Raffle Laws in Nebraska (2026): The Rules Behind Every Ticket Sold

Ever bought a raffle ticket at a school fundraiser or church event? You’re not alone.

Raffles feel simple. Buy a ticket, hope for a prize, support a good cause. But behind that simple idea is a real set of state laws. Nebraska takes this seriously, and if you’re running a raffle, you need to know the rules.

This guide breaks it all down. No confusing legal talk, just the facts you actually need.

What Is a Raffle Under Nebraska Law?

A raffle is a game of chance. People pay for a ticket. Winners get picked through a random drawing. Sounds easy, right?

Nebraska law defines it a bit more specifically. A raffle uses tickets with sequential numbers. Winners are chosen at random from those numbers. And here’s the part most people don’t know.

At least 80 percent of the prizes must be merchandise, not cash. That’s a real requirement under state law. So if you’re planning an all-cash raffle, that actually doesn’t qualify as a raffle under Nebraska’s rules.

Stay with me here, because this next part matters a lot.

Basic Raffle Laws in Nebraska

Who Can Run a Raffle?

Not just anyone can host a raffle in Nebraska. Only certain nonprofit groups qualify. Think churches, schools, charities, and similar organizations.

Wondering if your group counts? Generally, you need to be a legitimate nonprofit with an established purpose. Some rules also expect the organization to have existed for a period of time before it can apply for a license.

Personal raffles, like something you run for your family reunion, don’t qualify under this law. This is charity gaming, not a free-for-all.

Do You Need a License?

Here’s where things get interesting. It depends on how much money you expect to raise.

If your raffle’s gross proceeds, meaning total ticket sales, will be $5,000 or less, you don’t need a full license. Instead, you follow the Small Lottery and Raffle Act rules. Simpler process, fewer hoops.

But if you expect to raise more than $5,000, you need a license from the Nebraska Department of Revenue. Once gross proceeds go over $5,000, a license becomes required. No exceptions there.

Not sure which category you fall into? Estimate your ticket sales ahead of time. If you’re close to that $5,000 line, honestly, it’s smarter to just get licensed anyway.

Getting Licensed: What It Actually Takes

Okay, this one’s important. Getting licensed isn’t complicated, but it does take some paperwork.

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Your organization needs to file an application with the Department of Revenue. This is the Nebraska Application for Bingo, Lottery, Raffle, or Lottery by Pickle Card, known as Form 50, plus a Supplemental Questionnaire. The good news? The license fee is only $30, and it covers two years.

You’ll also need to name someone from your group as the Utilization of Funds Member, often called the UFM for short. This person must have been an active member of the organization for at least one year to qualify. Think of the UFM as the person responsible for making sure everything runs by the book.

Here’s a mini comparison. The UFM is kind of like a designated driver. They’re accountable for keeping things safe and legal for everyone else involved.

There’s also a $40 biennial fee for each UFM your organization licenses. And your organization must set up a separate bank account used only for raffle and lottery activity. This keeps your fundraising money separate and easy to track.

Money Rules: Where the Cash Has to Go

So what happens to all that ticket money? Nebraska has strict rules here too.

At least 65 percent of your gross proceeds must go toward prizes for participants. That’s more than half, basically two-thirds. This part can be tricky, honestly, especially for smaller organizations planning their budgets.

Your organization also can’t spend more than 10 percent of gross proceeds on allowable expenses. Things like printing tickets or renting a venue. The rest? It needs to go toward your actual charitable mission.

This setup exists for a reason. It stops raffles from becoming a moneymaking scheme disguised as charity. Personally, I think this rule makes a lot of sense.

Prize Limits You Need to Know

Nebraska also caps how big your prizes can get. Think this doesn’t apply to you? Read on anyway.

A single prize cannot exceed $25,000 in value. And the total value of all prizes combined in one raffle cannot go over $100,000. These numbers might sound high, but for big community raffles with cars or vacations as prizes, they matter a lot.

These caps exist to prevent raffles from turning into something closer to a full-blown lottery. Makes sense, right?

Age Requirements for Ticket Buyers

Here’s a rule that trips people up more than you’d think. Anyone buying or participating in a licensed raffle must be at least 18 years old.

That means kids selling tickets for the school fundraiser? Fine. Kids buying tickets themselves? Not allowed. It’s a small detail, but it’s one that gets overlooked at a lot of community events.

