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Raffle laws

Ohio Nonprofit Raffle Laws (2026): Rules, HB 476 & Compliance Guide

April 17, 2026

There are, however, some precise regulations to ensure compliance and avoid penalties. This guide explores Ohio's raffle laws, compliance requirements, common pitfalls, and best practices to run a successful, legally sound raffle.

We've even created a free checklist for Ohio raffle compliance to download.

TL;DR — The Short Answer

Verdict: Charitable raffles are legal in Ohio for qualified nonprofits and are a reliable fundraising tool — provided you follow the rules closely.

What works: No raffle permit required. Online ticket sales are permitted. Single-event prizes cap at $100,000; annual prizes cap at $500,000. 501(c)(3)s keep 100% of net proceeds. Recordkeeping requirements are straightforward if you use dedicated software.

What doesn't: The winning ticket must still be drawn from a physical receptacle — fully digital drawings are not yet legal. Mixing raffle proceeds with general funds is a common violation. Exceeding prize caps or failing to keep three years of records can trigger penalties.

Best for: Qualified 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), 501(c)(19) organizations and qualifying schools looking to run compliant fundraising raffles in Ohio.

Worth considering if: Ohio House Bill 476 passes — it would authorize fully online raffles including digital drawings, which would significantly expand what's legally possible for nonprofit raffle campaigns in the state.

Below, you'll learn more about:

Ohio raffle rules at a glance

Before diving into the details, here's a quick-reference summary of the most important Ohio raffle rules for nonprofits.

RuleRequirement
Eligible org types501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), 501(c)(19), qualifying schools
Raffle permit required?No — qualified organizations can conduct raffles without a formal permit
Single-event prize limit$100,000
Annual prize limit$500,000
Profit allocation (501(c)(3))100% of net proceeds may be retained for charitable purpose
Profit allocation (other nonprofits)At least 50% of net profit must go to a qualified charitable purpose
Recordkeeping duration3 years after the event
Age to purchase ticketsNo minimum age — minors may purchase tickets
Age to sell ticketsMinors may sell tickets if not present at the raffle site
Drawing methodMust be drawn from a physical receptacle
Online ticket salesPermitted — but physical drawing still required under current law
Dedicated raffle accountRequired — proceeds must be kept separate from general funds

Use this table as a quick compliance check before planning each event. For the full legal details behind each rule, keep reading.

The full overview of Ohio raffle laws

The Ohio Revised Code (ORC) Section 2915.092 governs charitable raffles in the state. Qualified organizations can host their events without a formal raffle license as long as raffle proceeds benefit a charitable purpose.

Who can conduct a raffle?

To conduct raffles legally in Ohio, you must meet one of the following criteria as a qualified charitable organization:

Any organization with a 501(c)(4), 501(c)(6), or 501(c)(7) status must make sure that at least 50% of the net proceeds go to a qualified charitable purpose or a government entity from charitable gaming events like raffles.

Compliance requirements for Ohio raffles

Financial reporting and recordkeeping

Ohio has some pretty strict reporting requirements for nonprofit organizations that host raffles. According to Section 2915.10 of the Ohio Revised Code, records must include:

These records matter as you prepare for, during, and, most importantly, after your raffle. They must be kept for three years after the event. Records must be kept at the organization's principal place of business or headquarters in Ohio, and the Ohio Attorney General must be notified of the location where they are stored.

Age restrictions

Use of profits

You'll need to deposit gross profits from each raffle into a dedicated checking account used exclusively for the raffle. Payments for expenses and net profit distributions can only be made by checks or electronic fund transfers from this account.

Good to know: Only prizes paid out may be deducted as expenses. Other costs (rent, equipment, supplies, etc.) must be paid using other sources of funds.

Event and location requirements

Raffles can be held at various venues, including businesses, private homes, or public spaces, as long as a charitable organization is hosting. The raffle must also comply with all other Ohio charitable gaming laws we lay out here.

Audits

The Attorney General may adopt rules regarding accounting, recordkeeping, and reporting and may at any time:

That's why it's best to keep things organized and accessible. An online raffle software or donor management system like Zeffy — trusted by 100,000+ nonprofits who have collectively raised over $2 billion — can help you do this easily (and it's 100% free!)

Ohio raffle ticket design requirements

Selling tickets is the engine of every raffle — but Ohio law also regulates what has to appear on those tickets. Under ORC 2915.092, each raffle ticket must include specific information to be considered valid and compliant.

