New York Raffle Laws for Nonprofits 2026: Licensing, Ticket Sales & Drawing Rules

Raffles can be a useful fundraising tool for nonprofits, giving supporters a chance to win a prize while helping an organization raise money for its programs and charitable work.

If you're planning a raffle in New York, the first thing to understand is that the rules depend in part on how much net revenue your raffles generate. New York has different registration, licensing and reporting requirements depending on the net proceeds from an individual raffle and the organization's total net raffle proceeds during the calendar year.

There are also specific rules for where raffle tickets can be sold, how long tickets can be offered before a drawing, what prizes can be awarded and how drawings must be conducted.

Online raffle ticket sales have an additional layer of regulation. An organization that wants to sell raffle tickets through the Internet or a mobile device must obtain approval from the New York State Gaming Commission before offering tickets through that platform. The Commission's current application requires the approval process to begin at least 60 days before online sales start.

And while New York permits approved online ticket sales, the raffle drawing itself cannot occur electronically.

This guide explains the New York raffle rules nonprofits need to know, including who can conduct a raffle, when registration or licensing is required, ticket and prize restrictions, local requirements, online ticket sales and what to consider when using raffle technology.

Important: This guide summarises New York State law and official New York State Gaming Commission guidance. Local requirements can also apply, particularly when tickets are sold or a drawing is conducted outside the organization's premises. Confirm the current requirements with the Gaming Commission and relevant local authority before selling raffle tickets.

Planning a New York raffle? Start here.

Who can conduct a raffle?

New York permits certain organizations to conduct raffles as charitable games of chance. The organization must qualify as an authorized organization under New York law and must generally be domiciled in New York.

Eligible organizations include qualifying bona fide:

• religious organizations;
• charitable organizations;
• educational organizations;
• fraternal organizations;
• service organizations;
• veterans' organizations; and
• volunteer firefighter and volunteer ambulance organizations.

The organization must operate without profit to its members and cannot have been formed primarily to conduct games of chance. It must also devote at least 75% of its activities to purposes other than conducting games of chance. Political parties are not treated as authorized organizations for these purposes.

For the general authorized-organization definition, the organization must have engaged in serving one or more lawful purposes for three years immediately before applying for a licence. The small-raffle exemption has its own eligibility conditions, so organizations relying on that exemption should check the specific statutory requirements rather than assuming that any newly formed nonprofit qualifies.

Why eligibility matters

Being a nonprofit does not automatically mean an organization can conduct a New York raffle. Confirm your organization's status before investing time in ticketing, prizes or promotion.

Which registration or licence do you need?

New York's most important distinction is the amount of net proceeds generated by your raffle activity.

Less than $5,000 in net proceeds

An organization may qualify for an exemption from state licensing, registration and certain financial reporting requirements when its net proceeds from a raffle are less than $5,000 and it remains below the applicable annual threshold for the small-raffle exemption.

The exemption does not remove the need to be an eligible organization or comply with other applicable raffle rules. Organizations relying on the exemption should also remember that financial and recordkeeping obligations under other applicable laws can still apply.

$5,000 or more in net proceeds

Once a raffle falls outside the small-raffle exemption, additional filing and identification requirements apply. An organization conducting raffles in this category must obtain a Games of Chance Identification Number and file the required verified statement with the municipal clerk and Gaming Commission.

$30,000 or more in cumulative annual net raffle proceeds

When an organization's cumulative net raffle proceeds reach or exceed $30,000, the licensing and reporting requirements become more substantial. The organization must obtain the required Games of Chance Identification Number and Games of Chance License and meet the applicable financial reporting requirements.

For licensed raffles, the organization uses the Form GC-7R Financial Statement of Raffle Operations for the required financial reporting. The applicable filing deadlines and fees should be checked against the current Commission requirements.

Why the thresholds matter

Don't choose a raffle licence based only on the expected ticket sales. New York's rules focus on net proceeds, so the organization's expenses and cumulative raffle activity can affect which requirements apply.

If you're planning several raffles during the year, look at the organization's expected annual net raffle proceeds as well as the proceeds from the individual raffle.

