Raffle License
A raffle license is the permission you need before selling paid tickets for a prize draw. The law treats raffles as lotteries, a form of gambling. No single universal raffle license exists: in the UK you register with your local authority or the Gambling Commission, in the US you apply to your state gaming authority. Only good causes qualify.
What is a raffle license?
A raffle license is official permission to sell raffle tickets. The law classes a raffle as a lottery: people pay to enter, and prizes are allocated by chance. In the UK the Gambling Act 2005 governs raffles. In the US, each state regulates them as charitable gaming.
There is no single, universal raffle license. What you need depends on where you run the draw, how much you plan to raise, and whether tickets sell online. A village fete raffle in England and a $50,000 prize draw in New York sit under two different legal regimes.
People search for a gambling license for raffle sales, but the permissions carry different names. UK law works through society lottery registrations and lottery operating licences. US law issues raffle permits under state charitable gaming programs. None of these is a commercial gambling license, which covers casinos and betting.
Watch the neighbouring terms. A prize competition is decided by skill, and a free draw offers a free entry route. Neither counts as a lottery, so neither needs a licence. A raffle has no such escape hatch, because entry is paid and the result rests on chance alone.
Do you need a licence to run a raffle?
Usually yes, once people pay to enter and the prizes have real value. The exact answer depends on the jurisdiction, the scale of ticket sales, whether you sell online, and whether the raffle happens at an event. Some raffles are exempt, and three US states prohibit raffles entirely.
UK rules split by scale: a raffle held and drawn at a single event is an incidental lottery, with no licence or registration. Selling tickets to the public over time makes it a small society lottery, which you register with your local authority. Cross the proceeds limits and you need a Gambling Commission operating licence.
In the US, state law decides. New York alone runs three tiers by net proceeds. Alabama, Hawaii and Utah prohibit raffles, with no exemption for charities. A raffle that is routine in Michigan is a crime in Alabama, so never assume the rules travel with you.
Who can run a licensed raffle?
Only organizations that exist for a good cause can hold a raffle license. In the UK that means a non-commercial society with charitable, sporting or cultural purposes. In the US it means a qualified nonprofit, such as a 501(c)(3), school, religious, veterans or fraternal organization. Individuals and businesses cannot.
Regulators issue a charity raffle license to the organization itself, never to a person. The organization must also pass tests of substance:
UK: the society must be non-commercial, run for its stated purposes rather than private gain, and must not exist only to run lotteries.
New York: bona fide religious, charitable, educational, fraternal, service or veterans organizations, serving that purpose for three years before they apply, and domiciled in a municipality that has adopted games of chance.
Michigan: qualified organizations that have operated for five years, or that hold 501(c) status.
A 501(c)(3) letter helps but is not universal currency. Several states, New York and Michigan among them, accept bona fide fraternal and veterans groups without one. Read your state's own definition of a qualified organization before you apply.
What types of raffle and lottery licence are there?
Raffle and lottery licences split by country and scale. The UK recognises exempt lotteries, small society lotteries registered with local authorities, and large society lotteries licensed by the Gambling Commission. US states license raffles under charitable gaming law, with tiers based on proceeds or prize value.
Raffle licensing in the UK: society lotteries
In the UK there is no product called a charity raffle licence. The law works through lottery categories under the Gambling Act 2005:
Incidental lottery: a raffle held at an event, with tickets sold and the draw made there. No licence or registration needed.
Small society lottery: up to £20,000 in ticket sales per draw and £250,000 per year. Registered with the local authority where the society's principal office sits.
Large society lottery: above either small society limit. Requires a society lottery operating licence from the Gambling Commission.
Private society, work, residents' and customer lotteries: exempt, but confined to one membership, workplace, address or customer base.
Raffle licensing in the US: charitable gaming
US states regulate raffles as charitable gaming, and every state writes its own rules. State law may call the permission a raffle permit, a charitable gaming license or a lottery license; the substance is the same. The permit comes from the state gaming authority, sometimes with municipal approval on top.
New York shows how detailed the tiers get. An organization files nothing only while every raffle nets under $5,000 and all its raffles together stay under $30,000 for the year. One raffle netting $5,000 to $29,999 triggers a verified statement, Form GCVS-1. Cumulative net proceeds of $30,000 or more trigger a games of chance license, Form GC-5. Both tiers start with a Games of Chance Identification Number.
Michigan prices by scale instead. A $15 license covers up to three draw dates, with prizes capped at $500 per date. A $50 license covers one draw date with no prize cap.
