Are Raffles Legal in Arizona? What ARS 13-3302 Allows in 2026

Yes, for certain nonprofits and clubs. Arizona Revised Statutes Section 13-3302(B) lets an organization exempt from federal income tax under Section 501 run a raffle if it has operated in Arizona for at least a year, no insider profits from it, and only bona fide local members run it. Booster, civic and political clubs may also hold raffles, capped at $10,000 in annual benefit.

Last checked: October 27, 2026 against A.R.S. Section 13-3302 on the Arizona Legislature's site. Details can change.

This article summarizes the statute text published by the Arizona Legislature. It is general information, not legal advice. Before running a raffle, check local rules and talk to an Arizona attorney.

The Arizona raffle law

Arizona's gambling laws are in Title 13, Chapter 33. Section 13-3301 defines gambling as "one act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event." A paid raffle generally falls within that definition, which is why the raffles Arizona allows are listed as exclusions in Section 13-3302.

Nonprofit raffles

Under Section 13-3302(B), "an organization that has qualified for an exemption from taxation of income under section 501 of the internal revenue code may conduct a raffle," subject to these conditions:

• It must keep its tax-exempt status, and no member, director, officer, employee or agent may receive "any direct or indirect pecuniary benefit" beyond taking part in the raffle on equal terms.
• It must have been "in existence continuously in this state for a one-year period immediately before conducting the raffle."
• Only "a bona fide local member of the sponsoring organization" may take part in managing, selling or operating the raffle.

Subsection (B)(4) carves out two exceptions to the no-benefit and members-only rules. Licensed general or special hospitals, foundations supporting cardiovascular medical research, and 501(c)(3) groups with at least a 20-year history of child-abuse prevention and victim services may hire an outside agent. The proceeds must fund the listed purposes, raffles are limited to three per calendar year, and the agent's fee may not exceed 15% of net proceeds.

Other groups that may hold raffles

• Historical societies (subsection C): A state, county or local historical society designated by the state, a county, city or town may hold a raffle if it has existed in Arizona for five years, with the same no-benefit and members-only rules.
• Booster, civic and political clubs (subsection D): A nonprofit booster club, civic club, or political club or organization formally affiliated with a recognized party may hold raffles. The maximum annual benefit from all its raffles is $10,000, and no part of its net earnings may go to any member, director, officer, employee or agent.
• Student-athlete NIL raffles (subsection E): A university under the Arizona Board of Regents, or a 501-exempt organization that helps student athletes earn name, image and likeness compensation, may hold raffles if it has existed in Arizona for one year, with the same no-benefit and members-only rules.

What the statute does not cover

Section 13-3302 does not itself require a state license or registration for raffles. For 501-exempt organizations, it sets no prize cap and no limit on the number of raffles, except for the outside-agent exception. It also does not address selling tickets online. Cities and counties may have their own rules, so check locally before you sell tickets.

Penalties

A raffle that does not fit an exclusion in Section 13-3302 may be treated as gambling under Chapter 33. Under Section 13-3303, a person who knowingly "conducts, organizes, manages, directs, supervises or finances gambling" for a benefit commits promotion of gambling, a class 5 felony. Whether a particular raffle crosses that line is a question for an attorney.

Raffle vs. sweepstakes

Arizona's definition of gambling turns on "risking or giving something of value." A promotional sweepstakes is usually set up differently: it offers a free way to enter, so no one has to pay for a chance to win. That "no purchase necessary" design is the main line between the two categories. Whether a specific promotion is lawful still depends on its official rules and state law.

For a fuller comparison, see our guide to sweepstakes vs. raffles vs. lotteries, or browse our sweepstakes FAQ.

Bottom line

Raffles are legal in Arizona when a 501-exempt organization that has operated in the state for at least a year runs them, using its own local members and with no insider profit. Booster, civic and political clubs can hold raffles within a $10,000 annual-benefit cap, and designated historical societies and NIL-support groups have their own exclusions. Individuals and for-profit businesses are not on the list.

Frequently asked questions

Can a nonprofit hold a raffle in Arizona?

Yes. Under A.R.S. 13-3302(B), an organization exempt under Section 501 of the Internal Revenue Code may hold a raffle if it has existed in Arizona for one year, no insider receives a financial benefit, and only bona fide local members run it.

Do you need a license to hold a raffle in Arizona?

Section 13-3302 does not itself require a state license or registration for a raffle. Organizations must still meet the statute's conditions, and cities and counties may have their own rules.

Can a booster club hold a raffle in Arizona?

Yes. Under A.R.S. 13-3302(D), a nonprofit booster club, civic club or party-affiliated political club may hold raffles, but the maximum annual benefit from all its raffles is $10,000.

Can an Arizona nonprofit pay someone to run its raffle?

Generally no. Only bona fide local members may manage, sell or operate the raffle. Certain hospitals, cardiovascular research foundations and child-abuse prevention groups may hire an outside agent for up to three raffles a year, with a fee of no more than 15% of net proceeds.