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

Most people think raffles are simple fundraisers. Sell some tickets, draw a winner, done. But in Minnesota, raffle laws are way more specific than you might expect. Break the rules, and you could face serious fines or even criminal charges. Let’s break down exactly what you need to know to run a legal raffle in Minnesota.

What Is a Raffle in Minnesota?

A raffle is basically a game of chance. You buy a ticket or certificate to enter a drawing. Then someone picks a winner randomly. Simple concept, right?

Here’s the thing. Minnesota law treats raffles as gambling. That means strict rules apply. Only certain organizations can run them. You need the right permits. And you have to follow specific procedures.

The Minnesota Gambling Control Board oversees all raffle activity. They make the rules. They issue licenses. And they enforce the law. Trust me, you don’t want to get on their bad side.

Who Can Legally Run a Raffle?

Not everyone can host a raffle. Minnesota law is pretty clear about this. Only registered nonprofit organizations can conduct raffles.

You need to be one of four types of nonprofits. Fraternal organizations qualify. Religious groups can do it. Veteran organizations are allowed. And other registered nonprofits can too.

Want to prove you’re legit? You need one of these documents. A Certificate of Good Standing from the Minnesota Secretary of State works. An IRS 501(c)(3) tax exemption letter in your organization’s name is good. Or you can show your charter from a parent nonprofit organization plus their IRS letter.

Individuals can’t run raffles. Businesses can’t either. Only nonprofits that meet these requirements can legally host a raffle in Minnesota.

Small Raffle Rules Without a Permit

Okay, this is where things get interesting. Minnesota actually lets small nonprofits run raffles without getting a permit from the Gambling Control Board. Pretty straightforward.

For regular nonprofits without 501(c)(3) status, you can run multiple small raffles. But here’s the catch. The total value of ALL prizes for the entire year can’t exceed $1,500. Yep, that’s for the whole year combined.

Got 501(c)(3) status? You get better options. You can do multiple raffles worth up to $1,500 total for the year. Or you can do ONE single event with prizes worth up to $5,000. Just one event per year under this rule.

These are called “excluded raffles.” You still have to follow most raffle rules. You just don’t need a permit from the state. Check with your city or county though. They might have extra requirements.

When You Need an Exempt Permit

Want to go bigger than those limits? You need an exempt permit. This lets you award up to $50,000 in prizes for the calendar year. Pretty nice upgrade.

You apply using form LG220. The application process isn’t terrible. You provide your organization details. You explain what you’re doing. And you wait for approval.

Here’s something important. You can only do ONE type of raffle per calendar year. You can’t mix excluded raffles, excluded 501(c)(3) raffles, and exempt permit raffles in the same year. Pick one category and stick with it.

The Gambling Control Board has to approve your application. Give yourself time. Don’t wait until the last minute.

Full Gambling License Requirements

Some organizations want to run really large raffles. Or they want to do multiple big raffles throughout the year. That requires a full gambling license.

The organization must have been around for at least three years. No brand new groups. This ensures you have a proven track record.

The application asks for detailed information. Your organization’s structure matters. Your purpose matters. Your financial status gets reviewed. It’s more involved than an exempt permit.

Once you have a license, you can conduct bigger raffles. But you also have more reporting requirements. More taxes. More oversight. It’s a bigger commitment.

Raffle Ticket Requirements

Minnesota has specific rules about raffle tickets. You can’t just make them however you want. There are requirements.

Tickets must have a detachable section. Both parts need to be sequentially numbered. Start with number 1. Continue through however many tickets you purchased. This helps with tracking and accountability.

The detachable section needs spaces for the purchaser’s information. Name, address, and phone number. This is required except for raffle board stubs.

Every ticket must list the three most expensive prizes. Include the location, date, and time of the drawing. If you have more prizes, you need to post a complete list publicly or display them at the event.

Tickets must be sold for the price printed on them. No discounts. No freebies. Everyone pays the same price. Keeps things fair.

Age Restrictions You Need to Know

Wondering if this applies to you? Minnesota has clear age rules for raffles.

