A raffle is a game of chance in which a participant is required to purchase a ticket for a chance to win a prize, with the winner to be determined by random drawing.
I am not raising money for a charity; I can conduct a raffle, right?
No. Only qualified 501(c)(3) or 501(c)(19) organizations that have applied and been approved are allowed to hold a raffle. Holding a raffle would be a violation of law and subject to criminal prosecution.
What are the consequences for holding an unauthorized event?
If the Secretary of State is notified of an unapproved event, the Division will notify the local district attorney general. Conducting an unapproved game of chance may be a violation of the criminal gaming statute, and local law enforcement has jurisdiction to investigate and prosecute the individuals responsible for the event.
Who is allowed to hold a raffle?
Only a qualified 501(c)(3) or 501(c)(19) organization that has submitted an application to the Division of Charitable Solicitations and Gaming and that has been approved by the Tennessee General Assembly can hold a raffle.
What types of gaming events are 501(c)(3) or 501(c)(19) organizations allowed to hold?
Raffles, reverse raffles, cakewalks, cake wheels, and bingo.
Are there individuals who are not allowed to purchase tickets?
Yes. The individuals who are not allowed to purchase tickets include:
Any member of the board of directors of a 501(c)(3) or 501(c)(19) organization authorized by the general assembly to operate an annual event for such organization.
Any officer or employee of a 501(c)(3) or 501(c)(19) organization authorized by the general assembly to operate an annual event for such organization.
Any immediate family member residing in the same household as the board of directors or an officer/employee of the organization. (The Charitable Gaming Law defines immediate family as spouse, child, step-child, brother, sister, son-in-law, daughter-in-law, parent or grandparent)
Any member of the general assembly during such member's term of office as a member of the general assembly.
The Secretary of State or any employee of the Secretary during the Secretary's term of office and such employee's term of employment with the Secretary.
Any vendors including employees, agents, or subcontractors (also includes immediate family members of the same household) who provide printing services, telephone services, and any records, devices, or other gaming-related supplies and those who provide prizes for the authorized annual gaming event.
What happens if the reports are not filed?
An organization that fails to submit the report by 90 days will be responsible for a $10.00 per month late fee. If a report is not filed at all, action may be taken against the organization. Failure to timely file in 2 of 3 consecutive gaming event periods could result in disqualification from conducting future events.
Are accounting reports or post event financial data required?
Yes. A financial report is due 90 days after the annual event date stated in your application. If gross revenue from an event exceeds $75,000 an audited financial statement is also required. Also, organizations must return at least 25% of its gross proceeds of the event back to its stated charitable purpose or program.
Are political candidates and campaigns allowed to conduct raffles or other games of chance?
No. The law only allows qualified 501(c)(3) and 501(c)(19) organizations to hold gaming events. Political candidates and campaigns for public office are not considered 501(c)(3) or 501(c)(19) tax exempt organizations.
Whom do I contact if I find out about a game of chance that is not approved?
Please contact the district attorney for the county in which you believe the game of chance is taking place or contact Charitable Solicitations at (615) 741-2555 and the Division will notify the appropriate authorities.
If the political candidate or campaign asks for a donation to be entered into a drawing, is that allowed?
No. If someone is required to pay for a chance to win a prize, it is considered a raffle. Only qualified and approved 501(c)(3) and 501(c)(19) organizations may hold a raffle. It does not matter that the payment is called a “donation.”
When can an organization begin selling tickets?
Organizations with an approved gaming event can begin selling tickets 120 days before the event.
What gaming events are not allowed?
Poker games and/or tournaments, pull-tabs, punchboards, video lottery games, instant and online lottery games, keno, and games of chance associated with casinos including, but not limited to slot machines, roulette wheels, and the like. Events such as bingo or “casino nights” that are purely recreational in nature and in which participants are not required to pay to participate with the promise of a prize, jackpot, or “winner-takes-all” would not fall into this category.
