Raffles - Frequently Asked Questions:

1. What is considered a raffle?
A raffle shall mean and include those games of chance in which a participant pays money in return for a ticket or other receipt and in which a prize is awarded on the basis of a winning number or numbers, color or colors, or symbol or symbols designated on the ticket or receipt, determined by chance as a result of a drawing from among those tickets or receipts previously sold.

2. What about "50/50" and "split pot"? Are these considered raffles?
Yes. These activities are defined as raffles and are subject to the registration and licensing requirements listed below. Every "50/50" raffle (and all other raffles) must be properly listed on the organization's GCVS-1, GCVS-2 and if applicable, the GC-7R. All proceeds from all "50/50" raffles (and all proceeds from all other raffles) are required to be deposited into the organization's special raffle or games of chance checking account. All raffle proceeds are then to be disbursed according to NYS Games of Chance Rules and Regulations section 5624.21, "lawful expenditures". 

In order for an organization to be eligible for a games of chance identification number, the organization must be domiciled in a municipality that has passed a local games of chance law. It is unlawful to conduct a raffle in a municipality that has not passed a local games of chance law. Furthermore, individuals and commercial businesses are not eligible for games of chance identification numbers and are restricted by law from conducting any type of raffle. 

4. How does an organization apply for a games of chance identification number? 
The organization must complete a 1A application and submit it to the NYS Racing and Wagering Board. The application includes providing a copy of the organizations Constitution and By-Laws and/or Incorporation papers. There is no fee to apply.

The 1A application can be printed from the website on the Charitable Gaming Forms and Applications page. Organizations may also call or write to the Board to obtain the application. The address and phone number are at the bottom of this page.

5. Are organizations required to obtain a raffle license from their city, town or village clerk?
Prior to the conduct of any raffle, an organization that has received a games of chance identification number must submit to the municipal clerk a completed "verified statement" (form GCVS-1) listing the dates of the organization's scheduled raffle drawings. A copy of the GCVS-1 shall also be submitted to the Racing and Wagering Board. If at the end of the calendar year the organization derived net profits of less than $30,000 from the conduct of raffles, a second completed "verified statement" (form GCVS-2 ) shall be submitted to the municipal clerk listing the raffle activity of the organization. A copy of the GCVS-2 shall also be submitted to the Racing and Wagering Board.

6. What if the organization derives net profits of more than $30,000 from the conduct of raffles during the calendar year?
If during the calendar year the organization derives net profits of more than $30,000 from the conduct of raffles, the organization shall apply for a raffle license (on forms GC-2, 2A, 2B) from the municipal clerk at a cost of $25. A financial statement of raffle operations (form GC-7R) shall also be submitted to the municipal clerk at the end of the calendar year and an additional license fee of 2% of the net profits over $30,000 shall be paid either to the clerk (if the municipality has a bona-fide police department) or to the county fiscal officer (if the municipality does not have a bona-fide police department). A copy of the GC-7R shall also be submitted to the Racing and Wagering Board and if applicable, to the county fiscal officer. 

7. What is an organization required to do with its raffle proceeds?
All raffle proceeds are to be disbursed according to Games of Chance Rules and Regulations Section 5624.21, "lawful expenditures". Fraternal and service organizations are required to donate 1/3 of their net raffle proceeds to a charity or charities on a calendar year basis. 

If an organization derives more than $30,000 a calendar year from the conduct of raffles, that organization is required to deposit all raffle proceeds into a special raffle or games of chance checking account prior to disbursing any raffle proceeds. If an organization derives less than $30,000 a calendar year from the conduct of raffles, the organization is not required to have a separate account. However, the organization is required to submit a GCVS-2 to the municipal clerk to provide an accounting of raffle funds. A copy of the GCVS-2 shall also be submitted to the Racing & Wagering Board. 

8. Who may sell raffle tickets on behalf of the organization?
NYS Racing and Wagering Board Games of Chance Rules and Regulations allow persons with a blood relationship or affiliate relationship to a member of the organization conducting the raffle to sell raffle tickets. 

9. Can minors sell or purchase raffle tickets?
No. It is unlawful for persons under 18 years of age to sell or purchase raffle tickets. 

10. Where can raffle tickets be sold?
Raffle tickets may be sold in the municipality where the organization is domiciled. Under certain circumstances raffle tickets may be sold in other municipalities. Raffle tickets may be sold in other municipalities in the organization's home county and in other municipalities in contiguous counties from the organization's home county only if a local games of chance law has been passed in each particular municipality where the organization intends to sell raffle tickets. The clerk in each particular municipality where the organization intends to sell raffle tickets must complete a Raffle Consent Form (form GC-RCF) allowing the organization to sell its raffle tickets in that particular municipality. 

11. Is there a limit on the amount of prizes that an organization can award during the conduct of a raffle? 
An organization may award raffle prizes in cash and/or merchandise not to exceed $100,000 in a calendar year. If during the conduct of one specific raffle an organization intends to award a single prize in excess of $50,000, a statement of such intent is required to be included in the organization's license application and/or verified statement (GCVS-1). 

12. Is there a restriction regarding the types of prizes that may be awarded in a raffle?
Section 5622.13 of the Games of Chance Rules & Regulations states in part that, "No alcoholic beverages shall be offered as a prize in any game of chance." Section 5622.16 of the Games of Chance Rules & Regulations states that, "No licensee shall offer, distribute or give any prize consisting of real estate or an interest therein, bonds, shares of stock, securities or evidence of indebtedness, or any merchandise refundable in any of the foregoing." 

13. Can raffle tickets be sold at bingo?
Yes. However, only the organization conducting bingo or the organization's affiliate(s) may conduct raffles during the bingo occasion. Organizations not affiliated with the organization conducting bingo are restricted from selling raffle tickets during the bingo occasion. 

14. Is the cost of a raffle ticket limited in any way?
No. The cost of a raffle ticket is left to the discretion of the organization. 

15. Where must the raffle drawing be held?
The organization is required to conduct the raffle drawing at its premise or where it is licensed to conduct games of chance and/or bingo. 

16. How far in advance from the date of the raffle drawing may an organization sell raffle tickets?
An organization cannot begin selling tickets until 180 days prior to the raffle drawing. No tickets can be sold more than 180 days before the drawing.

17. Are organizations required to have certain information printed on raffle tickets?
Yes. Raffle tickets, with the exception of the two-part "admission-style" tickets utilized in the game commonly known as a "50/50 raffle" shall reflect the following:  

• Name and identification number of the authorized organization;
• The location(s), date(s) and time(s) of the drawing(s);
• The consecutively printed serial number of the ticket;
• The price of the ticket;
• A list of the prizes offered;
• The statement: "Ticket holders need not be present to win."
• Each ticket stub or receipt shall reflect the name, address and telephone number of the ticket purchaser and the consecutively printed serial number of the ticket.