What types of raffles are permitted in Wisconsin?
Three broad categories of raffles are permitted in Wisconsin: single-day drawings, calendar raffles, and rubber/plastic duck races.
Single-day drawings are the most common form of raffle, in which paper raffle tickets are drawn from a container to determine the winner. In a calendar raffle, a calendar serves as the purchaser's ticket and a prize is awarded on each date specified in the calendar. “Bucket" raffles (also called “multiple-container raffles") and “50/50" raffles are forms of single-day drawings. For more information, see “What license does my organization need to conduct a bucket or 50/50 raffle?" below.
In duck races, ticket numbers are printed on toy ducks that are raced in a moving body of water and the winner is the first duck to cross the finish line. For more details about duck races, click on this link: Duck Race Raffles
Depending on the type of raffle your organization plans to hold, it will need either a Class A or Class B raffle license. For more information, see “What are the differences between a Class A raffle license and a Class B raffle license?" below.
What types of raffles are not permitted in Wisconsin?
The only types of raffles that are permitted under Wisconsin law are those described above.
Fully electronic raffles, with electronic tickets and the electronic selection of winning ticket numbers, are not permitted because Wisconsin law requires paper ticket stubs to be drawn from a physical container.
Other types of raffles that are not permitted because they do not involve paper ticket stubs being drawn from a physical container include: queen of hearts raffles (in which a pot rolls over if a specific playing card is not drawn), square boards, penny raffles, quarter auctions, sports boards, golf ball drops, and paddle wheel raffles.
Meat raffles, which involve cuts of meat being offered as prizes, may violate federal, state and/or local regulations governing the handling of meat offered for sale to the public. Meat raffles also violate state law if they are not conducted using paper raffle tickets, do not draw winning paper tickets from a container, or are conducted by a for-profit organization.
What types of drawing methods are permitted?
For single-day drawings and calendar raffles, the only drawing method permitted is the traditional placing of paper ticket stubs in a physical container and then randomly selecting the winning ticket stub from the container. For example, selecting winning tickets using an electronic random number generator, a paddle wheel, or sports scores, is not permitted.
For the rules governing duck races, click on this link: Duck Race Raffles
What types of organizations are permitted to conduct raffles?
Under Wisconsin statutes, the only organizations that are permitted to conduct raffles are “local" religious, charitable, service, fraternal or veterans organizations or organizations to which contributions are deductible for federal income tax purposes or state income or franchise tax purposes, and which have been in existence for at least one year prior to applying for a raffle license, or which are chartered by a state or national organization that has been in existence for at least three years. The statutes define a “local" organization as an organization whose activities are limited to Wisconsin, to a specific geographic area in Wisconsin, or a specific geographic area that is partly within Wisconsin and partly within another state. See Wis. Stat. sec. 563.907(2).
For-profit businesses, such as taverns and restaurants, are not permitted to obtain a raffle license or conduct raffles under Wisconsin law.
Can my organization sell raffle tickets outside of Wisconsin?
Limited sales of raffle tickets outside of Wisconsin are permitted. Because Wisconsin law only permits “local" organizations to conduct raffles, an organization's sale of raffle tickets must be focused on the geographic area the organization serves. However, the Division of Gaming recognizes that it is not practical to prevent all sales of raffle tickets to purchasers who live outside of the organization's geographic area. Therefore, limited sales of raffle tickets to outside purchasers are permitted. For example, if an organization that serves Milwaukee County were to conduct a raffle during its annual dinner at a hall in Milwaukee, and some of the attendees who purchased raffle tickets were from other regions of Wisconsin or other states, that would be permissible. Or if a member of your organization travelled outside of Wisconsin to visit relatives and friends and sold some raffle tickets to them, that would be permissible too. The key is that the organization's primary efforts must be focused on selling tickets within the geographic area they serve.
Be aware that other states' laws may apply to the sale of raffle tickets within those states.
What are the differences between a Class A raffle license and a Class B raffle license?
