Indiana Raffle Laws (2026): Rules, Licenses & Compliance Guide

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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.

Here's what's ahead:

• Indiana 501c3 nonprofits' raffle operations

• Requirements for conducting a raffle in Indiana

• The Indiana statutes behind raffle rules: What the law actually says

• License types side-by-side: Which one fits your event?

• Who qualifies as a "qualified organization" in Indiana?

• Can individuals or for-profit entities hold a raffle in Indiana?

• Recent Indiana raffle legislation changes (2025 and beyond)

• What are raffle laws to be aware of in Indiana?

• Common compliance pitfalls (and tips to stay risk-free)

• Host your compliant raffle with the help of Zeffy

• Indiana raffle FAQs

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Diving in: Indiana 501c3 nonprofit raffle operations

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.

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Requirements for conducting a raffle in Indiana

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.

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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).

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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.

The Indiana statutes behind raffle rules: What the law actually says

Before we get into the license comparison, it's worth understanding why the rules exist and exactly where they come from. That knowledge helps your nonprofit stay compliant and respond confidently if the Indiana Gaming Commission (IGC) ever questions your activity. Here's a plain-English breakdown of the specific statutes governing Indiana raffles.

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IC 4-32.3: The Primary Charity Gaming Law

Indiana Code Title 4, Article 32.3 is the core statute governing charitable gaming in Indiana, including raffles. Key sections your organization needs to know:

IC 4-32.3-1-28 defines a raffle as "a game of chance in which a participant is required to purchase a ticket for a chance to win a prize, with the winner determined by a random drawing of tickets." This definition matters: if your event involves skill (even partially), it may fall outside raffle statutes — and outside raffle licensing requirements.

IC 4-32.3-5-1 establishes that a qualified organization must obtain a license before conducting a raffle, unless a specific exemption applies. Operating without one isn't just a civil matter — it can result in criminal charges under IC 4-32.3-10.

IC 4-32.3-5-3 sets the license fee structure:

• Raffle license (standard): $25 per event

• Annual raffle license: $150, covering unlimited raffle events within a 12-month period

These fees are intentionally low to reduce barriers for small nonprofits — but the license is still legally required.

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IC 4-32.2-2-24: Who Qualifies as a "Qualified Organization"

Not every nonprofit automatically qualifies to conduct a raffle. IC 4-32.2-2-24 defines a qualified organization as an organization that has been in continuous existence in Indiana for at least five years and is one of the following:

• A fraternal organization

• A religious organization

• A veteran's organization

• A civic organization

• A political organization (with restrictions)

• A nonprofit organization recognized under Section 501(c) of the Internal Revenue Code

The five-year continuous existence requirement trips up newer nonprofits. If your organization was incorporated less than five years ago, you are not eligible for a standard raffle license — full stop.

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IC 4-36: Supplemental Gaming Provisions and Exemptions

IC 4-36 covers supplemental rules and carve-outs that can affect whether your event requires a license at all. Notably, IC 4-36-2 outlines the exempt activity thresholds — raffles where the total prize value does not exceed $1,000 and proceeds are used entirely for charitable purposes may qualify for an exemption, requiring only an Exempt Activity Notification rather than a full license application.

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2025 Legislative Update: HB 1043 and Contest-Based Raffles

Indiana House Bill 1043, enacted in 2025, created an important new category: contest-based raffles. This amendment clarifies that events where ticket purchasers answer a question or complete a simple task to enter — often used in online fundraising campaigns — are still classified as raffles under IC 4-32.3 if a random drawing ultimately determines the winner. The skill element does not remove the activity from raffle statute jurisdiction. Nonprofits running digital or hybrid raffle campaigns should review their event structure against this updated interpretation.

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Quick Reference: Indiana Raffle Statute Map

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When in doubt, the IGC's published statute reference page at IN.gov and the full text on Justia Law are the primary sources — but this table covers the provisions that affect most Indiana nonprofit raffles.

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License types side-by-side: Which one fits your event?

Picking the wrong license is one of the most common mistakes Indiana nonprofits make. Here's a quick-reference table so you can compare all four options at a glance before you fill out a single form.

