Planning a raffle in Washington State? You’re in the right place. These laws are stricter than most people expect. Get them wrong and you could face fines, criminal charges, or lose your organization’s gambling privileges for good.
This guide breaks it all down in plain language. No legal jargon, no confusion.
What Is a Raffle?
A raffle is a type of gambling. Participants buy tickets. Winners are chosen by chance. A prize is awarded. Simple enough, right?
But here’s the thing: because it’s technically gambling, Washington State regulates raffles very seriously. Not just anyone can run one. The Washington State Gambling Commission (WSGC) oversees all raffle activity in the state. They set the rules, issue licenses, and handle violations.
Honestly, a lot of people are surprised to learn how tight these rules actually are. Most assume a friendly church raffle is totally fine no matter what. That’s not always true.
Who Can Legally Run a Raffle?
Okay, this one’s important. Not every group or individual can hold a raffle in Washington.
Only certain charitable or nonprofit organizations qualify. That means businesses and individuals cannot run raffles, even if they plan to donate all the money to charity. The law is clear on this.
Your organization must also have been operating for at least 12 months before you hold a raffle. You can’t just start a new group and immediately run one. The WSGC wants to see that you’re a real, established organization.
Your group’s official documents, like bylaws or articles of incorporation, must also state that you operate for one or more specific purposes. These include charitable, educational, religious, political, social, fraternal, civic, or athletic purposes. If your stated purpose doesn’t fit one of these categories, you likely don’t qualify. Lobby groups, for example, usually don’t qualify even if they have a 501(c) tax status.
So, wondering if your organization qualifies? Check your bylaws first. Then contact the WSGC if you’re still unsure.
The $5,000 Rule: When You Need a License
Here’s where things get really important. Pay close attention here.
Washington uses a $5,000 threshold to decide if you need a raffle license. There are two types of unlicensed raffles allowed.
The first type is a public raffle. You can hold up to two unlicensed public raffles per year. But the combined money you bring in from both cannot exceed $5,000 in a calendar year.
The second type is a members-only raffle. You can hold an unlimited number of these per year. However, the total combined revenue from all members-only raffles cannot exceed $5,000 in that same calendar year.
Here’s a key detail: you can actually do both types in the same year. That means you could potentially collect up to $10,000 total from unlicensed raffles if you stay within the limits of each type separately. Pretty straightforward, right?
Go over either limit? You must get a license. No exceptions.
Licensed Raffles: When and How to Apply
If your raffle will bring in more than $5,000, you need a raffle license from the WSGC. This is a formal process, and it takes time.
Applications can take up to 150 days to be processed. That’s about five months. So plan way ahead. Don’t wait until two weeks before your event to apply.
License fees are based on how much money you expect to make from the raffle. For a standard charitable raffle license, fees can go up to $3,200 per year. The exact amount depends on your expected gross revenue. Check the WSGC’s current fee schedule for the latest numbers.
You’ll also need to register with SecureAccess Washington, known as SAW. This is the state’s online system for applying for gambling licenses. You’ll submit your application through SAW and can print your license there once approved.
Background checks are part of the process too. The state looks at both criminal and financial history for people connected to the organization.
Once you get your license, you’re required to complete training within 30 days of receiving it. The WSGC provides this training. It covers your responsibilities as a licensed raffle organizer.
Ticket Rules: What You Must Follow
This is where a lot of organizations slip up. The ticket rules are very specific.
Only members of your organization can sell tickets. You cannot hire outside people to sell tickets. You also cannot pay members specifically to sell tickets, unless they are regular employees who also have other job duties.
All tickets must be priced the same. You can’t charge one person more or less than another. Tickets cannot be given away for free either. No IOUs. Payment must be made in full by cash, check, or credit card.
Wait, it gets a little more interesting. You cannot sell tickets online, over the phone, or through the mail. Yes, you can advertise your raffle on the internet. But the actual ticket sale must happen in person.
Each ticket must be consecutively numbered or printed with letters or symbols that don’t repeat. This helps ensure fairness and makes auditing easier.
The maximum ticket price is $100 for a standard raffle. For enhanced raffles, which are a special type with extra prize options, the maximum ticket price is $250.
Nobody under 18 can purchase a raffle ticket. Minors can sell tickets in limited situations, but only if the organization’s main purpose is youth development and at least three adult members are supervising.
Prize Rules: Limits and Special Cases
Not sure what counts as an allowed prize? Let me break it down.
For unlicensed raffles, prizes must be owned by the organization before they’re awarded. You can’t promise a prize you don’t already have.
For licensed raffles, a single prize cannot exceed $60,000 in value. The total value of all prizes awarded in one year cannot exceed $400,000. Need to go higher? You can apply for special permission from the WSGC.
