Arizona Charitable Raffles

Share your mission with the public and help your nonprofit with online raffle fundraisers!

AZ Nonprofits can operate online raffles when they sign-up at US Charitable Gaming for NO COST!

Start Your No-Cost Raffle Fundraiser

Q1: Are you an eligible Arizona nonprofit in existence for over ONE year? See Eligible Organizations

Yes

You may be eligible to conduct a raffle!

No

The nonprofit organization needs to have been in existence continuously in Arizona for a one-year period immediately before conducting the raffle.

 

Q2: Is your nonprofit looking for no-cost online fundraising?

Yes

Let’s connect and get your online raffle fundraiser started at no cost to your nonprofit!

Get Started!

LEARN MORE ABOUT CHARITABLE RAFFLES


Eligible Organization Types 

  • Civic Leagues: Nonprofits promoting social welfare or local employee groups, with earnings devoted to charitable, educational, or recreational purposes.

  • Religious or Apostolic Groups: Operate with a shared treasury and include income in members’ tax filings; treated like dividends.

  • Social Clubs: Formed exclusively for recreation or pleasure, with no private financial benefit.

  • Fraternal Societies: Operate under the lodge system, providing benefits like life or health coverage to members or dependents.

  • Labor, Agricultural, or Horticultural Organizations: Qualify if they serve the interests of workers or producers.

  • Charitable Corporations: Formed for religious, educational, scientific, or charitable purposes; earnings cannot benefit individuals or lobby.

  • Retirement Fund Organizations: Public employee funds supported by taxes, salary assessments, or investments—earnings must only support retirement benefits.

  • Business Associations: Includes business leagues, chambers of commerce, and boards of trade, provided they’re nonprofit and earnings don’t benefit individuals.

Important Note for Medical Institutions

Licensed general hospitals, licensed special hospitals, and foundations supporting cardiovascular medical research may contract with an outside agent to help manage, sell, or operate a raffle—only if the proceeds are used for medical research, graduate medical education, or indigent care.

Key limitations:

  • A maximum of three raffles per calendar year

  • The outside agent’s fee may not exceed 15% of the net proceeds

Important Note for Child Abuse Prevention Organizations

Qualified organizations dedicated to preventing child abuse and supporting victims may contract with an outside agent to assist with raffle management, sales, or operations—only if the proceeds are used to fund comprehensive prevention services and advocacy or support for victims.

Key limitations:

  • No more than three raffles per calendar year

  • The outside agent’s fee may not exceed 15% of the net proceeds

Although no Arizona state agency directly regulates charitable raffles, specific legal requirements must be met for a raffle to be conducted lawfully.  Contact The Arizona Department of Gaming (602) 771-4263  publicaffairs@azgaming.gov 

Charitable Raffles Are Gambling Exemptions

  • Gambling is generally illegal in Arizona unless a statute excludes it. Charitable raffles are one such exclusion under A.R.S. § 13-3302(B).

Who May Conduct Raffles

  • A nonprofit that qualifies for a tax-exempt status under IRC and has existed in Arizona for the required period (now 1 year since 2022 legislative change) may conduct a raffle.

  • Internal benefit rule: No member, director, officer, employee, or agent may obtain direct or indirect financial benefit, except participation equal to other participants.

  • Only bona fide local members may participate in raffle sales, management, or operations.

Operational Restrictions

  • Online ticket sales are allowed only if:

    • Conducted through the nonprofit’s own website

    • Purchasers are located in Arizona at the time of sale.