Raffle Laws in Massachusetts (2026): What Could Get You in Trouble
Most people assume raffles are harmless fun. You buy a ticket, maybe win a prize, no big deal. But in Massachusetts, running a raffle the wrong way is actually illegal. And the penalties? Not fun at all.
Whether you’re with a nonprofit, a church group, or just trying to raise money for a good cause, you need to know these rules. Let’s break it all down.
What Is a Raffle?
A raffle is a way to raise money by selling tickets. After the sale, certain tickets are picked by chance. Those winners get prizes. Simple enough, right?
Massachusetts law officially defines it this way under M.G.L. Chapter 271, Section 7A. But here’s the catch: just because it sounds simple doesn’t mean anyone can run one.
Honestly, this is the part most people miss.
Who Can Legally Run a Raffle in Massachusetts?
Okay, this one’s important. Not just anyone can sell raffle tickets in Massachusetts.
The law says only certain nonprofit organizations are allowed to run paid raffles. That means if you charge money for tickets, your group must qualify under the law.
So who qualifies? You’re in good shape if your organization is one of these:
A veterans’ organization chartered by Congress. A church or religious group. A fraternal society. An educational or charitable organization. A civic or service club. A nonprofit club organized for recreation or pleasure where no one personally profits.
Not sure if your group qualifies? Check with your town clerk or a local attorney.
There’s one more big rule here. Your organization must have been actively working as a nonprofit in Massachusetts for at least two years. You can’t just form a group one week and run a raffle the next.
Pretty straightforward, right?
What About Free Raffles?
Wait, it gets better. If you don’t charge anything for raffle tickets, the rules are different.
Anyone can run a free raffle. Businesses do this all the time for promotions. No permit needed. No nonprofit status required. But the moment you charge money for a chance to win, the full set of laws kicks in.
So just charging $1 a ticket? That changes everything.
The Permit Requirement
Here’s where things get serious. If your organization qualifies to run a raffle, you still need a permit before you do anything.
You apply for the permit at the city or town clerk’s office where the raffle drawing will happen. The clerk reviews your application. Then it goes to the local chief of police. If the police chief approves it, the clerk issues your permit.
The permit fee is usually $10. It can go up to $50 depending on your town. The permit is good for one full year from the date it’s issued.
Wondering what you need to include in the application? You’ll need the name and address of your organization, proof that you qualify, the names of at least three officers or members, and a description of how you plan to use the money raised.
Don’t skip this step. Running a raffle without a permit is illegal, even if your nonprofit would otherwise qualify.
How Raffle Money Must Be Used
You raised the money. Now what can you do with it?
Massachusetts law is strict here. All money from raffles must go toward educational, charitable, religious, fraternal, or civic purposes, or veterans’ benefits.
You can’t pocket the proceeds. You can’t pay your members for their time running the raffle either. Only qualified members of the organization can operate the raffle, and no one gets paid for it.
Many people assume this is flexible. They find out the hard way. Don’t be one of them.
The 5% Tax Rule
Here’s something a lot of organizations don’t expect.
After your raffle, you must file a return with the State Lottery Commission within 10 days. And you owe a tax of 5% of the total money collected from ticket sales.
Think of it like a sales tax, but specifically for raffle proceeds. The Lottery Commission will send you the right forms once your permit is issued.
Missing this deadline or skipping the tax filing? That’s a violation too.
Extra Rules for Big Raffles
Sound complicated? For most small raffles it’s actually not bad. But if your raffle gets bigger, there are extra rules.
The Attorney General’s regulations under 940 CMR 12.00 kick in when your prize value is over $10,000 or when your ticket price is more than $10.
At that point, here’s what you’ll need to do:
Each raffle ticket must have two parts. One part goes to the buyer. The other part stays with your organization’s record keeper. Both the seller and buyer must sign both parts of the ticket.
You also need to designate a record keeper who has been a member of the organization for at least two years. They’re responsible for tracking all ticket sales and keeping detailed records.
