Wisconsin Raffle License: Class A vs B, Rules, and Reporting

To run a raffle legally in Wisconsin, a qualifying nonprofit must obtain a Wisconsin raffle license from the Department of Administration’s Division of Gaming before selling any tickets. The original license costs $50, and you can apply online through charitable.wi.gov or by mailing Form DOA-11629 with supporting documents.¹ Everything else — ticket design, how you sell, who can win, what you report — flows from which of two license classes you hold.

Who Qualifies

Only certain organizations can hold a Wisconsin raffle license. The statute limits eligibility to local religious, charitable, service, fraternal, and veterans’ organizations, along with any organization whose contributions are tax-deductible for federal or state purposes. Individuals, businesses, and national organizations are shut out.

The applicant must have existed for at least one year before applying. A local chapter chartered by a state or national parent that has been around at least three years qualifies even if the chapter itself is newer.²

“Local” is defined narrowly. The organization’s activities must be confined to Wisconsin, to a specific geographic area within the state, or to an area that straddles the Wisconsin border. A national charity based elsewhere cannot run a Wisconsin raffle directly; a qualifying local chapter has to hold the license.²

Class A or Class B

Wisconsin issues two license classes. The difference is when tickets are sold relative to the drawing, and the two are not interchangeable. An organization that holds a Class A license and later wants to run a bucket raffle must file a separate Class B application.

Class A covers raffles where tickets are sold in advance of the drawing, though same-day sales are also allowed. Tickets must be numbered consecutively. The organization cannot require the winner to be present and cannot offer a bonus prize for attendance.³

Class B covers raffles where all ticket sales and the drawing happen on the same day at the same location — the familiar bucket raffle. Tickets do not need to be numbered consecutively. The drawing must be held in public, and all prizes must be awarded.⁴

By default, a Class B ticket buyer has to be present to win, but the organization can waive that if it adopts procedures for absent winners. A buyer may also hand their ticket to someone else to claim on their behalf, as long as that person is at the drawing.⁴

How To Apply

Original applications go to the Division of Gaming either through the online portal at charitable.wi.gov or by mail using Form DOA-11629.¹ Applicants claiming eligibility as a 501(c)(3) must include their IRS determination letter. Designate a raffle chairperson as the state’s main point of contact. Names on the application should match the organization’s founding documents exactly, since mismatches commonly cause delays.

Fees

The original license fee is $50. Renewal is $25.⁵ A duplicate, if the original is lost, is $5.³

Processing Timeline

The Division must notify an applicant within 15 days if an application is incomplete. A complete application that is not denied within 30 days of filing is automatically approved, and the Division is required to issue the license within 30 days of receiving a complete application from a qualifying organization.⁵

No tickets can be sold until the license number is issued. If a current license has expired, the organization must wait for the new number before printing or selling new tickets.⁶

What Must Appear on Every Ticket

Class A tickets must be identical in form, numbered consecutively, and carry an identification number on both the purchaser’s and the organization’s portions.⁷ Each ticket must include:

The license number issued by the Division of Gaming
The sponsoring organization’s name and address
The ticket price, including any discount for bulk purchases
A field for the buyer’s name and address
The date, time, and place of each drawing
A list of every prize with a fair market value of $1,000 or more

If a prize is age-restricted, such as a firearm or a vehicle, the ticket must prominently display the applicable state or federal age restriction. If a drawn winner is not legally eligible to receive the prize, the organization cannot award it and must draw again.⁶

Every raffle ticket must be in paper form. Wisconsin does not allow fully electronic raffles, even when the raffle is promoted or offered online.

