How to run a legal raffle in Iowa
Fundraising raffles are legal in Iowa with a valid license. Raffle categories are based on the prize value:
- Very small raffle: Under $1,000
- Small raffle: $1,001- $10,000
- Large raffle: $10,001- $100,000
- Very large raffle: $100,001-$200,000
Iowa raffle laws for nonprofits
Iowa Admin. Code r. 481-100.32 states that:
- A license must be in effect before promotions begin.
- Raffles are only valid during the license period.
- Raffles begin when the first ticket sells and ends when a winner is chosen.
- Calendar raffles are not allowed.
- Cash prizes and merchandise can't exceed $10,000.
- Winners do not need to be present.
- Prizes can be one item or multiple.
- There are no limitations on ticket cost.
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FAQs
Do you need a raffle license?
You need a raffle license in Iowa. Organizations can apply with the Iowa Department of Inspections, Appeals, & Licensing.
What is the raffle license fee?
The initial registration fee and registration renewal fee are both $15. Costs vary by license type, from $15 for 14 days to $150 for a two-year license.
What do you need to apply for a charitable gaming license?
To apply for a charitable gaming license, you'll need:
- A completed Charitable Gaming application
- State of Iowa Sales Tax Permit Number
- Non-refundable license fee
- Proof of nonprofit status and IRS documentation
