Are Raffles Legal in California? The 90% Rule and 2026 Registration

Yes, for eligible nonprofits only. Under Penal Code Section 320.5, a qualifying tax-exempt organization may hold raffles if it registers with the Attorney General first and uses at least 90% of gross ticket receipts for charitable purposes in California. Individuals and businesses cannot, and raffles cannot be run over the internet.

Last checked: October 27, 2026 against the California Attorney General's Nonprofit Raffles page. Details can change.

This article summarizes the California Attorney General's published guidance on Penal Code Section 320.5. It is general information, not legal advice. Before running a raffle, check with the Attorney General's Registry of Charities and Fundraisers or a California attorney.

The law that allows raffles in California

The Attorney General describes nonprofit raffles as an exception to "the general constitutional prohibition against lotteries." Penal Code Section 320.5 sets out which organizations qualify and how raffles must be run. The AG's FAQ defines a raffle as "a type of lottery in which prizes are awarded to people who pay for a chance to win."

A separate program, the 50/50 Major League Sports Raffle Program under Penal Code Section 320.6, is regulated by the Bureau of Gambling Control. The AG says other 50/50 raffles "are illegal unless the organization qualifies under Penal Code section 320.6."

Who can hold a raffle

Only an "eligible organization," which Section 320.5(c) defines as a "private, nonprofit organization that has been qualified to conduct business in California for at least one year prior to conducting a raffle" and is exempt under Revenue and Taxation Code Section 23701a, b, d, e, f, g, k, l, t or w. That list covers groups such as charities, religious organizations, fraternal orders, chambers of commerce, social clubs, homeowners' associations and veterans' organizations.

The exemption must come from the California Franchise Tax Board. The AG says plainly: "IRS exemption does not qualify an organization to conduct raffles."

Individuals and businesses are out. The AG cites Section 320.5(g): "Individuals, corporations, partnerships, and other legal entities are prohibited from holding a financial interest in the conduct of a raffle." Its FAQ gives the example that an individual cannot raffle off a house to pay a mortgage, even if leftover money goes to charity.

Registration and reporting

• Register first. File Form CT-NRP-1 and receive a confirmation letter before any raffle activity, including selling tickets. The current form (Rev. 08/2022) lists a $30 fee.
• Timing. Registration covers January 1 through December 31. If you miss the January 1 deadline, file at least 60 days before the raffle. Confirmation may take up to 60 days. Selling tickets in one year for a drawing in the next means registering for both years.
• Annual report. File one aggregate report (Form CT-NRP-2) for all of the year's raffles by February 1.
• Exempt from filing, not from the rules. Nonprofit religious organizations, educational institutions and hospitals do not have to register or report, but they must follow the rest of Section 320.5.

The AG says there is no limit on the number of raffles during a valid registration year, and "State law does not specify any limits on the value of raffle prizes."

How a California raffle must be run

• The 90/10 rule. At least 90% of gross receipts from ticket sales must go to beneficial or charitable purposes in California (Section 320.5(b)(4)(A)). The AG's example: $100 in sales means $90 for charitable purposes and no more than $10 for raffle costs. Proceeds cannot go to a charity outside California.
• Who gets paid. Anyone paid in connection with the raffle must be an employee of the organization, and that pay cannot come from the 90% (Section 320.5(d)).
• Supervision. A natural person age 18 or older must supervise the raffle.
• No machines, no internet. Prizes may not be awarded by a slot machine or similar device. The AG says "Operating or conducting a raffle via the Internet is also prohibited," though the raffle may be advertised online. The registration form adds that tickets may not be "sold, traded or redeemed over the internet."

Penalties

The AG says failure to comply with Section 320.5 is a misdemeanor. Violations may be referred to the local district attorney, city attorney or county counsel. The AG may also act under the Nonprofit Corporation Law for breach of fiduciary duty, and a raffle registration can be suspended or revoked (Cal. Code Regs., tit. 11, Section 419.2(a)(2)).

Raffle vs. sweepstakes

The AG explains that if participants must buy a ticket to have a chance to win, Section 320.5 applies, even if the event is called an "opportunity drawing." Under Section 320.5(m), registration is not required when tickets are distributed generally, free tickets come on the same terms as those given for a donation, and no one has to pay for a chance to win. 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 California when an eligible, FTB-exempt nonprofit that has done business in the state for a year registers with the Attorney General, gets its confirmation letter, spends at least 90% of ticket receipts on charitable purposes in California, and keeps the raffle offline. Anyone can check a nonprofit's raffle registration with the Registry Search Tool linked from the AG's raffle page.

Frequently asked questions

Can an individual hold a raffle in California?

No. The Attorney General says only eligible organizations defined in Penal Code Section 320.5(c) may conduct raffles, and individuals, corporations and partnerships may not hold a financial interest in a raffle.

Are online raffles legal in California?

No. The Attorney General says operating or conducting a raffle via the Internet is prohibited, though an organization may advertise its raffle online. The registration form says tickets cannot be sold, traded or redeemed over the internet.

What is the 90/10 rule for California raffles?

At least 90% of gross receipts from raffle ticket sales must be used for beneficial or charitable purposes in California, under Penal Code Section 320.5(b)(4)(A). No more than 10% can cover raffle costs.

Do California nonprofits need to register before a raffle?

Yes, unless they are a nonprofit religious organization, educational institution or hospital. They must file Form CT-NRP-1 and receive a confirmation letter before selling any tickets.

Is there a prize limit for California raffles?

The Attorney General says state law does not specify any limits on the value of raffle prizes.