Rules While the Raffle Is Running

Frequency and Sales Window

A licensed organization may conduct up to 365 raffles per year, but no more than one calendar raffle in that period. A single raffle with multiple drawings on one day at one location counts as one raffle.⁸ For Class A raffles, tickets cannot be offered for sale more than one year before the drawing date.⁷

Where You Can Sell

Sales must focus on the geographic area the organization serves. The Division of Gaming accepts that some incidental sales to outsiders will happen — an out-of-state relative buying from a visiting member, for example — but primary sales efforts must stay within the service area.⁶

Online Promotion and Sales

Websites, email, and text messages are allowed for promoting and selling tickets, but the paper requirement does not go away. For Class A, the organization may send the purchaser an electronic copy of the ticket portion as long as the buyer can print a complete copy, and the organization must retain both ticket portions in paper plus a record of the buyer’s name, address, and ticket number. For Class B, tickets can be offered online, but the paper tickets have to be handed to buyers in person at the event.⁶

No Paid Help

All profits must go toward the organization’s purpose. No salaries, fees, or profit may be paid to any other organization or individual in connection with running the raffle. The statute allows normal business expenses for printing tickets, buying equipment, and purchasing prizes, but not commissions, professional fundraisers, or percentage-based online raffle platforms.⁹

The Drawing

Class A drawings must be held in public, and the organization’s portion of every sold ticket must be in the drawing container before the drawing. Class B drawings also must be public, and if a Class B drawing is canceled, the organization must refund ticket purchasers.⁴

Reporting and Recordkeeping After the Drawing

The license comes with ongoing paperwork. All drawings held during the license year must be reported on the annual raffle report, Form DOA-11628, due by the expiration date printed on the license. The report covers gross receipts, prize costs, and expenses.¹⁰

The organization must also keep records for at least 12 months after each raffle, including names and addresses of all winners who received prizes worth $600 or more, descriptions of prizes awarded, and all ticket-sale financial transactions. Sold Class A tickets and calendars have to be retained for one year after the drawing date. State auditors may request these records at any time, and each licensed organization must prepare a written summary of raffle activity for the previous 12 months.¹¹ Failing to file or keep records can lead to denial of future license applications.

Tax Forms for Prize Winners

Even though the organization is a nonprofit, it has the same federal reporting and withholding duties as any other payer of gambling winnings. Raffle and sweepstakes prizes generally trigger Form W-2G reporting when the value reaches the applicable federal threshold, and the organization must furnish the W-2G to the winner by January 31 of the following year. When a prize is shared among a group, Form 5754 identifies each actual winner so a separate W-2G can be issued to each.¹²

At the state level, all gambling income is taxable to Wisconsin residents, cash or the fair market value of non-cash prizes such as a vehicle or vacation. Nonresidents who receive Wisconsin gambling winnings of $2,000 or more must file a Wisconsin return on Form 1NPR.¹³

What Happens Without a License

Running a raffle without the proper license is not a paperwork technicality. The Division of Gaming has stated that unlicensed raffles are illegal gambling and can subject participants to criminal penalties.¹⁴ The statute is direct: no person other than a qualified, licensed organization may conduct a raffle in Wisconsin.²

An organization that sells tickets before its license number is issued risks forfeiture of proceeds. A group whose license has lapsed must stop sales and wait for a new number before resuming. Compliance history also factors into the Division’s review of later applications, so a slip now can follow the organization into its next event.

1
Wisconsin Department of Administration. Applying for a New Raffle License
2
Wisconsin State Legislature. Wisconsin Code 563.907 – Qualified Organizations
3
Wisconsin Department of Administration. The Conduct of Raffles Under a Class A License
4
Wisconsin State Legislature. Wisconsin Code 563.935 – Conduct of Raffles Under a Class B License
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Wisconsin State Legislature. Wisconsin Code 563.92 – Application for License
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Wisconsin Department of Administration. Common Questions Regarding Raffles
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Wisconsin State Legislature. Wisconsin Code 563.93 – Conduct of Raffles Under a Class A License
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Wisconsin State Legislature. Wisconsin Code 563.91 – Limit
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Wisconsin State Legislature. Wisconsin Code 563.94 – Profits
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Wisconsin Department of Administration. Annual Raffle Report and Renewal Application
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Wisconsin Department of Administration. Record Keeping and Reporting Requirements for Raffles
12
Internal Revenue Service. Instructions for Forms W-2G and 5754
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Wisconsin Department of Revenue. Wisconsin Taxation of Gambling Income
14
Wisconsin Department of Administration. Common Questions Regarding Raffles