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Indiana Raffle Laws for Nonprofits: Are Raffles Legal? [2025]
March 25, 2025
Raffles are a lucrative fundraising activity with a lot of potential to raise money quickly and raise awareness, but being successful means understanding each state's raffle laws. Below is your full guide to Indiana’s legal specifics regarding 501c3 nonprofit raffle operations, which are considered charity gaming.
We’ll cover requirements, rules, regulations, and tips to stay compliant with charity gaming activities. We even created a free checklist for Indiana nonprofits to run a successful and lawful raffle event.
Nonprofit raffles are a popular activity to fundraise in a way that’s easy for almost anyone to participate. That can help 501c3 nonprofits eligible to host raffles in Indiana make the most of this activity for attracting, engaging, and retaining donors.
Planning your raffle as a standalone campaign or as part of a larger fundraising event can require considerable effort. Still, compliance is one of the most critical focus areas, specifically with the Indiana Gaming Commission.
Organizations can maximize their return and avoid fines by knowing which raffle laws exist and how to comply.
Only qualified organizations with establishments in Indiana can apply for a raffle or charity gaming license. The commission requires that you have a constitution, articles, charter, or bylaws containing a clause stating that all assets will be used for the nonprofit's stated purposes upon dissolution.
Who regulates raffles in Indiana?
The Indiana Gaming Commission regulates raffles and oversees and enforces laws to protect public interest. Raffles are legal in Indiana when they respect Licensed Charity Gaming raffle laws, which have been updated for 2025 (don’t worry, we covered the latest regulations entirely for you below).
Raffle permit requirements
There are a few steps to take to host a raffle in Indiana. The first is to fill out a Qualification Application.
Stay prepared with the requirements for a license qualification application:
Your name and address: The applicant's details for identification and contact purposes
Contact information for all officers: Information on key individuals managing the raffle, including phone numbers and email addresses
The activity you want to conduct: Whether it’s a raffle, bingo, or another charitable gaming activity, the nature of the event must be specified
Raffle location: The exact venue where the raffle will take place
Raffle date and time: The scheduled date and duration of the raffle event
From there, you can apply for the license that makes the most sense for your organization and events:
Annual Activity License: For any organization looking to host charity gaming activities regularly throughout the year, valid for 12 months (one calendar year)
Single Activity License: For any organization that wants to host a charity gaming activity once every so often, valid for 1 day and 1-time frame
Festival License: For organizations who want to host multiple charitable gaming activities on more than one day, valid for up to 5 consecutive days in one location
Convention Raffle License: For organizations outside of Indiana who want to conduct raffle activities at a convention in a location that the executive director must approve
All applications can be found on the Indiana Gaming Commission website.
Special circumstance: If your raffle has a total prize value under $2,500 or all raffle prizes awarded total less than $7,500 per year, you won’t need an Indiana raffle license. However, you will need to submit an Exempt Activity Notification form.
What are raffle laws to be aware of in Indiana?
For all license types, it’s important to stay aware of the latest rules and regulations as you raise funds. We broke them down below for you to review as you’re thinking about how to plan a compliant raffle in Indiana.
Ticket sales and handling
Raffles cannot be conducted over the internet, so tickets can't be purchased online and you cannot determine winners online (although you can manage your raffle reporting and engage participants online with a tool like Zeffy.)
Only members of the organization, paid employees, volunteer ticket agents, and even children under 18 (in the case of school fundraisers) are allowed to sell raffle tickets.
Cash, debit cards, checks, and credit cards can be accepted, but credit card use is only allowed in face-to-face transactions (no online sales).
Tickets must be represented as physical copies and placed in a receptacle that allows for thorough mixing, such as a drum or bucket.
Prize rules
Individual prizes cannot exceed $599, and the total prize pool for one pull tab, punchboard, or tip board game cannot exceed $15,000.
Alcohol is allowed if it’s in sealed bottles or cases intended for off-premises consumption, and the winner and prize distributor is at least 21 years old.
