FAQ
Administrative Case Process & Appeals
Washington State Gambling Commission
P.O. Box 42400
Olympia, WA 98504
360-486-3440
360-486-3629 (fax)
Frequently Asked Questions
Raffles
I. Unlicensed Raffle questions:
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No. The requirements to determine a charitable or nonprofit organization for purposes of conducting a gambling activity are exactly the same whether the activity is allowed to be conducted without a license, or a license is required.
Yes. The requirement is that 15 members of your organization must be eligible to elect your governing board. The size of the board is not the issue, but the number of voting members.
You may collect up to $5,000 gross receipts in a calendar year from an unlimited number of members-only raffles. You are also allowed to collect up to $5,000 from up to two public raffles. Therefore, you may collect a total of $10,000 from both types of raffles, assuming you stay within the limitations of each type of raffle. The recommendation to ensure you do not exceed the limit is to only print $5,000 worth of tickets.
No. Member must be a person who became a member prior to conduct of the raffle, and whose membership is not dependent upon participation in the gambling activity.
II. Tickets and sales methods:
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As long as your procedures for safeguarding and drawing winning tickets are fully disclosed and conducted in an open
manner, the public should be less likely to feel there was some sort of collusion or fraud involved.
If your organization chooses to limit purchases within your membership, be sure this information is disclosed to those
members so there will be no hard feelings or misunderstandings. You may also wish to print this information on your raffle
ticket.
WAC 230-20-350 authorizes organizations to join
together to conduct a raffle, as long as each organization obtains the proper licensing and the appropriate form for a joint
event is submitted. One organization will be denoted as the “ lead” in order to coordinate the raffle, and
proceeds will be disbursed using a method agreed to by all participants.
You do not need to get a license if the organizations are considered “auxiliary” units. For example, if the
Seattle VFW combines with the Tacoma VFW to conduct a joint raffle, a joint raffle application must be submitted. However,
if the Ladies Auxiliary to the Seattle VFW wants to assist the Seattle VFW, no joint raffle application is required.
Joint raffles are only authorized for licensed raffles, not unlicensed raffles.
Yes, as long as you are licensed and meet specific requirements (see WAC 230-20-325). The WAC includes are specific requirements for printing the tickets that must be reviewed. Discounted tickets may NOT be offered in an unlicensed raffle.
Yes, as long as they are not directly compensated for selling tickets and have proper supervision by a member. Proper supervision means that there will be written procedures to document who is responsible for safeguarding raffle tickets and revenue. The member-supervisor will be required to pick up receipts from raffle ticket sales at least weekly.
No. This is only allowed for licensed raffles with proper documentation and approval from the Commission.
Only if the organization is licensed and the minor is a member according to the bylaws of the organization and the organization’s primary purpose is the development of youth. The organization must have at least three members or advisors who are at least 18 years of age who supervise the activity and one of the adult members or advisors must be designated as the manager of the activity.
No. Minors are prohibited from purchasing raffle tickets.
Yes, if you are licensed and the method used meets certain criteria. See WAC 230-20-325 for specific criteria.
Typical examples of alternative drawing schemes include duck races, paddle wheel raffles, and poker runs.
No. Selling tickets on the Internet would violate the federal wire wager act.
Yes.
Raffle tickets must have the following information: a consecutive number for each ticket, cost of each chance, date/time/location of drawing, name of the organization, description of prizes, and whether or not the person must be present at the drawing.
Yes, but you must have all of the required information (see question above) disclosed on a flyer that will be given to each participant. The theater-style tickets must be the type in which the participant can record their name, address, and phone number on a detachable stub for the drawing.
No.
Yes, but there are restrictions as follows: individual awards are non-cash, awards are based only on the number of chances sold, the fair market value of the total amount awarded does not exceed 5% of the gross receipts for the raffle, and a record of the name, address, and telephone number is maintained for all persons receiving incentive awards.
III. Prizes:
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Only if the raffle is an unlicensed member-only raffle and you have obtained a permit from the Liquor Control Board. Otherwise, liquor may not be offered as a prize in any gambling activity.
Yes, but you may not award the firearm directly. You must provide the winner a certificate which is redeemable by a licensed firearm dealer. (see related question below)
This has turned up in some raffles and can cause some hard feelings on the part of the winner. We recommend that you place a disclaimer on the tickets with a statement to the effect that “Anyone deemed not eligible to possess a firearm due to failure to pass the National Instant Background Check System will be awarded an alternate prize of xxx.” The alternate prize must be a value greater than the cost of the raffle ticket, but does not need to be equal to the value of the firearm.
Yes. Any single prize may not exceed $40,000 in value and no group of prizes during a 12-month period may exceed $80,000. A written request to exceed the prize limit may be granted to an organization if there is good cause shown to the Commission.
No. These extra costs are considered a part of the prize and must be paid for in full by the organization offering the prize.
The organization must own the prize prior to the drawing date.
This could be done if there is an alternative prize offered to the winner. For example, if the grand prize is a car or cash, then a contract could be used to secure the car as a prize unless the winner decides to take the cash prize instead.
Yes. See the answer to the question above.
No. You must plan ahead and be realistic with your sales expectations to ensure your organization does not have a loss.
It is wise to choose an independent person who has no interest in the raffle outcome.
The law has a term called “due diligence.” This is the standard you should follow to show you made an honest
effort to locate the winner. The greater the prize, the more due diligence you should be able to show.
We suggest that you send a certified or return receipt letter to the address on the winning ticket. The letter should state
that the winner must respond within a specific and reasonable time period in order to claim the prize. Placing an ad in the
newspaper is another way to document your efforts to contact the winner.
You should issue a receipt to the winner to indicate they have made a charitable donation to the organization.
It would be a good idea to state on the tickets that the participant must clearly print their name, address, and phone number to ensure they can be contacted if they are the winner. Also, ticket sellers should be properly trained to catch this problem at the point of sale to avoid this situation entirely.
IV. Record Keeping:
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It depends upon the size of the raffle.
Class A through D licensed raffles and unlicensed raffles require a record of at least the following: gross receipts,
documentation of expenses, cost of prizes paid out, and documentation of how the proceeds were used.
Class E and above require detailed records in standard forms supplied by the Gambling Commission. Contact any field office
or the headquarters in Lacey for copies of the forms.
3 years from the end of your fiscal year for any licensed raffle and 1 year for unlicensed raffles.
At the location of the drawing.
V. Miscellaneous Questions:
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Probably, but you need to be sure you have obtained specific approval from the Gambling Commission (WAC 230-20-050). The Commission will need to confirm that using the proceeds in this way is in compliance with your organization's stated goals and purposes as set forth in your by laws. Also, the Commission will require that you give the money directly to the purpose for which you intend it, not to the individual. In the example cited, the money would be given to the hospital, to a medical supply company for a wheelchair, etc.
The license covers a full year and all raffles conducted within that time period. It is based on the combined gross
receipts during that period.
If you find you may exceed the size, you should apply for an upgrade to the proper size, pay the difference in licensing fee,
and the upgrade fee. You must do this BEFORE you exceed the gross receipts listed on your license.
It depends on where you live. Contact your county or city to find out if there is a tax on raffles in your area.
If you have questions that weren't answered here, please contact us.