People under 18 cannot buy raffle tickets. They can’t purchase certificates of participation either. And they can’t win prizes. Simple rule.

Wait, it gets stricter. If your raffle prizes include wine, beer, or liquor, winners must be 21 or older. This comes from Minnesota alcohol laws. Makes sense.

Violating age restrictions is a violation of raffle laws. Don’t sell to minors. Check IDs if you’re not sure. Better safe than sorry.

How Raffles Must Be Conducted

Minnesota law requires raffles to be run fairly. All entries must have an equal chance to win. No rigging the system.

You can’t force people to buy multiple tickets. One ticket is enough. You can’t make them pay for anything else to enter either. Keep it simple.

The drawing method matters too. It must be conducted in a public forum. People need to see it’s fair. The method can’t be manipulated. And it can’t be based on something outside your organization’s control.

Here’s something people often get wrong. You can’t require people to be present at the raffle to win. Winners can be absent. You’ll contact them if they win.

All sold and unsold tickets must be accounted for. Keep good records. You need to track everything.

Special Raffle Types

Minnesota allows some unique raffle formats. Calendar raffles are popular. The ticket is actually a calendar with a detachable stub. Drawings happen on specific dates throughout the year.

Button raffles are another option. The button serves as the certificate of participation. It’s sequentially numbered. And it has a corresponding ticket for the drawing. The button might give you discounted entry to an event too.

Raffle boards exist but have strict rules. Not all organizations can use them. Organizations excluded from licensing requirements can’t conduct raffle board raffles. They’re only allowed at permitted premises where the winner gets determined.

50/50 raffles are legal. The prize is a percentage of the gross receipts. Usually 50 percent, but it could be any percentage. Just follow all other raffle rules.

Record Keeping Requirements

Hold on, this part is important. Minnesota requires you to keep detailed records. Even if you don’t need a permit.

You must maintain records for 3.5 years. That’s three and a half years from the date the raffle was reported on your tax return. Or from the event date for exempt permits.

What records do you need? Everything related to the raffle. Ticket sales. Expenses. Prize distributions. All sold and unsold tickets. The detachable stubs. Financial reports.

The Gambling Control Board can request these records anytime. The Department of Revenue can too. Have them ready. Being unprepared looks bad.

You can store records electronically. But you need to produce them in paper format if requested. Plan accordingly.

Penalties for Breaking the Rules

Not sure what counts as a violation? Let me break it down. The penalties are no joke.

The Minnesota Gambling Control Board can fine you up to $1,000 per violation. Each violation counts separately. Multiple violations add up fast.

Your gambling license can be suspended. Or revoked entirely. This jeopardizes future fundraising events. Your organization loses the ability to conduct raffles.

In severe cases, criminal charges happen. Conducting an unlicensed raffle is a misdemeanor. You could face fines up to $3,000. Plus imprisonment for up to 90 days.

Illegal raffle boards get treated as contraband. Possessing or selling them without a license is a felony. Altering them is a felony. Not producing invoices when requested is a felony. These charges are serious.

Think of it like a traffic ticket, but more serious. The state takes gambling laws seriously. They enforce them.

Gambling Tax on Raffle Proceeds

Minnesota taxes gambling activities. Raffles included. Organizations conducting raffles must pay a gambling tax on gross receipts. This applies to licensed organizations.

The tax rate is 6 percent of the ideal gross. If you can’t account for tickets, you pay tax on those too. Distributors must report lost tickets and pay the tax.

Excluded raffles under the $1,500 limit have different rules. 501(c)(3) single event raffles under $5,000 too. But larger raffles definitely get taxed.

File your tax returns on time. Pay what you owe. The Department of Revenue doesn’t mess around with gambling taxes.

How Prize Money Can Be Used

Raffle proceeds have restrictions. Minnesota law says the money must support charitable purposes. You can’t just pocket it.

Acceptable uses include actual charitable activities. Contributing to nonprofit organizations. Supporting units of government (but not directly to law enforcement or prosecutors). Wildlife management projects with DNR approval. Snowmobile or ATV trail maintenance. Educational programs.

