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Hosting a raffle can turn the fun of an interactive game into a big win for nonprofit organizations and their supporters. While each state has its own laws, raffles are legal in Colorado for charitable organizations to engage in as a simple, accessible, and magnetic welcome for new donors.
Let’s be honest–raffle ticket sales and hosting your first event can feel like a maze of legal hoops and logistical headaches. The good news? We’ve got your back. From nailing compliance with Colorado raffle laws to picking prizes that wow, this guide breaks it all down so you can hit the ground running.
First and most importantly, hosting a raffle in Colorado without a bingo raffle license is illegal under bingo raffles law. Now that that’s clear, who can apply for a permit?
A qualified organization able to obtain a license and host a raffle in Colorado are bona fide religious, charitable, labor, fraternal, educational, voluntary firemen’s or veterans organization that:
Have a nonprofit, national or state organization, or bona fide chartered branch based in Colorado
Operate without profit
Have been operating for 5 years before applying for a bingo raffle license and stayed operating for the entire five year period
Has had an engaged membership during the entire 5-year period
Has at least one member currently certified or will be designated games manager when the bingo raffle license is issued
Colorado raffle definition
The charitable gaming board is the licensing authority that governs how a bingo raffle licensee can raise money. They define a raffle charitable gaming activity as:
“a game in which a participant buys a ticket for a chance at a prize with the winner determined by a random method as determined by rules of the licensing authority, or a pull tab ticket as described in subsection (36) of this section. The term "raffle" does not include any activity that is authorized or regulated by the state lottery division pursuant to article 40 of title 44 or the "Limited Gaming Act of 1991", article 30 of title 44.”
Names and addresses of additional officers and board members (if necessary).
You will need to be ready to upload these photos online, so obtaining a .jpg, .gif, .png, or .tif image files, or PDF copy of each and storing them in an easy-to-find location will set you up for a fast filing experience.
3. Once you have a certified games manager’s license number, you can apply for registration online. You’ll submit a form, your attachments, and your signature to submit everything and complete payment of the $100 license fee. It can take up to six weeks for the state of Colorado to process your application.
How many raffles does a license allow a nonprofit to host?
The state of Colorado does not limit the number of raffles your nonprofit can host while your license is active.
If the total value of raffle prizes exceeds $1,000, nonprofit organizations must submit a sample (voided) raffle ticket to the Secretary of State before conducting the raffle. Submitting the sample at least seven business days in advance is a reasonable precaution, as they may take between 5 and seven days to be reviewed.
If your nonprofit decides to sell raffle tickets online by credit or debit card, all proceeds must be deposited directly into your dedicated bingo-raffle account.
You must create a raffle plan outlining whether purchasers will receive a “hard” ticket, how they will receive tickets, how the system produces and tracks tickets, and other related details.
You will be asked to submit screenshots of all pages from the landing page through any communications that purchasers receive from your organization.
If you are sending hard tickets by email or mail, the state of Colorado will ask to see a draft ticket.
If all that sounds a bit complicated, it is! (But only a bit.) To help, the State of Colorado suggests getting things started by emailing them ([email protected]) outlining how your raffle will be conducted. From there, they’ll help you make sure you send them everything they need.
The state of Colorado also allows you to use the internet to:
Advertise your raffle. (Newsletters, banners, etc.)
Display the rules of the raffle
Store raffle contact information for your nonprofit, including the eligible organization’s name, address, telephone number, facsimile number, or e-mail address
Allow participants to download raffle entry forms for manual completion by raffle ticket purchasers. (But, the forms cannot be submitted online.)
Answer frequently asked questions
List descriptions, photographs, or videos of the raffle prizes
List the prize winners
Good to know:
Colorado requires nonprofit organizations to keep all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held and all other required records for two years.
You must have been granted a license before printing or selling any raffle tickets. You should also submit samples (if applicable) before printing tickets to be sure you’re ready.
If your nonprofit is planning to give away under $1000 in prizes, then your tickets must clearly show:
Space for the ticket holder’s name and mailing address
The web address where you will post the winning number(s)
The period for which the winning number will be posted
A phone number that ticket holders can call to verify the winning number
If your nonprofit is planning to give away over $1000 in prizes, then your tickets must clearly show:
Space for the ticket holder’s name and mailing address
The web address where you will post the winning number(s)
The period for which the winning number will be posted
A phone number that ticket holders can call to verify the winning number
Your license number
The name of your nonprofit organization is exactly as it appears on your license
The date, time, and place of the draw
The price of a ticket
A description of the major prize(s)
Date(s) when the ticket price will increase or decrease
Cost of tickets purchased as a package
The word “RAFFLE
Print on each ticket a statement indicating that the ticket holder need not be present to win a prize
We also recommend printing a unique ticket number on each ticket. This will help you avoid misinformation and ensure the winners get prizes.
Rules around claiming raffle prizes in Colorado
Nonprofit organizations drawing the winning tickets in person must provide around 30 minutes for the winner(s) to claim their prize(s). If a winner doesn’t claim a prize, you must continue drawing tickets until the prize is claimed.
If nonprofit organizations notify winners by mail:
You must notify all winners by U.S. postal service certified mail within 30 days of the drawing return receipt requested.
The notification must indicate the prize won, a contact person’s telephone number, and the time and location where the winner may claim the prize(s).
If a winner fails to claim a prize within 30 days of receiving your letter, qualifying nonprofit organizations may keep it or offer it in another raffle.
If nonprofit organizations notify winners online:
Within 24 hours of drawing the raffle winners, post all winning ticket numbers and a contact phone number to the website listed on the raffle tickets. The winning ticket numbers and phone numbers must remain posted on the website for at least 30 days after the raffle drawing.
Remaining compliant after your nonprofit’s raffle
The work doesn’t stop once the winners have been drawn. We know, we know—if only it were that simple. But governments love their paperwork, and Colorado is no different.
Colorado requires your nonprofit to file quarterly reports with all your receipts, expenses, and explanations of how your nonprofit used the funds earned from your raffle. You can fill out and file the quarterly reports by mail or online with very clear step-by-step instructions.
Good to know:
You must file all receipts from the sale of raffle tickets and expenses related to your raffle in the quarter in which the tickets were sold.
The fee on gross receipts must be paid to the Secretary of State when filing your quarterly report.
If no raffle ticket sales were made and no expenses were incurred, your nonprofit organization still needs to file a quarterly report, but all you have to do is mark “No Activity” across the front of the report.
If your nonprofit organization hosts only one raffle annually, you can file a final report and surrender your license. (That way, you can stop filing quarterly reports.)
Yes. It is legal to host a raffle in Colorado as a nonprofit national or state organization with a valid license.
Yes. With a valid bingo raffle license, you can sell tickets online and accept payment through credit and debit cards. You can use an online tool to make it easy to complete everything from raffle ticket sales to managing donors and winners, like Zeffy’s 100% free raffle solution.
The only thing you cannot award as a prize is alcohol, which carries a $125 fine per occurrence. It is also essential that the raffle licensee has full ownership of all merchandise used as a raffle prize. It must be free of any debt before raffle tickets are sold.
For more detailed information on offering bigger prizes (such as motor vehicles and real estate), see Rule 8: Raffles of Colorado Secretary of State Bingo and Raffle Games.
If you need some inspiration, check out our raffle basket ideas.
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