Treat every state as its own regime. Fifty sets of rules exist, the forms change, three states ban raffles outright, and Florida allows only free-entry drawings. Check the state gaming authority before you sell a ticket.
When do you need a raffle licence? (thresholds)
UK societies need a Gambling Commission licence once one raffle raises more than £20,000 or their raffles raise more than £250,000 in a calendar year. Below those limits, local authority registration is enough, and a raffle held at an event needs nothing. US thresholds vary by state.
| UK: raffle at a single event | Nothing. Incidental lottery; at most £500 of the proceeds may go on prizes and £100 on expenses |
|---|---|
| UK: up to £20,000 per draw and £250,000 per year | Small society lottery registration with your local authority |
| UK: above either limit | Society lottery operating licence from the Gambling Commission, for that year and the next three calendar years |
| New York: under $5,000 net per raffle and under $30,000 for the year | No license or filing; the organization must still qualify as an authorized organization |
| New York: any single raffle nets $5,000 to $29,999 | Verified statement (Form GCVS-1) |
| New York: $30,000 or more in net proceeds from all raffles in the year | Games of chance license (Form GC-5) |
The UK three-year rule works by classification, not by penalty. Once a society promotes a large lottery, every lottery it runs in the following three calendar years also counts as large. Apply to the Gambling Commission before you cross a limit, not after.
What are the requirements to run a licensed raffle?
Every licensed raffle rests on the same duties: good-cause status, proceeds applied to the cause, ticket and age rules, records and returns. In the UK at least 20% of proceeds must reach the society's purposes. US states set their own minimums.
Regulators typically ask for:
Registration or incorporation papers for the organization.
A list of board members, or the promoter's details in the UK.
A raffle plan: prizes, ticket price, number of tickets, draw date and draw method.
An explanation of how the funds will be used.
Background checks on the organizers, in some US states.
Conduct rules then run for the life of the raffle: one ticket price for all, minimum ages, sales records, and a return after the draw. The minimum-to-cause share is the real constraint, and it varies: the UK sets 20%, while California requires 90% of gross receipts. The next three sections cover tickets, costs and process in detail.
What information must be printed on raffle tickets?
Every UK small society lottery ticket must show the society's name, the ticket price, the promoter's name and address, and the draw date. Every ticket must cost the same. US ticket rules vary by state, so copy your state's checklist exactly.
At an incidental raffle, cloakroom tickets are fine; UK law sets no wording requirements for a draw held at the event itself. Large society lotteries carry ticket conditions in the operating licence. Many US states additionally require the license number, the prize description and the organization's contact details on each ticket.
How much does a raffle licence cost?
Registering a small society lottery in the UK costs £40 up front, then £20 a year. Both fees are set by national regulations and identical in every council. A Gambling Commission operating licence starts at £235 application and £400 a year. US flat fees run from free to about $50 per draw.
| Licence or registration | One-off fee | Ongoing fee |
|---|---|---|
| UK small society lottery (local authority) | £40 | £20 per year |
| UK society lottery operating licence, band A1 (Gambling Commission) | £235 | £400 per year |
| UK ancillary remote licence (online sales up to £250,000 per year) | £100 | £50 per year |
| New York games of chance license (Form GC-5) | None | $25 annual license fee to the municipal clerk, plus 2% of net raffle proceeds over $30,000 |
| Michigan raffle license | $15 for up to three draw dates (prizes up to $500 per date) plus $5 per extra date, or $50 per draw date with no prize cap | None |
Fees for a society lottery licence rise with the proceeds band, up to £3,572 application and £8,350 a year at £30 million of proceeds or more. Fee schedules move, so confirm the current number on the Gambling Commission's fee page before you file.
How it works
How do you apply for a raffle licence?
Navigating the gaming license process can be complex. Here's a streamlined guide to each step.
Start with geography, because the route depends on it. UK societies register with the local authority where their principal office sits, or apply to the Gambling Commission for a large lottery. US organizations apply to the state gaming authority, often with municipal approval on top. Five steps cover both routes.
Can you sell raffle tickets online?
Online sales are legal in the UK and much of the US, with conditions. A UK small society lottery registered with its local authority can sell tickets online without a remote licence. A large society needs a remote or ancillary remote lottery operating licence. New York requires Gaming Commission approval at least 60 days before any online or mobile sales.
The UK ancillary remote licence costs £100 plus £50 a year. It sits on top of a non-remote society lottery operating licence and covers up to £250,000 of remote proceeds a year. An external lottery manager selling on a society's behalf needs its own operating licence.
