Raffle
Has to be done through the state. It also has to be a non profit organization.
Charitable Raffles
What does the law permit?
The Charitable Raffle Enabling Act, effective January 1, 1990, permits "qualified organizations" to hold up to two raffles per calendar year, with certain specified restrictions.
What is a "qualified organization"?
In general, a qualified organization is:
An association organized primarily for religious purposes that has been in existence in Texas for at least 10 years;
A volunteer emergency medical service that does not pay its members other than nominal compensation;
A volunteer fire department that operates fire fighting equipment and does not pay its members other than nominal compensation; or
A nonprofit organization that has existed for at least three preceding years and is exempt from federal income tax under Section 501(c), Internal Revenue Code; does not distribute any of its income to its members, officers or governing body; does not devote a substantial part of its activities to attempting to influence legislation; and does not participate in any political campaign.
The language of the law is very technical. If you are considering holding a raffle to benefit an organization, you should check the statute to be sure you qualify.
What prizes may be offered?
An organization may offer any prize except money. If the raffle organizers offer a prize which they have purchased or have given other consideration for, the value of the prize may not exceed $50,000, unless the prize is a residential dwelling, in which case the value may not exceed $250,000. There is no value limit on prizes donated to the organization. Texas lottery tickets may be purchased and offered as prizes, even though the tickets' payoff may exceed $50,000. The organization must have each raffle prize in its possession or ownership, or must post a bond for the full amount of the value of the prize with the county clerk of the county where the raffle will be held.
Is an organization required to register with the State before conducting a raffle?
No.
What are the restrictions on how the raffle may be conducted?
A qualified organization may hold only two raffles per year and only one raffle at a time.
Raffle tickets may not be advertised state wide or through paid advertisements. Each raffle ticket must state the name or address of the organization holding the raffle, or (if no organization address) the address of an officer of the organization, the price of the ticket, a general description of each prize to be awarded that has a value of over $10, and the date on which the raffle prize or prizes will be awarded.
A prize may not be money, which is defined as coins, paper currency, or a negotiable instrument that represents and is readily convertible to coins or paper currency.
Only members of the organization or persons authorized by the organization, or student organizations recognized by institutions of higher education selling on behalf of the institution, may sell tickets.
No one may be compensated directly or indirectly for organizing or conducting a raffle, or for selling raffle tickets.
How may the proceeds from ticket sales be used?
Proceeds from ticket sales must be used only for the charitable purposes of the qualified rganization.
Are there any penalties for conducting or participating in an unauthorized raffle?
Yes. Only raffles held according to the terms of the Raffle Enabling Act are authorized raffles. An unauthorized raffle is considered gambling under the Texas Penal Code. Conducting such a raffle is a Class A misdemeanor. Participating in an unauthorized raffle is a Class C misdemeanor.
What law enforcement authorities may stop an unauthorized raffle?
A county attorney, district attorney or the attorney general may bring an action in state court to stop a violation or potential violation of the Charitable Raffle Enabling Act.
Where can I get more information on the requirements for holding a raffle?
The law is Chapter 2002, Occupations Code, Texas Codes Annotated. If you have specific questions about the law, you should consult your attorney.
Contact Information
By Us Mail:
Office of the Attorney General
Consumer protection Division/010
P.O. Box 12548
Austin, TX 78711-2548
By Telephone
Main agency switchboard
512/463-2100
Consumer Protection Division
800/621-0508
or
Regional Offices
Austin - 512/463-2070
Dallas - 214/969-5310
El Paso - 915/542-4800
Houston - 713/223-5886
Lubbock - 806/747-5238
McAllen - 956/682-4547
San Antonio - 210/224-1007
Public Information & Assistance
512/463-2007
800/252-8011
Charitable Raffles
What does the law permit?
The Charitable Raffle Enabling Act, effective January 1, 1990, permits "qualified organizations" to hold up to two raffles per calendar year, with certain specified restrictions.