What must appear on every ticket

Per ORC 2915.092, a compliant Ohio raffle ticket must display:

These requirements protect your participants and protect your organization. If a ticket is challenged — by a winner, a donor, or an auditor — having all required information printed clearly is your first line of defense.

Physical vs. digital tickets

Ohio law was written with physical tickets in mind, but many organizations now sell tickets online using platforms like Zeffy. When you sell digitally, make sure your confirmation email or digital ticket PDF includes every field listed above. Your digital ticket record should also include a unique identifier for each ticket so you can match it to the stub drawn at your physical drawing.

Keep a copy of every digital ticket issued as part of your three-year recordkeeping obligation. If the Ohio AG's office ever audits your raffle, those records prove that every ticket sold matched a valid entry in the drawing.

Ticket bundles and pricing disclosures

If you're offering bundle pricing — say, five tickets for $20 instead of $5 each — make sure the per-ticket value is still clear. Participants need to understand exactly what they're purchasing. Bundled offers are permitted, but the prize descriptions and drawing date must still appear on each individual ticket or on the bundle confirmation, depending on your format.

Getting your ticket design right before you go on sale saves headaches later. It's one of those details that's easy to overlook during the excitement of planning a raffle — and one of the first things an audit will check.

Penalties and enforcement

Running a raffle outside Ohio's rules isn't just a paperwork problem. The Ohio Revised Code sets out real consequences — and the Attorney General's office has the authority to enforce them.

Criminal penalties under ORC 2915.02

Conducting an illegal raffle in Ohio — meaning a raffle that doesn't meet the qualified organization requirements or otherwise violates ORC 2915.092 — can be charged as a criminal offense under Ohio's gambling statute, ORC 2915.02.

These aren't theoretical risks for organizations intentionally running illegal gambling operations. They're the floor for any qualifying nonprofit that runs a raffle incorrectly — including by failing to meet the profit-allocation requirements or by conducting a drawing without a physical receptacle.

Civil and administrative consequences

Beyond criminal exposure, the Ohio Attorney General's Charitable Law Section can take civil and administrative action against organizations that violate charitable gaming rules. That includes:

Organizations that fail to maintain the required three years of records face independent liability. Even if your raffle was otherwise run correctly, missing documentation can trigger penalties under ORC 2915.10.

What the AG's office looks for

The Ohio AG's Charitable Gaming division conducts both scheduled and surprise inspections. Auditors commonly check that raffle proceeds are held in a separate dedicated account, that prize winners are properly documented (especially those receiving $600 or more), and that net profit distributions went to qualifying charitable purposes in the right proportions.

The safest approach is to treat every raffle as though an audit is already scheduled. Keep your records current, your dedicated account clean, and your documentation organized. An online platform that automatically generates ticket records, payment receipts, and participant logs — like Zeffy's free raffle tool — makes staying audit-ready significantly easier.

Common legal pitfalls and how to avoid them

1. Forgetting to track raffles thoroughly

Imagine your nonprofit hosts an annual holiday raffle where you raise $15,000 and celebrate a successful event. Fast forward six months, and the Ohio Attorney General's office requests an audit of your records. Turns out, no one kept a detailed record of ticket sales, winners, or expenses.

Ohio law (ORC 2915.10) mandates that all gross receipts, expenses, prize winners (especially those receiving $600+ in raffle prizes), and net profit distributions be documented and kept for three years. Without these records, your organization risks penalties, fines, and potential loss of raffle privileges.

2. Mixing raffle money with general funds

Imagine hosting a spring raffle, selling $10,000 worth of tickets. To simplify things, your treasurer deposits money into the organization's general account, assuming it'll be easy to track later. A few months later, an internal audit revealed that some funds were inadvertently used for unrelated operating expenses.

This can be a massive risk because Ohio requires that all raffle proceeds be deposited into a separate checking account devoted exclusively to the raffle. Payments for expenses (even in small amounts) must be made via check or electronic fund transfers from that account.

3. Underage ticket sales

Imagine enthusiastic high school volunteers helping sell raffle tickets at your annual gala. You would be glad to receive the help. Unbeknownst to the organizers, several minors purchased tickets during the event to support their friends.

While Ohio law allows minors to purchase tickets, they cannot be present at the raffle drawing site. Violating age-related provisions could put your raffle at risk of being deemed illegal, leading to fines or reputational damage.