New York's Internet Raffle Application covers one identified raffle at a time and goes in at least 60 days before tickets go on sale. New York bars an organization from outsourcing internet raffle sales to a third party, and the drawing must still be held at an approved physical premises. California sits at the other pole and bans internet raffle ticket sales entirely.
Which raffles are exempt from licensing?
UK law exempts five lottery types from licensing: incidental lotteries at events, private society lotteries, work lotteries, residents' lotteries and customer lotteries. Each stays inside one event, membership, workplace, address or customer base. Free draws and prize competitions sit outside lottery law altogether.
Incidental lottery: tickets sold and drawn at the event, with at most £500 of proceeds spent on prizes and £100 on expenses. Donated prizes are not capped. Since 2016 the event itself may be commercial, but the lottery proceeds must still reach a good cause.
Private society lottery: sold to members of one society, for any of the society's purposes.
Work lottery: colleagues at one workplace, run at no profit.
Residents' lottery: people living at one address.
Customer lottery: customers at one business premises, with no prize over £50 and at most one draw a week.
Free draws and prize competitions need no licence because the Gambling Act 2005 does not class them as lotteries. The free entry route must be genuine and as visible as the paid route, and a competition must turn on real skill. Get the structure wrong and the promotion becomes an illegal lottery.
What are the disadvantages and risks of running a licensed raffle?
The main risks are geography and scale. Rules differ in every jurisdiction, and three US states prohibit raffles outright. Crossing a UK proceeds limit puts the society on Gambling Commission licensing for that year and the next three. Reporting duties and the illegal-lottery trap add ongoing exposure.
Jurisdictional spread. Fifty US regimes plus separate UK categories mean a format that works in one place can be unlawful next door. Multi-state online sales multiply the filings.
Threshold risk. The £20,000 and £250,000 UK limits classify lotteries automatically. One over-successful raffle moves the society onto operating-licence duties for three further years, with band fees replacing the £20 annual renewal.
Reporting burden. UK returns fall due within three months of every draw. New York wants the GC-7R within 30 days of each raffle occasion. Missed filings put the registration itself at risk.
The illegal-lottery trap. A free draw with a hidden paid route, or a skill competition anyone can win, is a lottery in law. Run without a licence, that is a criminal offence, not a paperwork gap.
Why work with MGL Solutions?
MGL Solutions tells you what your raffle needs, and whether it needs anything at all. We identify the rules for your jurisdiction and point you to the right body: the local authority, the Gambling Commission or your state gaming authority. We structure the raffle so it stays legal. If no licence is needed, we say so.
A raffle permit itself costs tens of pounds or dollars, not thousands; the value is in not getting it wrong. We check thresholds before you cross them and keep a free draw from drifting into an illegal lottery. We also prepare the filings, from a local authority registration to a New York internet raffle application.
FAQ
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Yes. A raffle is a lottery: you pay for a ticket, and chance decides who wins. The Gambling Act 2005 classes lotteries as gambling in the UK. US state laws treat raffles the same way, which is why charitable gaming rules apply.
No. In the UK only non-commercial societies can run society lotteries, and at least 20% of proceeds must reach the cause. In the US, states restrict raffles to qualified nonprofits. Commercial promoters use prize competitions or free draws instead.
Usually not in the UK. An incidental lottery, with tickets sold and the draw held at the event itself, needs no licence or registration. At most £500 of the proceeds may go on prizes and £100 on expenses. US rules depend on the state.
Society lottery tickets in the UK carry a minimum age of 16, for buying and selling alike. US ages vary by state; New York requires everyone who buys tickets, sells them or assists in a drawing to be 18 or older.
No. Alabama, Hawaii and Utah prohibit raffles, with no exemption for charities. Florida allows only free-entry drawings, where no purchase is required. Other states set their own rules on who may run raffles and at what scale, so check your state gaming authority before selling tickets.
A raffle is a type of lottery: entry costs money and luck picks the winner. A prize competition is decided by skill, and a free draw offers a genuinely free entry route. Prize competitions and free draws are not lotteries, so neither needs a licence.
A registered UK small society lottery can sell online without a remote licence. A large society needs a remote or ancillary remote licence. New York requires Gaming Commission approval at least 60 days before internet or mobile sales.
Not for private profit. UK law and most US states reserve raffles for good causes. A business can run a prize competition or free draw instead, or partner with a nonprofit that holds the permit. Structure it carefully, or the promotion becomes an illegal lottery.
Tell us where you are based and what you plan to raffle. We will tell you which registration or licence applies, or that none does. If you want the help, we prepare the filing with the right body.