Indiana Raffle Laws (2026): Free Guide for Nonprofits

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Table of contents

• Diving in: Indiana 501(c)(3) nonprofit 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?

• Raffle laws to be aware of in Indiana

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

• Can you use Zeffy to run online raffles in Indiana?

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Diving in: Indiana 501(c)(3) nonprofit raffle operations

Nonprofit raffles are a popular fundraising activity that is easy for almost anyone to join. That makes them a great fit for 501(c)(3) nonprofits eligible to host raffles in Indiana, both for attracting new supporters and for retaining donors.

Planning your raffle as a standalone campaign or as part of a larger fundraising event can take real effort. Compliance with the Indiana Gaming Commission is one of the most critical pieces.

Knowing which raffle laws apply and how to comply lets you maximize your return and avoid fines.

For a small Indiana nonprofit: a raffle is worth running if you have been in continuous operation for five years and can execute in person. If you are newer than that, or you were counting on online ticket sales, keep reading before you commit budget.

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Requirements for conducting a raffle in Indiana

Only qualified organizations with a presence 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 go to the nonprofit's stated purposes on dissolution.

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Who regulates raffles in Indiana?

The Indiana Gaming Commission regulates raffles and enforces the rules that protect the public. Raffles are legal in Indiana when they follow Licensed Charity Gaming rules, which we cover in full below.

Raffle permit requirements

There are a few steps to host a raffle in Indiana. The first is to fill out a Qualification Application.

Have these details ready for a license qualification application:

• Your name and address: the applicant's details for identification and contact.

• Contact information for all officers: phone numbers and email addresses for the people managing the raffle.

• The activity you want to conduct: raffle, bingo, or another charitable gaming activity.

• Raffle location: the exact venue.

• Raffle date and time: the scheduled date and duration.

From there, you can apply for the license that fits your organization and events:

• Annual Activity License: for organizations that host charity gaming activities regularly through the year. Valid for 12 months.

• Single Activity License: for organizations that host a charity gaming activity once in a while. Valid for one day and one time frame.

• Festival License: for organizations that host multiple charitable gaming activities on more than one day. Valid for up to five consecutive days at one location.

• Convention Raffle License: for organizations outside Indiana that want to conduct raffle activities at a convention. Location approval comes from the executive director.

All applications are 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 do not need an Indiana raffle license. You will need to submit an Exempt Activity Notification form instead.

For a small Indiana nonprofit: if your prize pool realistically stays under $2,500 per event, file the Exempt Activity Notification and skip the license fee entirely. It is the cheapest legal path.

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

Understanding why the rules exist, and exactly where they come from, 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 that govern 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. IC 4-32.3 replaced the older IC 4-32.2 code effective July 1, 2019. If you see older references to IC 4-32.2 online, they are out of date. Key sections your organization needs to know:

IC 4-32.3-2-33 is where Indiana defines a raffle. In plain terms, a raffle is the selling of tickets or chances to win a prize awarded through a random drawing, including a door prize. This definition matters: if your event turns on skill rather than a random drawing, it may fall outside raffle statutes, and outside raffle licensing.

License requirement. A qualified organization must obtain a license from the IGC before conducting a raffle, unless a specific exemption applies. Operating without one is not just a civil matter. It can result in criminal charges under IC 4-32.3-10.

License fees. Per the current IGC fee schedule:

• Single Activity license: $25 per event

• Festival license: $25 to $150, depending on the number of activities

• 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. Confirm the current fee on the IGC's charity gaming forms page before you file.

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Who qualifies as a "qualified organization"

Not every nonprofit automatically qualifies to conduct a raffle. Under IC 4-32.3-2-31, a qualified organization must have been in continuous existence in Indiana for at least five years, and must be 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. See our 501(c)(3) raffle laws by state guide if you operate in more than one state.

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Exempt activity threshold

Not every raffle requires a full license. Under IC 4-32.3-4-3, raffles where the total prize value does not exceed $2,500 per event (or $7,500 annually) and proceeds are used entirely for charitable purposes may qualify for an exemption. These events require only an Exempt Activity Notification (IGC form CG-EN) rather than a full license application. This threshold matches the TL;DR, requirements, and FAQ sections below.

