FAQ: Raffles, Gaming, Lotteries and Poker Office of the Vice President and General Counsel

There are complicated legal regulations regarding lotteries and you will need to ensure that your lottery complies with these. These include whether the lottery will need to be licensed, what kind of lottery it is, and how supporters can enter. Normally a lottery is a game where you pay to enter, there is at least one prize, and winning is dependent only on chance.
If your organization has a stated purpose other than those listed above, you don’t qualify to offer raffles. Individuals and commercial businesses cannot offer raffles, even if the money is given to charity No raffle and bazaar permit is required and no tax is paid to the Lottery Commission. The Lottery Commission will send the required forms to the nonprofit after the permit is issued.
Employees of companies providing equipment or supplies for the gaming event may not be involved in the management or operation of the event. For example, both the purchaser and the seller must sign the raffle ticket under 940 CMR 12.00 (Regulations Governing Raffles) if the prize is worth more than $10,000 or raffle tickets cost more than $10. While there are no Massachusetts laws expressly regulating online atefia raffle sales, certain regulations may operate to prevent online sales.

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Yes, within 10 days after conducting a raffle, casino or Las Vegas night or poker tournament, the nonprofit organization must pay a 5% tax on the gross proceeds to the Lottery Commission. A gaming event may not last longer than five hours and no more than one event may be held on any single day. Qualifying organizations with a Raffle and Bazaar permit from the local city or town clerk are permitted a maximum of three (3) Casino Nights.

What is required in the permit application?

Whenever money is charged for the ticket or chance, the raffle can be legally operated only by a qualified non-profit organization. A permit is valid for one year from the date of issuance. The permit is valid for one year from the date of purchase. In the UK, the term “tombola” is used when the raffle tickets are placed in a barrel and tumbled before the winning tickets are drawn from the barrel. A U.S. savings bond and a prepaid, or «stored-value,» credit card is not prohibited. The boss or guest of honor will draw winners by pulling raffle tickets out of the bags and announcing the winning ticket number.

• While there are no Massachusetts laws expressly regulating online raffle sales, certain regulations may operate to prevent online sales.
• A U.S. savings bond and a prepaid, or “stored-value,” credit card is not prohibited.
• The Institutional Review Boards have incorporated the state regulatory requirements into its processes for handling the human subject research oversight.
• In the UK, the term “tombola” is used when the raffle tickets are placed in a barrel and tumbled before the winning tickets are drawn from the barrel.
• Paid advertising through a medium of mass communication is prohibited.

Is a permit needed to hold gaming events? If so, how can I obtain one?

The term statewide has not been defined or interpreted in any known court proceeding or Attorney General Opinion, but it is generally thought that statewide would include Internet promotion. Do I have to register or obtain a permit to conduct a raffle? CREA defines a raffle as “the award of one or more prizes by chance at a single occasion among a single pool or group of persons who have paid or promised a thing of value for a ticket that represents a chance to win a prize.” In the UK, the term “tombola” is used when the raffle tickets are placed in a barrel and tumbled before the winning tickets are drawn from the barrel.

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A ‘lottery’ is a broad term and includes many types of event, such as raffles, tombolas and sweepstakes. Before you begin organising your fundraiser, read our guides which will help you to run a safe and legal lottery. Before starting an online lottery, be aware that you will need a Gambling Commission licence in order to run it legally.

• However, to my surprise I have discovered that technically raffles are ‘a gambling competition’ and that English law classifies raffles as ‘non-commercial lotteries’.
• If no money is charged, anyone may legally operate a raffle, and businesses often do so for promotional purposes.
• Individuals and commercial businesses cannot offer raffles, even if the money is given to charity
• A common practice for increasing revenue from ticket sales is to offer bulk sales of tickets, e.g., $10 per single ticket or $25 for three tickets, although this practice is illegal in some countries.
• If your organization has a stated purpose other than those listed above, you don’t qualify to offer raffles.

Who can offer raffles

The OGC recommends having available at the raffle drawing IRS Form W-8BEN, which must be completed by a non-resident foreign national winner. Millionaire Parties can include several or just a single card game (such as Texas Hold ‘Em) plus other kinds of gambling games. Counties, cities and towns may offer raffles if all revenue, less prizes and expenses, is used for community activities or tourism promotion activities. Credit unions may offer raffles if all revenue, less prizes and expenses, is donated to charity. Ticket stubs from all sales must be placed into a receptacle and selected randomly to allow an equal chance of winning.

It is legal for individuals to play poker or other casino activities in a private place, defined as “a place to which the public does not have access.” They can bet money and win money. The question of the prohibition of a gift certificate has not been addressed in an AG Opinion, but it has been suggested that as long as it is not readily convertible to cash, it would likely not be prohibited. A U.S. savings bond and a prepaid, or “stored-value,” credit card is not prohibited. A certificate of deposit is a prohibited prize. Cash prizes are strictly prohibited.
A permit received from a municipality is valid for one year from the issue date. The nonprofit must obtain the permit from the Town Clerk’s Office. Yes, a permit from the municipality in which the raffle will be held is required for a qualified nonprofit organization to hold a gaming event such as a raffle, casino or Las Vegas night, or poker tournament. These gaming events may be legally operated only by a qualified nonprofit organization, and the funds must be used for specified purposes. If no money is charged, anyone may legally operate a raffle, and businesses often do so for promotional purposes.
In the UK, the term «tombola» is used when the raffle tickets are placed in a barrel and tumbled before the winning tickets are drawn from the barrel. For standard winnings from table games, slots or poker, casinos typically pay out the amount in a lump sum with taxes withheld at the time of payout. This includes making sure donors know how their money will be spent, and not taking advantage of vulnerable donors. Regulations include who can enter, how many people can enter, limits on reclaiming costs, and ticket restrictions. There are many types of lottery that you may wish to run and each has different regulatory requirements set out by the Gambling Commission.