Illinois Nonprofit Raffle Rules: Local Licensing and Online Ticket Sales

Raffles can be a fun and effective way for nonprofits to raise money. Whether you're fundraising for a community program, supporting a charitable cause or running a raffle alongside a larger fundraising event, selling chances to win a prize gives supporters another way to get involved while helping generate funds for your organization.

If you're planning a raffle in Illinois, there are some important rules to understand before you start selling tickets. Illinois does not have one statewide raffle licence. Instead, raffles are generally licensed by the municipality or county responsible for the location where the winning chance is determined.

That means the rules that apply to your raffle can depend on where it is licensed. Local authorities may set requirements around ticket prices, prize values, sales periods and other aspects of how the raffle is run. Online ticket sales can also be subject to local restrictions.

The good news is that the process becomes much easier to navigate once you know what to look for. First, establish whether your organization is eligible to run a raffle. Then identify where the winning chance will be determined, find the relevant licensing authority and check its local rules before applying for a licence.

If you want to sell raffle tickets online, there is one additional step: confirm with the licensing authority that your proposed online sales model is permitted before you open sales.

This guide explains the Illinois raffle rules nonprofits need to know, including who can run a raffle, where to apply for a licence, how ticket and prize limits work, what the rules mean for online ticket sales and how third-party raffle platforms can fit into the process.

Important: This guide summarises Illinois state law and selected local government requirements. Local raffle rules can vary, so always confirm the current requirements with the authority responsible for licensing your raffle before selling tickets.

Planning an Illinois raffle? Start here.

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Who can conduct a raffle?

The Illinois Raffles and Poker Runs Act allows qualifying organizations to conduct raffles. Eligible organizations include bona fide:

• charitable organizations
• religious organizations
• educational organizations
• fraternal organizations
• veterans' organizations
• labour organizations
• business organizations
• other bona fide nonprofit organizations that operate without profit to their members.

For the general categories of eligible organizations, the Act requires the organization to have existed continuously for five years immediately before applying and to have been engaged in carrying out its objects throughout that period.

There are some exceptions. For example, a local organization affiliated with and chartered by a qualifying national or state organization may be eligible for a waiver of the five-year requirement.

The Act also provides separate eligibility routes for certain nonprofit organizations conducting hardship-related fundraising, as well as qualifying law-enforcement and fire-protection organizations.

A quick explanation of "raffle chance"

You may see Illinois law use the term raffle chance rather than simply "raffle ticket."

In practical terms, a raffle chance is the opportunity or entry purchased by a participant that may be selected as the winning chance.

Where should an organization apply?

The first thing to work out is where your raffle will be licensed.

Illinois uses the term key location for the location where the winning chances in a raffle are determined.

Once you know the key location, you can work out which local authority you need to apply to:

• If the key location is within a municipality that has jurisdiction over raffle licensing, you generally apply to that municipality.
• If no municipality has jurisdiction over the key location, the relevant county may be the licensing authority.

This distinction is important because the place where you sell raffle chances isn't necessarily the place where you determine the winning chance.

A raffle cannot be conducted without first obtaining the required licence.

What information will the application require?

The exact application process depends on the local licensing authority. The Illinois Act requires information including:

• the location or locations where winning chances will be determined;
• the period during which raffle chances will be sold or issued; and
• the time or times when winning chances will be determined.

The application must also include a sworn statement confirming the organization's not-for-profit character, signed by its presiding officer and secretary.

A licence can cover one raffle or a specified number of raffles during a period of no more than one year.

The local governing body must act on a raffle licence application within 30 days of the application date.

Key term: licensing authority

The licensing authority is the municipality or county responsible for licensing your raffle based on its key location.

Ticket sales and prize limits

Once properly licensed, an organization can sell raffle chances throughout Illinois, including outside the municipality or county that issued the licence.

But selling raffle chances across the state doesn't mean every raffle operates under the same rules.

Local governments can establish their own raffle requirements and operating conditions. Depending on the jurisdiction, these may address:

• maximum ticket prices;
• individual prize values;
• total prize values;
• how long tickets can be sold; and
• other conditions for conducting the raffle.

The winning chances must still be determined at the location or locations specified on the licence.

Why does this matter?

Imagine your nonprofit's raffle is licensed by a municipality in Illinois, but supporters from across the state want to participate.

Your licence may allow you to sell raffle chances to people outside the municipality. However, your organization still needs to follow the conditions of the licence and any applicable local rules.

In simple terms:

Where you sell the raffle chance and where the winning chance is determined are two different questions.

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Can raffle tickets be sold online in Illinois?

Don't assume that online raffle ticket sales are automatically permitted.

The Illinois Raffles and Poker Runs Act does not create one statewide rule that expressly authorises or prohibits every type of online raffle-ticket sale.

The Act does state that a raffle licence authorises the licensee to sell raffle chances throughout Illinois. It also allows licensed organizations to use third parties for certain services, including website hosting and payment processing. However, those provisions should not be treated as blanket permission to sell raffle tickets online in every Illinois jurisdiction.

Local licensing authorities can impose additional requirements or restrictions, and those rules can differ. For example, Kane County expressly states that online sales of raffle tickets are not allowed under a Kane County raffle licence. Its guidance also tells applicants to check with the municipality that has jurisdiction over the raffle's key location.

Other local authorities have addressed online raffles differently. The Village of Hampshire, for example, specifically provides information about raffle licensing and online raffles in its local guidance.