4. Exceeding prize value limits

Imagine you organize a mega raffle with a grand prize valued at $150,000. However, Ohio law prohibits offering prizes of over $100,000 in a single raffle drawing or an aggregate of $500,000 annually without additional permits.

Even if you do everything else right, exceeding these limits may invalidate your raffle and result in penalties or disqualification from future events.

5. Unreported online sales and non-physical drawings

Imagine you broaden your raffle by selling tickets online to increase participation. The event is a hit, and you opt for an online randomizer tool to choose the winner without realizing that Ohio law requires a physical drawing from a tangible receptacle.

While online sales are allowed, the final drawing has to be conducted physically or the raffle may be considered invalid.

Ohio House Bill 476: The Online Raffle Bill to Watch (Status as of April 17, 2026)

Ohio nonprofit leaders running raffles have been watching Columbus closely — and for good reason. As you just read, Ohio currently requires all raffle drawings to be conducted from a physical receptacle, even when tickets are sold online. House Bill 476 proposes to change that entirely.

Introduced in the Ohio General Assembly, HB 476 would legalize fully online raffles for charitable organizations in Ohio. If passed, it would represent the most significant shift in Ohio raffle law in decades, and it directly affects how your nonprofit can sell tickets, reach donors, and run its fundraising events.

Here's what you need to know right now.

What House Bill 476 Would Change

Under current Ohio law, nonprofits conducting raffles must sell tickets in person or through limited methods that stop well short of a true end-to-end online raffle experience. Ticket sales conducted entirely over the internet — where a supporter visits a webpage, pays digitally, and receives a digital ticket without any in-person component — occupy a legal gray area that causes many organizations to hold back from fully embracing online fundraising tools.

HB 476 would explicitly authorize licensed charitable organizations to conduct raffles entirely online, including:

This would bring Ohio in line with a growing number of states that have already modernized their charitable gaming statutes to reflect how donors actually behave today. For nonprofits already using tools like Zeffy to sell tickets online, the shift would remove the compliance workaround of requiring a separate physical drawing and open the door to truly end-to-end digital raffle campaigns.

Current Status of HB 476

As of April 17, 2026: HB 476 passed the Ohio House of Representatives on November 19, 2025 and moved to the Ohio Senate for consideration. It has not yet passed the Senate or been signed into law. Advocacy groups including LeadingAge Ohio are actively supporting the bill. For the latest status and any further legislative action, check the official Ohio Legislature bill tracker for HB 476. We update this article periodically to reflect the current status.

Last reviewed: June 2025. We update this section as the bill progresses. Bookmark this page or check back before your next raffle planning cycle.

How Ohio Nonprofits Should Prepare Now

Waiting until the bill passes to start planning puts your organization behind. Here's how to get ready:

The organizations that thrive after HB 476 passes — if it does — will be the ones that treated the waiting period as preparation time, not downtime. Whether the law changes this year or next, building strong digital raffle infrastructure now puts you ahead of the curve.

3 pro tips for successful raffle management in Ohio

Now that we're clear on what to avoid, let's talk about how to manage your raffle and make your fundraiser an event to remember.

1. Set clear goals and rules

You might ask yourself:

Having a well-defined goal will guide your decisions and make it easier to communicate the purpose of the raffle to your audience. Set a measurable goal: "We're aiming to raise $10,000 to fund new equipment for our after-school program."

You'll also want to clearly outline how many tickets can be purchased, age restrictions, and payment options. Ensure these rules are displayed on your website and printed on the tickets.

Bonus tip: Create a FAQ section on your website to address common questions about ticket purchases, eligibility, and prize claims.

2. Promote your raffle strategically

A well-run raffle needs visibility to succeed. Relying solely on word-of-mouth won't cut it so it's a great idea to lean into strategic promotion to maximize your reach and increase ticket sales.

A few ways to attract participants and raise more include:

Bonus tip: Consider running a referral program where supporters who sell the most tickets receive a small incentive or recognition at the event.

3. Build in financial accountability

Ohio's raffle laws require strict financial tracking to avoid penalties and maintain nonprofit status. Mismanagement of funds can undermine trust and jeopardize future fundraising efforts.

Here are a few ways to stay accountable before your raffle begins:

Bonus tip: Schedule regular check-ins with your treasurer or financial team to review records and ensure compliance with Ohio's reporting requirements.

Get inspired with this successful Ohio raffle example

Therapeutic Riding Institute (TRI) launched its bourbon raffle with an inspiring balance of online convenience and checking the boxes of Ohio legal compliance. The organization leaned into Zeffy's 100% free fundraising platform to maximize proceeds, knowing they could skip unnecessary transaction or platform fees that other solutions require.

