Raffle Laws in Maryland (2026): Rules Every Organizer Must Know

Most people think running a raffle is simple. You sell tickets, pick a winner, hand over a prize. Done, right? Not quite. In Maryland, raffle laws are stricter than most people expect. And breaking them can lead to real legal trouble.

Whether you’re planning a church fundraiser or a nonprofit auction, you need to know the rules first. Let’s break it all down.

What Is a Raffle?

A raffle is a type of lottery. People pay money to buy a ticket. Then a winner is chosen at random. The winner gets a prize.

Sounds simple. But legally, a raffle involves paid entry plus a prize plus chance. That combination makes it gambling under Maryland law. It’s only legal under specific conditions.

Who Can Hold a Raffle in Maryland?

Okay, this is important. Not everyone can legally hold a raffle in Maryland.

Only qualified organizations are allowed. These include charitable groups, religious organizations, fraternal organizations, patriotic groups, educational organizations, and volunteer fire companies. Basically, you need to be a nonprofit. A for-profit business cannot legally run a raffle in Maryland.

Political candidates and political committees can also hold raffles. Their prizes must be money or merchandise.

Private individuals running raffles for personal gain? That’s illegal. Full stop.

The Big Rule: No Private Profit

Here’s where a lot of people get tripped up. No one can personally profit from a Maryland raffle.

That means you cannot pay someone to run the raffle. The raffle must be managed only by actual members of the organization. No outside contractors. No paid staff handling the event.

Every dollar raised should go to the organization’s purpose. Not into anyone’s personal pocket.

Sound strict? It is. But honestly, this rule makes sense. Raffles are meant to benefit the community, not enrich individuals.

Maryland is Different: County Rules Apply

Here’s where it gets interesting. Maryland does not have one single statewide raffle law that covers everything.

Instead, most raffle rules are set at the county level. Each county has its own permit requirements, prize limits, and regulations. What’s allowed in Montgomery County may differ from what’s allowed in Baltimore County.

This is probably the most important thing to understand before planning your event. You must check the rules in your specific county.

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Wondering where to start? Contact your county government directly. Many counties list their raffle requirements on official websites.

Do You Need a Permit?

In most Maryland counties, yes. You likely need a permit before you can hold a raffle or even sell raffle tickets.

Here’s something most people don’t know. Even if your raffle takes place in another county, many counties still require a permit just to sell tickets there. That catches a lot of organizations off guard.

Many counties require you to apply at least 30 days before your event. Don’t wait until the last minute. Permit fees generally range from around $10 to $56 depending on the county.

There is one common exception. A simple 50/50 raffle where the prize is $300 or less often does not require a permit. Check your specific county to confirm.

Real Property Raffles: State Rules Apply

Hold on, this part is different. If you are raffling off real estate, a house for example, different rules kick in at the state level.

Under Maryland Criminal Law Article Section 12-106, a charitable organization can raffle real property. But there are tight rules. The charity must already own the property or be able to transfer title. The charity can hold no more than two real property raffles per calendar year.

Before advertising or even planning such a raffle, the organization must file a disclosure statement with the Maryland Secretary of State’s Charitable Organizations Division. That statement must include the property address and description, the raffle date and location, the ticket price, and any costs the winner would owe.

This is a big deal. Missing this step can get your entire event shut down.

Record Keeping Requirements

Not sure what counts as a violation? Let’s talk records. This is an area where many organizations fall short.

Maryland law requires qualified organizations to keep detailed records of all raffle transactions. You must keep those records for at least two years after the raffle. And you must make them available to authorities if asked.

Who can request your records? The State’s Attorney, the county sheriff, the Department of Health and Human Services, the county attorney, and the State Police all have the right to review them.

Keep your records clean and organized. It’s really not that hard once you set up a simple tracking system.

Penalties for Breaking Raffle Laws

Let’s talk about what happens if you break these rules.

