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Nonprofit organizations, fundraisers, and event planners can host raffles in New Jersey as a highly effective way to raise money. However, several raffle rules and processes must be followed to remain compliant with NJ 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.
Raffles are legal in New Jersey and regulated by the LGCCC to determine aspects like:
Types of raffles permitted: Includes 50/50 raffles, merchandise raffles, and calendar raffles.
Frequency of raffles: There are limits on how many raffles can be conducted.
Eligible nonprofits: Only qualified organizations can apply for a bingo or raffle license (more on this below)
Process and licensing fees: Specific fees apply depending on the type of raffle.
Tip: Local regulations may also apply, so it’s essential to check municipal rules in addition to state laws.
"New Jersey allows certain types of gaming by specific types of non-profit organizations. There are detailed licensing procedures that must be followed, as well as special restrictions on how the proceeds derived from permitted games of chance may be used." - The Legalized Games of Chance Control Commission
The following raffle types are permitted in New Jersey:
Traditional raffles: Tickets sold for a chance to win a predetermined prize.
50/50 raffles: Half of the proceeds go to the winner, and the other half goes to the nonprofit.
Calendar raffles: Participants enter to win prizes drawn on specific dates.
Merchandise raffles: Prizes include tangible items like electronics or gift baskets.
Instant raffle games: $20 per day or $750 for a one-year license
Nonprofit organizations need to apply for qualification before obtaining a bingo or 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
Step 1: Obtain a registration and identification number
Before you can apply for a municipal raffle license, you’ll need to register with the Legalized Games of Chance Control Commission (LGCCC) . Think of this as your first official step to making your raffle legit.
Required documentation:
A completed application form
A $100 biennial registration fee (waived for senior citizen organizations)
A copy of your nonprofit’s constitution and bylaws
A list of members’ names, addresses, and ages
Articles of incorporation filed with the NJ Secretary of State (if applicable)
Once approved, your identification number is valid for two years. Just make sure to renew it if you plan to keep hosting raffles after that.
Step 2: Confirm nonprofit eligibility
Not every organization can legally host a raffle, so it’s important to double-check that your nonprofit is on the approved list. You’re good to go if your organization fits into one of these categories:
Associations of U.S. war veterans
Churches and religious organizations
Charitable, educational, and fraternal organizations
Civic and service clubs
Senior citizen associations and clubs
Officially recognized volunteer fire companies and first aid or rescue squads
For-profit organizations can’t conduct raffles, even if they’re partnering with a nonprofit, so be mindful of that restriction.
Step 3: Pay the application fee
Once you’ve confirmed your eligibility, it’s time to submit the non-refundable registration fee. The base fee is $100, but additional fees may apply depending on the type of raffle you’re hosting:
Calendar raffles: $20 for every $1,000 of total merchandise or cash prize value
Instant raffles: $20 per day or $750 for a one-year license
Off premise raffle (50/50): $20 for every $1,000 raised
On premise raffle (50/50): $20 per drawing if the anticipated prize exceeds $400
Be sure to calculate these costs carefully so there are no surprises later.
Step 4: Apply for a municipal bingo or raffle license
Once you have your registration identification number from the LGCCC, you’ll need to apply for a license with the municipal clerk's office where the raffle will be held.
Municipal bingo or raffle license application requirements:
The identification number issued by the LGCCC
A detailed description of the gaming activity
A sample ticket, if applicable
The name of an active member who will oversee the raffle
After submitting your application, expect a review period of 14 to 30 days. During this time, you’re not allowed to advertise your raffle or sell tickets, so it’s best to plan ahead and give yourself plenty of time before your event.
This final step ensures that your raffle remains compliant and that all proceeds are accounted for. It’s a good idea to mark this deadline on your calendar so you don’t miss it.
Misconceptions about NJ raffles & tips for compliance
Responsive Table
Common misconception
NJ raffle legal considerations
Online raffles are allowed
Selling raffle tickets online is prohibited in New Jersey. While legislation to change this is ongoing, organizations must stick to in-person or mail-in ticket sales.
Any nonprofit can host a raffle
Only certain qualified organizations can apply for a raffle license. For-profit organizations cannot participate, even when partnering with a nonprofit.
Any prize is valid
The following prizes are prohibited:
- real estate
- bonds
- shares of stock
- securities or evidences of indebtness
- weapons
- live animals
- foreign or domestic coins
- tobacco products
- motor vehicle leases
Prizes can be changed after approval
Any changes to the prize structure or raffle conditions must be reported and approved by the LGCCC prior to the event.
Raffle proceeds can be used for any purpose
Proceeds must be used strictly for the charitable purpose outlined in the application. Misuse of funds can lead to license revocation and penalties.
Municipal approval is optional
Even after obtaining an LGCCC registration number, municipalities must approve the raffle before any tickets can be sold or advertised.
There’s no limit on prize value
Raffles must adhere to prize limits ($100,000 max prize value per drawing raffle, $500 per non-drawing raffle, and no more than $500,000 in aggregate prizes within 12 months).
Consequences of legal violations
Violations of NJ raffle laws can result in serious penalties, including:
Fines: Up to $7,500 for a first offense and up to $15,000 for a second offense.
License suspension: Loss of eligibility to conduct future raffles.
Legal action: Potential civil or criminal liability for fraudulent practices.
"A violation of the bingo and raffles licensing laws or regulations carries a fine of up to $7,500 for a first offense and up to $15,000 for the second and each subsequent offense. In addition, the Commission is authorized to order restitution to an aggrieved party."- The Legalized Games of Chance Control Commission
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 cash, service, or merchandise prize information
Maintaining contact information to simplify future outreach and donor relationships
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 sweepstake subject to different rules and legislation.
Raffles fall under New Jersey’s Bingo Licensing Law (N.J.S.A. 5:8-24 et seq.) and Raffles Licensing Law (N.J.S.A. 5:8-50 et seq.), both of which are enforced by the Legalized Games of Chance Control Commission (LGCCC).
Payment required: Participants must pay money to obtain a ticket or chance to win, making raffles a “game of chance” regulated by the state.
Eligible organizations: Only qualified nonprofit organizations, such as veterans’ associations, religious organizations, and charitable groups, may conduct raffles.
Licensing requirements: Nonprofits must register with the LGCCC to obtain an identification number.
After registration, they must apply for a municipal license for the event.
Prize and ticket restrictions: Prizes are capped at $100,000 for a single raffle conducted by drawing, with an aggregate limit of $500,000 in 12 months. Tickets must be sold uniformly with no discounts for bulk purchases.
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.
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
New York State Raffle Laws for Nonprofits: Are Raffles Legal?
Are raffles and online raffle legal in New York State? Check out our 2024 guide and learn how to hold a raffle legally in New York if you are a 501c3 nonprofit.
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