Verdict: Are raffles legal in Alabama? No. Paid raffles are barred outright, so the two questions that follow it, selling tickets online and selling them in person by card, do not arise here: there is no lawful raffle ticket to sell through any channel. The prohibition is constitutional (Alabama Constitution, art. IV 65), not a licensing gap, so no permit exists to obtain and no county workaround applies to paid raffles.
What works in Alabama: Free-entry drawings and door prizes (no purchase required), ticketed events, donation drives, peer-to-peer campaigns, memberships, and online store sales.
What doesn't work: Selling raffle tickets, "suggested donation" for entry, or any paid drawing dressed up as a giveaway. Consideration + chance + prize equals a lottery under Alabama law.
Best for: Small Alabama nonprofits that came here looking for a raffle template and need a lawful, higher-yield swap they can run this quarter.
Worth considering if: Your org sits in an adjacent state (Georgia, Mississippi, Tennessee, Florida) where nonprofit raffles are permitted with a license. Jump to your state's row in the full 50-state raffle law guide.
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Paid raffles are unlawful for nonprofits in Alabama. That's not a licensing gap you can permit your way out of. It's a constitutional bar written into Article IV, Section 65 of the Alabama Constitution, and reinforced by the state's criminal code at Ala. Code 13A-12-20 et seq.
If you landed here looking for a permit form or a workaround, there isn't one. The good news: the fundraising moves that actually raise money for a small Alabama nonprofit this quarter (a ticketed event with a free door-prize drawing, a peer-to-peer campaign, a matched donation appeal) are all lawful and, on Zeffy, cost $0.
Are raffles legal in Alabama?
No. Under Alabama law, a paid raffle is a "scheme in the nature of a lottery," and lotteries are prohibited.
The prohibition sits in the state Constitution. Article IV, Section 65 states: "The legislature shall have no power to authorize lotteries or gift enterprises for any purposes, and shall pass laws to prohibit the sale in this state of lottery or gift enterprise tickets, or tickets in any scheme in the nature of a lottery."
The statutory prohibitions live in Ala. Code 13A-12-20 et seq. Section 13A-12-20 defines the terms (gambling, lottery, player, profits from gambling activity). The actual criminal offenses begin at 13A-12-21.
Alabama is one of five U.S. states with no state lottery, alongside Alaska, Hawaii, Nevada, and Utah. (Mississippi launched a state lottery in 2019 under the Alyce G. Clarke Mississippi Lottery Law, so any older list that groups Mississippi with Alabama is out of date.)
A note on local bingo: Alabama has ratified a series of local constitutional amendments permitting charitable bingo in specific counties. Those amendments cover bingo only. They do not extend to raffles, and there is no county-level workaround for a paid raffle anywhere in Alabama.
For a small Alabama nonprofit: the answer is settled. You cannot lawfully sell raffle tickets in Alabama, online or offline, and no state or county permit exists that would change that. Spend your volunteer hours on the alternatives below.
Why is a raffle considered a lottery?
Under U.S. law, a lottery requires all three of these elements: prize, chance, and consideration. A raffle typically has all three. Someone pays for a ticket (consideration), a winner is drawn at random (chance), and the winner receives something of value (prize).
A raffle is legal for your nonprofit only because your state created an exemption. Without that exemption, it's an illegal lottery. Alabama has not created an exemption for nonprofit raffles, so the default rule applies.
Renaming the event a "drawing," a "giveaway," or a "door prize" does not change the analysis if someone still has to pay to enter. What matters is whether the "consideration" element is present.
Why are lotteries prohibited in Alabama?
The prohibition dates to the 1901 state Constitution and has been repeatedly reaffirmed by Alabama voters. Changing it requires a constitutional amendment ratified by statewide vote, not a bill or a county ordinance.
Under Ala. Code 13A-12-20, an unlawful lottery meets these criteria:
- Players pay or agree to pay something of value for chances, which are represented and differentiated by numbers, combinations of numbers, or some other determinant.
- A drawing or another luck-based method determines the winning chances.
- The holders of the winning chances receive something of value.
A paid nonprofit raffle meets all three.
Alabama raffle laws your nonprofit should know
The relevant definitions in Ala. Code 13A-12-20 apply directly to nonprofit fundraising activity. If your event has all of these elements, it is a lottery under Alabama law regardless of who benefits from the proceeds.
- Gambling is any time an individual risks or bets something they value in exchange for participation in a contest of chance for gains outside their control. Buying a raffle ticket falls under this definition.
