Raffles and 50/50 drawings are regulated in many states. Redswing has no raffle tool today and does not give legal advice about gaming.
Draft for legal review: This article describes how Redswing works in plain language. It is not tax or legal advice and an attorney has not reviewed it yet. Ask your tax advisor or attorney about your own situation.
Overview
Rules on raffles, split-the-pot drawings, and other games of chance differ by state and sometimes by city. Some states need a license or registration, limit who can run one, or cap prize size. Redswing is a technology platform. Your organization is responsible for following the laws that apply to it.
What to do
- Ask your attorney or your state's charitable gaming office what applies to your organization and your state.
- Do not advertise a raffle on your event page until you know the rules.
- If you run one, run it outside Redswing and keep your own ticket records. Redswing does not sell raffle tickets or draw winners. Do not collect raffle money through Redswing registration, add-ons, sponsor sign-ups, or donations. Payment processors commonly prohibit raffle sales, and some states ban selling raffle tickets online.
- Silent auctions and the activities Redswing supports (registration, sponsors, silent auction, donations) are different from raffles.
Things to know
- A drawing where people pay for a chance to win can be treated as a raffle even if it is called something else.
- Check rules before you collect money, not after.
- Raffle tickets are generally not tax-deductible, and large prizes can carry IRS reporting or withholding (for example, Form W-2G). Ask your tax advisor.
- Paid-entry contests, such as a hole-in-one contest, can be treated differently from state to state. See Contests.