This part can be tricky, honestly. If you’re running a big raffle, you may want to consult an attorney before you start.
Can You Sell Raffle Tickets Online?
Short answer: no.
Massachusetts currently has no law allowing online raffle ticket sales. Both the seller and buyer must physically sign the ticket. That alone makes online sales a legal problem.
There’s also potential conflict with federal law when it comes to online gambling activity. Organizations that want to explore online fundraising should talk to a lawyer first.
A friend asked me about this last week. Turns out, most people assume online sales are fine. They’re not.
What About 50/50 Raffles?
Here’s where it gets interesting.
A 50/50 raffle is when the winner gets half the money collected from ticket sales. That kind of prize comes directly from the ticket proceeds.
Massachusetts law restricts this. Cash prizes that come from the raffle proceeds themselves may violate the law. Pre-announced fixed prizes, like a television or a trip, are generally okay. But splitting the pot? That can cross a legal line.
If your organization wants to run a 50/50, talk to a lawyer first. Seriously.
Penalties for Breaking Raffle Laws
Let’s talk about what happens if you break the rules.
For violations of the main raffle law, you could face a fine of up to $1,000, up to one year in jail, or both. That’s the penalty under MGL 271:7A.
But if someone runs an illegal gambling operation more broadly, the penalties are much harsher. We’re talking fines up to $3,000 and up to three years in state prison for more serious violations.
Think of the lower-level penalty like a serious traffic ticket. The higher-level one is more like a criminal conviction. Neither is good.
Violating the detailed regulations under 940 CMR can also be treated as an unfair or deceptive business practice. That brings in a whole other set of legal trouble.
Who Cannot Run a Raffle in Massachusetts?
Hold on, this part is important.
Government agencies and public institutions cannot run paid raffles. That includes public schools, conservation commissions, and municipal departments. They don’t fit into any of the approved nonprofit categories under state law.
Private individuals also cannot run personal raffles to raise money for themselves. No one can raffle off their own property for personal gain.
If you’re not a qualifying nonprofit, the law simply doesn’t make an exception for you.
How to Stay Legal: A Quick Checklist
You’re not alone if this feels like a lot. Most people don’t realize how strict these laws are. Here’s a simple way to think about it.
First, confirm your organization qualifies as a nonprofit and has been active in Massachusetts for at least two years. Second, apply for a raffle permit from your town or city clerk before you do anything. Third, make sure all ticket sellers are members of your organization and are not getting paid. Fourth, keep records of ticket sales and prize details. Fifth, file your return with the State Lottery Commission within 10 days of the raffle and pay the 5% tax.
Do all of that and you’re in good shape.
Frequently Asked Questions
Can a school PTO run a raffle in Massachusetts? Yes, if the PTO is an independent nonprofit organization that has been active in Massachusetts for at least two years and obtains a permit. A public school itself cannot be the sponsor.
Is there a limit on the number of raffles my organization can hold? No strict limit. Your permit is valid for one year and covers multiple events during that time.
Can someone outside my organization sell raffle tickets? No. Only qualified members of the sponsoring organization can promote and sell tickets. Outside help, even volunteers, is not permitted.
Do winners have to pay taxes on raffle prizes in Massachusetts? Yes. Raffle winnings are considered taxable income. Winners may need to file a Massachusetts income tax return. For large prizes, the sponsoring organization may need to issue a W-2G form.
What if I just want to raffle something off among friends and no money changes hands? If no one pays for a chance to win, it’s generally legal for anyone to run. Consumer protection laws still apply, but the strict nonprofit and permit rules do not.
Final Thoughts
Massachusetts takes raffle laws seriously. The rules exist to make sure charitable fundraising is actually going to good causes and not lining someone’s pockets.
Now you know the basics. If your organization is planning a raffle, do your homework first. Get the permit. Keep good records. Pay your taxes. And when in doubt, reach out to your town clerk or consult an attorney.
Stay informed, stay legal, and good luck with your fundraiser.