Compliance and reporting
Organizations must maintain ledgers for ticket sales, including details like date, location, and seller information.
A financial report must be submitted within 10 days after the Single and Festival Licenses event and monthly for Annual Licenses.
Other considerations
Up to three licensed Indiana law enforcement officers or private detectives can be hired for event security.
Retail employees can sell raffle tickets, but organizations must maintain control over unsold tickets and retain detailed sales records.
Common compliance pitfalls (and tips to stay risk-free)
The rules seem simple enough, right? Still, you might wonder how organizations may get into trouble with Indiana raffle laws.
Below are some compliance pitfalls to avoid and tips for a successful raffle that doesn’t leave you on the hook for thousands of dollars in violation penalties.
Compliance pitfall: Forgetting to get the right license
Stay risk-free: Imagine you’re all set to host a major charity raffle, only to discover that you lack the proper licensing. This can lead to hefty fines or even event cancellation. To avoid this nightmare scenario:
Identify the appropriate license type for your event (Annual, Single Activity, Festival, or Convention) and check in with the Indiana Gaming Commission to double-check before you fill it out
Common pitfall: Selling raffle tickets or drawing winners online
Stay risk-free: While social media is excellent for promotion, Indiana law mandates that ticket sales and drawings occur in person:
Use online platforms (like your nonprofit website, email, or social media) to generate excitement and direct buyers to physical locations.
For virtual fundraising events, consider hybrid options where ticket purchases and the drawing happen offline, but winners can be announced via live streaming.
Leverage digital engagement while adhering to legal requirements.
Compliance pitfall: Missing the 10-day deadline for financial reports
Stay risk-free: Imagine completing your raffle, keeping all the details aligned, and finding out that you missed the submission deadline for your reports. Let’s avoid it!
Designate an individual or entire team dedicated to the post-raffle reporting process.
Set internal deadlines ahead of the official 10-day requirement for review and corrections so you’re ready to go.
Regularly update your financial records during the event to avoid missing critical details.
Once you establish your raffle date, mark your calendar early so you have plenty of time to comply within your 10-day compliance window.
Host your compliant raffle with the help of Zeffy
Now that you know the legal compliance details of hosting a raffle in Indiana, you’re off to a great start in planning your fundraiser. While selling raffle tickets online in Indiana is not permitted right now, Zeffy’s 100% free raffle software can help you manage your raffles and events, track progress, and engage participants.
We also compiled a quick and easy checklist to help you plan your most successful raffle yet while remaining compliant with Indiana raffle laws.
Yes, it is legal for qualified organizations, such as a 501(c)(3) charitable organization, to conduct raffles in Indiana. However, compliance with the Indiana Gaming Commission's regulations requires obtaining the appropriate license (if your event requires one).
Options for charity gaming and raffle licenses include:
Annual Activity License
Single Activity License
Festival License
Convention Raffle License
Most nonprofit organizations must secure a gaming permit from the Indiana Gaming Commission. However, small-scale events with prizes under $2,500 or up to $7,500 annually may only require submitting an Exempt Activity Notification form.
No. Indiana law prohibits selling raffle tickets or conducting drawings over the Internet. All nonprofit organizations must keep sales and drawings to in person events. However, you can use tools like Zeffy to manage reporting, engage participants, and promote an in-person raffle draw.
Violations can result in fines starting at $1,000 for the first offense, increasing to $2,500 for the second, and $5,000 for each subsequent violation.
Members of the organization, volunteer ticket agents, and even minors under 18 (in school-sponsored raffles) can sell tickets. However, strict record-keeping and supervision are required.
Yes. Individual prizes cannot exceed $599, and the total prize value for one game cannot surpass $15,000 without special approval.
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Look for people who attend related events, follow relevant Facebook groups, or subscribe to aligned newsletters.These aren’t just potential donors—they’re your future advocates.
Look for people who attend related events, follow relevant Facebook groups, or subscribe to aligned newsletters.These aren’t just potential donors—they’re your future advocates.
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