Raffle Laws in Colorado (2026): The Licensing Guide

Most nonprofits don’t realize how strict Colorado’s raffle rules actually are. Seriously. Even small organizations holding a tiny raffle need a license from the state. Skip this step, and you could face fines or criminal charges. Let’s break down exactly what you need to know about running a legal raffle in Colorado.

What Is a Raffle in Colorado?

A raffle is a game of chance where people buy tickets for a shot at winning prizes. The winner gets picked randomly. Simple, right?

Well, Colorado treats raffles as a form of charitable gaming. That means the state regulates them carefully. You can’t just sell tickets at your school fundraiser without proper approval.

The Colorado Charitable Gaming Board oversees all raffle activities. They make the rules. They issue licenses. And they enforce penalties when organizations break the law.

Who Can Hold a Raffle?

Here’s the deal. Not everyone can run a raffle in Colorado.

Only qualified nonprofit organizations can apply for a license. And there are strict requirements.

Your organization must be a bona fide nonprofit. That includes religious groups, charities, labor unions, fraternal organizations, educational institutions, volunteer fire departments, and veterans’ groups.

But wait, there’s more to know.

Your nonprofit must have been operating continuously for five years. Yep, five full years. New organizations can’t get licensed, period.

You also need to operate without profit to your members. The money raised goes to your charitable mission, not into people’s pockets.

Political parties and the Colorado State Fair Authority also qualify. But for-profit businesses and individuals? Totally illegal.

Hold on, this part is important. You must have at least one certified games manager before you get your license. This person completes state training and oversees your raffle operations.

Getting a Raffle License

Wondering if this applies to you? Every raffle needs a license. Every single one.

There’s no minimum ticket price that gets you off the hook. Small church raffle? Needs a license. Big charity event? Needs a license.

The license costs $100 and requires an application through the Colorado Secretary of State’s office. You’ll apply online at their website.

Processing takes one to six weeks. Maybe longer if your application is incomplete.

Confused about the difference? Let me break it down. The license covers your organization for the entire year. But if your raffle prizes are worth more than $1,000, you need to submit a voided sample ticket for each raffle at least seven business days before you start selling.

Missing that step? You might have to reprint all your tickets. Yikes.

What You Need for Your Application

The application process requires several documents. Get these ready before you start.

You need proof your organization has existed for five years. That could be your incorporation certificate or tax filings.

Include your articles of incorporation and bylaws. The state wants to see your organization’s purpose and structure.

Provide a membership roster. List the members who’ll help run the raffle.

Submit names and addresses of your board members. They’ll be on file with the state.

Pretty straightforward. Just make sure everything matches your official records exactly. Mismatched information delays approval.

Pro tip: Create a digital folder with labeled PDFs. Makes uploading way easier.

The Certified Games Manager Requirement

Every licensed organization needs at least one certified games manager. This isn’t optional.

The games manager completes training through the Secretary of State’s office. They learn the rules and regulations. They oversee your raffle operations and make sure you stay compliant.

Not sure what counts as a violation? Your games manager should know. They’re responsible for keeping your organization legal.

Look for someone with experience. Ask other nonprofits for referrals. Choose someone who communicates clearly and handles money responsibly.

Rules for Conducting Raffles

Okay, pause. Read this carefully. These rules apply to every raffle in Colorado.

Raffle tickets must be sold at a fixed price. No discounts. No freebies. Everyone pays the same amount.

All money from ticket sales goes into a special checking or savings account. This account contains only raffle money. Nothing else.

You cannot pay workers. Volunteers only. No commission, salary, tips, or compensation of any kind. Not even free snacks or sodas for helping out.

The drawing must be conducted openly and fairly. Announce the date, time, and location clearly.

Winners must be chosen randomly. No rigging the results.

Within 24 hours of the drawing, post winning ticket numbers on your website. Keep them up for at least 30 days.

Sound complicated? It’s actually not. Follow these steps and you’ll be fine.

Prize Restrictions

Here’s where it gets interesting. Not all prizes are legal in Colorado.

Alcohol is 100% illegal as a raffle prize. Even one bottle of wine will cost you $125 per violation. Don’t risk it.

The organization must fully own all prizes before selling tickets. No debt allowed. No payment plans.

For motor vehicles, you need proof of ownership or a purchase contract. Plus a certificate of deposit to cover the purchase price.

For real estate, same deal. Proof of ownership or a contract, plus a certificate of deposit or bond.

Honestly, this is the part most people miss. Double-check your prizes before you start selling tickets.

Reporting Requirements

After your raffle ends, you file a quarterly report. This report details your receipts, expenses, and how you used the funds.