- Players are people who engage in gambling without a guarantee of profit outside of their winnings. Raffle ticket buyers are players.
- Profits from gambling activity are any money or property accepted from gambling by players. A nonprofit that sells raffle tickets is receiving profits from gambling activity, even if 100% of the proceeds fund the mission.
The criminal offenses start at 13A-12-21 (promoting gambling) and 13A-12-22 (possession of a gambling device). Small Alabama nonprofits should treat any paid drawing as criminally exposed until a constitutional amendment changes the law.
Statutory silence on charitable exemption: the code does not carve out a "charitable" exception for raffles. Where the statute is silent, the default rule (prohibition) applies. Do not read a nonprofit exemption into the code that is not there.
For a small Alabama nonprofit: the operational takeaway is simple. No paid raffle, no "suggested donation" for entry, no "buy a ticket and be entered to win." If money changes hands to enter a drawing, it's a lottery under Alabama law.
Alabama gambling legislation: what happened in 2024
Conversations about legalizing gambling in Alabama have surfaced repeatedly, most notably in 1999 and again in the 2024 session. Any article you read that describes a pending bill "heading to the Senate" is describing history, not a live process.
In February 2024, the Alabama House of Representatives passed a legislative package that would have established a state lottery, casino gambling, and sports wagering, subject to voter approval of a constitutional amendment. The package moved to the Alabama Senate, where the effort stalled. Alabama voters were not given a chance to ratify a gambling amendment in 2024.
As of 2026, no legalization of raffles, lotteries, or casino gambling has taken effect in Alabama. The constitutional prohibition in Article IV, Section 65 remains in force, and no amendment has been ratified. Any future change would require a legislative package passing both chambers and a statewide vote.
For a small Alabama nonprofit: plan your 2026 and 2027 fundraising calendar as if the ban is permanent, because for practical purposes it is. Do not build a campaign that depends on a legalization vote that has not been scheduled.
Who can host a raffle in the United States?
Raffles are legal for nonprofits in 47 of 50 states, but rules vary widely by state. Alabama is one of the states that ban them outright at the constitutional level. Utah and Hawaii are the other two full-ban states.
In states that permit nonprofit raffles, the state government typically sets:
- The types of organizations that can host raffles (usually 501(c)(3) or similar charitable status)
- The purposes for which raffle proceeds can be used
- Registration or licensing requirements
- The number of raffles that can be held each year
- Ticket price and prize value caps
- Reporting and withholding requirements
If your organization operates in more than one state, or you serve donors across state lines, check the rules for each state where you plan to sell tickets before you launch. See the full 50-state raffle law guide for the state-by-state summary. Always confirm the current rule with your state charity regulator before you sell a ticket, since permit rules can change between sessions.
Lawful fundraising alternatives for Alabama nonprofits
A drawing or giveaway that accepts no money from participants is lawful in Alabama, because it removes the "consideration" element of a lottery. That's the swap most Alabama nonprofits actually need.
Beyond free-entry drawings, several fundraising activities raise equivalent dollars without the criminal exposure of a paid raffle:
- Ticketed events with a free door-prize drawing. Attendees pay a set admission price for the event itself. Every attendee is automatically entered in the door-prize drawing at no additional cost. No purchase required to enter the drawing = no consideration = not a lottery.
- Peer-to-peer campaigns. Your board members, volunteers, and supporters set up personal fundraising pages and ask their networks to give. This is the community-mobilization play that a raffle is usually trying to substitute for, and it typically raises more per volunteer hour.
- Memberships. Convert one-time donors into a recurring revenue stream with tiered membership levels, renewal reminders, and member-only perks.
- Online store sales. Sell merchandise, event add-ons, or sponsored items directly from your site. The buyer receives the item, so it's a sale, not a chance.
- Online and mobile donation drives. A mobile-friendly donation page shared through QR codes, social posts, and email is often the highest-yield play a small nonprofit can run in a single quarter, especially paired with a matching gift.
For a small Alabama nonprofit: the ticketed event with a free door-prize drawing is usually the closest one-for-one swap for a raffle. It preserves the "come out and support us, and you might win something" energy without triggering the lottery statutes.
Can you use Zeffy to run online raffles in Alabama?
Are raffles legal in Alabama? No. Can you sell raffle tickets online, or in person by card? Neither question arises. Alabama bars the paid drawing itself, not a channel or a payment method, so there is no lawful raffle ticket here for any of them to carry. The rest of this section is about the other ways your nonprofit can raise money on Zeffy.