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2025 legislative update: electronic payment for raffles (IC 4-32.3-5-23)

Since July 1, 2025, under IC 4-32.3-5-23 and Indiana Gaming Commission guidance, a qualified organization may take credit card payment for a raffle chance face to face or over the internet. But only under two hard conditions:

• 1. The Commission must approve the specific electronic payment application before any transactions take place.

• 2. An online sales platform must use a geo-verification service supplied by an IGC casino supplier licensee, to confirm buyers are inside Indiana.

Zeffy does not offer IGC-licensed geo-verification. Confirm with the Commission in writing before you attempt to sell online.

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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. This table covers the provisions that affect most Indiana nonprofit raffles.

For a small Indiana nonprofit: the statute map above is the whole legal picture you actually need. Save it, share it with your board, and stop worrying that you missed something obscure.

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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 does not 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 do not have to file a separate application each time.

For a small Indiana nonprofit: unless you plan more than six raffles a year, the Single Activity license at $25 is the right starting point. Do not overbuy.

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Who qualifies as a "qualified organization" in Indiana?

The statutes above establish the five-year rule. 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 4-32.3-2-31, the following organization types can apply for a raffle license, provided they've been operating in Indiana for at least five years without a gap:

• 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 fits one of these categories but has not reached the five-year mark, you cannot apply for a standard license. There is no workaround. Your options are to wait until you have 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. The qualifying organization would need to hold the license and keep full oversight.

One other thing to check: "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 are not sure whether your organization's history qualifies, reach out to the IGC before you apply.

For a small Indiana nonprofit: if you are under five years old, the exempt threshold path (prizes at or under $2,500 per event) is the only compliant option. Do not try to work around the five-year rule.

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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 only to qualified organizations as defined by IC 4-32.3-2-31. 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. That exception 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 is a different legal framework and requires 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 cannot hold the license or control the funds.

The bottom line: Indiana's charity gaming framework is built around protecting the public and making sure 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.

For a small Indiana nonprofit or a supporter: a business or individual cannot run the raffle, but they can sponsor prizes, donate to your nonprofit, or help sell tickets in person. That is the right lane.

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Raffle laws to be aware of in Indiana

For all license types, stay aware of the current rules as you raise funds. We broke them down below.

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Ticket sales and handling

• Raffles cannot be conducted over the internet as a practical matter, so tickets can't be purchased online and you cannot determine winners online. You can still promote the raffle online and record offline ticket sales in your own tools.

• Only members of the organization, paid employees, volunteer ticket agents, and 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, absent the IC 4-32.3-5-23 two-condition path above).

• 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, the total prize value for raffle prizes at that event is capped separately by IGC guidance. This raffle-specific cap is distinct from the $15,000 limit, which applies to pull tab, punchboard, and tip board games, not to raffles themselves. Check the IGC's Charity Gaming Basics guidance for the current figure before you plan a combined event.

• Alcohol prizes are allowed if they are in sealed bottles or cases intended for off-premises consumption, and the winner and prize distributor are at least 21 years old.

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Compliance and reporting

• Organizations must keep ledgers for ticket sales, including 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 keep control of unsold tickets and retain detailed sales records.

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Key takeaway for this section: the ticket, prize, reporting, and security rules above apply across all license types. Miss any one of them and you risk fines, license suspension, or a forced event shutdown.

For a small Indiana nonprofit: the 10-day post-event financial report is the deadline most groups miss. Put it on the calendar the day you file for the license.

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

The rules seem simple enough. Still, you might wonder how organizations get into trouble with Indiana raffle laws.

Below are common compliance pitfalls to avoid and tips for a successful raffle that does not leave you on the hook for thousands of dollars in penalties.

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Pitfall: Forgetting to get the right license

Stay risk-free: imagine you're all set to host a major charity raffle, only to find out you don't have the right license. That can lead to hefty fines or even event cancellation. To avoid it:

• Identify the right license type for your event (Annual, Single Activity, Festival, or Convention) and check with the Indiana Gaming Commission 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 regularly to avoid last-minute hiccups and fees.

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

Stay risk-free: proper financial management is crucial:

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

• Keep meticulous records, including bank statements and receipts, for at least three years.