A person who violates Maryland’s raffle regulations can be charged with a misdemeanor. The penalty can include a fine of up to $1,000, imprisonment for up to one year, or both.

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Think of it like a traffic violation, but with higher stakes. The consequences can follow your organization for years. County commissioners can deny future permit applications to organizations that break the rules. In some cases, they can deny permits for up to three years.

Running a raffle without a permit? That is the most common violation. Don’t skip the permit step just because it feels like extra paperwork.

Special Circumstances

Baltimore City

Baltimore City has its own rules separate from Baltimore County. Permit holders in the city can award prizes in merchandise and money. City permit holders are limited to no more than 12 raffles per calendar year.

Montgomery County

Montgomery County requires all raffle operators to be nonprofit organizations under IRS Section 501(c)(3), (4), (7), or (10). A permit application must be submitted at least 30 days before ticket sales begin. Applications can be submitted online through the county’s official portal. The only exception is a 50/50 raffle where the prize stays at or below $300.

Prince George’s County

Prince George’s County requires a written permit before any raffle where the total cash prize exceeds $200. Prize limits apply too. Cash prizes cannot exceed $5,000. Merchandise prizes can be awarded in any amount.

There are also special rules for charitable foundations connected to professional football teams in the county. That’s a very specific situation, but it shows how detailed these county rules can get.

Frederick County

In Frederick County, a permit covers one full calendar year. The permit fee is $50 per year. However, if all raffle proceeds go directly to benefit the county, the fee can be waived. Organizations can hold no more than four raffles per year where the main prize exceeds $5,000 in fair market value.

How to Run a Legal Raffle in Maryland

You’re not alone if this feels like a lot. Most first-time organizers feel the same way. Here’s a simple plan to stay on the right side of the law.

First, confirm your organization qualifies. You need to be a recognized nonprofit, charitable group, religious organization, or similar qualified entity.

Second, contact your county government. Ask specifically about raffle permit requirements. Get this information in writing if you can.

Third, apply for your permit early. Most counties want the application at least 30 days ahead of time. Some need more.

Fourth, set up a record-keeping system before you sell a single ticket. Track every transaction. Save every record for at least two years.

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Fifth, make sure only actual organization members run the event. No outside paid help managing the raffle itself.

Sixth, award your prizes as promised. And submit any required reports to your county after the event wraps up.

Pretty straightforward once you break it down.

Frequently Asked Questions

Can a regular person hold a raffle in Maryland? No. Only qualified organizations like nonprofits, charities, religious groups, and fraternal organizations can legally hold raffles in Maryland.

Do I need a permit for every raffle? In most Maryland counties, yes. The main exception is a 50/50 raffle where the prize does not exceed $300. Always check with your specific county first.

Can I pay someone to run my raffle? No. Maryland law requires raffles to be managed and operated only by actual members of the qualified organization. No one can be compensated for running the raffle.

Can I sell raffle tickets online in Maryland? It depends on the county. Online ticket sales are permitted in some counties but not others. Contact your county government to confirm.

What happens if I hold a raffle without a permit? You could face a misdemeanor charge, a fine up to $1,000, up to one year in jail, or all three. Your organization could also be barred from future permits.

How long do I need to keep raffle records? Maryland law requires organizations to keep raffle records for at least two years after the event.

Can a political candidate hold a raffle? Yes. Under state law, political committees and candidates for public office can hold raffles as long as prizes are money or merchandise.

Final Thoughts

Maryland raffle laws are not impossible to follow. But they do require some homework before you dive in.

The biggest takeaways? Only qualified organizations can hold raffles. Nobody can personally profit. You almost certainly need a county permit. And every county has its own rules.

Check with your local county government before you plan anything. Get your permit early. Keep clean records. And make sure only organization members are running the show.

Now you know the basics. Stay organized, follow your county’s rules, and when in doubt, talk to a lawyer or your county’s gaming office before you start selling tickets.