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Are Raffles Legal in Colorado? Raffle Laws & Licensing Guide (2026)
April 21, 2026
⚡TL;DR — The Short Answer
Verdict: Yes, raffles are legal in Colorado — but only for qualified nonprofits with a valid bingo-raffle license from the Colorado Secretary of State.
What works: Applying early, designating a certified Games Manager, submitting voided sample tickets on time, and using a zero-fee platform to manage online ticket sales.
What doesn't: Assuming your new nonprofit qualifies — the five-year operating requirement catches many organizations off guard before they even apply.
Best for: Colorado-based nonprofits with at least five years of continuous operation that want to run a compliant, high-impact raffle fundraiser.
Worth considering if: Your annual prize value stays under $1,000 or your gross proceeds stay under $25,000 — you may qualify for a simpler licensing path.
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. Learn everything about hosting a raffle in Colorado, from bingo raffle license applications to compliance with state laws. This guide will help a qualified organization easily navigate the process and maximize fundraising potential.
Are raffles legal in Colorado?
The Colorado Charitable Gaming Board is the licensing authority that governs raffles in the state, defining the 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.
The key benefits of hosting a raffle include:
Engaging your community with a fun and interactive activity
Providing a fundraising opportunity to raise more, quickly
Offering a chance to win exciting prizes while supporting a worthy cause
As long as you adhere to the Colorado Charitable Gaming Board rules and are a qualified organization, a raffle is a great way to raise money.
Colorado raffle law: what the statutes actually say
Before walking through the licensing process, it's worth knowing exactly which laws govern your raffle. Colorado's raffle regulations are codified in Title 24, Article 21, Part 6 of the Colorado Revised Statutes (C.R.S. 24-21-601 through 24-21-620). These are the primary legal authorities — not just agency guidelines — and understanding the key provisions helps your nonprofit stay compliant from day one.
The statute defines a raffle as "a game of chance in which a person purchases a ticket for a chance to win a prize, with the winner determined by a random drawing." This definition matters practically. If your event involves skill, strategy, or variable ticket pricing that affects winning odds, it may not qualify as a raffle under Colorado law — and could be subject to entirely different regulations.
The licensing requirement (C.R.S. 24-21-606)
Section 24-21-606 makes clear that no qualified organization may conduct a raffle without first obtaining a license from the Colorado Secretary of State. Operating an unlicensed raffle — even a small one — constitutes a violation of state law and can result in civil penalties. There is a limited exemption for raffles where the total value of prizes does not exceed $1,000 in a calendar year, but even exempt organizations must stay within the prize cap to avoid licensing requirements.
Prize and proceeds restrictions (C.R.S. 24-21-610)
Under 24-21-610, Colorado law prohibits paying raffle winners in cash for prizes valued over a specific threshold, and it strictly limits how proceeds may be used. Net proceeds must go directly to the charitable purpose stated in your license application. You cannot use raffle income to pay for general administrative expenses unrelated to your mission, and you cannot compensate individuals for conducting the raffle.
Why these statutes matter for your raffle planning
Citing the statute number in your internal compliance documents, board resolutions, and vendor contracts signals that your organization is operating with full legal awareness — not just following a checklist. When your state licensing application is reviewed, demonstrating familiarity with the underlying statutes reflects well on your organization's governance.
The sections below walk through how these statutory requirements translate into the actual licensing steps, ticket rules, and reporting obligations your nonprofit will need to complete.
Who can legally run a raffle in Colorado?
A qualified organization that can obtain a bingo raffle license and host a raffle in Colorado must be a bona fide religious, charitable, labor, fraternal, educational, voluntary firemen's, or veterans organization that:
Has a nonprofit, national or state organization, or bona fide chartered branch based in Colorado
Operates without profit
Has 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 five-year period
Has at least one member currently certified or will be designated games manager when the bingo raffle license is issued
Not every Colorado nonprofit needs a full bingo-raffle license to run a raffle. Under C.R.S. 24-21-612.5, qualifying organizations whose gross raffle proceeds do not exceed $25,000 in a calendar year may be eligible for a simplified licensing path.