You can pay for real property and capital assets. But contact the Gambling Control Board first. They have specific requirements for these expenses.

Keep detailed records of how you spend raffle money. The state audits this. Misusing gambling funds is a serious violation.

Reporting Requirements

Within 30 days of your gambling activity, you must file a financial report. This goes to the Gambling Control Board. Don’t miss this deadline.

Licensed organizations have more extensive reporting. You file tax returns. You submit detailed financial statements. You report everything.

Exempt permit holders use simpler forms. But you still must report. The LG220 application starts the process. Then you file your post-event financial report.

Even excluded raffles need some documentation. You maintain records. You just don’t file reports with the state unless requested.

Honestly, this is the part most people miss. They run the raffle fine. Then they forget to file the paperwork. Big mistake.

Local Ordinances and Requirements

Here’s where it gets tricky. Minnesota state law isn’t the only thing you need to worry about. Cities and counties can add their own rules.

Some cities require additional permits. Some charge fees. Some have stricter limits on prize values or ticket sales. You need to check locally.

Saint Paul, for example, requires applications submitted 45 days before your event. They charge licensing fees. They require property owner permission if you’re conducting the raffle on someone else’s premises.

Call your city clerk. Ask about local raffle requirements. Don’t assume state rules are all you need to follow.

Missing local permits can shut down your raffle. Or result in fines. It’s worth a phone call to find out.

Tips for Running a Legal Raffle

You’re not alone, this confuses a lot of people. Let me give you some practical advice. Start by deciding what size raffle you want to run. Small excluded raffles are easiest. Fewer requirements.

Apply for permits well in advance. Don’t wait. Processing takes time. You need approval before selling tickets.

Buy proper raffle tickets. Make sure they meet Minnesota requirements. Sequentially numbered. Detachable sections. All required information printed on them.

Train your volunteers. Make sure they understand the rules. Don’t sell to minors. Don’t give discounts. Follow the procedures.

Keep meticulous records from day one. Track every ticket. Record every sale. Save all documentation. You’ll thank yourself later.

Plan your drawing carefully. Public location. Fair method. Multiple witnesses. Make it transparent. This protects you from accusations of fraud.

File all required reports on time. Mark deadlines on your calendar. Set reminders. Missing deadlines causes problems.

Getting Help and Resources

The Minnesota Gambling Control Board is your main resource. Call them at 651-539-1900. They answer questions. They provide guidance. They help organizations comply with the law.

Their website has tons of helpful information. Forms you need. Instructions for completing them. Manuals for conducting raffles. Read through these materials.

Contact the Licensing Specialist for your county. They can walk you through the process. They know local requirements too.

The Minnesota Council of Nonprofits has resources. They explain charitable gambling. They help nonprofits understand their options.

Don’t try to figure this out alone. Use the available resources. Ask questions. Get clarification. It’s better than making costly mistakes.

Common Mistakes to Avoid

Most people don’t realize how strict these laws are. Here are mistakes organizations commonly make. Don’t be one of them.

Running a raffle without checking if you need a permit. Some organizations think small raffles don’t need any oversight. Wrong. You still need to follow the rules.

Mixing different raffle types in one year. Remember, only one category per calendar year. Choose excluded, exempt, or licensed. Stick with it.

Failing to get local permits. State approval isn’t enough. Check with your city and county. Get all required permits.

Selling tickets to minors. Train your volunteers. Check IDs when in doubt. This violation is easy to avoid.

Not keeping proper records. You need documentation. Start tracking from day one. Don’t wait until someone asks for records.

Missing reporting deadlines. Mark your calendar. File on time. Late reports cause unnecessary problems.

Using homemade tickets that don’t meet requirements. Buy proper raffle tickets. Make sure they comply with Minnesota rules.

What Happens If You Need to Cancel?

Sometimes raffles need to be canceled. Maybe you didn’t sell enough tickets. Maybe circumstances changed. Minnesota has procedures for this.

If you’ve already sold tickets, you must refund the money. Contact everyone who bought tickets. Give them their money back. Keep records of all refunds.