Reports are due on the last day of the month following each calendar quarter. You file online through your Colorado state Bingo-Raffle account.

Even if you had no raffle activity? You still file. Just mark it “No Activity” and submit.

If you only host one raffle per year, you can file a final report and surrender your license. That avoids future quarterly reports.

Need help? Call the Bingo & Raffles program at 303-869-4910. Or email [email protected].

Online Ticket Sales

Most people don’t realize how strict these laws are. But you can sell raffle tickets online in Colorado.

Your license allows online sales. Accept credit cards and debit cards. Use raffle management software to track everything.

But here’s the catch. Every dollar must go straight into your bingo-raffle account. Every single one.

You need a detailed plan for tracking sales and issuing tickets. Send this plan to the state early. Include screenshots if you’re using software.

Pro tip: Get state approval before you launch online sales. They’ll appreciate the transparency. You’ll avoid compliance nightmares.

Tax Responsibilities

Winners pay taxes on raffle prizes. They’re considered income by the IRS.

For prizes worth $600 or more, your organization issues a Form W-2G to the winner. You also report the winnings to the IRS.

If the prize is worth more than $5,000, you withhold 24% for federal income tax. Unless the winner provides exemption documentation.

Colorado law mirrors these federal requirements. You report proceeds and distributions to the Colorado Department of Revenue.

Keep detailed records of all transactions. Ticket sales, prize distributions, withheld taxes. Everything.

Not sure about tax rules? Consult a tax professional. Better safe than sorry.

Penalties for Violations

Now, here’s where things get serious. Breaking raffle laws brings real consequences.

As of 2024, the state increased maximum fines to $250 per violation. That’s up from previous amounts.

Class 3 violations cost $50 for first offenses. Repeated or deliberate violations? $75 each.

Offering alcohol as a prize? That’s $125 per violation. Each bottle counts separately.

Conducting a raffle without a license brings administrative fines. These can reach several thousand dollars depending on severity.

Beyond fines, the Secretary of State can revoke or suspend your license. That kills your fundraising efforts completely.

In severe cases, individuals face misdemeanor charges. That means potential jail time and criminal records.

Think of it like a traffic ticket, but more serious. The state doesn’t mess around with illegal gambling.

Criminal Penalties

Hold on, it gets better. Or worse, depending on how you look at it.

Sheriffs and police officers enforce raffle laws. District attorneys can file criminal charges against organizations running illegal raffles.

Regular illegal gambling is a petty offense. That’s up to 10 days in jail and a $300 fine.

Professional gambling, like organizing raffles for profit? That’s a class 2 misdemeanor. Up to 120 days in jail and a $750 fine.

Police can seize gambling equipment and winnings. They’ll confiscate and destroy everything.

Less severe than a felony, but still no joke. Don’t assume you’ll get away with an unlicensed raffle.

Special Circumstances

Wondering about specific situations? Here are some common questions.

Political parties and the Colorado State Fair Authority can hold raffles. They’re explicitly included in qualified organizations.

Bucket raffles are allowed. That’s when many small raffles run simultaneously. Each raffle needs proper documentation.

Progressive raffles work too. The jackpot carries over from one drawing to another until someone wins. The maximum jackpot must be at least $15,000.

Silent auctions don’t need raffle licenses. They’re considered solicitations for contributions. But you might need to register as a charity under the Colorado Charitable Solicitations Act.

How to Stay Compliant

So what happens if you break this law? Better to avoid finding out.

Read the Bingo and Raffles Law thoroughly before starting. Study the Rules Covering Bingo and Raffles too.

Contact the Charitable Gaming Section with questions. They’re there to help. Call 303-869-4910.

Allow plenty of time for license processing. Six weeks isn’t unusual. Plan ahead.

Keep detailed records of everything. Sales, expenses, winners, distributions. Document it all.

File reports on time. Missing a deadline brings fines and complications.

Submit voided tickets early if your prizes exceed $1,000. Give the state seven business days to review.

Trust me, this works. Following the rules protects your organization and your mission.

Common Mistakes to Avoid

You’re not alone, this confuses a lot of people. But some mistakes happen repeatedly.

Don’t conduct a raffle without a license. Not even a small one. Every raffle needs approval.

Don’t skip the certified games manager training. You need at least one before starting.

Don’t offer alcohol as a prize. It’s illegal, and the fines add up fast.

Don’t forget to file quarterly reports. Even if you had no activity.

Don’t pay workers or volunteers. Everyone works for free in Colorado raffles.

Don’t sell tickets to anyone under 18. That’s explicitly prohibited.

