Can I Hold a Raffle Without a License?
Online raffles are an amazing fundraising tool for charities, non-profits, and religious organizations. They’re fun, have a low cost of entry, and provide anyone who buys a ticket the opportunity to walk away with a great prize. But are there regulations around raffles, and can you hold a raffle without a license?
A license is required to run a raffle in Canada. In the US, a license or permit is typically needed, but the regulations vary by state. It’s important to learn about raffle laws in your province or state, as failure to follow them can result in fines and even potential jail time.
If you’re a religious organization, non-profit, or charity, all you need to do is apply through your province or state’s local gaming authority. Typically, people outside of these groups can not legally run a raffle, but again, rules do vary by jurisdiction. As a best practice, check with your local gaming regulatory body to confirm your eligibility.
What Is a Raffle License?
A raffle license gives you the legal authority to hold a raffle. Because money is exchanged for the chance to win a prize, raffles are classified as gaming and therefore require licenses in most jurisdictions. If you’re wondering if you can hold a raffle without a license, the best thing to do is check with your local gaming authority.
Depending on where you plan to host your raffle, the rules and process will likely differ. In Alberta, the Alberta Gaming, Liquor and Cannabis Agency is responsible for licenses, and details can be found in their Charitable Gaming Policies Handbook.
In Ontario, it’s the Alcohol and Gaming Commission of Ontario that’s responsible, while B.C.’s Gaming Policy and Enforcement Branch takes care of raffle licenses.
Eligibility requirements will vary depending on your location, but generally speaking, you will need to provide:
- General information about your charity, non-profit, or religious organization
- A chairperson responsible for the raffle
- Information on how the funds that are raised will be used
Needing a license shouldn’t turn anyone off from running a raffle, unless you are an organization outside of these approved types looking for fundraising opportunities.
Important note: Silent auctions are often exempt from licensing requirements, making them a great option for engaging, fun, and effective fundraising.
Why Do You Need a Raffle License?
Because money is exchanged with the potential of winning a prize, raffles are considered gaming, a tightly regulated industry. Raffle licenses are also required to:
- Ensure legal compliance: Making sure your raffle follows the law.
- Transparency and trust: When people buy tickets, having a license signals to them that the draw will be fair and the money raised will be used for what your organization promises.
- Tax oversight: You’ll have to report the money you bring in through your raffle, so a license helps avoid fraud or misuse.
Who Needs a Raffle License?
Many people don’t know who can run a raffle in Canada or the United States, and the specifics will vary from jurisdiction to jurisdiction. In general, though, only registered charities, non-profits, and charitable organizations are allowed to run raffles, but it’s best to confirm with your local gaming authority. As long as organizations abide by the rules in their jurisdiction, they’ll be able to use Raffle Rocket’s platform as well.
Those organizations don’t require licenses for fundraisers such as silent auctions, free giveaway contests, or bottle drives, but any activity that involves the exchange of money for the chance to win a prize does.
In Alberta, as an example, you need a license for:
- 50/50 Draws
- Non-cash raffles, with prizes like gift baskets
- Cash raffles
How to Get a Raffle License
Acquiring a raffle license is generally a straightforward process. In B.C., Alberta, and Ontario, you can apply online, and it generally takes around three to five business days to get approval.
When applying in Alberta, you will have to list Raffle Rocket as your Certified Electronic Raffle System to hold your draw online.
Our platform can also be used to host online raffles in several U.S. States. In jurisdictions where non-online raffles are allowed, you can still use our platform to sell tickets, but the draw itself needs to be done outside of the platform (offline). For example, pulling physical tickets out of a container.
Next Steps After Acquiring a Raffle License
Once you’ve acquired your raffle license, register with Raffle Rocket and begin building your raffle. To save time, you can also start setting up your raffle while waiting to receive your license. Get creative with prize ideas and be ready to communicate with potential participants to sell as many tickets as possible.
If your raffle license, prizes, and ticket details are organized beforehand, it can take as little as 15 to 30 minutes to set up your online raffle with Raffle Rocket. Once completed, request approval, and Raffle Rocket’s team will review to ensure everything is legal and ready to go. This process takes between one and two business days.
Once approved, you’re off to the races and can start selling tickets.
Hold Your Next Raffle Online with Raffle Rocket
Can I hold a raffle without a license? For many states or provinces, the answer is no but that can vary depending on your local gaming authority. Getting a raffle license is a straightforward process for registered charities, non-profits, and charitable organizations, and Raffle Rocket’s dynamic platform makes hosting a 50/50 draw, cash-prize, and non-cash prize raffle fun and easy.
Get started with your raffle today.
FAQ
Do you need a license for a 50/50 raffle?
You do require a license to hold a 50/50 draw in Alberta. This goes for the other provinces in Canada and many US states, although rules can vary per jurisdiction. 50/50 draws are one of the three types of raffles supported by Raffle Rocket, which also allows you to host cash-prize and non-cash prize raffles.
Can you sell raffle tickets on social media in Canada?
No. You cannot sell raffle tickets on any social media site in Canada; however, social channels can be useful tools for promoting your raffle. Linking to your landing page on Raffle Rocket is a great way to drive interest in purchasing tickets for your raffle or 50/50 draw.
Start setting up your own online raffle fundraiser!
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