Wisconsin Raffle Laws 2025: Complete Legal Compliance Guide

Wisconsin's charitable gaming laws provide a clear framework for nonprofit organizations to conduct raffles legally and effectively. With Wisconsin's 5.9 million residents supporting charitable causes, understanding these regulations ensures your organization can maximize fundraising while maintaining full compliance with state requirements.

Wisconsin Raffle Law Overview: What You Need to Know

Wisconsin Statute 563 governs charitable gaming activities, including raffles. The state allows qualified nonprofit organizations to conduct raffles without requiring a license for smaller events, but specific rules must be followed regardless of raffle size.

Key Wisconsin raffle regulations include:

• Organization Requirements: Must be qualified 501(c)(3) nonprofit or recognized religious organization
• Purpose Limitation: Proceeds must support charitable, religious, or educational purposes
• Ticket Sales: Tickets can only be sold to Wisconsin residents or at events within Wisconsin
• Prize Limits: No individual prize may exceed $5,000 in value
• Annual Limits: Total annual raffle proceeds cannot exceed $20,000 per organization

Wisconsin Raffle Permit Requirements

Wisconsin has a unique two-tier system for raffle regulation. Most organizations can conduct raffles without obtaining a specific license, provided they meet certain criteria and stay within prescribed limits.

Organizations Exempt from Licensing

Your organization can conduct raffles without a license if you meet these requirements:

• Qualified 501(c)(3) nonprofit organization
• Religious organization regularly conducting services
• Volunteer fire department or emergency medical service organization
• Veterans organization chartered by Congress
• Fraternal organization operating in Wisconsin for at least three years

When Licensing Is Required

Organizations must obtain a Class B license from the Wisconsin Department of Administration if:

• Annual raffle proceeds will exceed $20,000
• Any single prize exceeds $5,000 in value
• Conducting bingo in addition to raffles
• Operating as a for-profit entity conducting charitable gaming

Wisconsin Raffle Ticket Requirements

Wisconsin law specifies detailed requirements for raffle tickets to ensure transparency and proper record-keeping.

Required Information on Tickets

Every raffle ticket sold in Wisconsin must contain:

• Organization name: Full legal name of the conducting organization
• License number: If applicable (Class B license holders only)
• Prize description: Clear description of prizes to be awarded
• Drawing date: Date and time when winners will be selected
• Drawing location: Where the drawing will take place
• Ticket price: Cost per ticket must be clearly displayed
• Ticket number: Unique identifier for each ticket

Ticket Printing and Distribution

Wisconsin allows both physical and digital tickets, but both must meet the same informational requirements. Organizations using digital ticketing systems must ensure:

• Unique numbering system for all tickets
• Secure record-keeping of all ticket sales
• Ability to provide printed confirmation upon request
• Compliance with state data privacy requirements

Financial Requirements and Record-Keeping

Wisconsin requires meticulous financial record-keeping for all charitable gaming activities, regardless of organization size or license status.

Required Financial Records

Organizations must maintain detailed records including:

• Gross receipts: Total amount collected from ticket sales
• Prize payments: Value of all prizes awarded
• Expenses: All costs associated with conducting the raffle
• Net proceeds: Final amount available for charitable purposes
• Beneficiaries: How net proceeds were distributed

Reporting Requirements

Class B License Holders must file quarterly reports with the Wisconsin Department of Administration by the 25th of January, April, July, and October.

Exempt Organizations are not required to file regular reports but must maintain records for at least three years and make them available for inspection upon request.

Wisconsin Tax Implications

Understanding tax obligations helps Wisconsin nonprofits maintain compliance and optimize their fundraising efforts.

Sales Tax Considerations

Raffle ticket sales are generally exempt from Wisconsin sales tax when conducted by qualified nonprofit organizations for charitable purposes. However:

• The exempt status applies only to legitimate charitable raffles
• Commercial entities conducting raffles may be subject to sales tax
• Organizations should consult with the Wisconsin Department of Revenue for specific situations

Income Tax for Winners

Raffle winners must report prizes as income on their tax returns:

• Form 1099-MISC: Organizations must issue Form 1099-MISC for prizes over $600
• Fair Market Value: Winners report the fair market value of prizes received
• Tax Withholding: Organizations may need to withhold taxes on large prizes

Online and Digital Raffle Compliance

Wisconsin law allows digital raffles but requires careful attention to location and participation restrictions.

Geographic Restrictions

Wisconsin raffles must comply with strict geographic limitations:

• Ticket Sales: Only Wisconsin residents may purchase tickets
• Physical Presence: Tickets may only be sold at events held within Wisconsin
• Online Sales: Digital platforms must verify Wisconsin residency
• Drawing Location: Prize drawings must occur within Wisconsin

Technology Requirements

Organizations using digital raffle platforms should ensure:

• Secure data storage meeting Wisconsin privacy standards
• Audit trail capabilities for all ticket sales and drawings
• Integration with required reporting systems
• Compliance with accessibility requirements

"Wisconsin's clear charitable gaming framework makes it one of the more nonprofit-friendly states for conducting raffles, but attention to detail in compliance is essential for long-term success." - Wisconsin Nonprofit Association

Common Compliance Mistakes to Avoid

Learning from common errors helps Wisconsin organizations maintain proper compliance and avoid potential penalties.

Ticket Sales Violations

• Out-of-state sales: Selling tickets to non-Wisconsin residents
• Incomplete ticket information: Missing required details on tickets
• Improper pricing: Charging different prices for identical chances to win

Financial Record-Keeping Errors

• Inadequate documentation: Failing to maintain detailed financial records
• Commingling funds: Mixing raffle proceeds with other organizational funds
• Delayed reporting: Missing quarterly report deadlines for licensed organizations

Prize and Limit Violations

• Exceeding prize limits: Offering prizes over $5,000 without proper licensing
• Annual limit overruns: Exceeding the $20,000 annual proceeds limit
• Improper prize descriptions: Vague or misleading prize information on tickets

Professional Raffle Management for Wisconsin Organizations

Modern raffle software can significantly simplify compliance while improving fundraising results for Wisconsin nonprofits.

Benefits of Professional Raffle Software

• Automated Compliance: Built-in Wisconsin law compliance features
• Digital Record-Keeping: Automated financial tracking and reporting
• Ticket Management: Professional ticket design and distribution systems
• Geographic Controls: Automatic Wisconsin residency verification
• Audit Trails: Complete documentation for regulatory review

Professional raffle management software helps Wisconsin organizations focus on their mission while maintaining full regulatory compliance.

Getting Started with Wisconsin Raffles

Successfully launching your Wisconsin raffle requires careful planning and attention to regulatory requirements.

Step-by-Step Launch Process

1. Verify Organization Status: Confirm your 501(c)(3) or qualifying organization status
2. Determine License Needs: Calculate expected proceeds and maximum prize values
3. Design Compliant Tickets: Include all required information per Wisconsin statutes
4. Establish Record-Keeping: Set up systems for financial tracking and reporting
5. Plan Distribution: Ensure ticket sales comply with geographic restrictions
6. Schedule Drawing: Set date, time, and Wisconsin location for prize drawing
7. Prepare Reporting: Implement systems for required financial reporting