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A few things this table doesn't replace: always confirm current fee amounts directly with the Indiana Gaming Commission, since fees can change between legislative sessions. And remember — if your total prizes stay under $2,500 per event (or $7,500 annually), none of these licenses apply. You just need the Exempt Activity Notification.

The Annual Activity License is usually the best deal for organizations that hold more than six raffle events per year. At $150 flat, it costs the same as six single-event licenses — and you won't have to file a separate application each time.

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Who qualifies as a "qualified organization" in Indiana?

The statutes above establish the five-year rule, but let's break down what that means in practice — because the list of qualifying organization types is broader than most people realize.

Indiana's charity gaming laws aren't limited to 501(c)(3) charities. Under IC 4-32.2-2-24, the following organization types can apply for a raffle license, provided they've been continuously operating in Indiana for at least five years:

• Fraternal organizations (such as Elks, Moose Lodge, or Knights of Columbus chapters)

• Religious organizations (churches, synagogues, mosques, and faith-based nonprofits)

• Veterans' organizations (VFW posts, American Legion chapters, and similar groups)

• Civic organizations (Rotary clubs, Lions clubs, community associations)

• Political organizations (with additional restrictions on how proceeds may be used)

• Any nonprofit recognized under Section 501(c) of the Internal Revenue Code — this includes 501(c)(4) social welfare organizations and 501(c)(6) trade associations, not just 501(c)(3) charities

If your organization falls into one of these categories but hasn't yet reached the five-year mark, you can't apply for a standard license. There's no workaround. Your options are to wait until you've been in continuous operation for five years, keep prizes below the exempt threshold ($2,500 per event / $7,500 annually), or partner with a qualifying organization to co-host the event — though the qualifying organization would need to hold the license and maintain full oversight.

One other thing to verify: "continuous existence" means your organization has been actively operating in Indiana for five uninterrupted years. A gap in operations, a recent name change with a new EIN, or a move from another state can all raise questions. If you're unsure whether your organization's history qualifies, reach out to the IGC directly before you apply.

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Can individuals or for-profit entities hold a raffle in Indiana?

This question comes up more often than you'd expect — especially when a small business wants to run a promotional giveaway or an individual wants to raise money for a personal cause.

The short answer: no. Indiana raffle law applies exclusively to qualified organizations as defined by IC 4-32.2-2-24. Private individuals cannot legally hold a raffle in Indiana, regardless of the purpose. Running an unauthorized raffle — even informally, even for personal charitable giving — can result in criminal charges under IC 4-32.3-10, which treats illegal gaming as a serious matter.

For-profit businesses face the same barrier. A company that sells tickets to win a prize, with winners chosen by random drawing, is conducting an illegal lottery under Indiana law unless a specific promotional sweepstakes exception applies (which has different legal requirements and is not governed by charity gaming statutes). For-profit promotional giveaways where no purchase is required and no ticket is sold can sometimes avoid lottery classification — but that's a different legal framework entirely, and one that requires a separate legal review.

If you're a small business owner who wants to support a local cause through a raffle-style event, the correct path is to partner with a qualified nonprofit that holds the license. The nonprofit runs the raffle, manages the proceeds, and directs funds to charitable purposes. Your business can sponsor the event or donate prizes — but it can't hold the license or control the funds.

The bottom line is that Indiana's charity gaming framework is built around protecting the public and ensuring proceeds go to legitimate charitable purposes. That's why the law restricts who can run a raffle. If you're not a qualifying organization with five or more years of continuous Indiana presence, the raffle isn't yours to run.

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Recent Indiana raffle legislation changes (2025 and beyond)

Indiana's charity gaming rules don't stay static. Two significant changes are reshaping how nonprofits need to think about their raffle operations — one already in effect, one on the horizon.

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HB 1043 (2025): Contest-Based Raffles Now Explicitly Covered

Indiana House Bill 1043 became law in 2025 and directly addresses a growing gray area: raffles where participants answer a trivia question or complete a simple task as part of the entry process. These "contest-based raffles" had become popular with nonprofits running digital campaigns, with the assumption that a skill element might remove the event from raffle statute jurisdiction.

