Raffles are legal in Ohio, but only when a qualifying nonprofit organization or school runs them on a not-for-profit basis. Ohio Revised Code 2915.092 controls who can hold a raffle, how the drawing has to work, and where the proceeds can go. Everyone else who tries to run one is committing a crime.
Who Can Legally Run a Raffle
Ohio law limits raffles to three groups of organizations.1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties
- Organizations with 501(c)(3) tax-exempt status, which covers most charities, churches, and educational nonprofits.
- Public and private schools, including school districts, community schools, STEM schools, college-preparatory boarding schools, and chartered nonpublic schools.
- Organizations exempt under 501(c)(4), (c)(6), (c)(7), (c)(8), (c)(10), or (c)(19), meaning social welfare groups, business leagues, social clubs, fraternal lodges, and veterans’ organizations.
A widely circulated claim says Ohio requires an organization to have existed for at least two years before it can hold a raffle. That requirement is not in ORC 2915.092. The statute only asks that the organization fit into one of the categories above. Groups that delay a fundraiser waiting out a nonexistent clock are losing money for no reason.
Who Cannot Run a Raffle
For-profit businesses, individuals, and any organization outside the qualifying categories cannot hold a raffle in Ohio. The statute says plainly that “no person shall conduct a raffle drawing that is for profit or a raffle drawing that is not for profit” unless they qualify under the law.1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties
Businesses that want to run a prize promotion have to structure it as a sweepstakes, not a raffle. The dividing line is payment. A raffle charges for a chance to win. A legitimate sweepstakes must allow free entry, and paying cannot improve anyone’s odds.2U.S. Postal Inspection Service. A Consumer’s Guide to Sweepstakes and Lotteries Social media giveaways that require a purchase or paid entry cross into illegal lottery territory, which is where most businesses get themselves in trouble.
How the Drawing and Ticket Sales Must Work
Ohio defines a raffle as a drawing in which winners are pulled from a physical receptacle holding ticket stubs or detachable sections matching every ticket sold.3Ohio Legislative Service Commission. Ohio Revised Code 2915.01 – Gambling Definitions Random number generators, computer algorithms, and other electronic selection methods do not satisfy the statute. The winner has to be pulled by hand from a container.
Ticket sales must also happen in person. Ohio does not currently permit online raffle ticket sales, and raffles cannot be run over the internet. The Ohio House passed House Bill 476 in November 2025 to allow nonprofits and schools to sell raffle tickets online, but that bill has not completed the legislative process.4Ohio House of Representatives. House Passes Bill to Modernize Nonprofit Fundraising in Ohio, Allow Online Raffle Sales Until it becomes law, every ticket sale has to be face-to-face.5Charitable Ohio. Charitable Gaming
Where the Money Has to Go
Every raffle has to be run on a not-for-profit basis, but how the proceeds get spent depends on the organization. For 501(c)(3) charities and schools, net profit goes toward the organization’s own mission. For groups in the third category (veterans’ posts, fraternal lodges, social clubs, and similar), at least 50 percent of net profit must go to a recognized charitable purpose or to a government agency.1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties
Under Ohio law, a “charitable purpose” means a 501(c)(3), a qualifying veterans’ post, a qualifying fraternal organization, or a recognized domestic violence shelter or program.3Ohio Legislative Service Commission. Ohio Revised Code 2915.01 – Gambling Definitions Raffle proceeds cannot be used for personal benefit, bonuses, or anything outside the organization’s mission. The Ohio Attorney General’s Office regulates charitable gaming and has civil and investigative authority over raffles.5Charitable Ohio. Charitable Gaming
No State License, but Records Are Mandatory
Ohio does not require a raffle license. The statute states that qualifying organizations “do not need a license to conduct bingo in order to conduct a raffle drawing.”1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties Some cities and counties impose their own permits or reporting rules for charitable gaming, so check locally before a large event.
Recordkeeping is not optional. Every organization that runs a raffle has to keep detailed records for at least three years, stored at its Ohio headquarters, with the Attorney General notified of the storage location.6Ohio Legislative Service Commission. Ohio Revised Code 2915.10 – Bingo Records Retention The required records include:
- An itemized list of gross receipts for each raffle.
- An itemized list of every expense other than prizes, with the name of each person paid and a receipt for each expense.
- A list of all prizes awarded, plus the name, address, and Social Security number of every winner who received a prize worth $600 or more.
- An itemized list of every recipient of net profit, including names, addresses, and a description of the charitable purpose the money funded.
Recordkeeping problems are the most common issue the Attorney General’s office finds during audits of charitable gaming.
Federal Tax Reporting on Prizes
Federal tax rules apply on top of Ohio’s raffle law. Starting in 2026, the IRS reporting threshold for raffle winnings on Form W-2G is $2,000. If a prize is worth $2,000 or more, the organization has to file a W-2G.7Internal Revenue Service. Instructions for Forms W-2G and 5754
Withholding kicks in higher up. When raffle winnings minus the ticket price exceed $5,000, the organization must withhold 24 percent of the proceeds for federal income tax. If a winner does not provide a taxpayer identification number, backup withholding of 24 percent applies regardless of amount.7Internal Revenue Service. Instructions for Forms W-2G and 5754
If a group shares a winning ticket, the person who claims the prize completes IRS Form 5754 to identify every winner and each person’s share. The organization then issues a separate W-2G to each winner.8Internal Revenue Service. Form 5754 – Statement by Person(s) Receiving Gambling Winnings Skipping this step dumps the full tax burden onto whoever collected the prize.
Special Rules for Firearm Prizes
Gun raffles are common at veterans’ posts and hunting clubs, but a winner cannot just walk off with the firearm. A Federal Firearms Licensee has to process the transfer. The winner completes ATF Form 4473 and passes a National Instant Criminal Background Check before taking possession.9Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal Firearms Licensee Quick Reference and Best Practices Guide If the winner fails the background check, the organization cannot deliver the firearm. Line up a relationship with an FFL before the drawing, not after.
Penalties for Running an Illegal Raffle
Running a raffle without qualifying under ORC 2915.092 is a first-degree misdemeanor. It carries up to 180 days in jail and a fine of up to $1,000.1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties10Ohio Legislative Service Commission. Ohio Revised Code 2929.28 – Financial Sanctions – Misdemeanor With a prior conviction for illegal conduct of a raffle, the charge escalates to a fifth-degree felony, punishable by 6 to 12 months in prison.11Ohio Legislative Service Commission. Ohio Revised Code 2929.14 – Definite Prison Terms
The criminal case is only part of the risk. The Attorney General can investigate, order the organization to stop, and pursue civil penalties including forfeiture of the raffle proceeds. Misusing raffle money can also cost the organization its federal tax-exempt status, which is often a far worse outcome than any fine.