How to run a raffle online: The Complete 2026 Step-by-Step Guide

Running an online raffle can be one of the fastest and most effective ways for nonprofits, PTAs, clubs and community groups to raise money — but only if you understand the rules, choose the right platform, and know what it really costs.

This guide breaks down the legal requirements, the must-have features every online raffle platform should offer, and the true costs involved so you can run a successful and compliant fundraiser in 2025.

What are Online Raffles?

Online raffles are digital or virtual versions of traditional raffles where participants purchase tickets for a chance to win a prize. These raffles are typically hosted by nonprofits, schools, or other organizations as a way to raise funds for a specific cause. Participants can purchase tickets online and the winner is chosen through a randomized online draw.

Online raffles offer several advantages over traditional paper raffles. One key benefit is the convenience they provide to both organizers and participants. With online raffles, organisers can reach a wider audience and sell tickets more easily, as participants can purchase tickets from anywhere with an internet connection.

Benefits of Running an Online Raffle

Running an online raffle offers several benefits compared to other fundraising options like live auctions or donation drives. Here are some key advantages:

• Wider Reach: Online raffles allow organizations to reach a wider audience beyond their local community. Participants can easily purchase tickets from anywhere with an internet connection, making it more accessible for people who may not be able to attend in-person events like live auctions.
• Accessibility: Online raffle tickets tend to have a lower price point compared with online auctions. They offer supporters a great, affordable way to contribute to a cause.
• Cost-Effectiveness: Compared to organizing live events such as charity gala auctions, online raffles are more cost-effective. There are no venue rental fees, catering costs, or other expenses associated with hosting a physical event. This cost savings can result in higher returns for the organization.
• Convenience for Participants: Online raffles offer convenience for participants as they can buy tickets at any time from the comfort of their own homes. This convenience factor can lead to increased participation and ticket sales compared to traditional fundraising methods. In addition, online raffle tickets can also be sold in person. Instead of receiving paper tickets the purchasers simply receive their online tickets via email or text message.
• Engaging Experience: Online raffles provide an engaging experience for participants through the excitement of potentially winning a prize. The gamified aspect of raffles can attract more participants and create a buzz around the fundraising event.

Online raffles offer a modern and efficient way to raise funds while engaging a broader audience and providing a seamless experience for both organizers and purchasers.

‍

How do Online Raffles Work?

Online raffles work by using a secure online platform to sell tickets and to draw the winners. The fundraiser hosting the raffle will set a specific number of tickets to be sold and a deadline for ticket sales.

Selling and promoting online raffle tickets is crucial for the success of an online raffle. As with any promotion, the key is to leverage all channels available from social media to text message and email. Targeted communications will inform potential participants about the raffle, its prizes, and how to purchase tickets online. By leveraging all communication channels, organisers can effectively promote the to a wider audience and increase ticket sales, encouraging more people to participate, ultimately boosting fundraising efforts.

Once the ticket sales deadline is reached, the online raffle platform will randomly select a winner from the pool of purchased tickets. The winner will then be notified and the prize will be awarded.

‍

Example Online Raffle Fundraisers

Here are some examples of fundraisers that may benefit from hosting an online raffle:

- Schools and Educational Institutions: Schools can use online raffles to raise funds for educational programs, extracurricular activities, or facility improvements. Parents, teachers, and students can participate in the raffle to support their school community.

- Nonprofit Organizations: Nonprofits often rely on fundraising events to support their charitable missions. Hosting an online raffle can help nonprofits raise funds for specific projects, initiatives, or ongoing operational expenses.

- Sports Teams and Clubs: Amateur sports teams, youth clubs, or recreational leagues can use online raffles to raise money for equipment, uniforms, travel expenses, or tournament fees. Players, coaches, and supporters can participate in the raffle to support their team.

- Community Groups: Local community organizations, such as neighborhood associations, cultural groups, or environmental clubs, can benefit from hosting online raffles to fund community events, initiatives, or charitable causes that benefit the local area.

- Healthcare Institutions: Hospitals, medical clinics, or healthcare foundations can organize online raffles to raise funds for medical research, patient care programs, or medical equipment purchases. Healthcare professionals, patients, and supporters can participate in the raffle to contribute to improving healthcare services.

