Raffles are legal in Ohio, but only when a qualifying nonprofit organization or school runs them on a not-for-profit basis under Ohio Revised Code 2915.092. Anyone outside those categories who sells tickets for a chance to win a prize is committing a crime, no matter how good the cause. The rules reach further than most organizers expect, especially around how the winner must be picked and how the money has to be handled afterward.
Who Can Legally Run a Raffle
Ohio law restricts raffles to three groups of organizations.1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties
- 501(c)(3) tax-exempt organizations, 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.
- Certain other tax-exempt groups: 501(c)(4) social welfare organizations, 501(c)(6) business leagues, 501(c)(7) social clubs, 501(c)(8) and 501(c)(10) fraternal lodges, and 501(c)(19) veterans’ organizations.
If a group does not fit one of those categories, it cannot run a raffle in Ohio. The statute applies to drawings whether they are structured for profit or not for profit; the eligibility list is the only door in.1Ohio Legislative Service Commission. Ohio Revised Code 2915.092 – Raffles – Illegal Conduct of Raffle – Penalties
Businesses, Individuals, and the Sweepstakes Line
No for-profit business and no individual can legally hold a raffle in Ohio. A business that wants to run a prize promotion has to structure it as a sweepstakes. The legal distinction is simple: a raffle requires payment for a chance to win, and a sweepstakes does not. A legitimate sweepstakes has to allow free entry with no purchase necessary, and buying something cannot improve the odds of winning.2U.S. Postal Inspection Service. A Consumer’s Guide to Sweepstakes and Lotteries Conditioning entry on a purchase turns the promotion into an illegal lottery, and that is the mistake that catches social media giveaways.
How the Drawing Has to Be Conducted
Ohio defines a raffle in a way that forces a physical drawing. Winners must be pulled from a receptacle holding ticket stubs or detachable sections corresponding to every ticket sold.3Ohio Legislative Service Commission. Ohio Revised Code 2915.01 – Gambling Definitions Random number generators, computer algorithms, and other electronic selection methods are not permitted.
Ticket sales also have to happen in person. Ohio does not currently allow online raffle ticket sales. The Ohio House passed House Bill 476 in November 2025 to let nonprofits and schools sell tickets online, but as of early 2026 the bill has not finished moving through the legislature.4Ohio House of Representatives. House Passes Bill to Modernize Nonprofit Fundraising in Ohio, Allow Online Raffle Sales Until it does, every ticket sale needs to be face-to-face, and the drawing itself still has to be a physical pull.5Charitable Ohio. Charitable Gaming
Where the Money Has to Go
Every raffle must be conducted on a not-for-profit basis, and the rules for the proceeds depend on which category of organization is running it. A 501(c)(3) charity or a school can put net profit toward its own mission with no further statutory earmark. Groups in the third category above, including veterans’ organizations, fraternal lodges, and social clubs, must give at least 50 percent of the net profit 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
A “charitable purpose” under Ohio law means money going to 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 Proceeds cannot be used for personal benefit, executive bonuses, or anything outside the charitable mission. The Ohio Attorney General’s Office regulates charitable gaming and has investigative and civil authority over raffles.5Charitable Ohio. Charitable Gaming
No State License, but Local Rules May Apply
Ohio does not require a separate raffle license. The statute explicitly 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, however, impose their own permit or reporting requirements for charitable gaming. Check with local officials before a drawing, particularly for a large event.
Records You Must Keep
Every organization that runs a raffle has to maintain detailed records for at least three years under ORC 2915.10. Required records include:6Ohio Legislative Service Commission. Ohio Revised Code 2915.10 – Bingo Records Retention
- An itemized list of gross receipts for each raffle.
- An itemized list of all non-prize expenses, with the name of each person paid and a receipt for every expense.
- A list of all prizes awarded, including 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, with names, addresses, and a description of the charitable purpose the money served.
Records have to be kept at the organization’s principal place of business or headquarters in Ohio, and the organization must tell the Attorney General where they are stored.6Ohio Legislative Service Commission. Ohio Revised Code 2915.10 – Bingo Records Retention
Federal Tax Reporting on Prizes
The IRS obligations sit on top of Ohio’s rules and apply to every raffle regardless of the organization running it. Starting in 2026, raffle winnings worth $2,000 or more have to be reported on IRS Form W-2G.7Internal Revenue Service. Instructions for Forms W-2G and 5754
Withholding kicks in higher up. When winnings minus the ticket cost exceed $5,000, the organization must withhold 24 percent of the proceeds for federal income tax. If a winner refuses to provide a taxpayer identification number, 24 percent backup withholding applies regardless of the prize amount.7Internal Revenue Service. Instructions for Forms W-2G and 5754
When several people share a winning ticket, the person who claims the prize completes IRS Form 5754 to identify each winner and the share each one receives, and the organization issues a separate W-2G to each.8Internal Revenue Service. Form 5754 – Statement by Person(s) Receiving Gambling Winnings Skipping that step dumps the entire tax bill on the one person who collected the prize.
Firearms as Raffle Prizes
Gun raffles are legal in Ohio for qualifying organizations, but the winner cannot just take the firearm home. The transfer has to go through a Federal Firearms Licensee, which means the winner completes ATF Form 4473 and clears a National Instant Criminal Background Check.9Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal Firearms Licensee Quick Reference and Best Practices Guide If the winner fails the check, the organization cannot hand over the gun. Line up an FFL before the drawing, not after.
Penalties for an Unlawful Raffle
Conducting a raffle without qualifying under ORC 2915.092 is a first-degree misdemeanor, punishable by 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 A prior conviction for the same offense bumps the next one to a fifth-degree felony, carrying 6 to 12 months in prison.11Ohio Legislative Service Commission. Ohio Revised Code 2929.14 – Definite Prison Terms
The criminal exposure is not the whole risk. The Attorney General’s Office can investigate, order noncompliant groups to stop, and pursue civil penalties that include forfeiture of raffle proceeds. Misusing raffle money can also cost an organization its tax-exempt status with the IRS, which is a far more expensive loss than any fine.