Who Can Apply for a Raffle Permit
Volunteer fire companies, veterans’ organizations, religious or charitable organizations, and fraternal societies that have been in existence a minimum of two years may apply for a raffle permit, provided:
- The net profits from permitted raffles are used solely for the achievement of the purposes of the organization as described in the organization’s by-laws.
- At the time of application, the Internal Revenue Service (IRS) recognizes the organization as a charitable organization as described in Section 170 of the Internal Revenue Code.
You must receive your Raffle Event permit before advertizing or selling tickets for the raffle.
When Raffle Permit Is Required
Qualified charitable organizations must obtain a raffle permit if any of the following applies:
- A raffle ticket price is more than $5 for a single drawing for prizes, or
- A raffle ticket price is more than $15 for a series of drawings for prizes occurring on a periodic schedule, or
- The total retail cash value of the prize(s) to be awarded is $5,000 or more
If you are a qualified charitable organization and your raffle ticket price is $5 or less and the total retail cash value of prizes to be awarded is less than $5,000, STOP. You are not required to obtain a raffle permit from the Board of Charitable Gaming.
Limitations on Raffle Drawings
- Raffle drawings must conclude by 1:00 a.m.
- Your organization must provide IRS form W2-G to any winners of prizes valued at $600 or more.
- Your organization must withhold income tax for any prize valued at $5,000 or more.
- If for any reason your permitted raffle is not completed and a prize is not awarded on the approved drawing date, your organization must take all steps necessary to notify ticket purchasers of that fact and return all money received from ticket purchasers within thirty days.
Applying for a Raffle Permit (first time applicants)
- Enclose with your application and fee, documentation from the (IRS) dated within the past 12 months, showing proof of the following:
- Organization’s legal name
- physical Delaware address
- EIN or Federal ID Number
- 501(c) IRS Determination
These items may be included on one or separate documents from the IRS, but all documents must be dated within the past 12 months.
- Enclose a copy of your organization’s formation documents, such as Articles of Incorporation, By-Laws, Constitution, Charter, etc. The documentation submitted must include your organization’s purpose and/or mission statement.
- Enclose a letter on your organization’s letterhead designating a Record Keeper of the raffle event. The letter must grant the Record Keeper the authority to submit raffle applications on behalf of the organization, and to be responsible for all permitted raffle events. The letter must be signed by an officer of the organization, dated and notarized.
Applying for a Raffle Permit (All Applicants)
- Submit completed, signed and notarized Application for Raffle Permit.
- Enclose non-refundable processing fee by check or money order made payable to “State of Delaware.”
- If you are applying for a single raffle drawing date, the processing fee is $15.
- If you are applying for a series of daily raffle drawing dates based on the lottery over a one-month period, the processing fee is $15 per month.
- If you are applying for a series of periodic raffle drawing dates over a period not to exceed six-months, the processing fee is $15 per drawing date.
- If you are relying on a group exemption letter issued to a national or parent organization, enclose a:
- signed letter from the national or parent organization on its letterhead, specifically stating that your chapter is properly affiliated, and
- current copy of the parent organization’s IRS group exemption letter dated within the past 12 months
- If the raffle drawing(s) will be held at any location other than the organization’s physical Delaware address, enclose:
- letter from the premises owner (on owner’s letterhead) allowing your organization to hold the raffle drawing(s) on specific date, or
- copy of your lease or rental agreement.
The Board reserves the right to accept or reject any application for the conduct of a function on specially leased or donated premises.
- Complete and submit Addendum A with your application. The retail cash value must be entered for each prize listed on Addendum A. Entering “varies,” “50/50,” “depends on the number of players” or any other indeterminate amount will result in a delay in processing and possible denial of your application.
- If the Record Keeper has changed since your last raffle application, submit a letter on your organization’s letterhead designating the new Record Keeper. The letter must grant the Record Keeper the authority to submit raffle applications on behalf of the organization and to be responsible for maintaining complete and accurate financial records as specified by the Board‘s Rules and Regulations governing raffles. The letter must be signed by an officer of the organization, dated and notarized.
Application Review Process
The Board will review only applications that meet all of the following requirements:
- The application form must be complete, signed and notarized. As forms are subject to change at any time, be sure to download the current form from the Board’s website each time you apply for a gaming permit. Obsolete forms will be rejected.
- Applications must be received by the Board office no later than 10 business days before the next scheduled Board meeting in order to be added to the Board’s agenda.
- The application must be accompanied by the correct fee. Applications without fees will be rejected.
- Applications must include all supporting documentation as listed on this Instruction Sheet.
- Your organization’s After Occasion Reports (AORs) must be up-to-date. AORs are due no later than 30 days after a gaming event. If your organization’s AORs for past events are overdue, the Board will not review your application for any future event.
If your proposed raffle drawing date passes before the Board reviews and approves your application, you are not permitted to hold the raffle drawing. If all raffle drawing dates listed on your application pass before the Board reviews and approves them, you are not permitted to hold any of the drawings and you will forfeit the non-refundable processing fee.You are not permitted to submit an alternate raffle drawing date to be inserted into your application if any proposed drawing dates pass before the Board reviews and approves the application. You must submit a new application and processing fee for the alternate dates.