Thinking about running a raffle for your school, church, or nonprofit in Hawaii? Hold on. This one’s important.
Hawaii treats raffles very differently than most other states. Honestly, this surprises a lot of people. Let’s break down exactly what’s legal, what’s not, and what you can do instead.
What Is a Raffle, Anyway?
A raffle is pretty simple. You pay for a ticket. Someone picks a winner at random. The winner gets a prize.
That’s it. So simple, right? But here’s the catch. In legal terms, a raffle has three parts: a prize, a random drawing, and paid entry. Take away any one of those parts, and it’s not really a raffle anymore.
Most states let charities run raffles as fundraisers. Hawaii does not. Stay with me here, because this is where things get interesting.
Why Hawaii Treats Raffles Differently
Hawaii has some of the strictest gambling laws in the entire country. The state constitution and its criminal code basically ban most forms of gambling. Raffles count as gambling under Hawaii law, since they involve paying money for a chance to win something.
Wondering if this applies to you? If you’re planning to sell raffle tickets in Hawaii, even for a good cause, the answer is yes.
Only two states have similarly tight rules. Alabama and Utah also ban raffles outright. As of June 2026, Alabama, Hawaii, and Utah prohibit paid-entry nonprofit raffles. Hawaii is in some pretty exclusive company here, and not the good kind.
Basic Raffle Laws in Hawaii
No Paid-Entry Raffles Allowed
Here’s the big rule. You cannot sell raffle tickets in Hawaii. Period.
It doesn’t matter if you’re a registered nonprofit. It doesn’t matter if the money goes to a great cause. Hawaii does not provide a charitable exemption for raffle gaming, and gambling activities including raffles are generally prohibited.
Not sure what counts as a violation? Selling tickets where the buyer has a chance to win a prize is the exact activity that’s banned. This applies to church raffles, school raffles, sports team raffles, and everything in between.
Many people assume nonprofits get a free pass. They find out the hard way that Hawaii doesn’t work that way. Don’t be one of them.
Free Entry Can Save Your Fundraiser
But wait, there’s more to know. Hawaii doesn’t ban giving away prizes altogether. The problem is only with charging for entry.
Nonprofits cannot use raffles for fundraising unless participation is free and donations are voluntary. This means you can still hold a prize drawing. You just can’t require a purchase to enter.
Think of it like the difference between a raffle and a free giveaway. One requires cash for a ticket. The other lets anyone enter, whether they donate or not. That second option is your legal path forward in Hawaii.
Penalties and Consequences
Okay, pause. Read this carefully, because this part matters a lot.
Running an illegal raffle in Hawaii falls under the state’s general gambling law. A person commits the offense of gambling if the person knowingly advances or participates in any gambling activity, and gambling is a misdemeanor.
So what happens if you break this law? A misdemeanor in Hawaii is no small thing. Misdemeanors are punishable by up to one year in county jail and fines of up to $2,000, or both. That’s a real consequence, not just a slap on the wrist.
Think of it like this. A parking ticket is minor. A misdemeanor is more like getting arrested and having a permanent record. It’s a totally different level of trouble.
If you go bigger, meaning you’re organizing large-scale ticket sales or profiting heavily from an illegal raffle, prosecutors could look at harsher charges. Promoting gambling in the second degree covers a small-time promoter who profits from gambling activity by receiving money or property from the proceeds of any gambling activity. That’s a more serious offense than simple gambling.
Honestly, this is the part most people miss. They think a small school raffle is harmless. Legally, it can still trigger criminal liability under Hawaii’s gambling statutes.
What About Possessing Raffle Equipment?
Sound complicated? It’s actually not. Hawaii doesn’t just ban the raffle itself. The law also covers the tools used to run one.
It’s a misdemeanor to manufacture, sell, transport, or possess a gambling device, knowing it will be used to advance gambling activity that isn’t social gambling. Raffle drums, ticket rolls sold as part of a paid drawing, and similar equipment could fall under this rule if tied to an illegal raffle.
This part can be tricky, honestly. Owning a raffle drum isn’t illegal by itself. But using it to run a banned paid raffle is where the trouble starts.
Special Circumstances and Recent Changes
You’re not alone if this feels confusing. Hawaii lawmakers have actually been paying more attention to gambling enforcement lately, not less.