- Animal Shelters and Rescue Organizations: Animal welfare groups can use online raffles to raise funds for animal care, adoption programs, veterinary services, or shelter improvements. Animal lovers, pet owners, and advocates can participate in the raffle to support the well-being of animals in need.

- Arts and Cultural Organizations: Museums, theaters, art galleries, or cultural centers can host online raffles to raise funds for exhibitions, performances, educational programs, or preservation projects. Art enthusiasts, patrons, and supporters of the arts can participate in the raffle to help sustain cultural institutions.

By expanding the use of online raffles to a diverse range of fundraisers, organizations can leverage this digital fundraising strategy to engage supporters, raise funds, and achieve their fundraising goals effectively.

‍

Raffles and Local Legislation

Before hosting an online raffle, it is crucial to ensure that raffles are legal to run in your area and you are eligible to run one. In almost all cases individuals and for profit organizations are not permitted to run a raffle.

It's essential to check the laws and regulations to ensure compliance. Raffles are often considered gambling and regulations can significantly vary by jurisdiction.

For example, raffles are legal in Nevada and Kansas, but not in Alabama and Hawaii.

By understanding and complying with local laws, organizations can avoid potential penalties or consequences.

‍

Key features to look for in an online raffle platform

When choosing an online raffle platform, there are a few key features to look for to ensure a successful and secure raffle.

1. Secure payment processing

The platform should have secure payment processing to protect both the organization and the participants. Look for platforms that use SSL encryption and have a secure payment gateway.

A secure payment gateway ensures that financial transactions are encrypted and safeguarded against potential cyber threats, such as fraud or data breaches. By providing a secure payment processing system, online raffle platforms can build trust with participants, encourage more ticket sales, and ultimately contribute to the overall success and credibility of the raffle event.

As an example, GalaBid uses Stripe as its payment gateway. Stripe is known for its secure payment processing, offering SSL encryption and ensuring the protection of both the organization and the participants' financial information.

2. Customizable ticket options

In order to provide a more personalized experience for users, the platform should have a variety of customizable ticket options available.

This typically includes offering different ticket package prices in addition to an individual ticket price. By offering these multiple ticket packages, fundraisers can boost tickets sales and ultimately funds raised for the cause.

3. Easy ticket purchasing process

The process of purchasing raffle tickets online should be designed to be as intuitive and easy to use as possible, ensuring that users can quickly and efficiently navigate the system without encountering any unnecessary complications or obstacles.

By prioritizing user-friendliness and simplicity in the design of the online ticket purchasing process, organizers can maximize participation and engagement while also enhancing the overall experience for participants.

From selecting tickets and making a payment, every step of the process should be carefully streamlined and optimized to minimize friction and ensure a seamless experience.

Look for platforms that allow for easy ticket purchases through a variety of payment methods, such as Apple Pay and Google Pay.

4. Social media integration

Social media integration can help increase the reach of the raffle and attract more participants.

Organizations can utilize platforms like TikTok to create engaging videos showcasing the prizes, behind-the-scenes of the raffle, or testimonials from previous winners.

Sharing raffle details on Facebook, Instagram, and Twitter can also help reach a wider audience and increase participation. Encouraging participants to share the raffle on their social media accounts can create a viral effect and attract more entries.

‍

Paid vs. free options

There are both paid and free options for hosting online raffles. Paid options typically offer more features and customization options, but may come with a monthly or per-transaction fee. Free options may have limited features, but can still be a great option for smaller organizations or those on a tight budget.

Paid Raffle Platform

Some key points to consider for paid platforms for your online raffle:

Benefits:

1. Enhanced Features: Paid raffle platforms often offer a wider range of features and customization options compared to free platforms. These features can include advanced ticketing options including the ability to sell online raffle tickets in person.
2. Professionalism: Using a paid platform can add a level of professionalism to your raffle, which may increase trust among participants and donors.
3. Customer Support: Paid platforms typically provide dedicated customer support to assist you with any technical issues or questions that may arise during the raffle process.
4. Marketing Tools: Some paid platforms offer built-in marketing tools to help you promote your raffle more effectively and reach a larger audience.

