Raffles are everywhere in Louisiana. Church fundraisers, school events, Mardi Gras parties, youth sports leagues. They feel casual and harmless.
But here’s the thing: Louisiana has strict rules about who can hold a raffle and how. Getting it wrong is not just a technicality. It can get your organization in real legal trouble.
Don’t worry, we’ll break it down step by step.
What Is a Raffle?
A raffle is a game of chance. Someone buys a ticket. A winner is drawn at random. That winner gets a prize.
Simple, right? But in Louisiana, the law treats raffles as a form of gambling. That means the state regulates them carefully. You can’t just sell tickets and call it a day.
Louisiana defines raffles officially under R.S. 4:703 as games “played by drawing for prizes or the allotment of prizes by chance, by the selling of shares, tickets, or rights to participate.” Basically, if people are paying for a chance to win something, it’s a raffle under state law.
Who Can Legally Run a Raffle in Louisiana?
Okay, this is the part most people miss.
In Louisiana, you generally need a license to run a raffle. And not just anyone can get that license. The state only grants raffle licenses to specific types of organizations.
Qualifying groups include nonprofits recognized by the IRS as tax-exempt, Mardi Gras carnival organizations, civic or service associations, volunteer fire companies, booster clubs, parent-teacher associations, private and public nonprofit schools, and public colleges or universities.
For-profit businesses do not qualify. A restaurant, boutique, or small business cannot legally run a ticketed raffle, even if all the money goes to charity. Many business owners assume donating the proceeds makes it okay. It does not.
Think of it like a driver’s license. Good intentions don’t replace the actual credential.
The $250 Exception
Now here’s where it gets interesting.
Louisiana law has a small but important carve-out. Under R.S. 27:502, any individual who is 21 years of age or older can run a raffle without a license, as long as the prize is worth $250 or less.
So simple! You’re a person, you’re 21 or older, and the prize is $250 or under? You’re in the clear without a license.
But there’s a catch. This exception applies to individuals, not companies or organizations. It’s meant for real people, not businesses or groups acting as a business. If your organization is running the raffle, you still likely need a license even if the prize is small.
Wondering if your situation counts? When in doubt, contact the Louisiana Office of Charitable Gaming directly. Their job is to help you figure this out.
Standard Raffle License vs. Limited Raffle License
Louisiana actually has two types of raffle licenses now. This is a newer development.
In 2023, the Louisiana Legislature passed Act 89, which created a new “limited raffle license” under R.S. 4:707.1. This was a big deal for smaller nonprofits.
The standard charitable gaming license covers all types of gaming events and has more requirements. It costs $75 to obtain.
The limited raffle license is designed for organizations that run smaller raffles. To qualify, your total prize value across all raffles in a 12-month period must not exceed $10,000. The license fee is only $25, and a separate gaming bank account is not required.
There’s one more bonus. If your total prize value will be $250 or under for the entire license period, the fee is waived completely.
Pretty straightforward, right?
Rules All Licensed Organizations Must Follow
Getting licensed is step one. Following the rules is step two.
Hold on, this part is important.
Only members of your licensed organization can sell raffle tickets. Or members of another licensed organization who volunteer to help. You can’t hire outsiders to sell tickets for you.
All net proceeds from the raffle must go toward charitable, educational, religious, patriotic, or public-spirited purposes. You cannot pocket raffle profits as a licensed charitable gaming organization.
Raffles must be conducted in a municipality or parish that permits them. Louisiana gives local governments the power to allow or restrict raffles in their area. Your parish governing authority must have opted in.
If you have a limited raffle license, you also cannot run other games of chance like bingo at the same time and place as your raffle. That would require a full standard license.
What Does NOT Qualify for a Limited Raffle License
Not every raffle type qualifies for the limited license. This one trips people up.
Raffles where the prize value can’t be determined ahead of time do not qualify. That means 50/50 splits and “split the pot” raffles are excluded from limited licenses. The prize amount in those games is unknown until tickets are sold.
Raffles with prizes that naturally exceed $10,000 also do not qualify. Cars, real estate, or similar big-ticket items require a standard charitable gaming license.
Makes sense, right? The limited license is for smaller, simpler events.
Local Government Approval Matters
Here’s something most people overlook entirely.
Even if you have a state raffle license, your local government has to permit raffles in your area. Louisiana law under R.S. 4:706 gives parishes and municipalities the power to decide whether to allow charitable gaming within their limits.
Most Louisiana areas do permit it. But you should confirm with your parish or city government before planning your event. Running a raffle in a jurisdiction that hasn’t authorized charitable gaming can still get you in trouble, even with a valid state license.
What Happens If You Break the Rules?
Let’s talk about the penalties.
Running an unlicensed raffle in Louisiana is treated as a violation of the state’s charitable gaming laws. It can also potentially be treated as illegal gambling under R.S. 14:90, depending on how it’s set up.
Illegal gambling in Louisiana is a serious charge. For-profit gambling operations can be charged as a felony. Even smaller violations of the charitable gaming law can result in fines, license suspension, and being barred from applying for future licenses.