Alcohol can only be a prize at members-only raffles, and only with the proper permit from the Washington State Liquor and Cannabis Board. Firearms can only be prizes at licensed raffles. If a firearm winner can’t legally possess it, they must receive an alternate prize instead.
Stay with me here, because this next part trips people up. For unlicensed raffles, a single prize cannot be worth more than $40,000. And if you plan to give away more than $300,000 in prizes across the year, you must get advance approval.
Notifying the Police: Yes, Really
Here’s one rule that genuinely surprises most people. You must notify local police before your raffle.
For unlicensed raffles, you must notify local police at least five days before selecting winners. For licensed raffles, you must notify police in writing before you even begin selling tickets.
This isn’t optional. It’s part of the law. Think of it like notifying your city before holding a public event. It’s about transparency and accountability.
Record-Keeping Requirements
Many people assume they can just hold a raffle and move on. Not quite.
Washington requires you to keep records of your raffle activity. For unlicensed raffles, you must keep records for at least one year from the date of the raffle. For licensed raffles, records must be kept for three years.
Your records should include gross revenue, expenses, how the money was used, what prizes were given, and who won them. If the WSGC audits your organization, you want to have clean, accurate records ready to show.
Basically, document everything as you go. Don’t try to piece it all together after the fact.
Penalties for Breaking Raffle Laws
So what happens if you ignore these rules? It’s no joke.
If your organization fails to follow licensing or reporting requirements, you could face administrative fines. Your gambling license could also be suspended or even permanently revoked.
More serious violations can lead to criminal charges. Running a large-scale gambling operation without any authorization is not treated lightly by the state. Think of it like running an unlicensed business, but with criminal consequences on top.
Violations of Washington raffle laws can result in criminal charges, civil penalties, and a permanent loss of gaming privileges. That means your organization could lose the right to ever run a raffle again.
Most people don’t realize how strict these rules are. Don’t find out the hard way.
Special Circumstances Worth Knowing
A few special situations are worth covering here.
Credit unions can hold raffles, but all money raised (minus prizes and expenses) must be donated to charity. Cities, counties, and towns can also hold raffles if the proceeds go toward community activities or tourism promotion.
Joint raffles, where two organizations team up for one raffle, are allowed, but only if all organizations involved are properly licensed.
Electronic raffles are a newer option in Washington. These use electronic systems for ticket sales and drawings. They’re only allowed during home games of a qualified sports team, and a license is required.
The WSGC must approve all proceeds used for specific individuals (like a fundraiser for someone’s medical bills). You can’t just decide to redirect money without permission.
Personally, I think these extra steps make sense. They help prevent fraud and make sure the money actually goes where it’s supposed to.
How to Stay Compliant
Here’s your simple compliance checklist.
First, confirm your organization qualifies. Check your bylaws and your operating history. Second, figure out whether you need a license based on your expected revenue. Third, if you need a license, start the application process early. Remember, it can take up to five months.
Make sure only members sell tickets. Set prices the same for everyone. Keep records from day one. Notify local police before the raffle. And use raffle proceeds only for your organization’s stated purpose.
You’ve got this. Just take it one step at a time.
Frequently Asked Questions
Can an individual or business run a raffle in Washington?
No. Only qualified charitable or nonprofit organizations, credit unions, and certain government entities can legally hold raffles. Businesses and individuals cannot, even for charity.
Do I need a license for a small raffle?
Not necessarily. If you hold no more than two public raffles per year and bring in less than $5,000 combined, you can operate without a license.
Can I sell raffle tickets online?
You can advertise online, but you cannot actually sell or accept payment for tickets online. Tickets must be sold in person.
What happens if I exceed the $5,000 limit without a license?
You could face administrative fines, license suspension, or even criminal charges depending on the scale of the violation.
Can minors buy or sell raffle tickets?
Minors under 18 cannot purchase raffle tickets. They can sell tickets only under specific conditions, including that the organization’s primary purpose is youth development and adult supervision is present.
How long does it take to get a raffle license?
Applications can take up to 150 days to process. Plan at least five months ahead if you need a license.
Can we award a firearm as a raffle prize?
Only licensed organizations can award firearms. If the winner legally cannot possess a firearm, an alternate prize must be provided.
Final Thoughts
Washington’s raffle laws are detailed, but they’re not impossible to navigate. You just need to know the rules before you start.
Confirm your eligibility. Know your limits. Get a license if needed. Keep solid records. And always notify police before your drawing.
Now you know the basics. Stay informed, stay compliant, and when in doubt, reach out to the Washington State Gambling Commission or consult a lawyer.