Ticket sales and local requirements

New York imposes several rules on how raffle tickets are sold, including limits on the sales period and restrictions on where tickets can be sold.

Tickets cannot be sold more than 180 days before the drawing

Raffle tickets generally cannot be sold more than 180 days before the date scheduled for the drawing of the last ticket in the raffle.

Plan your sales period around the scheduled drawing date rather than opening ticket sales too early.

Purchasers must be at least 18

New York's raffle rules require purchasers to be at least 18 years old. People selling tickets and people conducting or assisting with a drawing are also subject to age requirements.

Ticket sales outside your organization's premises

Where you sell tickets matters. New York law provides rules for sales outside the organization's premises and in other municipalities. In some circumstances, the organization must notify the Commission in advance so affected municipalities have an opportunity to object. The current regulations specify a 45-day notification period for certain sales or drawings outside the organization's premises.

This means a raffle that is otherwise properly licensed may still require additional planning if tickets will be sold at another location.

Ticket pricing

New York's regulations generally require raffle tickets to be sold at a uniform price per ticket, subject to the permitted exception for discounts based on the selling price per book of tickets.

Check the applicable licence and local requirements before finalising ticket pricing or multi-ticket discounts.

Raffle prize limits

New York sets maximum values for raffle prizes.

The general limits are:

• $300,000 for a single raffle prize;
• $500,000 in total prizes within one raffle series; and
• $3 million in aggregate raffle prizes during a licence period.

Certain prizes are also prohibited, including alcoholic beverages, real estate, stocks, bonds, other securities and evidence of indebtedness.

If you're offering merchandise as a prize, its value is generally based on its fair market value at the relevant application or verified-statement stage.

Before advertising a high-value or unusual prize, confirm that it is permitted and that its value fits within the applicable limits.

Can raffle tickets be sold online in New York?

Yes, but online raffle ticket sales are specifically regulated.

Any authorized organization that wants to sell raffle tickets through the Internet or a mobile device must first obtain the required Games of Chance Identification Number and Commission approval for the specific raffle. The Gaming Commission's current application says it must be filed and approved not less than 60 days before tickets are offered for sale through the platform. The application is required for each raffle for which Internet or mobile ticket sales are proposed.

The online sales system must also satisfy detailed requirements around location, age, account creation, privacy, security and self-exclusion.

Purchasers must be in New York

The regulations require the purchaser to be physically located in New York at the time of purchase. The server or other electronic equipment that initiates the sale and accepts the purchase request must also be located in a New York municipality where the sale is authorised. The platform must block attempts to purchase from outside New York.

Purchasers need an account

Before purchasing an online raffle ticket, the purchaser must establish a raffle-ticket account with the authorized organization. The account must include specified information, including the purchaser's legal name, date of birth, address, email address, telephone number and a unique account number.

Age and self-exclusion controls are required

The organization must have procedures to prevent people under 18 from purchasing tickets and must ensure that people on the Commission's self-exclusion list cannot purchase raffle tickets through the online platform. The application also requires procedures addressing privacy and protection of personal information.

Online sales cannot simply be delegated to a platform

New York's regulations state that an authorized organization cannot outsource or otherwise delegate the conduct of a raffle through the Internet or mobile device to another person or entity, including a third-party fundraising entity.

That makes the contractual and operational relationship between the nonprofit and its technology provider particularly important.

What happens at the raffle drawing?

New York treats online ticket sales and winner selection as separate issues.

The drawing cannot be electronic

A raffle drawing may not occur electronically. The Gaming Commission's Internet/Mobile Raffle Ticket Sales Application expressly states this, and the Commission's regulations require raffle drawings to be conducted openly and in plain view of ticket purchasers present.

So, approving an online ticket-sales system does not give an organization permission to select the winning ticket using an electronic random-number generator or another electronic drawing system.

The organization should follow the drawing method described in its raffle documentation and applicable Commission and local requirements.

The winner does not have to be present

New York's raffle guidance does not generally require the winning ticket holder to be present at the drawing. The organization should have a clear process for verifying and contacting the winner and complying with the applicable rules for the particular raffle.