Taxes and Reporting: The Paperwork Part

Nobody loves talking about taxes, but you need this information. Trust me, this part saves you headaches later.

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If your raffle’s gross proceeds go over $5,000, you owe a two percent tax on that total to the state. This tax is separate from your license fee. Your organization also has to file an annual Lottery and Raffle Report, which keeps your activity documented and above board.

Miss a deadline? Late tax filings come with a penalty of $25 or 10 percent of the tax owed, whichever amount is bigger. Interest gets added on top of that too. So basically, filing late costs you more than filing on time. Not a great trade.

Wondering if there’s any relief? If your total proceeds end up under the $5,000 threshold once everything wraps up, any taxes you already paid can actually be refunded. So keep your paperwork organized either way.

Penalties for Breaking the Rules

Let’s talk about what happens if you skip the licensing step entirely. Here’s where things get serious.

Running a raffle without the required license is a Class II misdemeanor in Nebraska. That comes with up to six months in jail, a fine as high as $1,000, or both. That’s not a slap on the wrist. It’s a real criminal charge.

Think of it like this. It’s similar to driving without a license, except the consequences here can follow your organization, not just an individual. Not exactly the fundraiser outcome anyone wants.

Beyond criminal penalties, the state can also suspend, cancel, or revoke your license altogether. If that happens, your organization must immediately hand over the physical license to the Department of Revenue. No more raffles until things get sorted out.

Don’t worry though. Most of these penalties are avoidable. They mainly target organizations that skip the process entirely or ignore reporting requirements.

Special Permits for One-Time Events

Not every group runs raffles regularly. Nebraska has a solution for that too.

Licensed organizations can apply for a Special Permit, which is valid for one year and costs just $10. This permit lets your group hold one raffle or lottery during that period, and it actually waives a few of the standard requirements.

This is a nice option if your organization only does one big fundraiser a year. Less overhead, same fun event.

How to Stay Compliant

So what should you actually do if you’re planning a raffle? Let’s walk through it together.

First, figure out your expected ticket sales. If you’re staying under $5,000, you can likely skip the full license and follow the Small Lottery and Raffle Act instead. If you’re going bigger, plan to apply for a license well ahead of your event date.

Second, designate your Utilization of Funds Member early. Remember, this person typically needs a year of active membership already under their belt.

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Third, set up that separate bank account before you sell a single ticket. Mixing raffle money with your regular operating funds is a mistake you don’t want to make.

Finally, mark your reporting deadlines on a calendar. Quarterly tax reports and the annual report both have real due dates, and missing them costs real money.

Sound complicated? It’s really not, once you break it into steps like this.

Special Circumstances Worth Knowing

Every rule has its exceptions, and Nebraska’s raffle law is no different. Organizations facing genuine hardship can sometimes get certain requirements waived, like that one-year membership rule for the UFM.

There are also updates happening at the state level. Recent legislation broadened the definition of “operator” in laws covering raffles and similar promotional games. Laws do shift over time, so it’s worth checking for updates before your event, especially if it’s been a while since your organization last ran a raffle.

Frequently Asked Questions

Does every raffle in Nebraska need a license?

No. If your raffle’s gross proceeds stay at $5,000 or less, you can operate under the Small Lottery and Raffle Act instead of getting a full license.

Can individuals run a raffle for personal reasons?

Generally, no. Nebraska raffle law is built for nonprofit organizations, not personal fundraising among friends or family.

What’s the penalty for running an unlicensed raffle?

It’s a Class II misdemeanor, which can mean up to six months in jail, a $1,000 fine, or both.

How old do you have to be to buy a raffle ticket?

You must be at least 18 years old to purchase or participate in a licensed raffle in Nebraska.

What percentage of raffle money has to go to prizes?

At least 65 percent of gross proceeds must go toward prizes, and no more than 10 percent can cover expenses.

Is there a limit on how big a raffle prize can be?

Yes. A single prize can’t exceed $25,000, and total prizes across the raffle can’t go over $100,000.

Final Thoughts

Nebraska’s raffle laws exist to keep fundraising fair and honest. They’re not there to make things difficult, they’re there to protect both organizations and the people buying tickets.

Now you know the basics. Figure out your proceeds threshold, get licensed if you need to, keep your paperwork straight, and watch those deadlines. Stay informed, stay compliant, and when in doubt, reach out to the Department of Revenue or talk to a lawyer.