Class A License
- Required to conduct a calendar raffle
- Permitted to both sell and distribute raffle tickets to purchasers prior to the day of the raffle drawing
- Permitted to sell equal shares of a ticket to one or more purchasers
- Not permitted to conduct multiple-container (“bucket") raffles.
Class B License
- Not permitted to conduct a calendar raffle
- Permitted to sell raffle tickets prior to the day of the raffle drawing, however, tickets cannot be distributed to the purchasers in advance
- Tickets must be distributed to the purchasers at the event at which the drawing takes place
- Permitted to conduct multiple-container (“bucket") raffles.
Single-day drawings and duck races are permitted under both Class A and Class B raffle licenses.
Additional legal requirements for Class A and Class B licenses can be found at Wis. Stat. §§ 563.93 (The conduct of raffles under a Class A license) and 563.935 (The conduct of raffles under a Class B license).
What type of license is needed to conduct a bucket (multiple-container) raffle?
Your organization must have a Class B license to conduct a bucket raffle (also known as a multiple-container raffle). Bucket raffles are not permitted under a Class A license.
What type of license is needed to conduct a 50/50 raffle?
“50/50" raffles, in which 50% of the ticket proceeds is paid out as a prize and 50% is retained by the organization, are permitted under both Class A and Class B licenses.
What type of license is needed to conduct a calendar raffle?
Your organization must have a Class A license to conduct a calendar raffle. For more information about calendar raffles, clink on this link: Calendar Raffles page
Are “reverse order" raffles permitted (drawing lesser prizes first and the grand prize last)?
Wisconsin law requires that each winner in a raffle must be “determined by a drawing with all tickets or calendars having an equal opportunity to win." Wis. Stat. § 563.908(1). As a result, a reverse order raffle is permissible only if the winning ticket for each lesser prize is returned to the container after each drawing, so that that all tickets have an opportunity to win the grand prize.
Can my organization sell tickets using the internet?
Sales of raffle tickets via the internet and other electronic means are permitted if the licensee follows the procedures described below. Because Wisconsin law requires the use of printed raffle tickets, entirely electronic raffles are not permitted. In addition, licensees are still required to focus their sales efforts on purchasers located within the geographic area the licensee's organization serves. For more details, see “Can my organization sell raffle tickets outside Wisconsin?"
Class A licensees: Class A licensees may offer and sell raffle tickets through their websites or via email or text message exchanges with purchasers. Each raffle ticket must be in paper form. However, instead of mailing or hand-delivering the paper ticket to the purchaser, the licensee is permitted to send the purchaser a copy of the purchaser's portion of the ticket via the internet, email, or text message. The electronic transmission of the purchaser's portion of the ticket must be done in a manner that permits the purchaser to print a complete copy of its portion. In addition:
- The licensee must retain both the licensee's portion and the purchaser's portion of the paper ticket.
- The licensee must retain a record of each purchaser's name and address and the identification number of each ticket purchased.
- Each ticket must be identical in form.
- Each ticket must contain the licensee's license number.
- Each ticket must contain the price of the ticket and the discounted price, if any, applicable to multiple ticket purchases.
- Each ticket must contain a place for the purchaser to enter his or her name or address.
- Each ticket must contain the date, time, and place of each drawing.
- Each ticket must contain a list of each prize to be awarded that has a fair market value of $1,000 or more.
Class B licensees: Class B licensees may offer and sell raffle tickets through their websites or via email or text message exchanges with purchasers. However, the licensee must distribute the paper tickets to purchasers at the event at which the drawing will take place.
For both types of licenses, all other requirements of Wisconsin law continue to apply.
Can my organization hire a fundraising company to conduct our raffle?
No. Organizations are prohibited from paying anyone to operate their raffles. Section 563.94 of the Wisconsin Statutes provides: “All profits from raffles shall be used by the organization conducting the raffles to further the organization's purpose for existence and no salaries, fees, or profit shall be paid to any other organization or individual in connection with the operation of a raffle."
Can I advertise our raffle in the local paper, on flyers, on our website and Facebook page?
Yes. It is acceptable to advertise for a raffle in any of the above manners.
