprofit organization (charitable, religious, educational, civic, or fraternal)
- Be registered and operating in Vermont
- Operate primarily for purposes other than conducting gaming activities
- Have a governing body that oversees raffle operations
- Direct net proceeds exclusively to the organization's stated charitable purposes
License Types
Vermont offers different licensing tiers based on the scale of the raffle:
- Small raffle license: For raffles with total prizes below a specified threshold, with simplified application requirements
- Standard raffle license: For larger raffles with higher prize values and more detailed reporting obligations
- Special event license: For one-time or unique raffle events tied to specific fundraising occasions
Vermont Raffle License Requirements
Before conducting a raffle, organizations must apply for and receive a license from the Vermont Department of Liquor and Lottery. The application process requires documentation of the organization's nonprofit status and intended use of proceeds.
License Application Requirements:
- Complete the raffle license application form
- Provide proof of nonprofit status (IRS determination letter or state registration)
- Submit a list of officers and responsible individuals
- Describe the raffle event details including date, location, and prize structure
- Pay the applicable license fee
- Identify the charitable purpose for net proceeds
License Fees and Renewal
- License fees vary based on the type and scale of the raffle
- Each raffle event typically requires its own license or coverage under an annual license
- Applications should be submitted well in advance of the planned event date
- The Department may require additional information before granting approval
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Prize Limits and Restrictions
Vermont establishes limits on raffle prizes to ensure charitable gaming remains focused on fundraising rather than commercial gambling. Prize thresholds determine which license type is required.
Key Prize and Revenue Rules:
- Prize value thresholds: Determine the license type required
- Net proceeds requirement: A meaningful percentage of gross revenue must go to charitable purposes
- Cash prizes: Permitted within established limits
- Merchandise prizes: Must be accurately valued at fair market value
Prohibited Activities
- No unlicensed raffles: All raffles must operate under a valid license
- No minors: Ticket purchasers must be at least 18 years old
- No for-profit operators: Raffles must benefit qualified nonprofits, not private individuals
- No deceptive practices: Prize descriptions and odds must be accurately represented
Conducting Your Raffle: Vermont Requirements
Vermont Raffle Compliance Checklist
- Obtain raffle license from Department of Liquor and Lottery
- Verify organization meets nonprofit eligibility requirements
- Designate responsible individuals to oversee the raffle
- Ensure all prizes fall within permitted limits for your license type
- Set up proper financial tracking and record-keeping
- Print tickets with all required information
- Conduct the drawing in a fair and transparent manner
- File post-event financial report on time
- Maintain records for at least three years
- Direct net proceeds to stated charitable purposes
Ticket Requirements
Vermont requires raffle tickets to include specific information to ensure transparency:
- Name of the sponsoring organization
- License number
- Price per ticket
- Date, time, and location of the drawing
- Description of prizes to be awarded
- Statement that winners need not be present (if applicable)
Financial Reporting and Record Keeping
Post-Event Reports
Vermont requires licensed organizations to file financial reports after each raffle event. These reports must include:
- Gross receipts from ticket sales
- Total prizes awarded and their values
- Operating expenses incurred
- Net proceeds and their distribution to charitable purposes
- Number of tickets sold and unsold
Record Retention
Maintain These Records for at Least 3 Years:
- All tickets sold and unsold (stubs or records)
- Financial records including receipts and disbursements
- Prize winner information and verification
- Copies of all filed reports and license documentation
- Bank statements for accounts used in the raffle
Online Raffle Rules in Vermont
Vermont's raffle regulations were developed primarily for in-person ticket sales and drawings. Organizations considering online or digital raffle ticket sales should consult directly with the Department of Liquor and Lottery and seek legal counsel before proceeding, as digital sales may involve additional regulatory considerations. For more on organizing a raffle with both in-person and digital elements, see our planning guide.
Tax Implications
Both organizations and winners should understand their tax obligations:
- Winners: Prizes valued at $600 or more must be reported to the IRS; the organization must issue a W-2G form
- Organizations: Gaming income may be subject to unrelated business income tax (UBIT) if not properly structured
- Vermont state income tax: Raffle winnings are subject to Vermont state income tax for residents
Penalties for Violations
Common Violations
- Operating without a valid license
- Failing to file required post-event reports
- Diverting gaming proceeds from charitable purposes
- Exceeding prize or revenue limits for the license type
- Selling tickets to minors
- Inadequate record keeping
Best Practices for Vermont Raffles
- Apply Early: Submit license applications well in advance of your planned event
- Keep Meticulous Records: Document every ticket sold, prize awarded, and dollar spent
- Train Your Volunteers: Ensure everyone involved understands Vermont's gaming rules
- Separate Gaming Funds: Maintain a dedicated bank account for raffle activities
- File Reports Promptly: Never miss a reporting deadline after your event
- Use Professional Tools: Raffle management software can help maintain compliance and transparent drawings
- Consult Professionals: Work with an attorney familiar with Vermont gaming law for larger raffles
Official Resources
Make Your Vermont Raffle a Success
Vermont's charitable gaming framework provides a clear path for nonprofits to conduct legal raffles. The key is obtaining the proper license, maintaining thorough records, and ensuring your organization directs net proceeds to its stated charitable purposes.
With careful planning and compliance, your Vermont raffle can generate meaningful funds for your cause while staying on the right side of the law. Get started with rafflr today to streamline your raffle management and maintain proper records for Vermont compliance.