HB 1043 closes that door. If a random drawing ultimately determines the winner, the event is classified as a raffle under IC 4-32.3 — regardless of any skill component in the entry process. The practical impact: nonprofits that have been running quiz-style ticket entry events without a license may now be out of compliance. If your organization uses any entry mechanism beyond "purchase a ticket," review your event structure against the updated statute before your next event.

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Administrative Rule 68-25-645: Electronic Raffle Software Systems

The 2026 administrative rule update (68 25-645) is an important development for nonprofits interested in modernizing their raffle operations. This rule establishes the framework for electronic raffle software systems, creating a pathway for IGC-approved digital tools to manage raffle ticket tracking, sales records, and drawing processes — while keeping the actual transaction and drawing in-person as required by current law.

This doesn't mean online ticket sales are coming. Indiana law still requires that ticket purchases and drawings happen in person. What it does mean is that IGC-approved software can handle the backend — ticket numbering, ledger tracking, winner selection — in a way that satisfies the commission's record-keeping requirements. Organizations that currently manage all of this manually should watch for IGC guidance on approved systems as this rule takes effect.

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What to Watch

The IGC updates its guidance documents as rules evolve. Bookmark the Indiana Gaming Commission's charity gaming page and check back before each new raffle season. If you're running any kind of non-traditional raffle format — digital entry, hybrid events, or prize structures that push against the limits — it's worth a quick call or live chat with the IGC to confirm your event is still within bounds.

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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.

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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.

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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.

• For raffles conducted as part of another allowable event, per IC 4-32.2-5-18, the total prize value for raffle prizes awarded at that event cannot exceed $5,000. This is a raffle-specific cap distinct from the $15,000 limit, which applies to pull tab, punchboard, and tip board games — not raffles themselves. Don't conflate the two: if you're running a straight raffle (not pull tabs), the $5,000 per-event prize cap is the one that applies when your raffle is held alongside another licensed activity.

• 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.

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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.

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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.

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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.

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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

• Live chat a state agent

• Email the state information center

• Give them a call at 1-800-457-8283

• Text at 1-888-311-1846

• Double-check that both your presiding officer and secretary have signed the application.

• Create a compliance calendar with reminders for submission dates.

• Review the application status to prevent last-minute hiccups on a regular basis to avoid fees.

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Compliance pitfall: Throwing raffle proceeds into your general account or not tracking expenses

Stay risk-free: Proper financial management is crucial for accountability and compliance:

• Open a dedicated charity gaming checking account exclusively for raffle proceeds.

• Maintain meticulous records, including bank statements and receipts, and retain them for at least three years.

• Conduct regular audits and financial reviews to identify discrepancies early.

• Implement digital accounting tools or spreadsheets to streamline record-keeping.

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Compliance pitfall: Letting anyone sell tickets

Stay risk-free: To maintain compliance:

• Only authorized members, volunteer ticket agents, or designated employees should handle ticket sales.

• For school raffles, under-18 sellers must adhere to specific guidelines.

• Establish a training program to educate sellers on proper protocols.

• Provide identification badges for easy verification.

• Keep a log of ticket distributors and their assigned ticket numbers.

• Regularly monitor sales activities to prevent unauthorized handling.

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Compliance pitfall: Going overboard with prizes

Stay risk-free: Prize limits are strictly regulated, so staying within the $599 individual prize cap and the applicable total prize limit is essential:

• Apply for special permission in advance if offering higher-value prizes.

• Remember that if your raffle is held alongside another licensed activity, the total raffle prize value at that event cannot exceed $5,000 per IC 4-32.2-5-18 — separate from the $15,000 cap that applies to pull tab, punchboard, and tip board games.

• Maintain an inventory of prizes with their estimated values.

• Document prize distribution, including winner information and prize values.

• Ensure compliance while providing transparency to donors and participants.

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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.

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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.

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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 zero-fee raffle software — trusted by more than 100,000 nonprofits who have raised over $2 billion on the platform — 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.

Download the checklist free.

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Indiana raffle FAQs

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