What to take away for your raffle:

Ohio raffle FAQs

Are online raffles legal in Ohio?

You can sell raffle tickets online in Ohio, but the winning ticket must be drawn from a receptacle. The raffle event itself must be held offline.

Zeffy's free raffle solution can still help manage ticket sales, participants, and the details needed for recordkeeping in Ohio. The free fundraising platform also supports engagement with supporters to build relationships and increase participation in future campaigns.

Note: Ohio House Bill 476 is pending and would change this rule if passed. See the HB 476 section above for the latest status.

Start your successful fundraising campaign for free with Zeffy

Are 50/50 raffles legal in Ohio?

It is legal to run a 50/50 raffle in Ohio along with all other raffle types. A 50/50 raffle awards a prize equal to half the amount raised and can encourage attendees to purchase more tickets to increase the prize pot.

Big charities such as Ohio State University and Ronald McDonald House Charities of Central Ohio conduct charitable raffles using the 50/50 format to engage the community and increase funding for important causes.

Is a raffle considered gambling in Ohio?

A raffle is not considered gambling in Ohio. It is legal for qualified organizations, including nonprofits, and is governed by a separate entity from gambling activities. You do not need a raffle permit to host this type of fundraising event as long as you are recognized by the Internal Revenue Service as a 501c organization.

Gambling includes activities like state lotteries, horse races, and casinos, governed by the Ohio Lottery Commission. Depending on state raffle laws across the US, gambling and raffles may share legislation or have separate laws.

Is a 50/50 raffle considered gambling?

A 50/50 raffle is not considered gambling in Ohio. All raffles are legal in Ohio and governed by Attorney General Dave Yost's Charitable Law Section.

Do raffles count as donations?

Raffles count as donations regarding the money earned and how a nonprofit can use it. In Ohio, charitable organizations can receive 100% of their earnings from a raffle to contribute to fundraising goals.

In terms of federal income taxation, money spent on raffle tickets or participating in a raffle is not exempt federal income like a standard donation.

Automate donation tax receipts and stay compliant with Zeffy's 100% free platform

What's the difference between a raffle and a drawing?

The difference between a raffle and a drawing is that there are different entry requirements. A drawing usually doesn't require a purchase to gain entries, as a raffle does through ticket sales.

Nonprofits can choose whether or not to host a raffle or a drawing, knowing both are legal activities in Ohio.

Can I raffle alcohol in Ohio?

You can raffle alcohol in Ohio with a new law that regulates this type of prize.

The General Assembly dictates that:

Alcohol prizes must be purchased through a state-licensed agent.

Beer and wine require organizations to collect receipts to show that the purchase is from an Ohio agent with the proper permits.

High-proof liquor requires a form in advance and uploaded receipts to the Ohio Division of Liquor Control.

Ohio liquor permit holders and state liquor agencies are prohibited from donating.

Other prize categories also come with specific rules worth knowing before you finalize your prize list.

Firearms: You can raffle a firearm in Ohio, but the transfer must comply with federal law. That means the winner must complete a background check through a federally licensed firearms dealer (FFL). Your organization cannot hand over a firearm directly to a winner — the transfer must go through a licensed dealer who can run the required check. Confirm this process with your attorney before listing a firearm as a prize.

Vehicles: Vehicles are permissible as raffle prizes, but their full fair market value counts toward your single-event prize cap of $100,000 and your annual cap of $500,000. If you're offering a vehicle alongside other prizes in the same drawing, add up all prize values to confirm you're within the legal limits. Also note that vehicle prizes may trigger IRS reporting obligations for the winner if the value exceeds $600.

Real estate: Real estate prizes are legally complex and should not be offered without guidance from an attorney familiar with Ohio property law and charitable gaming regulations. Transfer taxes, title issues, and the difficulty of establishing fair market value for a specific property all create compliance risk. Most organizations offering real estate as a prize use an independent appraisal and escrow arrangement to ensure a clean transfer.

High-value prizes in general: Any prize valued at $600 or more requires you to collect the winner's name, address, and taxpayer identification number for IRS Form W-2G or 1099 reporting purposes. Build this into your winner notification process so you're not chasing down documentation after the event.

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Keep reading :

Raffle laws
501(c)(3) Raffle Laws by State: Permits, IRS Rules & Legal Guide (2026)

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

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