Paid raffles are unlawful in Alabama under Article IV, Section 65 of the state Constitution, and Zeffy cannot be used to sell raffle chances in Alabama. This applies to online sales, in-person sales, and any hybrid where donors pay to enter a drawing.
What you can still run is the event. Ticket the night, keep the door-prize drawing free to enter, and supporters get the same reason to turn up without anyone paying for a chance. More than 100K+ nonprofits use Zeffy to raise money, $2B+ raised to date. Here is what Zeffy does for the Alabama version, all at no cost:
- Ticket the event, and keep the drawing free to enter. Sell admission with free event ticketing, e-tickets and door check-in included. Supporters pay to attend, the door-prize drawing costs nothing to enter, and nobody is buying a chance. That is the closest lawful stand-in for a paid raffle in Alabama.
- Recording paper admission tickets. If you sold admission at the door on the night, log those sales in Zeffy so your donor records and receipts stay in one place. Admission tickets are not raffle chances, so this is not the offline raffle sale Alabama prohibits.
- Peer-to-peer campaigns. Give your board and volunteers personal pages so they can "sponsor me" fundraise for your cause.
- Memberships. Tiered pricing, renewal reminders, and a members tab that tracks active, expiring, and lapsed members.
- Supporter email from the dashboard. Send appeals, thank-yous, and event invites to segmented donor lists, with open and click stats, using the free built-in donor CRM.
Zeffy is the only 100% free fundraising platform for nonprofits. No platform fee, no transaction fee, no credit card fee. Ever. For questions about your specific situation, consult an Alabama attorney.
Is there a way to host a raffle without registering with the government?
In Alabama, no. Paid raffles are unlawful under Article IV, Section 65 of the state Constitution and Ala. Code 13A-12-20 et seq., and no registration process exists because no permit exists. Selling raffle tickets exposes your organization to prosecution under the state's gambling statutes. In states that permit nonprofit raffles, some allow small raffles under a threshold without registration, but rules vary. See the raffle laws by state guide for your jurisdiction.
What's the difference between a raffle and a drawing?
The difference is whether entry requires payment. A raffle requires someone to pay for a ticket to be entered. A drawing does not require a monetary contribution. In Alabama, a drawing that accepts no money in any form from participants is permitted, because it removes the "consideration" element of a lottery. If any payment is required, expected, or implied to enter, the activity is a lottery under Alabama law.
What is the difference between a raffle and a giveaway?
The difference is the exchange of money for participation. A raffle requires someone to purchase a ticket to win a prize. A giveaway does not. A giveaway typically asks participants to fill out a form, engage on social media, or complete a non-monetary challenge. Because there is no consideration, a true giveaway is not a lottery and is lawful in Alabama.
Does a raffle count as gambling?
Yes, under Alabama law. Ala. Code 13A-12-20 defines gambling as risking or betting something of value in exchange for participation in a contest of chance for gains outside the player's control. Buying a raffle ticket meets that definition. A paid raffle is also a "scheme in the nature of a lottery" under Article IV, Section 65 of the state Constitution.
Can nonprofits give prizes?
Yes. Alabama's prohibition targets the paid-entry element, not the prize itself. Your nonprofit can lawfully award prizes for a free-entry drawing, a giveaway, a social media challenge, or a door-prize drawing tied to a paid-admission event where no additional purchase is required to be entered.
Are nonprofit raffles tax deductible?
Ticket payments for a nonprofit raffle are not tax deductible for the buyer, because the buyer receives a chance to win a prize in exchange for the payment. In states where nonprofit raffles are lawful, the IRS also requires the organization to withhold federal income tax on prize payouts above certain thresholds. Per the IRS Instructions for Forms W-2G and 5754 (Rev. January 2026), the withholding rate on gambling winnings of $5,000 or more is 24% under IRC 3402(q). This has been the rate since the 2017 Tax Cuts and Jobs Act. Older sources that cite 25% are out of date. Where the organization pays the withholding on a noncash prize rather than deducting it from the winner's proceeds, the withholding rate is higher (the tax is calculated on a "grossed-up" basis). See the IRS Instructions for Forms W-2G and 5754 for the specific calculation. None of this applies in Alabama, because paid nonprofit raffles are unlawful and cannot be run in the state. It matters if you operate raffles in another state where they are permitted.
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