Using online raffle software

If you're considering raffle software (like GalaBid), think of the platform as one part of a regulated sales system rather than as a substitute for the organization's compliance responsibilities.

The organization remains responsible

The nonprofit must obtain the required Commission approval and remain responsible for the online raffle process. A platform cannot simply take over the conduct of the raffle on the organization's behalf.

The platform needs to support New York's requirements

The proposed system needs to support requirements including:

• New York geolocation;
• age verification and controls for under-18 users;
• purchaser accounts;
• privacy and information-security procedures; and
• self-exclusion controls.

Check supplier licensing

New York also requires a supplier of software, platforms or electronic equipment designed to enable an authorized organization to conduct an Internet or mobile raffle to apply for a Games of Chance Supplier License.

If you're evaluating a third-party platform, ask how it meets these requirements and confirm the supplier's licensing position before committing to the technology.

The drawing is a separate process

Even where the platform is used for approved online ticket sales, it should not be used to conduct an electronic raffle drawing.

Records and use of proceeds

New York requires raffle proceeds to be used for the lawful purposes of the authorized organization.

Organizations should keep accurate records of raffle receipts, expenses, prizes and net proceeds and complete the financial statements or verified statements required for their particular raffle category.

For licensed raffles, the Form GC-7R Financial Statement of Raffle Operations is used for the applicable financial reporting. The Commission's regulations also contain record-retention requirements for raffle and games-of-chance records, so organizations should check the current rules that apply to their licence rather than assuming that the same retention period applies to every type of record.

If your organization expects its annual raffle proceeds to approach the $30,000 threshold, keep especially careful records so you can determine when additional licensing and reporting obligations arise.

New York raffle compliance checklist

Before selling raffle tickets, work through the following steps:

1. Confirm your organization is eligible

Make sure the organization qualifies as an authorized organization and meets the applicable operating-period and other requirements.

2. Estimate your net proceeds

Consider both the expected net proceeds from the individual raffle and the organization's cumulative net raffle proceeds for the calendar year.

3. Determine the registration or licence required

Check whether the raffle qualifies for the small-raffle exemption or whether you need a Games of Chance Identification Number, Games of Chance License and the associated filings.

4. Check local requirements

Confirm where tickets may be sold and whether advance notice or municipal requirements apply to sales or drawings outside the organization's premises.

5. Set your ticket-sales period

Make sure tickets are not offered more than 180 days before the scheduled drawing.

6. Check the prizes

Confirm that the prize values are within New York's limits and that the prizes themselves are permitted.

7. Plan online sales early

If tickets will be sold through a website or mobile device, begin the Gaming Commission approval process well before launch. The current application requires approval at least 60 days before online ticket sales begin.

8. Check your technology provider

Make sure the proposed platform can support New York's online requirements and determine whether the supplier requires a Games of Chance Supplier License.

9. Keep the drawing separate from online ticket sales

Remember that approved online ticket sales do not permit electronic winner selection. The raffle drawing cannot occur electronically.

10. Keep accurate records

Maintain the financial and operational records required for your raffle and complete all applicable filings by their deadlines.

Official New York raffle resources

The New York State Gaming Commission is the primary source for current raffle requirements and guidance.

New York's statutory framework is contained in General Municipal Law Article 9-A.

The bottom line

New York allows eligible nonprofits to conduct raffles, but the rules are driven by the organization's eligibility, raffle proceeds, location and sales method.

Before selling tickets, confirm:

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If you're planning an online raffle, start the approval process early. The Gaming Commission requires approval for Internet and mobile ticket sales and the current application requires that approval at least 60 days before tickets are offered for sale. The online system must also address New York location, age, account, privacy, security and self-exclusion requirements.

Most importantly, online ticket sales do not mean electronic winner selection is allowed. New York permits approved Internet and mobile raffle-ticket sales, but the raffle drawing itself may not occur electronically.

This article summarises New York State law and official New York State Gaming Commission guidance reviewed in August 2026. It is provided for general informational purposes and is not legal advice. Raffle requirements can vary depending on the organization, raffle category, location and sales method and may change. Confirm the current requirements with the New York State Gaming Commission and relevant local authority before selling raffle tickets.

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