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

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

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Pitfall: Letting anyone sell tickets

Stay risk-free:

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

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

• Set up 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.

• Monitor sales activities regularly to prevent unauthorized handling.

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Pitfall: Going overboard with prizes

Stay risk-free: prize limits are strictly regulated. Stay within the $599 individual prize cap and the applicable total prize limit:

• Apply for special permission in advance if you plan to offer higher-value prizes.

• If your raffle is held alongside another licensed activity, confirm the current raffle-specific prize cap with the IGC before finalizing prizes. It is separate from the $15,000 cap that applies to pull tab, punchboard, and tip board games.

• Keep an inventory of prizes with their estimated values.

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

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Pitfall: Selling raffle tickets or drawing winners online

Stay risk-free: social media is great for promotion, but Indiana law generally requires ticket sales and drawings to happen in person:

• Use online platforms (your nonprofit website, email, or social media) to build excitement and direct buyers to physical locations.

• For virtual fundraising events, consider hybrid options where ticket purchases and the drawing happen offline, but winners are announced via live stream.

• Use digital tools for engagement while sticking to the legal requirements.

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Pitfall: Missing the 10-day deadline for financial reports

Stay risk-free: finish your raffle strong. Do not lose it at the reporting deadline.

• Designate a person or team to own the post-raffle reporting.

• Set internal deadlines ahead of the official 10-day requirement so you have review time.

• Update your financial records during the event to avoid missing details.

• Once you set your raffle date, mark your calendar early so you have plenty of time to comply within the 10-day window.

For a small Indiana nonprofit: the pitfalls above are the exact ones the IGC audits for. Nail these six, and your compliance risk drops to near zero.

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Can you use Zeffy to run online raffles in Indiana?

Plain answer: no, not right now. Indiana prohibits online raffle ticket sales as a practical matter. Since July 1, 2025, IC 4-32.3-5-23 conditionally allows credit card raffle payments online, but only if (1) the Indiana Gaming Commission has pre-approved the specific electronic payment application AND (2) the platform uses geo-verification supplied by an IGC casino-supplier licensee. Zeffy does not offer IGC-licensed geo-verification, so Zeffy's raffle product cannot be used to sell raffle tickets online in Indiana.

There is no winner-drawing step inside a Zeffy raffle checkout. We do publish a free online raffle generator on our blog, separate from the raffle form, so it sits outside the sales flow. It is a free tool rather than an IGC-approved drawing system, so check any drawing method against the Commission's rules before you use it.

While you can't use Zeffy's free raffle solution to sell tickets online in Indiana, you can use it to simplify reporting requirements and run the fundraising around your compliant in-person raffle. Promote online, transact offline.

Here's what Zeffy CAN do for an Indiana nonprofit's compliant in-person raffle:

• Recording your in-person raffle ticket sales. Indiana's lawful raffle happens face to face, so the part Zeffy carries is the record. Log every ticket sold at the table in Zeffy's free donor CRM, so the buyer, the ticket number and the amount stay together and your Indiana Gaming Commission reporting is an export rather than a reconstruction.

• Free event ticketing for the gala or dinner where the in-person drawing happens.

• Free donation forms for the general fundraiser around the raffle. This covers the fundraising that isn't gated by charity gaming statutes.

• Peer-to-peer campaigns so supporters can promote the raffle-adjacent fundraiser online, even when ticket sales must be face to face.

• Free newsletter and email tools for participant updates, drawing announcements, and post-raffle follow-ups.

• Sell raffle tickets face to face and take a card for them. IC 4-32.3-5-23(c) permits a qualified organization to accept credit card payment for a chance to enter a raffle when the payment is made face to face, and Tap to Pay turns a phone into a zero-fee card reader. One condition applies first: the IGC must approve your specific electronic payment processing application "prior to making any transactions". The geo-verification requirement people worry about applies only if you use an online sales platform, not to a face-to-face sale.

• Participant segmentation afterwards. Tag ticket buyers, track giving history alongside raffle activity, and pull the list you need for the follow-up appeal.

Zeffy is used and loved by 100K+ nonprofits who have raised $2B+ on the platform. No platform fee, no transaction fee, no credit card fee. Ever.

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Frequently Asked Questions - Indiana Raffle Laws

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