Drawbacks:

1. Cost: The most obvious drawback of using a paid raffle platform is the cost involved. Depending on the platform, you may have to pay a monthly subscription fee or a fee per transaction, or a software license fee which can eat into your fundraising profits.
2. Complexity: Paid platforms may have more features and therefore a steeper learning curve compared to free options, requiring more time and effort to set up and manage effectively.
3. Limited Budget: For organizations with limited budgets, the cost of a paid platform may not be feasible, making free options a more attractive choice.
4. Overkill for Small Raffles: If you are hosting a small-scale raffle with minimal requirements, a paid platform with advanced features may be unnecessary and overly complex.

‍

Free Raffle Platform

Some key points to consider for paid platforms for your online raffle:

Benefits:

1. Cost-Effective: One of the most significant advantages of using a free raffle platform is that it doesn't involve any upfront costs or ongoing fees, making it a budget-friendly option for organizations with limited financial resources.
2. Quick Setup: Free raffle platforms often have a simple and straightforward setup process, allowing you to create and launch your raffle in a shorter amount of time compared to paid platforms.
3. Accessibility: Free platforms can be accessible to a wider range of organizations, including small nonprofits, schools, or community groups, enabling them to host raffles without financial barriers.
4. Basic Functionality: While free platforms may have fewer features than paid options, they still provide essential functionalities for hosting an online raffle, such as ticket creation, payment processing, online draw, and winner notifications.

Drawbacks:

1. Limited Features: Free raffle platforms may lack advanced features and customization options that are available in paid platforms, potentially restricting your ability to tailor the raffle experience to your specific needs.
2. Support: Compared to paid platforms that offer dedicated customer support, free platforms may have limited or no customer service, which could be challenging if you encounter technical issues or need assistance.
3. Security Concerns: Some free platforms may have less robust security measures in place, increasing the risk of data breaches or fraudulent activities during the raffle process.
4. Branding and Ads: Free platforms may display their branding or third-party advertisements on your raffle page, which could detract from your organization's branding and professionalism.
   ‍

GalaBid's Online Raffle Platform

GalaBid's online raffle platform is a comprehensive solution for hosting successful online raffles.

With over 100 features, GalaBid offers both paid and free options to cater to the needs of different organizations. The platform provides extensive support to free and paid online raffles through  videos and live chat, ensuring that users can easily navigate and utilize all the features available.

Additionally, GalaBid ensures secure payment processing through a reliable gateway like Stripe, giving participants peace of mind when making transactions.

‍

In Summary

Online raffles are a great way for nonprofits to raise funds and for individuals to win prizes. When choosing an online raffle platform to raise funds for your cause, be sure to look for secure payment processing, customizable ticket options, and easy ticket purchasing processes. Consider both paid and free options to find the best fit for your organization. With the right platform, you can host a successful and profitable online raffle. Have you ever participated in an online raffle? Share your experience in the comments below.

‍

FAQ

Who can run a raffle?

In most cases only qualifying nonprofits or charitable organizations. Individuals and for profit companies are not permitted to run raffles in most jurisdictions.

How can I check the rules that apply in my area?

Look up your state’s “charitable gaming” or “raffle licensing” authority—typically the State Gaming Commission, Attorney General’s Charitable Law Division, or Department of Revenue/Consumer Protection—and contact them directly.
In the Uk contact the Gambling Commission

Which US states are raffles banned?

Alabama, Utah and Hawaii (at the time of writing - November 2025)

What is the alternative if I'm not legally permitted to run a raffle?

Many fundraisers raising funds for good causes find a prize draw is a suitable alternative?

What are the must have features an online raffle or prize draw platform should include?

Here's a quick checklist : Automated distribution of tickets, ability to create ticket packages, an easy and secure way for purchasers to pay, a visually appealing way to showcase prizes, t's and c's etc, a built in draw powered by a certified random number generator, a visual display to show the draw in real time, detailed reporting.

How much does it cost to run an online raffle?

Costs typically include use of the software and transaction fees. These costs/ fees can be covered by Platforms or ticket purchasers making the online raffle free to the fundraiser.

‍
‍