Pull tabs are legal in Wisconsin, but only as a Wisconsin Lottery product sold through authorized lottery retailers. They are not a form of charitable gaming, and nonprofits cannot print or sell their own. The Lottery Division of the Wisconsin Department of Revenue runs pull tab games the same way it runs scratch-offs, and you’ll find them mostly in taverns and bars.
What Wisconsin Considers a Pull Tab
Wisconsin’s constitution allows only four kinds of legal gambling: bingo, raffles, the state lottery, and pari-mutuel on-track betting. Pull tabs sit inside the state lottery category, regulated under Chapter 565 by the Department of Revenue.1Wisconsin State Legislature. State Lottery and Charitable Gaming
Each ticket is a multi-layered paper card with perforated tabs. You peel them back, and if the symbols or numbers match a winning pattern on the game’s flare (the poster at the point of sale showing prizes and odds), you win. Because the games ship in pre-printed batches with a fixed number of winners, the odds are locked in before the first ticket sells. Once a deal is sold out, every prize has either been claimed or missed.
Where You Can Buy Them
Pull tabs are sold by Wisconsin Lottery retailers that hold a retailer contract with the Department of Revenue. Taverns and bars carry most of the volume, though some convenience stores and grocery stores stock them too. Buyers and sellers both have to be at least 18. A retailer who sells to a minor risks losing the lottery contract.
If you own a business and want to sell pull tabs, you go to the Wisconsin Lottery, not the Department of Administration’s Office of Charitable Gaming. That office handles bingo and raffle licenses only.2Wisconsin Department of Administration. Common Questions Regarding Raffles
Why Nonprofits Can’t Run Their Own Pull Tabs
This is where people get tripped up. Wisconsin regulates bingo and raffles under Chapter 563 through the Department of Administration. Pull tabs are separate, under Chapter 565, through the Department of Revenue.1Wisconsin State Legislature. State Lottery and Charitable Gaming A raffle license does not authorize a nonprofit to sell pull tabs, and there is no charitable pull tab license in Wisconsin.
Charitable groups that want to raise money through gaming can apply for a raffle license (traditional ticket draws, calendar raffles, duck races) through the Office of Charitable Gaming. Pull tabs are not on that menu. If your organization wants to run a game that feels like a pull tab fundraiser, the legal path is a licensed raffle, not break-open tickets ordered from a printer.
Taxes on Pull Tab Winnings
Every pull tab win is taxable income, federally and in Wisconsin, regardless of the amount. The IRS expects all gambling income on your return, even a small win no one issued paperwork for.
Reporting thresholds kick in at higher amounts. The payer files an IRS Form W-2G when your winnings reach $600 or more and the payout is at least 300 times your wager.3Internal Revenue Service. Instructions for Forms W-2G and 5754 At generally $5,000 or more in net winnings, the payer withholds federal income tax at a flat 24% before paying you. Backup withholding at the same rate applies if you don’t provide a valid taxpayer identification number.
Splitting a prize with a group? The person who collects the money fills out IRS Form 5754 identifying each winner’s share, and the payer then issues separate W-2Gs.4Internal Revenue Service. About Form 5754, Statement by Person(s) Receiving Gambling Winnings Skip that step and the whole prize lands on one Social Security number.
Wisconsin taxes gambling income through your regular state return. No separate form is needed; the winnings flow into your adjusted gross income.
Keep a Simple Log
You can deduct gambling losses on your federal return, but only up to the amount of your gambling winnings. Losses can’t offset wages or investment income. Without records, you have nothing to support the deduction if the IRS asks. A notebook or phone note with dates, locations, and amounts does the job.
Illegal Pull Tab Operations
Chapter 945 prohibits unauthorized gambling in Wisconsin, and “lottery” is one of the activities it covers. The state lottery is carved out from that prohibition, but the exemption only protects games run through the official lottery system.1Wisconsin State Legislature. State Lottery and Charitable Gaming
Selling homemade or unauthorized pull tab tickets at a bar, a church event, or a club fundraiser is illegal in Wisconsin no matter how charitable the intent. A fraternal club that orders break-open tickets from an out-of-state printer and sells them at a fish fry is running an illegal lottery, even if every dollar goes to a good cause. For that kind of fundraising, the legal route is a licensed raffle through the Department of Administration.