Are Raffles Legal in North Carolina? 2026 Prize Caps and Limits

Yes. General Statute 14-309.15 lets nonprofit organizations, registered candidates and political committees, and government entities hold raffles. A nonprofit may hold no more than five raffles a year, and prizes are capped at $125,000 per raffle and $250,000 per calendar year, with a separate cap for real estate.

Last checked: October 27, 2026 against N.C. General Statute 14-309.15. Details can change.

This article summarizes the statute text published by the North Carolina General Assembly. It is general information, not legal advice. Before running a raffle, read the statute and talk to a North Carolina attorney.

The North Carolina raffle law

North Carolina bans lotteries in G.S. 14-290, except as allowed by the state lottery law or "in connection with a lawful raffle." G.S. 14-309.15 provides that exception. It defines a raffle as "a game in which the prize is won by random drawing of the name or number of one or more persons purchasing chances."

The statute says a raffle run under it "is not 'gambling,'" that it is lawful to take part in one, and that advertising a compliant raffle does not violate state law. It does not set up a license or permit for raffles. Bingo, by contrast, requires a license.

Who can hold a raffle

Under G.S. 14-309.15(a), it is lawful for "any nonprofit organization, candidate, political committee, or any government entity within the State" to conduct raffles.

• Nonprofits: G.S. 14-309.6(8) defines a nonprofit organization as one recognized by the N.C. Department of Revenue as tax exempt under G.S. 105-130.11(a), or a bona fide branch, chapter or affiliate. Each regional or county chapter may hold raffles independently of its parent.
• Candidates and political committees: They must have filed organization reports under Article 22A of Chapter 163 and be in good standing with the board of elections. Ticket purchases count as campaign contributions and must be reported.
• Government entities within the state.

Raffle and prize limits

• Five raffles a year. "A nonprofit organization may hold no more than five raffles per year" (G.S. 14-309.15(c)). If you see a different number in an older guide, the current statute controls.
• $125,000 per raffle. The maximum cash prize for any one raffle is $125,000. A merchandise prize that cannot be redeemed for cash may have a fair market value of up to $125,000 (subsection (d)).
• $250,000 per year. A nonprofit's total cash prizes, and the total value of all its prizes, may not exceed $250,000 in a calendar year.
• Real estate. Real property may be a prize if it is free of all liens and comes with an owner affidavit, indemnity agreement and title commitment available for inspection. Total appraised value of real estate prizes may not exceed $2,250,000 per calendar year (subsection (g)).
• No bingo combos. Raffles "shall not be conducted in conjunction with bingo" (subsection (e)).

Where the money has to go

"Net proceeds" means receipts minus the cost of prizes awarded. At least 90% of net proceeds must be used for "charitable, religious, educational, civic, or other nonprofit purposes." None of the net proceeds may be used to pay anyone to conduct the raffle or to rent the building where tickets are sold or the drawing is held (subsection (f)).

Subsection (h) separately allows federally insured banks and credit unions to run savings promotion raffles under their own statutes.

Penalties

Anyone who conducts a raffle in violation of G.S. 14-309.15 is guilty of a Class 2 misdemeanor and, after conviction, may not conduct a raffle for one year. Under G.S. 15A-1340.23, the maximum fine for a Class 2 misdemeanor is $1,000 unless otherwise provided. Jail ranges run from 1 to 30 days for someone with no prior convictions up to 1 to 60 days for someone with five or more.

Raffle vs. sweepstakes

North Carolina's definition is built around "persons purchasing chances." 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 North Carolina for state-recognized nonprofits, registered candidates and political committees, and government entities. Nonprofits are limited to five raffles a year, $125,000 per raffle prize, $250,000 in total prizes per year, and $2,250,000 in real estate prizes per year. At least 90% of net proceeds must go to nonprofit purposes. Individuals and businesses are not on the list.

Frequently asked questions

How many raffles can a North Carolina nonprofit hold per year?

Five. G.S. 14-309.15(c) says a nonprofit organization may hold no more than five raffles per year.

What is the maximum raffle prize in North Carolina?

The maximum cash prize for any one raffle is $125,000, and non-cash merchandise is capped at a fair market value of $125,000. Total prizes may not exceed $250,000 per calendar year, apart from a separate $2,250,000 annual cap on real estate prizes.

Do you need a license to hold a raffle in North Carolina?

G.S. 14-309.15 does not set up a raffle license or permit. Eligible groups must follow the statute's limits on frequency, prizes and use of proceeds.

Can a political campaign hold a raffle in North Carolina?

Yes, if the candidate or political committee has filed organization reports under Article 22A of Chapter 163 and is in good standing. Ticket purchases count as contributions and must be reported.

What happens if a North Carolina raffle breaks the rules?

Conducting a raffle in violation of G.S. 14-309.15 is a Class 2 misdemeanor, and a convicted person may not conduct a raffle for one year.