Can I use the U.S. Mail to advertise our raffle or send raffle tickets to purchasers?
No. Federal postal laws prohibit advertising, sale, or delivery of raffle tickets using the U.S. Mail or common carriers (UPS, FedEx, etc.). See 18 U.S.C. §§ 1301, 1302.
Are there any age restrictions for purchasers or sellers of raffle tickets?
No. Wisconsin's raffle statutes do not contain age restrictions on who can purchase or sell raffle tickets. However, Wisconsin law requires that organizations display “at each place where tickets may be purchased, a notice describing any state or federal law that imposes an age restriction on who may possess a prize that will be awarded in a raffle." See Wis. Stat. §§ 563.93 (2g)(a); 563.935 (1m). This requirement may apply to raffle prizes such as firearms and alcohol. For Class A raffles (which require tickets to be distributed at the time of purchase), the Division of Gaming considers the notice requirement to be satisfied if the notice is printed legibly on the purchaser's portion of each raffle ticket. For Class B raffles (which do not require distribution of tickets at the time of purchase), the notice must be prominently displayed at locations where tickets may be purchased. If Class B tickets are sold using the internet, email, or other electronic means, the notice must be prominently displayed on the electronic marketing materials for the ticket sales.
If someone purchases a ticket who is not eligible to receive the prize, the prize cannot be awarded to them and the organization must draw for a new winner.
Can members of my organization or their family members purchase raffle tickets?
Yes. However, each ticket purchaser must have an equal opportunity to win each prize, regardless of whether they are members of your organization or family members.
Can I hold a raffle to raise funds for an individual or family in need?
A licensed organization can hold a raffle to raise funds for an individual or family in need if helping such people is part of the organization's purpose for existing. Only certain types of organizations can hold raffles, individuals cannot hold raffles. See “What types of organizations are permitted to conduct raffles?" above. Wisconsin law requires that “[a]ll profits from raffles shall be used by the organization conducting the raffles to further the organization's purpose for existence." Wis. Stat. § 563.94.
Can I hold a raffle to sell my home or car?
No. Individuals cannot hold raffles. Only certain types of organizations can hold raffles. See “What types of organizations are permitted to conduct raffles?" above.
Can I hold a sweepstakes?
Sweepstakes are governed by different legal rules than raffles and can violate state and federal law if not conducted properly. The Wisconsin Division of Gaming only regulates raffles and does not regulate sweepstakes. For more information about sweepstakes click on the below links:
https://datcp.wi.gov/Documents/PrizeOffers161.pdf
https://www.uspis.gov/wp-content/uploads/2019/12/pub-546_consumers-guide-to-sweepstakes-lotteries_508.pdf
How can I sell pull-tabs?
Pull-tabs are regulated by the Wisconsin Lottery. For more information please contact the Wisconsin Lottery at (608) 267-4825.
Can my organization hold a casino night or Las Vegas night?
Casino-style games, such as blackjack, poker, craps and roulette, are illegal when played for money, require entry fees, or other involve forms of consideration. See Wis. Stat. §§ 945.01, 945.02. Raffles and bingo are the only types of gaming licensed and regulated by the Wisconsin Division of Gaming.
Can you answer a question about video gambling machines in taverns?
For complaints or concerns regarding video gambling machines in a bar, tavern or restaurant, please contact the Department of Revenue – Alcohol and Tobacco Enforcement at 608-266-2772 or your local law enforcement agency.
I sent in my application to renew my organization's Class A raffle license, but I haven't received the renewal yet. Can I print tickets for an upcoming raffle our organization is planning to have?
Class A raffle tickets must contain the organization's raffle license number. See Wis. Stat. § 563.93(1m)(a). If your raffle license is valid at the time of printing, you may print your Class A raffle tickets with that current number, even if your drawing is after the expiration date. Be sure to file your renewal prior to the expiration date so there is not a gap in your license periods.
If your license has expired, you will need to wait for the renewed license number to be issued before printing tickets. You also cannot sell raffle tickets or hold a raffle drawing without a valid raffle license.
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