If a licensed organization exceeds its prize limits under a limited raffle license, the license gets suspended. The organization cannot reapply for a full year. If it fails to upgrade to a standard license when required, the same suspension applies.
Less severe than a felony charge, but still no joke: charitable gaming violations can damage your organization’s reputation and its ability to fundraise in the future.
Special Circumstances and Exemptions
A friend asked me about school raffles once. Turns out there are some helpful exemptions most people don’t know about.
Public and private nonprofit schools are exempt from the standard licensing and reporting requirements. This exemption applies as long as the school is located in a parish or municipality that permits raffles, and the raffle is used purely for fundraising.
Senior citizen recreation clubs are also exempt. These are clubs sanctioned by the local council on aging, made up of members who are 60 or older, and whose only function is providing amusement for members.
Student clubs and associations in public or private nonprofit schools can also be exempt. These groups must be school-approved and made up entirely of enrolled students.
Conservation organizations that are IRS-recognized 501(c)(3) groups focused on conserving specific wildlife species also have special exemptions under state law.
These exemptions still require the local governing authority to have authorized charitable gaming. The exemption just removes the state licensing paperwork.
What About Trade Shows and Conventions?
Honestly, this is the part most people don’t even know exists.
Louisiana has a separate set of rules for raffles held at trade shows and conventions. Under Louisiana Administrative Code Title 42, Part II, these rules apply to anyone running a raffle at an event with a legal capacity of 250 or more people.
This is a different track from charitable gaming. It’s governed by R.S. 47:7001 and requires its own permit. If you’re planning a raffle at a large professional event, look into these rules separately.
How to Get a Raffle License in Louisiana
Ready to do this the right way? Here’s where to start.
The Louisiana Office of Charitable Gaming (OCG) handles all raffle licenses. You can find their website at ocg.louisiana.gov. They are part of the Louisiana Department of Revenue.
To apply for a standard charitable gaming license, your organization must show it qualifies under state law. You’ll need proof of your nonprofit status or other qualifying category. You’ll pay the $75 licensing fee, unless you qualify for the $25 limited license or a fee waiver.
For the limited raffle license, the same office handles applications. Your total prize value cannot exceed $10,000 for the year. You submit the application at least 30 days before your scheduled raffle.
If you’re a school or other exempt organization, you still need to apply to your municipality or parish for approval. Contact your local government office for that process.
You’re not alone if this feels like a lot. Most people running community raffles don’t realize any of this until they start looking it up.
Frequently Asked Questions
Can a for-profit business legally run a raffle in Louisiana?
Generally, no. A for-profit business cannot obtain a charitable gaming license. If you want to support a raffle, donate your product to a licensed nonprofit and let them run it.
Can an individual person run a raffle without a license?
Yes, but only if the prize is worth $250 or less and you are 21 or older. This exception under R.S. 27:502 is for individuals, not organizations or businesses.
Does a school need a raffle license in Louisiana?
Public and private nonprofit schools are usually exempt from standard licensing if their parish or city permits charitable gaming. Contact your local government to confirm.
What is a 50/50 raffle and is it allowed under a limited license?
A 50/50 raffle splits ticket proceeds between the winner and the organization. Because the prize amount is unknown until tickets are sold, it does not qualify for a limited raffle license. You’d need a standard license.
How much does a raffle license cost in Louisiana?
A standard charitable gaming license costs $75. A limited raffle license costs $25. If your total prizes won’t exceed $250 for the year, the limited license fee is waived entirely.
What if my organization goes over the $10,000 prize limit on a limited license?
Your limited license cannot be renewed. You must apply for a standard charitable gaming license instead. If you skip that step, your limited license gets suspended for a full calendar year.
Final Thoughts
Louisiana raffle laws are more detailed than most people expect. But now you know the basics.
If you’re a nonprofit, get the right license before selling a single ticket. If you’re an individual running a small raffle, keep the prize under $250 and you have more flexibility. And if you’re a business, partner with a licensed charity instead of trying to run it yourself.
When in doubt, reach out to the Louisiana Office of Charitable Gaming. They’re there to help. Stay informed, follow the rules, and your fundraiser will go off without a hitch.
References
- Louisiana Revised Statutes R.S. 4:701-716, Charitable Raffles, Bingo and Keno Licensing Law: https://legis.la.gov/legis/Law.aspx?d=96918
- Louisiana Revised Statutes R.S. 27:502, Raffles Under $250: https://legis.la.gov/Legis/Law.aspx?d=815327
- Louisiana Office of Charitable Gaming (OCG): https://www.ocg.louisiana.gov
- Louisiana Administrative Code Title 42, Section I-1722, Limited Raffle License Requirements: https://regulations.justia.com/states/louisiana/title-42/part-i/subpart-1/chapter-17/subchapter-b/section-i-1722/
- Act 89 of the 2023 Louisiana Regular Session (HB 474), establishing limited raffle licenses: https://legis.la.gov/Legis/ViewDocument.aspx?d=1316400
- Raffles, Lotteries and Merchant Give-Aways Under Louisiana Gaming Laws, Breazeale Sachse & Wilson LLP: https://www.bswllp.com/raffles-lotteries-and-merchant-giveaways-under-the-louisiana-gaming-laws
