How do I Conduct a Raffle in Texas?

Raffles are illegal in Texas unless they comply with the Texas Charitable Raffle Enabling Act

In Texas, raffles must be conducted in accordance with the state's Charitable Raffle Enabling Act. Under the law, only charitable organizations such as religious groups, volunteer fire departments, volunteer medical services providers and other qualified non-profit groups, including student-based organizations, can host a raffle in the state. To qualify, the organization must have been in existence for a minimum of three years. Qualified organizations may conduct two raffles in a year for non-cash prizes. Prizes purchased by the organization must be valued at $50,000 or less; private homes valued at $250,000 or less may be raffled as well. No value limit exists for donated raffle prizes.

Instructions

1. Order printed raffle tickets that comply with the Charitable Raffle Enabling Act. To comply, the tickets must have the name and address of the organization, the price of the ticket, a description of each raffle prize valued at more than $10, and the date the raffle is to be held.

2. Keep the raffle prizes within the physical possession of the charitable organization. If the prize can not be in the physical possession of the organization, a bond in the amount of the value of the raffle prize must in filed with the county clerk of the county in which the raffle will be held.

3. Permit raffle tickets to be sold only by organization members; organizations may not authorize non-members to sell tickets. Also, if the charitable organization is a student-based organization at a college or university, ticket sales are permitted on campus.

4. Refrain from using mass media, such as television or radio, to promote a raffle in Texas. It is not permitted under the Charitable Raffle Enabling Act. Also, it is not permissible to conduct or promote a statewide raffle.

5. Predetermine the date upon which the raffle prize will be awarded and award the prize on that day. Also, use all funds collected by the the sale of the raffle tickets to serve the organization's charitable purposes only.

Tips & Warnings

• Raffles are considered a form of gambling in Texas. Any raffles held in the state that do not comply with the Charitable Raffle Enabling Act can be considered illegal gambling activity and may be subject to criminal penalties.

• If for any reason the advertised raffle prizes cannot be given on the advertised date or within 30 days after it, all proceeds from the sale of raffle tickets must be returned to the individual ticket purchasers.

References

• Office of the Attorney General: Raffles in Texas
• Gambling Law U.S.: Texas Charitable Raffle Law