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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 2026. 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
  • Organization meets basic nonprofit requirements
  • Raffles don't include firearms or liquor prizes
  • Only organization members sell tickets

License Required When:

  • Hosting more than 2 public raffles per year
  • Gross revenue exceeds $5,000 in a calendar year
  • Prizes include firearms or liquor
  • Tickets sold by non-members
  • Conducting online/electronic raffles

Who Can Conduct Raffles in Washington?

Washington's Revised Code § 9.46.0315 defines strict eligibility requirements:

Eligible Organizations Must:

  • 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)
  • Allowing non-members to sell tickets
  • Paying members specifically for ticket sales
  • Failing to notify police for licensed raffles
  • Exceeding ticket price limits ($100 standard, $250 enhanced)
  • Organizations without qualifying purposes conducting raffles
  • New organizations (under 12 months) conducting raffles
  • Inadequate record keeping and documentation

Potential Consequences

  • Criminal charges under Washington gambling statutes
  • Civil fines and monetary penalties
  • Permanent revocation of gaming privileges
  • Loss of nonprofit status
  • Personal liability for organization officers
  • Prohibition from all future gaming activities
  • Investigation and prosecution by local authorities

Best Practices for Washington Raffles

  1. Verify Qualifying Purposes: Ensure bylaws explicitly state qualifying organizational purposes
  2. Plan for Long Processing Times: Allow 6+ months for license applications
  3. Train All Members: Ensure everyone understands member-only sales requirements
  4. Document Everything: Maintain meticulous records for compliance and audits
  5. Use Professional Tools: Consider software like rafflr for management and documentation
  6. Notify Police Early: Submit written notifications well before ticket sales begin
  7. Regular Compliance Reviews: Periodically review procedures against current regulations
  8. Legal Consultation: Seek gaming law attorney guidance for complex situations

Official Washington Resources

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Master Washington's Unique Raffle Requirements

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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