To use this exemption, your organization must still meet the core eligibility requirements — including the five-year operating history and nonprofit status. The exemption doesn't waive those baseline qualifications. What it does do is reduce the administrative burden for smaller fundraising events by simplifying reporting requirements and lowering associated fees.
Here's what you need to know about the $25,000 threshold:
It applies to gross proceeds, not net profit. That means total ticket sales, not what's left after expenses.
You must still keep accurate records and be prepared to demonstrate you stayed within the threshold.
If a single raffle pushes your annual gross proceeds above $25,000, you must comply with the full licensing and reporting requirements for the entire year — not just for that event.
You cannot split proceeds across multiple accounts or events to manufacture eligibility for this exemption.
This exemption is particularly useful for smaller community organizations, neighborhood associations with nonprofit status, or newer chapters of larger organizations that are running modest annual fundraisers. If your raffle is small-scale and your donor base is primarily local, running within the $25,000 ceiling may mean less paperwork and lower fees while keeping you fully compliant.
Even if you qualify for the exemption, it's smart to notify the Colorado Secretary of State's Bingo-Raffles Division before your event. A quick email to licensing@coloradosos.gov outlining your plan gives you a paper trail and confirms you're operating within the exemption's boundaries.
Who cannot run a raffle in Colorado
Colorado law is clear: only qualified nonprofit organizations can legally conduct raffles. That exclusion has real consequences for individuals and businesses that might want to run a raffle for a good cause — or even for profit.
Individuals, for-profit businesses, and newly formed nonprofits that haven't yet met the five-year operating requirement are all prohibited from conducting raffles under C.R.S. 24-21-605. This applies even if the proceeds are intended for a charitable purpose. Good intentions don't substitute for proper licensing.
Running an unlicensed raffle in Colorado isn't just a technical violation. Penalties include civil fines, and under House Bill 24-1326, the maximum fine per violation is now $250. That can add up quickly if you sell hundreds of tickets before anyone catches the issue.
For-profit businesses sometimes try to run "charity raffles" as a marketing promotion. This is not permitted under Colorado law unless a separately qualified nonprofit holds the license and controls the proceeds. A business cannot simply designate a charity as the beneficiary and conduct the raffle itself.
If someone approaches your nonprofit asking you to "lend" your license number to their event, decline. Allowing another entity to operate under your license puts your organization's license at risk and may constitute fraud.
Tax implications of raffle winnings in Colorado
Winning a raffle prize feels great — until tax season arrives. Both your organization and your winners have tax obligations worth understanding before you launch.
Federal reporting requirements for your nonprofit
If a winner receives a raffle prize worth $600 or more, and the prize is at least 300 times the ticket price, your nonprofit must report the winnings to the IRS using Form W-2G and provide a copy to the winner. For prizes worth $5,000 or more (net of the ticket price), you may also be required to withhold 24% federal backup withholding before distributing the prize.
These thresholds matter for your raffle planning. If you're offering a high-value prize — a car, a vacation package, or a significant cash equivalent — build the W-2G reporting process into your post-raffle workflow. Failing to issue required forms can result in IRS penalties for your organization.
Colorado state income tax on prizes
Colorado taxes raffle winnings as ordinary income. Winners who receive taxable prizes must report the fair market value of their prize on their Colorado state income tax return for that year. Colorado's flat income tax rate applies to the prize value, just as it would to wages or other income.
Your nonprofit isn't responsible for calculating or collecting state income taxes on behalf of winners — that's the winner's obligation. But it's good practice to include a brief note in your winner notification explaining that prizes may be taxable and that winners should consult a tax professional.
What your nonprofit owes
Raffle proceeds themselves are generally not taxable income for your nonprofit, as long as they go toward your exempt purpose. However, if proceeds are used for activities outside your stated charitable mission, they could be subject to Unrelated Business Income Tax (UBIT). Keep your raffle proceeds designated and documented clearly to avoid any question.
It's always a good idea to consult a CPA familiar with nonprofit tax law before your first large raffle, especially if you're expecting significant prize values or proceeds.
