In the great state of Michigan any organization that holds a raffle has to apply for a license, even non-profit. The fee is usually around $50.00. What I have done for our soccer league is apply for it through the state's gaming and license division. You must give them a specific date of the raffle including time and place. You must also have your license number printed on the tickets. After your raffle you have two weeks to submit a form to the state that list the numbers on the tickets and who those tickets were given to, in addition how many were unsold/not returned. We did have a computer raffle at our school a few years back and did not know we had to obtain a license luckily the state did not find out....but after our raffle our principal (who was all for it) was told by our superintendant that raffles were against district policy (games of chance and all that). In most instances the state lets any organization hold raffles (as long as they get their fee) it is however usually the school districts who do not allow it.
From what I was told if you have a raffle you have to be licensed. I know of one school that got the licensing for it and every year they have had an audit.
I think many schools just call it a Door Prize drawing. For example at the carnival for every so many tickets purchased you can give one door prize ticket but if they want to increase their chances of winning they will have to pay for it.
Maybe we ought to look into this more. :confused:
<blockquote>quote:</font><hr>Originally posted by kwtorres: We are prohibited from doing raffles or "games of chance." So we are giving away "door Prizes" at our carnival. Each student gets a free entry, that must be brought to the Carnival. Extra entries are $1. I can't say if this will work for you, but we think it helps.<hr></blockquote>
Once you have to pay for an extra entry doesn't that make it a raffle? That was my understanding that is whay it is so confusing to me.
We are prohibited from doing raffles or "games of chance." So we are giving away "door Prizes" at our carnival. Each student gets a free entry, that must be brought to the Carnival. Extra entries are $1. I can't say if this will work for you, but we think it helps.
In Connecticut, raffles are considered gambling and are strictly regulated. (they are games of chance, and you're spending a little money in hopes of getting something bigger) 50/50s are also considered gambling. We picked up the paperwork at the local police department, but it seemed like too much effort and we decided to do an auction. I know the schools in our town that do large basket raffles make huge amounts of money, they are very popular.
In many states there is an out available by offering a free chance. In some places this is referred to as an "opportunity drawing".
We have a raffle type event at our carnival. Somewhere in the catalog is a statement that it is not necessary to make a donation to participate, and that any adult may obtain a ticket by requesting one in person at the ticket sales booth the night of the event. The wording makes it clear that one free chance is available per person. I do not believe that we have ever had anybody request one.
