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Raffle laws

Indiana Raffle Laws for Nonprofits: Are Raffles Legal? [2024]

April 12, 2024

What are raffle laws to be aware of in Indiana?

Raffles are legal in Indiana when they respect Licensed Charity Gaming raffle laws. Raffle laws help govern events and fundraising activities.

Nonprofit raffles raise money while engaging new and existing donors. Organizations can maximize their return and avoid fines by knowing which raffle laws exist and how to comply.

We’ll dive into everything you need to know below.

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Requirements for conducting a raffle in Indiana

Any organization running a raffle must obtain a gaming permit from the Indiana Gaming Commission. The size of your nonprofit and event may also require further licenses.

Stay prepared with the requirements for a license application:

  • Your name and address
  • Contact information for all officers
  • The activity you want to conduct (raffle, bingo, etc.)
  • Raffle location
  • Raffle date and time 

Only qualified organizations with establishments in Indiana can apply for a raffle license. The commission requires that you have a constitution, articles, charter, or bylaws containing a clause stating that all assets will be used for the nonprofit's stated purposes upon dissolution.

Who regulates raffles in Indiana?

The Indiana Gaming Commission regulates raffles and oversees and enforces laws to protect public interest. 

Specific rules and regulations for nonprofits

Here are raffle rules and regulations for nonprofits to stay ahead of:

  • Prizes must be under $1,000 per event and $7,500 each year
  • Only members of your organization can support and conduct the raffle
  • A separate bank account is required to capture all funds
  • Raffle tickets can't be purchased online, and the raffle can't happen through the internet
  • Raffle tickets and entry fees can't be purchased with a credit card 
  • Nonprofits can't partner with another individual, corporation, or for-profit company to conduct the raffle
  • At least 60% of gross profit, less the prize payout, must go to your cause
  • Rent used for a raffle venue cannot be paid with winnings

Indiana raffle FAQs

Is it legal to hold a raffle in Indiana?

It is legal to hold a raffle in Indiana for qualified organizations, including charitable organizations and nonprofits.

How do I legally start an online raffle?

To start an online raffle, you must check the latest legislation in your state. In Indiana, hosting a raffle through the Internet or selling raffle tickets online is not permitted.

What are the penalties for non-compliance?

Failing to adhere to Indiana raffle laws can result in any of the following minimum fines:

  • $1,000 for the first violation
  • $2,500 for the second violation
  • $5,000 for each additional violation

Keep reading :

Raffle laws
US raffle rules by state: Legal guidelines for nonprofits and 501(c)3

Check out the 501c3 raffle rules and regulations of your state. Learn how to hold your nonprofit raffle legally.

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