Washington Raffle Laws: Complete Legal Guide for Nonprofits
Washington State features unique raffle regulations centered around a $5,000 licensing threshold and strict member-only sales requirements. This comprehensive guide covers everything nonprofits need to know about conducting legal raffles in the Evergreen State, from small community events to large fundraising campaigns.
⚠️ Legal Disclaimer: This guide provides general information about Washington State raffle laws as of 2025. Laws change frequently. Always consult with legal counsel or the Washington State Gambling Commission for current requirements specific to your situation.
Washington Raffle Laws: Quick Facts
Regulatory Authority:
Washington State Gambling Commission (WSGC)
Who Can Hold Raffles:
Qualified nonprofits (12+ months operation)
Licensing Threshold:
$5,000 gross revenue annually
Unlicensed Limit:
2 raffles per year under $5,000 total
Maximum Ticket Price:
$100 ($250 for enhanced raffles)
Ticket Sales:
Organization members only
Online Sales:
Electronic license required
Police Notification:
Required for licensed raffles
Application Processing:
Up to 150 days
Understanding Washington's $5,000 Threshold System
Washington State operates a licensing system based on gross revenue and frequency:
No License Required When:
Conducting 2 or fewer raffles per calendar year
Total gross revenue from all raffles under $5,000 annually
Be bona fide charitable or nonprofit organizations
Have operated for at least 12 months continuously
Be organized and operating for charitable, educational, religious, political, social, fraternal, civic, or athletic purposes
Have organizational bylaws or articles stating qualifying purposes
Meet regularly with documented member participation
Important Purpose Requirements
Your organization's governing documents must explicitly state operation for one or more of these purposes:
Charitable: Benefiting the community or specific groups in need
Educational: Promoting learning, knowledge, or skill development
Religious: Advancing religious beliefs or practices
Political: Supporting political causes or candidates
Social: Bringing people together for community benefit
Fraternal: Brotherhood/sisterhood organizations
Civic: Improving community welfare and civic engagement
Athletic: Promoting sports and physical fitness
Strictly Prohibited Operators
Individuals: Cannot conduct raffles even if donating proceeds to charity
Commercial Businesses: For-profit entities are strictly prohibited
Lobby Groups: Typically don't qualify even with 501(c) status
New Organizations: Those operating less than 12 months
Multi-Purpose Organizations: Those with non-qualifying stated purposes
Licensing Process and Requirements
Organizations requiring licenses must navigate Washington's comprehensive application process:
Application Process
SAW Registration: Register with SecureAccess Washington (SAW)
WSGC Service: Add Washington State Gambling Commission service
Application Form: Complete Charitable and Nonprofit Organization Raffle License Application
Processing Time: Allow up to 150 days for review
Background Check: Organization and key personnel investigation
License Types Available
Standard Raffle License: Traditional paper ticket raffles
Enhanced Raffle License: Higher ticket prices and prize values
Electronic Raffle License: Online and digital ticket sales
Special Event License: One-time or limited-duration raffles
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Critical Sales and Operational Restrictions
Member-Only Sales Requirement
Critical Rule: Only bona fide members of your organization can sell raffle tickets. Members cannot be paid specifically for ticket sales unless they are employees with other documented duties.
Ticket Sales Rules
Who Can Sell: Organization members only
Payment Restriction: Members cannot be paid solely for ticket sales
Employee Exception: Employees can sell if they have other documented responsibilities
Volunteer Basis: Sales must be primarily volunteer-based
Training Required: All sellers must understand legal requirements
Ticket Pricing and Distribution
Maximum Price: $100 per ticket (standard raffles)
Enhanced Raffles: $250 maximum per ticket with special license
Uniform Pricing: No free tickets or gifts allowed
Same Price Rule: All tickets must be sold at identical prices
No Bulk Discounts: Cannot offer reduced pricing for multiple purchases
Online and Electronic Raffles
Washington allows online raffles with specific requirements:
Electronic License Required: Must obtain special electronic raffle license
Qualified Organizations Only: Bona fide charitable or nonprofit organizations
Member Sales Still Apply: Online sales must still be conducted by members
Technical Requirements: Secure systems and proper record-keeping
Additional Compliance: Enhanced reporting and documentation
Police Notification and Local Requirements
Police Notification Requirements
Licensed raffle organizations must notify local police in writing before selling tickets. This notification should include:
Organization name and contact information
License number and expiration date
Dates and locations of ticket sales
Drawing date, time, and location
Description of prizes and their values
Conducting Your Washington Raffle
Washington Raffle Compliance Checklist
Verify organization has specific qualifying purposes in bylaws
Confirm 12+ months of continuous operation
Determine if license required (over $5K or 2+ raffles)
Register with SecureAccess Washington (SAW) if licensing
Apply for appropriate raffle license (allow 150 days)
Train organization members on sales requirements
Design tickets with required information
Notify local police (if licensed)
Establish member-only sales procedures
Plan drawing logistics and documentation
Prepare record-keeping and reporting systems
Required Ticket Information
Washington raffle tickets must clearly display:
Name of the licensed organization
Organization's business address
License number (if applicable)
Ticket price (clearly marked)
Date, time, and location of drawing
Complete description of all prizes
Rules and conditions of participation
Contact information for questions
Drawing and Prize Distribution
Fair Selection: Use impartial, random drawing methods
Public Drawing: Open to participants and public observation
Documentation: Record all drawing procedures and results
Winner Notification: Contact winners promptly after drawing
Prize Delivery: Distribute prizes as advertised
Record Keeping: Document all winner information and prize distribution
Record Keeping and Reporting
Washington requires specific documentation for raffle activities:
Required Records (Licensed Organizations)
Complete list of ticket purchasers with contact information
Documentation of all ticket sales by individual members
Financial records of gross receipts and expenses
Prize information including values and sources
Winner documentation and prize distribution records
Copies of all required notifications to police
License documentation and correspondence with WSGC
Reporting Requirements
Annual reports to Washington State Gambling Commission
Financial documentation for tax purposes
Incident reports for any irregularities or problems
Compliance documentation for audit purposes
Common Violations and Penalties
Warning: Violations of Washington raffle laws can result in criminal charges, civil penalties, and permanent loss of gaming privileges.
Frequent Violations
Operating without required licenses (over $5,000 or 2+ raffles annually)
Washington State's raffle laws emphasize organizational integrity and member involvement. The member-only sales requirement ensures that raffles remain true community fundraising efforts rather than commercial enterprises. While this creates operational challenges, it also protects the charitable nature of these activities.
Success in Washington requires careful attention to organizational structure, member training, and compliance documentation. The state's support for online raffles (with proper licensing) provides modern fundraising opportunities while maintaining regulatory oversight.
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