Are Raffles Legal in Tennessee? 2026 Rules for Charity Raffles

Only in a narrow case. Beyond the lottery the constitution itself authorizes, Tennessee prohibits lotteries unless the General Assembly approves, by a two-thirds vote of each house, an annual event for a 501(c)(3) or 501(c)(19) organization. The Secretary of State says holding a raffle without that approval would violate the law.

Last checked: October 27, 2026 against the Tennessee Secretary of State's Charitable Gaming Event FAQs. Details can change.

This article summarizes official Tennessee sources. It is general information, not legal advice. Before planning a raffle, check with the Secretary of State's Division of Charitable Solicitations and Gaming or a Tennessee attorney.

The constitutional rule

Article XI, Section 5 of the Tennessee Constitution controls. The amendment language that lawmakers sent to voters in November 2014, in Senate Joint Resolution 60, reads: "All other forms of lottery not authorized herein are expressly prohibited unless authorized by a two-thirds vote of all members elected to each house of the general assembly for an annual event operated for the benefit of a 501(c)(3) or a 501(c)(19) organization, as defined by the 2000 United States Tax Code, located in this state."

The Tennessee Nonprofit Gaming Law carries out that rule, and the Secretary of State's Division of Charitable Solicitations and Gaming runs the application process.

Who can hold a raffle

According to the Secretary of State:

• The organization must have IRS documentation recognizing it as exempt under 501(c)(3) or 501(c)(19).
• It must have been active and in continuous existence in Tennessee for at least three years, or meet a statutory exception.
• It must apply and be approved by a two-thirds vote of the General Assembly.

The Secretary of State says political candidates and campaigns are not 501(c)(3) or 501(c)(19) organizations and cannot hold a raffle. Raising money for something other than a qualified charity is not allowed either.

How approval works

• Application window: July 1 through January 31, filed online through the state's TNCaB system, with a non-refundable $50 initial fee.
• Legislative vote: Qualifying applications go to the General Assembly on an omnibus list by March 1.
• One event per period: An event period runs July 1 through June 30. A qualified organization may hold one event per period, using a single type of game.
• Location: The event must be in a county where the organization has a physical presence, or a neighboring county. Only two organizations may run an event at the same location each month.

For the July 1, 2026 to June 30, 2027 period, the House adopted House Resolution 193 on April 13, 2026, by an 81-7 vote, according to the General Assembly's bill record. Its omnibus list names 216 annual events, including 164 raffles and 28 reverse raffles.

Rules for the event itself

• Allowed games: raffles, reverse raffles, cakewalks, cake wheels and bingo. Pull-tabs, punchboards, video lottery, keno, instant and online lottery-style games, and casino games such as slots and roulette are not allowed.
• No paid operators: The organization must run the event itself and may not pay a third party to manage it.
• Ticket sales: Approved organizations may start selling tickets 120 days before the event.
• Who cannot buy tickets: the organization's board members, officers and employees, and immediate family in the same household; members of the General Assembly; the Secretary of State and the Secretary's employees; and vendors that supply printing, gaming supplies or prizes.

Reporting and penalties

Within 90 days of the event, the organization files a financial accounting under Tenn. Code Ann. Section 3-17-106(a)(1) and pays a second fee based on gross revenue: $100 for $0 to $5,000, $250 for $5,001 to $10,000, $400 for $10,001 to $20,000, and $550 above that. An audited financial statement is required if gross revenue exceeds $75,000. Late reports cost $10 per month.

At least 25% of gross proceeds must go to the stated charitable purpose. Falling short two years in a row disqualifies the organization for five years. Missing the filing deadline in two of three consecutive event periods could also disqualify it.

The Secretary of State says an unapproved game of chance may violate the criminal gaming statute and that local law enforcement can investigate and prosecute. To report one, contact the county district attorney or the Division at (615) 741-2555.

Raffle vs. sweepstakes

The Secretary of State is blunt on this point: "If someone is required to pay for a chance to win a prize, it is considered a raffle," and "it does not matter that the payment is called a 'donation.'" 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

In Tennessee, a raffle is legal only when a qualified 501(c)(3) or 501(c)(19) organization with three years in the state applies between July 1 and January 31 and wins a two-thirds vote of the General Assembly. Individuals, businesses and campaigns cannot hold one. If you are unsure whether an event is approved, the Secretary of State offers a search tool for approved gaming events on its charitable gaming page.

Frequently asked questions

Can an individual or business hold a raffle in Tennessee?

No. The Secretary of State says only qualified 501(c)(3) or 501(c)(19) organizations that have applied and been approved by the General Assembly may hold a raffle. Holding one without approval would violate the law.

Does every Tennessee charity raffle need legislative approval?

Yes. Article XI, Section 5 of the Tennessee Constitution requires each annual event to be authorized by a two-thirds vote of all members elected to each house of the General Assembly.

When can a Tennessee nonprofit apply to hold a raffle?

From July 1 through January 31, online through the TNCaB system, with a non-refundable $50 initial fee. Approved events take place between July 1 and June 30 of the following event period.

How early can raffle tickets be sold in Tennessee?

The Secretary of State says organizations with an approved gaming event can begin selling tickets 120 days before the event.

Can a political campaign hold a raffle in Tennessee?

No. The Secretary of State says political candidates and campaigns are not 501(c)(3) or 501(c)(19) organizations and cannot hold a raffle, even if the payment is called a donation.