Raffle Laws by State

Fundraising raffles are legal for most nonprofits, but every state has different rules. Three states prohibit paid-ticket raffles entirely:

Alabama — Illegal under state law, no nonprofit exemption
Hawaii — Prohibited unless participation is entirely free
Utah — Prohibited unless a free entry option is clearly advertised

2026 IRS Update — Form W-2G Reporting

For raffles conducted after December 31, 2025, nonprofits must file Form W-2G with the IRS when a prize is valued at $2,000 or more (net of the ticket price) AND is at least 300 times the cost of the ticket. The previous $600 threshold no longer applies. Winners are responsible for reporting prize income on their federal tax return. Consult a tax professional or visit IRS.gov to verify current requirements before your event.

In all other states, raffles are legal for qualifying nonprofits with the appropriate permit or license. Click your state below to review the official requirements.

A — Alabama · Alaska · Arizona · Arkansas

C — California · Colorado · Connecticut

D — Delaware · District of Columbia

F — Florida

G — Georgia

H — Hawaii

I — Idaho · Illinois · Indiana · Iowa

K — Kansas · Kentucky

L — Louisiana

M — Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana

N — Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota

O — Ohio · Oklahoma · Oregon

P — Pennsylvania

R — Rhode Island

S — South Carolina · South Dakota

T — Tennessee · Texas

U — Utah

V — Vermont · Virginia

W — Washington · West Virginia · Wisconsin · Wyoming

HelloFund is not responsible for raffle promotions on this platform. Raffle laws vary by state and locality. Please consult your legal counsel and verify compliance before promoting or running a raffle. HelloFund strongly recommends speaking to a lawyer if you are unsure about the regulations in your area. IRS reporting requirements apply to certain raffle prizes — for raffles conducted after December 31, 2025, Form W-2G must be filed when a prize is $2,000 or more net of the ticket price and at least 300 times the ticket cost. Always verify current thresholds at IRS.gov before your event.