Postponing a raffle drawing is different. You can change the date. But you need to notify all participants. Update any posted information. Make sure the new date and time are communicated clearly.

Licensed organizations should contact the Gambling Control Board. Explain the situation. Get their guidance. Follow their instructions.

Keep documentation of everything. Why you canceled. Who got refunded. When refunds were issued. This protects you if questions arise later.

Online and Electronic Raffles

Sound complicated? It’s actually not. Minnesota allows some electronic raffle options. But there are limits.

Licensed organizations can use electronic raffle selection systems. The system must capture the ticket number at time of sale. It records entries electronically. Then uses a random number generator for selection.

The Gambling Control Board has minimum technical standards. Your system must meet them. Get approval before using electronic selection methods.

Online ticket sales are trickier. Minnesota doesn’t explicitly authorize online raffle ticket sales for most organizations. The state lottery can sell online. But charitable raffles face restrictions.

If you want to use an alternative method, get board approval first. Submit a request. Explain your system. Wait for approval. Don’t just start doing it.

Special Circumstances and Exceptions

Minnesota law has some special provisions. Wild game or fish raffles are allowed. The organization needs permits under Chapters 97A to 97C. The game or fish must be legally taken.

You can sell combined tickets. One price covers both the event and the raffle. But the ticket must show how much applies to each part.

Membership event raffles are allowed once per calendar year. The organization can combine membership event tickets with raffle entries. Same rule applies. Show the price breakdown.

These special raffles still follow all other raffle rules. They’re just exceptions to the general prohibition on conditioning entry on other purchases.

Calendar raffles can have drawings on multiple dates. Licensed organizations schedule when they want. Exempt organizations need board authorization for specific dates.

Frequently Asked Questions

Can individuals run raffles in Minnesota? No. Only registered nonprofit organizations can conduct raffles. Individuals and for-profit businesses can’t legally host raffles in Minnesota.

How much can my small nonprofit raffle raise without a permit? If you don’t have 501(c)(3) status, your total prize value for all raffles in a year can’t exceed $1,500. If you have 501(c)(3) status, you can do one event with prizes up to $5,000 or multiple events totaling $1,500.

Do I need to pay taxes on raffle proceeds? Yes. Organizations conducting raffles pay a 6 percent gambling tax on gross receipts. Smaller excluded raffles have different rules, but larger raffles definitely get taxed.

Can I sell raffle tickets online in Minnesota? Not usually. Minnesota doesn’t clearly authorize online raffle ticket sales for charitable organizations. Licensed organizations can use electronic systems with board approval. But online sales remain restricted.

What happens if I run an unlicensed raffle? Conducting an unlicensed raffle is a misdemeanor. You face fines up to $3,000 and possible imprisonment for up to 90 days. The Gambling Control Board can also fine your organization up to $1,000 per violation.

Final Thoughts

Now you know the basics. Minnesota raffle laws are detailed. They’re enforced. But they’re manageable if you follow the rules.

Start small if you’re new to raffles. Use the excluded raffle option. Get comfortable with the requirements. Then consider moving to larger raffles later.

Always get proper permits and approvals. Keep detailed records. File reports on time. Treat raffle money responsibly.

When in doubt, contact the Gambling Control Board. They help organizations comply. They answer questions. Use them.

Stay informed, stay legal, and when in doubt, ask for help. Your nonprofit’s reputation depends on doing things right.

References

1. Minnesota Statutes Chapter 349 – Lawful Gambling and Gambling Devices (https://www.revisor.mn.gov/statutes/cite/349)
2. Minnesota Statutes 349.173 – Conduct of Raffles (https://www.revisor.mn.gov/statutes/cite/349.173)
3. Minnesota Rules 7861.0310 – Raffles (https://www.revisor.mn.gov/rules/7861.0310/)
4. Minnesota Gambling Control Board Official Website (https://mn.gov/gcb/)
5. Minnesota Council of Nonprofits – How to Conduct Charitable Gambling (https://minnesotanonprofits.org/resources-tools/topics/fundraising-grantseeking/how-to-conduct-charitable-gambling)