Don’t advertise guaranteed winnings. Misrepresenting odds brings penalties.

Don’t use raffle proceeds for unauthorized purposes. Money goes to your charitable mission only.

Most people get at least one of these wrong. Don’t be one of them.

Changes in 2024

Okay, this one’s important. Recent legislation updated Colorado raffle laws.

House Bill 24-1326 increased the Secretary of State’s fining authority. Maximum fines jumped to $250 per violation.

The bill also eliminated fines in lieu of license suspension or revocation. Now you might face both.

The Colorado Bingo-Raffle Advisory Board was recreated as the Colorado Charitable Gaming Board. This board has updated membership and duties.

They advise on licensing requirements, violations, fines, and training criteria. They can submit annual reports to the General Assembly with recommendations.

The law continues until September 1, 2031. That’s when it comes up for renewal again.

These changes make enforcement stricter. Stay updated on current rules.

How to Apply for Your License

Let’s talk about the actual application process. Step by step.

Visit the Colorado Secretary of State’s website. Find the Bingo and Raffles section.

Create an account or log in if you have one. You’ll use this for applications and quarterly reports.

Complete the online application. Include all required information about your organization.

Upload your supporting documents. Articles of incorporation, bylaws, membership roster, board member information, five-year existence proof.

Designate your certified games manager. They must complete training before your license issues.

Pay the $100 application fee. Credit card processes faster than checks.

Submit and wait. Processing takes one to six weeks typically.

Once approved, you can start planning your raffle. But remember the additional requirements for prizes over $1,000.

Resources and Help

Need more information? Colorado provides several resources.

The Secretary of State’s Bingo and Raffles webpage has everything. Forms, FAQs, rules, and contact information.

Download the “Planning a Raffle” guide. It covers basics clearly.

Review the complete Bingo and Raffles Law. It’s in Colorado Revised Statutes Title 24, Article 21, Part 6.

Read the Rules Covering and Regulating Bingo/Raffles. That’s 8 CCR 1505-2.

Call the Gaming Section at 303-869-4910 with questions. They offer consultation services.

Email [email protected] for specific concerns.

Check the Colorado Charitable Gaming Board for updates and recommendations.

Personally, I think the state makes these resources pretty accessible. Use them.

Frequently Asked Questions

Can individuals or for-profit companies hold raffles in Colorado?

No. Only qualified nonprofit organizations that have existed for five years can get licenses. For-profit businesses and individuals cannot legally conduct raffles.

How much does a raffle license cost?

The license costs $100 annually. You pay this fee when you apply or renew. There are also fees on gross receipts when you file quarterly reports.

Can we hold multiple raffles with one license?

Yes. Your license covers unlimited raffles during the year. But if individual raffle prizes exceed $1,000, you must submit a voided ticket for each one at least seven business days before selling.

Can we sell raffle tickets online?

Yes. Colorado allows online ticket sales with a valid license. All proceeds must go into your designated bingo-raffle account. You need a detailed tracking system.

What happens if we conduct an unlicensed raffle?

You face administrative fines potentially reaching thousands of dollars. The state can bar you from future raffles. Individuals involved might face misdemeanor charges with jail time. District attorneys can prosecute illegal raffles.

Final Thoughts

Now you know the basics of Colorado raffle laws. The rules are strict, but they’re manageable.

Get your license before you start. Make sure your organization qualifies. Complete the training. Follow all the requirements.

File your reports on time. Keep detailed records. Avoid prohibited prizes like alcohol.

Stay informed about changes. The law was updated in 2024 and could change again.

When in doubt, contact the Secretary of State’s office. They’re there to help nonprofits stay compliant.

Do it right, and raffles can be a great fundraising tool. Do it wrong, and you’re looking at fines or worse.

Stay legal, stay safe, and good luck with your fundraising efforts.

References

1. Colorado Secretary of State – Bingo and Raffles FAQs: https://www.sos.state.co.us/pubs/bingo_raffles/FAQs/licenses.html
2. Colorado Revised Statutes Title 24, Article 21, Part 6 – Bingo and Raffles Law: https://www.sos.state.co.us/pubs/bingo_raffles/files/GMLAW.pdf
3. House Bill 24-1326 – Bingo-Raffle Licensing Sunset Review: https://leg.colorado.gov/bills/hb24-1326
4. Colorado Secretary of State – Planning a Raffle Guide: https://www.sos.state.co.us/pubs/bingo_raffles/files/PlanningARaffle.pdf
5. Rules Covering and Regulating Bingo/Raffles (8 CCR 1505-2): https://www.coloradosos.gov/pubs/bingo_raffles/FAQs/licenses.html