Washington DC operates under its own independent regulatory framework for charitable gaming, separate from any state. The District of Columbia requires organizations to obtain a charitable gaming license from the DC Office of Lottery and Gaming before conducting raffles. This guide covers everything nonprofits need to know about running legal raffles in the nation's capital.
Washington DC Raffle Laws: Quick Facts
| Who Can Hold Raffles: | Tax-exempt 501(c) organizations |
| License Required: | Yes, from DC Office of Lottery and Gaming |
| Governing Law: | DC Code Title 3, Chapter 13 (Charitable Games) |
| Minimum Existence: | 1 year in DC |
| Prize Limits: | Vary by license type |
| Net Proceeds to Charity: | Required by DC law |
| Online Sales: | Consult Office of Lottery and Gaming |
| Reporting: | Post-event financial reports required |
Understanding DC's Unique Regulatory Position
As a federal district rather than a state, Washington DC has its own legislative body (the DC Council) and its own regulatory agencies that govern charitable gaming. DC raffle laws are entirely separate from those of neighboring Virginia and Maryland. Organizations operating in the District must comply with DC-specific regulations regardless of where they may also operate. For a broader look at how different jurisdictions handle raffles, see our complete guide to raffle laws by state.
Who Can Conduct Raffles in DC?
DC law limits charitable gaming to qualified tax-exempt organizations. The DC Code (Title 3, Chapter 13) establishes strict eligibility criteria.
Eligible Organizations Must:
- Hold tax-exempt status under IRC Section 501(c)
- Have been organized and operating in DC for at least one year
- Operate primarily for charitable, religious, educational, or civic purposes
- Not exist primarily for the purpose of conducting gaming activities
- Direct net proceeds to the organization's stated exempt purposes
License Types
The DC Office of Lottery and Gaming issues different classes of charitable gaming licenses:
- Class A license: For organizations conducting larger-scale gaming events with higher prize values
- Class B license: For smaller raffles and gaming events with lower prize thresholds
- Special event license: For one-time or occasional charitable gaming events
DC Charitable Gaming License Requirements
Organizations must apply for and receive a charitable gaming license before conducting any raffle in the District. The application process is managed by the DC Office of Lottery and Gaming.
License Application Requirements:
- Complete the charitable gaming license application
- Provide IRS determination letter confirming 501(c) status
- Submit proof of DC registration and one-year operating history
- Provide a list of officers, directors, and the designated gaming manager
- Describe the planned gaming activities, dates, and locations
- Pay the applicable license fee
- Submit to a background review process
License Fees and Renewal
- License fees are set by the DC Office of Lottery and Gaming and vary by class
- Licenses must be renewed annually
- Late renewals may result in penalties or suspension of gaming privileges
- Changes to organizational leadership or gaming plans must be reported promptly
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Prize Limits and Restrictions
DC establishes limits on raffle prizes and overall gaming revenue based on the license class. These limits ensure charitable gaming remains focused on fundraising.
Key Prize and Revenue Rules:
- Prize value limits: Set by license class (Class A permits higher values than Class B)
- Annual gaming revenue cap: Total annual charitable gaming revenue is capped based on license type
- Net proceeds requirement: A significant percentage of proceeds must go to the organization's exempt purposes
- Expense limits: Operating expenses are capped as a percentage of gross revenue
Prohibited Activities
- No unlicensed gaming: All charitable gaming must operate under a valid DC license
- No minors: Participants must be at least 18 years old
- No commercial operators: For-profit companies cannot conduct charitable raffles
- No excessive compensation: Strict limits on payments to individuals involved in gaming operations
- No gaming outside approved locations: Raffles must be conducted at approved venues
Conducting Your Raffle: DC Requirements
DC Raffle Compliance Checklist
- Obtain charitable gaming license from DC Office of Lottery and Gaming
- Verify organization has been operating in DC for at least one year
- Designate a gaming manager responsible for compliance
- Ensure prizes fall within limits for your license class
- Set up separate financial accounts for gaming activities
- Print tickets with all required information
- Conduct the drawing at an approved location
- File post-event financial reports within the required timeframe
- Maintain records for at least three years
- Direct net proceeds to the organization's exempt purposes
Ticket Requirements
DC requires raffle tickets to include specific information:
- Name of the licensed organization
- License number issued by the Office of Lottery and Gaming
- Price per ticket
- Date, time, and location of the drawing
- Description and value of prizes
- Rules governing the raffle
Financial Reporting and Record Keeping
Post-Event Reports
DC requires detailed financial reporting after each gaming event. Reports must be filed with the Office of Lottery and Gaming and include:
- Gross receipts from ticket sales
- Itemized list of prizes awarded and their values
- Detailed operating expenses
- Net proceeds and documentation of charitable distribution
- Attendance figures (if applicable)
Record Retention
Maintain These Records for at Least 3 Years:
- All tickets printed, sold, and unsold
- Complete financial records including bank statements
- Prize winner information and W-2G forms issued
- Copies of all reports filed with the Office of Lottery and Gaming
- License documentation and correspondence with regulators
- Board minutes authorizing gaming activities
Online Raffle Rules in DC
DC's charitable gaming regulations were established primarily for in-person gaming activities. Organizations considering online or digital raffle ticket sales should consult directly with the DC Office of Lottery and Gaming before proceeding. The District's evolving regulatory landscape may affect how digital gaming is treated. For general guidance on raffle compliance, see our audit checklist.
Tax Implications
Both organizations and winners should understand their tax obligations in DC:
- Winners: Prizes valued at $600 or more must be reported to the IRS; the organization must issue a W-2G form
- DC income tax: Raffle winnings are subject to DC income tax for District residents
- Organizations: Gaming income may be subject to unrelated business income tax (UBIT) if not properly structured
- Withholding: Federal withholding may be required on prizes exceeding $5,000
Penalties for Violations
Common Violations
- Operating without a valid license
- Failing to file required post-event reports
- Diverting gaming proceeds from exempt purposes
- Exceeding prize or revenue limits for the license class
- Selling tickets to minors
- Conducting gaming at unauthorized locations
- Excessive compensation to gaming operators
Best Practices for DC Raffles
- Apply Early: Submit license applications well in advance, as DC processing times can be lengthy
- Understand Your License Class: Know the specific limits and requirements for your license type
- Keep Meticulous Records: Document every transaction from ticket printing to prize distribution
- Train Your Team: Ensure all volunteers and staff understand DC's gaming rules
- Separate Gaming Funds: Maintain dedicated accounts for gaming activities
- File Reports Promptly: Never miss a reporting deadline
- Consult Professionals: Work with an attorney familiar with DC charitable gaming regulations
Official Resources
Make Your DC Raffle a Success
Washington DC's charitable gaming framework provides a clear, if detailed, path for nonprofits to conduct legal raffles. The key is obtaining the proper license class, maintaining thorough records, and ensuring your organization meets all reporting requirements.
With careful planning and compliance, your DC raffle can generate meaningful funds for your cause while operating within the District's regulatory framework. Get started with rafflr today to streamline your raffle management and maintain the records needed for DC compliance.