How to apply for a raffle license in Colorado: A step-by-step guide
Complete the Bingo and Raffles Games Manager Certificate Application
Access the online application through the Colorado Secretary of State's website. Double-check that your organization's name, address, and key details match your qualified organization's official records. Incomplete or mismatched information can delay approval.
Gather key documents
Be sure as a bingo raffle licensee you have everything you need in one place to make your application process smooth. You must be ready to upload photos online, so obtain .jpg, .gif, .png, or .tif image files, or a PDF copy. We suggest creating a digital folder with labeled PDFs for easy uploading.
Here's what you'll need according to the Colorado General Assembly:
Proof of five years of continuous existence (e.g., incorporation certificate or tax filings)
Organization's purpose and membership qualifications
Copies of articles, by-laws, and membership roster
Names and addresses of board members
Designate your Games Manager
You must assign a certified Games Manager who has completed the state's training program. Learn more about the training program, fees, and schedule needed in Colorado. Once training is completed, you'll fill out a Games Manager Certificate Application/Oath to submit.
The training program test is open book and certificates typically arrive within 10 business days, and will be valid for 4 years. Once you have a certified games manager license number, you can officially apply for registration online.
Tips to choose a Games Manager:
Confirm credentials: Look for a licensed and experienced manager who understands Colorado raffle rules.
Prioritize expertise: Choose someone familiar with compliance and reporting requirements.
Seek recommendations: Ask other qualified organizations for referrals and check reviews.
Ensure transparency: Select a manager who communicates clearly and handles funds responsibly.
Submit your application with the required application fee
Submissions to become a bingo raffle licensee can be done online or mailed to:
Colorado Department of State Bingo-Raffles Division
1700 Broadway, Suite 550
Denver, CO 80290
You'll have the flexibility to pay the $100 application fee through credit card or check, but online payments are a bit faster and allow instant confirmation. Approval can take up to six weeks.
Requirements to host a raffle in Colorado
Raffle licensing and sample tickets
The state of Colorado doesn't limit the number of raffles your qualified organization can host while your bingo-raffle license is active. However, if the total value of your raffle prizes exceeds $1,000, you must submit a voided sample ticket to the Secretary of State at least seven business days before the raffle. This allows time for review, which typically takes 5-7 days.
Submission methods for voided sample ticket:
Email: licensing@coloradosos.gov
Fax: 303-869-4871
Mail or in-person delivery: Colorado Department of State Bingo-Raffles Division, 1700 Broadway, Suite 550, Denver, CO 80290
lorado allows nonprofits to sell raffle tickets online, but the state applies the same rules as in-person raffles under the Bingo and Raffles Law. Before you launch, confirm three things.
Ticket sales must stay within Colorado. Online ticket purchases can only be sold to Colorado residents, and your organization can't solicit or accept ticket payments from out-of-state buyers. This rule comes from the Colorado Secretary of State's interpretation of raffle activity as intrastate only. Cross-state ticket sales risk federal gambling violations, not just state-level fines.
Proceeds route through Colorado bank accounts. All online ticket revenue must deposit directly into your organization's Colorado-based bank account, separate from your general operating funds. Mixing proceeds with other revenue or running payments through an out-of-state processor is a compliance violation.
Your platform must support auditable recordkeeping. For every ticket sold, you need to track: buyer name, Colorado address, payment method, ticket number, and drawing result. The Secretary of State requires these records for at least three years after the drawing, and they must be producible on request.
One practical note: most nonprofit fundraising platforms charge 3% to 8% in combined processing and platform fees, which adds up fast on a large raffle. Zeffy's 100% free model lets you keep every dollar of ticket revenue for your mission, with no platform fees and no transaction fees.
Verify with the Secretary of State's current rules before launch. Colorado updates its raffle guidance periodically. The Bingo-Raffles Division can confirm whether your specific online setup meets current compliance requirements.
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.
Pro tip: The state recommends starting with an email to licensing@coloradosos.gov to outline your raffle plan and get guidance from there.
How you can use the internet to support raffles in Colorado
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
Fundraising platforms like Zeffy can make the process of planning your online raffle simple, while keeping you organized and compliant with state reporting requirements.
