NJ Raffle Laws for Nonprofit: Are Raffles Legal in NJ? [2024]

Nonprofit organizations, fundraisers, and event planners can host raffles in New Jersey as a highly effective way to raise money. However, several rules and processes must be followed to remain compliant with NJ raffle laws.

The New Jersey Legalized Games of Chance Control Commission (LGCCC) regulates raffles in the state and offers guidance for running one for qualified nonprofits.

We’ve created this go-to resource to share everything you need to know in one place. 

‍

Read on to learn:

• The legal regulations governing raffles in the state of New Jersey
• The process and cost to obtain a nonprofit raffle license in NJ
• Steps to plan and organize a successful and compliant fundraising raffle 

‍

Are raffles legal in New Jersey? 

Raffles are legal in New Jersey and regulated by the LGCCC to determine aspects like:

• The type of raffles permitted
• The frequency of raffles that can take place
• The nonprofit organizations that are eligible to run raffles
• The process and fees to obtain a raffle license

‍

The legislation surrounding raffles and other games of chance may also differ by municipality. It is always a good idea to check local rules based on where you plan to host your raffle.

‍

Read the complete guide - US raffle rules by state: Legal guidelines for nonprofits and 501(c)3

How to legally run a raffle in NJ

Nonprofit organizations need to apply for qualification before obtaining a raffle license in New Jersey. The state commission and municipality where the raffle will take place require applications. 

If your nonprofit is qualified, you can obtain a valid NJ gaming license number for up to a year to host raffles.

‍

How to apply for a raffle license as a nonprofit

Here's what you'll need for the state commission application:

• A non-refundable registration fee of $100
• A copy of your nonprofit constitution and bylaws
• A list of names, addresses, and ages for all members of your organization (must have a minimum of five members)
• A copy of your articles of incorporation filed with the Secretary of State (if incorporated)
• Designation of an active member under whose control the raffle will be conducted, including a statement that they will be responsible for the conduct of the game 

‍

Qualified organizations typically include:

• Associations of US war veterans
• Churches and religious organizations
• Charitable organizations
• Educational and fraternal organizations
• Civic and service clubs
• Senior citizen associations and clubs
• Officially recognized volunteer fire companies, first aid, or rescue squads

‍

How to do a raffle: 9 easy steps for fundraisers

‍

Specific raffle rules for nonprofits in NJ

Once you’ve completed the application process, you'll want to review specific raffle rules to stay compliant. 

‍

A few NJ rules and logistics to be aware of include:

• Documentation: The state will need specific details of raffle operations, including receipts, net proceeds, and expenses. You must track how you use all money received and a list of prizes awarded to file a report of operations.
• Report of operations: The designated organization member responsible for your raffle (as listed on your application) must file a report of operations by the 15th day of the calendar month directly following the month you host the raffle.
• Prize limits: There are limits on what can be won, including a cap on prize value of $100,000 for a single raffle. The total retail value of prizes awarded for raffles over 12 months is also capped at $500,000.
• Fines and penalties: Any violations of the bingo and raffles licensing laws in NJ can result in a fine of up to $7,500 for a first offense. A second offense can increase that fine to up to $15,000. 

‍

Are 50/50 raffles legal in NJ?

A 50/50 raffle is legal in New Jersey. The League of Municipalities sets specific NJ 50/50 raffle laws to stay aware of to make sure you have a smooth fundraising experience.

‍

Here's what to know about on-premise 50/50 raffles:

• You can only sell tickets on the day of the drawing date.
• There is a fee of $20 if the total retail value of your prize(s) exceeds $400.
• You can host up to six in a week.
• A sample ticket is not required.

‍

Here's what to know about off-premise 50/50 raffles:

• You can sell tickets before the drawing date.
• A $20 fee is due upfront when you obtain your license and an additional $20 for every thousand dollars raised.
• You can host up to once a month.
• You must submit a sample ticket for review before using any printed tickets.

‍

Get the ultimate guide to 50/50 raffles for fundraisers 

‍

Raffle takeaways from a successful nonprofit

Preparing to host a fully compliant fundraiser can be time-consuming as you get started, but it usually pays off. Nonprofits see incredible results from hosting fundraising raffles, from donor acquisition and retention to crushing their donation goals.

New Jersey Raffle FAQs 

Are raffles illegal in New Jersey?

Raffles are legal in New Jersey and a great fundraising idea for nonprofits. The New Jersey Legalized Games of Chance Control Commission regulates and governs all raffles, processes, and licensing information.

‍

Can you host an online raffle in NJ?

Selling tickets online is not allowed for New Jersey nonprofits, though residents have continued to push for updated legislation.

Zeffy's free raffle solution can't be used to sell raffle tickets. However, it can still support charities in a big way, including:

• Tracking raffle ticket sales for your NJ report of operations following the event
• Tracking participants and prize information
• Maintaining contact information to simplify future outreach and donor relationships

How much is a raffle license in NJ?

A raffle license in NJ is typically $20. Additional fees may be due based on the type of raffle:

• Calendar raffle: $20.00 for each $1,000 of the total prize value
• Instant Raffle Game: $20.00 for each day instant raffle tickets are sold or offered for sale, or $750.00 for a one-year license
• Non-Draw Raffle: $20.00 for each game or wheel held on any one day or  series of consecutive days
• Off Premises 50-50 Raffle: $20.00 for each day on which a drawing(s) is held
• On-Premises 50/50 Draw Raffle: $20.00 each day a drawing(s) is held only if the anticipated prize is more than $400.00. Otherwise, there is no license fee.
• Off Premises Merchandise Draw Raffle: $20.00 for each $1,000 or part of the total retail value of the prize(s)
•  On-Premises Merchandise Draw Raffle: $20.00 each day a drawing(s) is held, only if the anticipated retail value of the merchandise prize(s) is more than $400.00. Otherwise, there is no license fee.

‍

What is the legal difference between a raffle and a drawing?

The legal difference between a raffle and a drawing is how they are regulated. Both are legal in New Jersey; however, a drawing is considered a sweepstakes and is subject to different rules and legislation.

‍

Can you sell raffle tickets online in NJ?

You cannot sell raffle tickets online in NJ as a charitable organization. A bill passed in 2021 states that raffles can however be held remotely if the organization verifies that each participant’s physical location is within a municipality that has authorized the conduct of bingos and raffles.

‍

How do I report an illegal raffle in NJ?

You can report an illegal raffle in NJ by submitting a report to the Legalized Games of Chance Control Commission. You have a few options, including:

• Mail your report to Legalized Games of Chance Control Commission, P.O. Box 46000, Newark, New Jersey 07101
• Email your report to [email protected]

‍

Read the full instructions for filing the raffle report of operations.