Why can online raffles be more complicated?

Selling a raffle ticket online involves more than simply putting a ticket-buying form on your website.

The licensing authority may need to consider how:

• raffle chances are issued;
• payments are accepted;
• participants are identified or verified;
• the raffle is conducted;
• winning chances are determined; and
• the online system fits within the conditions of the raffle licence.

That's why a nonprofit shouldn't assume that being allowed to sell raffle chances throughout Illinois automatically means it can sell those chances online.

What should you do before opening online sales?

Ask the licensing authority first.

Explain exactly how you intend to run the online raffle and ask whether the proposed arrangement is permitted under the applicable local rules and licence.

Where possible, get the answer in writing and keep it with your raffle records.

Who can manage the raffle?

Your organization needs to remain in control of how the raffle is managed.

The Act requires the raffle to operate under the supervision of a raffle manager designated by the sponsoring organization.

Only a bona fide director, officer, employee or member of the sponsoring organization may manage or participate in managing the raffle. People involved in managing the raffle cannot receive remuneration or profit for doing so.

The raffle manager is also subject to the fidelity bond requirements set out in the Act and applicable local rules. The local governing body may provide for the bond requirement to be waived, subject to the conditions set out in the Act.

Can a third party help run the raffle?

Yes - but there's an important distinction between providing supporting services and managing the raffle.

Illinois law allows a sponsoring organization to contract with third parties for bona fide services provided under the organization's direction and supervision.

The Act specifically identifies services including:

• advertising, marketing and promotion;
• legal services;
• prize and merchandise procurement;
• accounting, auditing and bookkeeping;
• website hosting;
• mailing and delivery; and
• banking and payment processing.

Reasonable compensation can be paid for these services.

In simple terms:

A platform can provide technology and other supporting services, but your organization still needs to remain responsible for managing and supervising the raffle.

Using online raffle software

If you're considering an online raffle platform (like GalaBid), Illinois law specifically recognises website hosting and payment processing as examples of services a sponsoring organization can obtain from third parties.

But this is separate from the question of whether your particular licensing authority permits online raffle sales.

There are therefore two things to check.

1. Does your licensing authority allow online sales?

Review the local rules and licence conditions. If you're unsure, ask the authority responsible for your raffle before opening online sales.

2. Is the platform providing supporting services rather than taking over raffle management?

Your organization must retain the required management and supervision of the raffle.

The platform can provide technology and other permitted services, but it should not be treated as independently conducting or managing the raffle on your organization's behalf.

The key distinction is between the technology used to support a raffle and the legal responsibility for managing the raffle.

Records and use of proceeds

Running a raffle doesn't end when the winning chance is determined. Illinois also has requirements around how raffle money is handled and how records are maintained.

The entire net proceeds of the raffle must be used for the lawful purposes of the sponsoring organization.

Raffle receipts must be kept separate from the organization's other revenue.

Your organization should maintain records showing the raffle's:

• receipts;
• expenses;
• prizes;
• net proceeds; and
• distributions.

The Illinois Raffles and Poker Runs Act requires these records to be maintained for three years. The organization must also report the raffle's results to its membership or governing board and provide the required information to the local licensing authority.

Local rules may include additional reporting or recordkeeping requirements, so check the conditions that apply to your particular licence.

How to check whether your raffle can be sold online

Planning an online raffle in Illinois? Work through these steps before selling any raffle chances.

1. Check that your organization is eligible

Make sure your organization meets the Illinois eligibility requirements, including the applicable five-year requirement or any relevant exception.

2. Identify your key location

Where will the winning chance be determined?

This is the key location used to establish licensing jurisdiction.

3. Find your licensing authority

Determine whether the municipality or county has jurisdiction over that location.

4. Check the local rules

Don't stop at the Illinois statute. Review the local ordinance, application requirements and licence conditions.

Look specifically for rules covering:

• ticket prices;
• prizes;
• sales periods;
• drawing procedures; and
• online sales.

5. Ask about your online sales model

If you want to sell tickets through a website or fundraising platform, explain how the process will work and ask the licensing authority whether it is permitted.

6. Confirm how your platform will be used

Make sure the platform is providing permitted supporting services under your organization's direction and supervision, rather than taking over management of the raffle.

7. Get your licence before selling

Don't open raffle sales until the required licence has been obtained and you've confirmed that your proposed sales process complies with the applicable rules.

Official Illinois raffle resources

The Illinois General Assembly's Raffles and Poker Runs Act is the primary source for the statewide legal framework.

Illinois General Assembly — Raffles and Poker Runs Act

For local requirements, check the government authority responsible for your raffle's key location. Examples include:

Kane County Clerk — Raffles and Poker Runs

Village of Hampshire — Raffle Licences

City of Chicago — Raffle Licensing

The bottom line

Illinois allows qualifying nonprofits to run raffles, but there isn't one statewide licence that covers every raffle.

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If you're planning to sell raffle tickets online, don't rely on a general assumption that online sales are allowed in Illinois. Check with the authority licensing your raffle and confirm that your specific sales and drawing process is permitted.

This article summarises Illinois state law and selected official local-government guidance reviewed in August 2026. It is provided for general informational purposes and is not legal advice. Raffle requirements can vary by local jurisdiction and may change. Confirm the current requirements, including any restrictions on online sales, with the municipality or county responsible for licensing your raffle before selling raffle chances.

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