Is the selling of raffle tickets allowed and legal?

Some states and credit card companies have various rules and regulations on raffles. Read this before going live.

Anca avatar
Written by Anca
Updated over a week ago

Selling raffle tickets online has become a popular way to raise money for your event, cause, and just bring some excitement to a typical event. We recommend using Webconnex's sister-product, TicketSpice. TicketSpice currently allows you to create a raffle ticket level type that issues raffle tickets with raffle numbers on them for you to do your own drawing. Read this article on how to setup and use raffle ticket types in TicketSpice.

BUT ... before you go on sale selling raffle tickets to win an all-expenses paid trip to see the world's largest collection of belly button lint, you should be sure to check 2 important things.

1: Check State and Local Rules for Online Raffles

The first thing to research is making sure your state or city allows you to sell raffles online. Some states allow you sell raffle tickets, but not online. Other states allow you to sell raffle tickets online but you must be a federally recognized charity. Yet others require you to get authorization to engage in raffles. Bottom line, do your research before going on sale and determine if you can sell raffle tickets at all, and if so, if they can be sold online.

2: Check Your Payment Processor Terms of Service

The second important aspect in determining if you can sell raffle tickets online is to check with your payment processor. The various payment processors have specific rules and regulations against certain activities and rules so be sure to check their terms of service and look for raffles. If you are using Webconnex Payments, our preferred payment processor, selling raffle tickets are not prohibited from their terms of service.

Clear those two hurdles by contacting local authorities and your payment processor and then you should be good to go using raffles safely and legally with TicketSpice. Good luck!

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