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.
Notifying winners
Here are some key rules that Colorado requires:
In-person drawing: Allow 30 minutes for winners to claim their prizes. If unclaimed, continue drawing until the prize is claimed.
Mail notification: Send certified mail within 30 days of the drawing. Include the prize, contact number, and claim details.
Online notification: Post winning ticket numbers and a contact number on your website within 24 hours of the drawing. Keep this up for at least 30 days.
Post-raffle reporting
After your raffle ends, your nonprofit must file a quarterly report detailing receipts, expenses, and how funds were used. Even if no sales or expenses occurred, you must submit a report marked "No Activity."
Fees on gross receipts are due when filing, too. Any fees for a new or renewal license shall be deposited in the department of state cash fund. If you only host one raffle annually, you can file a final report and surrender your license to avoid future quarterly reports.
Reports are due on the last day of the month following the end of each calendar quarter. You can file your quarterly report online by creating or logging into your Colorado state Bingo-Raffle account.
For any questions or more support, you can always call the Bingo & Raffles program at 303-869-4910 or email licensing@coloradosos.gov.
Specific prize and proceeds limits under 8 CCR 1505-2-8
Beyond the statutory framework, Colorado's administrative rules under 8 CCR 1505-2-8 set specific numerical limits that affect how you structure your raffle. These are the rules your Games Manager needs to know cold before your event goes live.
Progressive raffle jackpot cap
Colorado regulations cap the progressive raffle jackpot prize at $15,000. A progressive raffle is one where the jackpot grows over multiple drawings until a winner claims it. Once the jackpot hits $15,000, it cannot grow further — any additional ticket proceeds above that ceiling must be allocated in accordance with your license terms and charitable purpose requirements.
If you're planning a multi-week or multi-event raffle with a growing prize pool, build this cap into your ticket pricing model from the start. Exceeding it isn't just a bookkeeping problem — it's a regulatory violation.
Maximum ticket price and pricing change rules
Colorado rules do not set a single statewide maximum ticket price, but they do require that any ticket price changes be clearly disclosed on the ticket itself. If you plan to offer early-bird pricing or tiered ticket bundles, the dates of any price changes must appear on the printed or digital ticket. Failure to disclose pricing changes is a common compliance miss.
Proceeds retention and net proceeds requirements
Your organization may retain proceeds to cover direct raffle expenses — things like ticket printing, venue costs directly tied to the raffle, and Games Manager training fees. However, the net proceeds after those expenses must go to your stated charitable purpose. You cannot use net raffle proceeds to pay salaries, cover unrelated operating costs, or compensate board members.
Keep a clear paper trail separating raffle expenses from general operating expenses. Auditors and the Secretary of State's office look for this distinction during compliance reviews. A dedicated bingo-raffle bank account (which Colorado already requires for organizations accepting online payments) makes this separation automatic.
These specific limits work alongside the broader statutory requirements in C.R.S. 24-21. Understanding both layers — the statute and the administrative rules — gives your nonprofit the full picture before you sell your first ticket.
Quick recap: 3 common pitfalls to avoid
To make sure your raffle has the highest potential of raising money without the risk of costly fines, we've outlined the pitfalls to avoid below. Colorado raffle law also covers strip bingo games, pull tab games, bingo card events, or any other way to raise charitable solicitations.
1. Overlooking the voided ticket submission
If your raffle prizes are worth more than $1,000, you have to send a voided, printed ticket to the Colorado Bingo-Raffles Division before you start selling. Missing this step could mean reprinting all your tickets.
Pro tip: Send a draft first to catch any errors before you hit print. Be sure to save it on your electronic device to use again in the future. The state needs five to seven business days to review your draft or voided ticket. Plan ahead and get that draft in early to keep things running smoothly.
2. Not handling online sales the right way
Selling raffle tickets online? Every single dollar must go directly into your bingo-raffle account. Plus, you'll need a solid plan for how you're tracking those sales and issuing tickets.