What is a "qualified organization"?
In general, a qualified organization is:
An association organized primarily for religious purposes that has been in existence in Texas for at least 10 years;
A volunteer emergency medical service that does not pay its members other than nominal compensation;
A volunteer fire department that operates fire fighting equipment and does not pay its members other than nominal compensation; or
A nonprofit organization that has existed for at least three preceding years and is exempt from federal income tax under Section 501(c), Internal Revenue Code; does not distribute any of its income to its members, officers or governing body; does not devote a substantial part of its activities to attempting to influence legislation; and does not participate in any political campaign.
The language of the law is very technical. If you are considering holding a raffle to benefit an organization, you should check the statute to be sure you qualify.
What prizes may be offered?
An organization may offer any prize except money. If the raffle organizers offer a prize which they have purchased or have given other consideration for, the value of the prize may not exceed $50,000, unless the prize is a residential dwelling, in which case the value may not exceed $250,000. There is no value limit on prizes donated to the organization. Texas lottery tickets may be purchased and offered as prizes, even though the tickets' payoff may exceed $50,000. The organization must have each raffle prize in its possession or ownership, or must post a bond for the full amount of the value of the prize with the county clerk of the county where the raffle will be held.
Is an organization required to register with the State before conducting a raffle?
No.
What are the restrictions on how the raffle may be conducted?
A qualified organization may hold only two raffles per year and only one raffle at a time.
Raffle tickets may not be advertised state wide or through paid advertisements. Each raffle ticket must state the name or address of the organization holding the raffle, or (if no organization address) the address of an officer of the organization, the price of the ticket, a general description of each prize to be awarded that has a value of over $10, and the date on which the raffle prize or prizes will be awarded.
A prize may not be money, which is defined as coins, paper currency, or a negotiable instrument that represents and is readily convertible to coins or paper currency.
Only members of the organization or persons authorized by the organization, or student organizations recognized by institutions of higher education selling on behalf of the institution, may sell tickets.
No one may be compensated directly or indirectly for organizing or conducting a raffle, or for selling raffle tickets.
How may the proceeds from ticket sales be used?
Proceeds from ticket sales must be used only for the charitable purposes of the qualified rganization.
Are there any penalties for conducting or participating in an unauthorized raffle?
Yes. Only raffles held according to the terms of the Raffle Enabling Act are authorized raffles. An unauthorized raffle is considered gambling under the Texas Penal Code. Conducting such a raffle is a Class A misdemeanor. Participating in an unauthorized raffle is a Class C misdemeanor.
What law enforcement authorities may stop an unauthorized raffle?
A county attorney, district attorney or the attorney general may bring an action in state court to stop a violation or potential violation of the Charitable Raffle Enabling Act.
Where can I get more information on the requirements for holding a raffle?
The law is Chapter 2002, Occupations Code, Texas Codes Annotated. If you have specific questions about the law, you should consult your attorney.
Contact Information
By Us Mail:
Office of the Attorney General
Consumer protection Division/010
P.O. Box 12548
Austin, TX 78711-2548
By Telephone
Main agency switchboard
512/463-2100
Consumer Protection Division
800/621-0508
or
Regional Offices
Austin - 512/463-2070
Dallas - 214/969-5310
El Paso - 915/542-4800
Houston - 713/223-5886
Lubbock - 806/747-5238
McAllen - 956/682-4547
San Antonio - 210/224-1007
Public Information & Assistance
512/463-2007
800/252-8011
Ok legal man. What if my car is registered in Oklahoma or Louisiana and we do it there? Second question, what if I sell ping pong ***** for $100 so you're actually receiving something. Then I randomly select a ping pong ball and give that person the option to buy my car for like $20 that way there is no prize, somebody has to buy. Or maybe I'll rent out a conference room at a hotel for a LS1 conference with a $100 cover charge and as a door prize somebody will win my car.
