Legal & Compliance

Compliance with State and Federal Laws

605 Raffles operates in full compliance with South Dakota state laws, allowing eligible nonprofit organizations to conduct 50/50 and progressive raffles. However, raffle regulations vary by state, and some jurisdictions impose strict limitations or outright prohibit the sale of raffle tickets.

Nonprofits based outside of South Dakota may be required to participate in a sweepstakes format rather than a traditional raffle. This ensures compliance with their respective state laws. In some states, such as Florida, all prize drawings must offer a method of free entry, meeting the legal definition of a sweepstakes.

Before participating, organizations should verify the laws applicable to their state to ensure compliance.

Restricted and Prohibited States

Certain states have legal barriers that may prevent individuals or nonprofits from purchasing raffle tickets. Below is a general guide:

Prohibited or Highly Restricted States

The following states have strict regulations or prohibit the sale of raffle tickets:

• Alabama – Raffles are illegal unless specifically authorized by law.

• Hawaii – No raffles or gambling-related fundraising activities permitted.

• Utah – Gambling, including raffles, is strictly prohibited.

• South Carolina – Raffles are limited to registered nonprofit organizations and require extensive compliance measures.

• California – Nonprofits must be registered and cannot sell raffle tickets online.

States with Significant Compliance Barriers

The following states require special licensing, registrations, or conditions such as free entry:

• Florida – Raffles must allow for a free entry option, making them sweepstakes.

• New York – Raffles require state registration and approval. Online sales are restricted.

• Massachusetts – Online raffle sales are prohibited. Only specific nonprofits may conduct raffles.

• Michigan – Raffles require a state-issued license.

• Virginia – Nonprofits must register and follow strict reporting rules.

Note: State laws are subject to change. Participants should consult legal counsel or their state’s regulatory agencies for the latest information.

Sweepstakes Mode for Nonprofits in Restricted States

We recommend that nonprofits in states with prohibitions or high compliance requirements participate in sweepstakes mode instead of a traditional raffle. This allows them to conduct prize drawings while staying compliant with their state's laws.

To comply with sweepstakes regulations, nonprofits must include the following in their marketing materials:

• A clear statement that a free entry option is available to all players.

• Instructions on how players can obtain a free entry.

• Compliance disclaimers as required by their state’s regulations.

By properly structuring their campaign as a sweepstakes, nonprofits can legally raise funds while ensuring that all participants have an equal opportunity to win.

How to Obtain a Free Entry

To comply with certain state regulations, including Florida’s sweepstakes laws, we offer a free entry option for our raffles.

To request a free entry:

1. Mail a Self-Addressed, Stamped Envelope (SASE)

   • Send a copy of your Drivers License or State ID and include the information you will supply in the form below.

   • Include a legible, self-addressed stamped envelope.

   • Mail to:
     605 Raffles Inc.
     806 E 6th St, Sioux Falls, South Dakota

2. Complete the Online Registration

   • Prior to mailing your request, complete the free entry registration form found below.

You will receive a code in the provided envelop that you use for up to 6 months. Free entries are treated the same as paid entries in the drawing.

Disclaimer

Participation in any raffle is subject to the rules and regulations governing charitable gaming in your state. 605 Raffles is not responsible for ensuring compliance outside of South Dakota. By purchasing or requesting an entry, you acknowledge that you meet all eligibility requirements.

For any legal inquiries, please contact us at compliance@605raffles.com.