New York State Raffle Laws for Nonprofits: Are Raffles Legal?

In the United States, each state has its own set of definitions and laws that dictate what is considered a raffle, which organizations are permitted to host a raffle, who can purchase raffle tickets, and what the laws are to legally host a raffle.

Yes, the first raffle you host can be time-consuming and confusing, but all the time and energy invested is ultimately worth it. (Some of the biggest campaigns on Zeffy are raffles. AKA raffles raise a lot of money for the host nonprofits.) Plus, raffles or online raffles are a great way to mix up your fundraising campaign portfolio and, as a bonus, attract new donors to your nonprofit.

We're here to help by walking you through the process of conducting a raffle in New York State while ensuring legal compliance.

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Okay, let's get started.

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The state of New York's Charitable Gaming Division defines a nonprofit raffle as:

… games in which a participant pays money in return for a ticket or other receipt and a raffle prize is awarded based on a randomly selected winning number(s), color(s), or symbol(s) designated on the ticket or receipt.

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Are raffles legal in NY?

To host a raffle in New York, you must be an authorized charitable organization (nonprofit) serving its community for at least one year before applying for a license.

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Good to know:

Organizations seeking to operate raffles with anticipated net proceeds less than $5,000 do not need to register with the Commission. If the raffle is expected to generate $5,000 or more in net proceeds, the organization must obtain a Games of Chance Identification Number from the Commission. Once received, all forms and license documents must include the identification number.

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• Authorized organizations must exist for at least one year and maintain current membership rosters.

• All proceeds must go to the lawful purposes of the authorized organization.

• Authorized organizations may accept multiple forms of payment and pay some expenses via electronic funds transfer (ETF).

• Authorized organizations may advertise games of chance on television and online.

• Licenses must be posted where games are conducted.

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How does a nonprofit register for a raffle in New York?

Step one: Apply for your nonprofit's Games of Chance ID Number

To apply for a Games of Chance Identification Number, you must fill out and submit (simultaneously) forms GC-2, GC-2A, and GC-2B and include the $25 annual license fee.

If your organization is authorized, you will receive a Games of Chance License on form GC-5 from the clerk. (You do not need to fill this form out.)

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Step two: Apply to sell your nonprofit's raffle tickets online

Once you have received your GC-5 form from the clerk with your Games of Chance ID Number, you can apply to sell your raffle tickets online with this form.

You must submit an Internet/Mobile Raffle Ticket Sales application at least 60 days before you start selling raffle tickets. And, for some reason, you must fill out and submit one form for every raffle you host.

You must complete and submit the Internet/Mobile Raffle Ticket Sales application regardless of your organization's category. (See the next section.)

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Nonprofit raffle categories in New York

When applying for your Games of Chance Identification Number, you must select category 1 or 2 on your application form.

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Category 1:

If you think all your raffles for the entire calendar year will net at least $30,000 or between $5,000 and $29,999 for any one raffle, select Category 1.

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Category 2:

You do not need to apply for a license or submit a financial report for individual raffles with anticipated net proceeds under $5,000 or under $30,000 for all raffles within a calendar year.

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Can nonprofits sell raffle tickets online in New York using Zeffy's ticketing forms?

Yes, you can sell raffle tickets online in New York State! (We are absolutely excited about this!)

You must complete and submit the Internet/Mobile Raffle Ticket Sales application. The form is pretty straightforward. However, sections 10 through 17 might be a bit tricky. Reach out to us if you have any questions and we'll do our best to help you through them.

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What needs to appear on your nonprofit's raffle tickets in New York

50/50 raffle tickets:

To verify the winning ticket, each part of a two-part “admission-style” ticket used for a 50/50 raffle needs to show an identical, consecutively printed ticket number.

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Raffle tickets:

Raffle tickets in the state of New York need to display the following information clearly:

• The name and Games of Chance Identification Number (if you have one) of the authorized organization.

• The location(s), date(s), and time(s) of the drawing(s).

• The consecutively printed serial number of the ticket.

• The price of the ticket.

• A list of the prizes offered.

• The statement: “Ticket holders need not be present to win”.

• Each ticket stub or receipt shall show the name, address, and telephone number of the ticket purchaser and the ticket's consecutively printed serial number.

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We've whipped up an example to give you a better idea:

Does it cost anything for a nonprofit to register for a lottery in New York?

An annual license fee of $25 is associated with the forms GC-2, GC-2A, and GC-2B.

Plus, if you fall into Category 1, the municipal clerk (or county fiscal officer) may need to be paid an additional license fee of 2% of the reported net raffle proceeds over $30,000.

No additional license fee is paid on the first $30,000 derived in net raffle proceeds. So, if your raffle earned $35,000, your nonprofit would need to pay an additional license fee of $100. (2% of $5,000.)

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After the raffle…

Your work doesn't end when the last ticket stub is drawn. In New York, if your nonprofit falls into Raffle Category 1, you must file a financial statement of raffle operations on Form GC-7R with the municipal clerk and the Commission by January 30th of the following year.

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How This NY Nonprofit Ran Their Raffle For Free

When you're running a meditation center, every dollar matters. New York Insight Inc., a welcoming space for mindfulness and meditation in the heart of New York, found a creative way to stretch its resources further. By switching to Zeffy's fee-free platform for its raffle, it turned what could have been a routine ticketing process into a smart financial decision.

Through Zeffy, New York Insight processed 1,556 CAD in tickets and kept an extra 78 CAD that would have otherwise gone to processing fees. For a nonprofit focused on making mindfulness accessible to all, those savings meant more resources for what matters – supporting their teachers, maintaining their meditation space, and keeping their programs affordable.