May two 501(c)(3) or 501(c)(19) organizations jointly operate an annual event?
Yes, however each participating organization must file an application and each pay the required fee. All applicants must qualify. If one organization fails to qualify, then participants will be rejected.
If 25% is not returned to the charitable purpose or program, what does the organization need to do?
The nonprofit must file a notice with the Division stating the reason less than 25% was returned to its charitable purpose or program. If this happens in two (2) consecutive years, the nonprofit will be disqualified from applying or holding future gaming events for a period of five (5) years.
I am interested in serving on a board, how can I get information?
We think it’s great you are interested in serving on one of Tennessee’s many boards and commissions!
To inquire about serving on a specific board, please reach out to the appointing authority of that board.
If you are unsure of the appointing authority, you can search our Boards and Commissions page here. Some boards have multiple appointing authorities, by clicking on a specific member’s name, you can see who is responsible for appointing a person to that particular position.
How do I know if a gaming event is approved?
The Division of Charitable Solicitations and Gaming maintains a list of approved events on its website at Gaming Events.
Are raffles or other games of chance allowed in the State of Tennessee?
Raffles and games of chance are considered gambling, which is prohibited in Tennessee. However, certain charitable organizations are allowed to apply to have one raffle, reverse raffle, cakewalk or cakewheel each year if that event is conducted in accordance with the procedures set forth in the Tennessee Charitable Gaming Implementation Law.
How can TSLA help if you find lost or stolen public records?
Tennessee has a replevin law that provides for the restoration of alienated public records to their rightful custodians. Law enforcement authorities can reclaim these documents without any compensation to the would-be private owner. Contact TSLA if you have knowledge of the whereabouts of misplaced public records, or if you would like to report a lost or stolen public record. We can offer advice on how to proceed. We generally advise callers to contact their county attorney, county sheriff, or county archivist, depending on the unique circumstances of each county. Even though it is up to law enforcement authorities to prosecute theft, we have been able to aid several Tennessee counties in recovering their lost or stolen public records.
Why report Tennessee's lost public records?
Staff members at TSLA's Archives Development Program will work with you to determine whether items are, indeed, government records that belong in a state or county archive. By avoiding the purchase of stolen records on eBay or through other auctions, you will ultimately save time, the loss of your money, and potential lawsuits. It will also ensure that we, as Tennessee citizens, continue to have access to the records of our own government.
What can you do to avoid buying and selling public records?
f you are a document collector, dealer, or staff member at an archives, library, historical society, or museum, you can:
avoid buying, selling, or trading in lost or stolen Tennessee public records.
Sometimes, collectors like to obtain records relating to, for example, Civil War history or African-American slavery. For more information about the nationwide interest in these items, see our article on "eBay Sales of Public Records."
In some cases, well-meaning citizens have "saved" their county records from destruction or neglect years ago. In other cases, county archives did not exist, and the records were long stored in private hands. Now, however, most counties have a safe place to store county records, and the items need to be returned to their proper location. Please contact TSLA if you need help getting in touch with the proper state or county official in order to return public records in someone's possession.
How do I contact my county election commission?
Need to register to vote, update your address, submit a change of name request or request a duplicate voter registration card? Contact yourlocal county election commission office.
If I don’t call it a raffle or sell tickets, but ask for donations for a chance to win a prize, is that allowed?
No. An event is considered a raffle if someone must pay for a chance to win a prize and would be a violation of law. It does not matter that the payment is called a “donation.”
What is a qualified 501(c)(3) or 501(c)(19) organization?
A qualified 501(c)(3) or 501(c)(19) organization is a group that has been recognized by the Internal Revenue Service (IRS) for at least five years as a tax-exempt organization and which has been in continuous and active existence in the State of Tennessee. 501(c)(3) and 501(c)(19) tax-exempt status can only be granted by the IRS. To learn more about the application process for tax-exempt status, please visit the IRS's web page for Charities & Nonprofits.