Pro tip: Use raffle management software and send a detailed outline (with screenshots) to the state early in the process — they'll appreciate it, and you'll avoid any compliance issues.
3. Offering prohibited bingo and raffles prizes
Alcohol is 100% illegal to offer as a raffle prize in Colorado for any bingo raffle licensee. Even one slip-up can cost you $75 per violation.
It's also good to know that as of 2024, motor vehicle and real estate raffles have new rules:
For motor vehicles, you must file proof of ownership or have a contract with the owner and maintain a certificate of deposit to cover the purchase price in case the transfer fails.
For real estate, you need proof of ownership or a contract, plus a certificate of deposit or bond to ensure the prize's value if the transfer falls through.
Good to know: Maximum fines for violations have increased
The passage of House Bill 24-1326 has increased the Secretary of State's fining authority, raising the maximum fine to $250 per violation and removing the provision for a fine in lieu of license suspension or revocation.
Host your raffle on Zeffy
Keeping more of what you raise matters — especially when your goal is mission impact, not covering platform costs. You can use Zeffy's raffle solution to manage the entire process, from ticket sales to donor communications, with zero fees.
Aside from selling raffle tickets online, Zeffy can help your nonprofit:
Create a simple form to add to your raffle website
Automatically generate and send online raffle tickets
Accept all payment types without paying platform or transaction fees
Customize your nonprofit's forms and raffle tickets
Stay in touch before, during, and after your event
Export reports
Zeffy is funded entirely by optional donor tips, which means every dollar your supporters spend on raffle tickets goes straight to your cause. No platform fees, no transaction fees, no surprises. Over 100,000 nonprofits have raised $2B+ with Zeffy — and kept every dollar.
Yes. It is legal to host a raffle in Colorado as a nonprofit national or state organization with a valid license. Qualifying criteria include five years of continuous operation, nonprofit status, a designated Games Manager, and commitment to using proceeds for charitable purposes only.
No. Only qualified nonprofit organizations can legally conduct raffles in Colorado under C.R.S. 24-21-605. Individuals, for-profit businesses, and nonprofits that haven't met the five-year operating requirement are all prohibited — even if proceeds are intended for charity. Running an unlicensed raffle can result in fines of up to $250 per violation.
Yes. With a valid bingo raffle license, you can sell tickets online and accept payment through credit and debit cards. All proceeds must go directly into your dedicated bingo-raffle account, and you'll need to submit a detailed raffle plan and screenshots of your online process to the state before selling.
Yes, if your prizes exceed $1,000, you must submit a voided, printed ticket to the Colorado Secretary of State at least seven business days before selling any tickets. For raffles under $1,000, this step is not required, but you still need to report the raffle in your quarterly filings.
Under C.R.S. 24-21-612.5, organizations whose gross raffle proceeds don't exceed $25,000 in a calendar year may qualify for a simplified licensing path with reduced reporting requirements. You must still meet all other eligibility criteria, including the five-year operating requirement and nonprofit status.
Under the latest legislation from the Colorado General Assembly, fines for noncompliance are: Class 1 violation: $175. Class 2 violation: $125. Class 3 violation: $50 for the first offense, $75 for repeated or deliberate violations. The maximum fine per violation is $250.
Alcohol cannot be awarded as a raffle prize and carries a $125 fine per occurrence. Progressive raffle jackpots are capped at $15,000 under 8 CCR 1505-2-8. Motor vehicles and real estate prizes have additional documentation requirements introduced in 2024. All prizes must be fully owned by the licensee and free of any debt before tickets are sold.
Yes. Raffle winnings are taxable income at both the federal and Colorado state level. If a winner receives a prize worth $600 or more and the prize is at least 300 times the ticket price, your nonprofit must issue IRS Form W-2G. Winners are responsible for reporting the fair market value of their prize on their state income tax return. Consult a CPA for guidance on prizes above $5,000.
Colorado's administrative rules under 8 CCR 1505-2-8 cap the progressive raffle jackpot at $15,000. Once the jackpot reaches this ceiling, it cannot grow further regardless of additional ticket sales. Plan your progressive raffle pricing model accordingly to stay within this limit.
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