In 2022, the state toughened penalties for the most serious gambling promoters. Act 111, passed in 2022, elevated the offense of promoting gambling in the first degree to a class B felony and changed the required state of mind for the offense to recklessness. That’s a big jump from a misdemeanor to a felony for large-scale operators.
More recently, Hawaii lawmakers introduced a 2026 bill aimed at illegal electronic gambling devices. The bill would make promoting an illegal electronic gambling device a class C felony, covering anyone who possesses, operates, displays, manufactures, sells, leases, distributes, or permits such a device on their premises. This shows Hawaii’s gambling laws keep getting stricter, not looser.
Personally, I think this trend makes sense for Hawaii. The state has always protected its family-friendly tourism image. Gambling crackdowns fit that goal.
Legal Alternatives for Fundraising in Hawaii
Don’t worry, you still have options. Plenty of Hawaii nonprofits raise money without running afoul of these laws.
Silent auctions work great here. People bid on items instead of buying a chance ticket. Silent auctions allow participants to bid on items without violating gambling restrictions, and these events can be held in person or online.
Door prizes are another solid option. You can hand out free entry tickets at an event and draw a winner. As long as nobody pays specifically for that chance, you’re on safe legal ground.
A properly built sweepstakes can also work. Trust me, this works if you set it up right. For nonprofits in Alabama, Hawaii, or Utah, a properly structured sweepstakes is often the better legal fit, since it allows online entries without raffle restrictions. The key phrase there is “properly structured.” Sweepstakes still carry their own rules, so this isn’t a total shortcut.
How to Stay Compliant in Hawaii
Here’s what you need to do if you’re planning any kind of prize drawing. Make sure entry is completely free. No purchase requirement, no minimum donation tied to entry, nothing like that.
Keep your donation ask separate from your prize drawing. You can absolutely ask people to donate. You just can’t make that donation the price of a raffle ticket.
Talk to a local attorney before you launch anything. Laws shift, and enforcement priorities change too. This guide gives you a solid starting point, but it’s not a substitute for real legal advice.
Document everything. If you run a free-entry drawing, keep records showing entry truly was free for everyone. This protects you if anyone ever questions how the event was run.
Frequently Asked Questions
Can a nonprofit sell raffle tickets in Hawaii?
No. Hawaii does not allow paid-entry raffles for any organization, including registered nonprofits and charities.
Is it illegal to run a 50/50 raffle in Hawaii?
Yes. A 50/50 raffle still requires paying for a ticket, which makes it an illegal gambling activity under Hawaii law.
What happens if I get caught running an illegal raffle in Hawaii?
You could face a misdemeanor charge, which carries up to one year in jail and a fine of up to $2,000.
Can I give away a prize for free in Hawaii?
Yes. Free prize drawings and giveaways are legal as long as nobody has to pay or donate to enter.
Are online raffles legal in Hawaii?
No. Hawaii’s ban on paid-entry raffles applies to online ticket sales too, not just in-person events.
Is a silent auction a safe alternative in Hawaii?
Yes. Silent auctions involve bidding on items rather than paying for a chance to win, so they don’t count as gambling.
Final Thoughts
Hawaii really is one of the toughest states in the country for raffle fundraising. No paid tickets, no exceptions for nonprofits, and real criminal penalties if you get it wrong.
But you’re not out of options. Free-entry drawings, silent auctions, and well-built sweepstakes can all raise money without breaking the law. Now you know the basics. Stay informed, stay safe, and when in doubt, look it up or ask a lawyer.
References
- Hawaii Revised Statutes Chapter 712, Offenses Against Public Health and Morals: https://www.capitol.hawaii.gov/hrscurrent/vol14_ch0701-0853/HRS0712/HRS_0712-1223.htm
- Hawaii Revised Statutes § 706-640, Authorized Fines: https://law.justia.com/codes/hawaii/title-37/chapter-706/section-706-640/
- Hawaii Revised Statutes § 706-663, Sentence of Imprisonment: https://law.justia.com/codes/hawaii/title-37/chapter-706/section-706-663/
- Hawaii SB3281 (2026), Illegal Electronic Gambling Devices: https://legiscan.com/HI/text/SB3281/2026
- Harbor Compliance, Hawaii Charitable Gaming Guide: https://www.harborcompliance.com/hawaii-charitable-gaming-license
