Are Raffles Legal in Texas? 2026 Rules, Limits and Who Can Run One

Yes, but only for certain groups. Under the Texas Charitable Raffle Enabling Act, qualified religious societies, volunteer fire departments, volunteer emergency medical services and qualified nonprofits can hold up to four raffles a year. The Texas Attorney General says individuals and for-profit businesses may not hold raffles.

Last checked: October 26, 2026 against the Texas Occupations Code, Chapter 2002. Details can change.

This article explains what the statute and the Attorney General's guidance say. It is general information, not legal advice. If you are planning a raffle, read the statute yourself and talk to a Texas attorney.

The law that allows raffles in Texas

Texas permits charitable raffles through the Charitable Raffle Enabling Act, Chapter 2002 of the Texas Occupations Code. The Act defines a raffle as "the award of one or more prizes by chance at a single occasion among a single pool or group of persons who have paid or promised a thing of value for a ticket that represents a chance to win a prize" (Sec. 2002.002(6)).

A raffle that does not fit the Act is not protected by it. The Texas Attorney General states: "An unauthorized raffle is considered gambling under the Texas Penal Code, carrying criminal penalties." Under Sec. 2002.058, a county attorney, district attorney, criminal district attorney or the Attorney General can ask a court to stop an unauthorized raffle.

Who can hold a raffle

Only a "qualified organization" may run a raffle (Sec. 2002.051). The statute lists four types:

• Religious societies (churches, synagogues and similar groups) that have existed in Texas for at least 10 years and do not distribute income to members (Sec. 2002.002(3)).
• Volunteer fire departments that operate fire-fighting equipment and pay members no more than nominal compensation (Sec. 2002.002(5)).
• Volunteer emergency medical services that pay members no more than nominal compensation (Sec. 2002.002(4)).
• Qualified nonprofit organizations that hold a federal 501(c) tax exemption, have existed for the three preceding years, and do not devote a substantial part of their activities to influencing legislation or political campaigns (Sec. 2002.003).

The Attorney General's FAQ adds plainly: "Individuals and for-profit businesses may not hold raffles." It also says no state registration or permit is required. An organization "just ha[s] to qualify under the law."

A separate law, the Professional Sports Team Charitable Foundation Raffle Enabling Act (Chapter 2004), covers raffles held by qualified pro sports team foundations during home games. Those raffles have different rules, including allowing cash prizes.

How often, and what can be raffled

• Four raffles per calendar year. Sec. 2002.052(b) caps a qualified organization at prizes in four raffles per calendar year. The limit was two until HB 2757 took effect June 15, 2021, according to the Attorney General.
• No cash prizes. "A prize offered or awarded at a raffle may not be money" (Sec. 2002.056(a)). The Attorney General's FAQ says a certificate of deposit counts as money, while a U.S. savings bond or a prepaid "stored value" card does not.
• Purchased-prize cap. A prize the organization buys, or provides any consideration for, may not be worth more than $75,000 (Sec. 2002.056(b)). The current statute sets a separate $750,000 cap for a purchased residential dwelling (Sec. 2002.056(b-1)). Donated prizes have no value limit, per the Attorney General's FAQ.
• Prize in hand or bonded. The organization must own or possess the prize, or post a bond with the county clerk for its full value (Sec. 2002.056(d)).
• Proceeds. All ticket-sale proceeds must be spent on the organization's charitable purposes (Sec. 2002.053).

Ticket sales and advertising rules

Sec. 2002.054 restricts how a raffle is promoted and sold. An organization may not:

• promote the raffle with paid advertising on mass media such as TV, radio or newspapers;
• advertise statewide, except on its own website or in newsletters, social media or email sent only to previously identified supporters;
• sell or offer tickets statewide.

On online sales, the Attorney General's FAQ says "statewide" has not been defined by a court or AG opinion, "but it is generally thought that statewide would include the Internet." The organization also may not pay anyone to organize the raffle or sell tickets, apart from a de minimis part of an employee-member's job.

Every ticket must show the organization's name, its address or a named officer's address, the ticket price, a general description of each prize worth more than $10, and the drawing date (Sec. 2002.055). The drawing date must be set before tickets go on sale. If prizes cannot be awarded that day, the organization may reschedule once, up to 30 days later. If prizes still are not awarded, it must refund or offer to refund ticket buyers (Sec. 2002.052(d)-(f)).

What to check before you buy a ticket

• Is the seller a church, volunteer fire department, volunteer EMS or established 501(c) nonprofit? A raffle run by a business or an individual does not fit the Act, according to the Attorney General.
• Does the ticket list the five required items above?
• Is the top prize money? Under the Act it cannot be.
• Are tickets being sold to anyone, anywhere online? The AG's guidance suggests that may count as a statewide sale.

A no-purchase-necessary sweepstakes is a different legal category from a paid raffle. Our guide to sweepstakes vs. raffles vs. lotteries explains the difference. To find local fundraisers, see our Houston local raffles guide.

Bottom line

Raffles are legal in Texas when a qualified organization runs them by the Chapter 2002 rules. That means no more than four a year, no cash prizes, a $75,000 cap on purchased prizes, the required ticket details, and no statewide ticket sales. If an individual or a company is selling raffle tickets, the Attorney General's guidance says that is not an authorized raffle. When in doubt, read the statute and the AG's raffle FAQ.

Frequently asked questions

Can an individual hold a raffle in Texas?

No. The Texas Attorney General says individuals and for-profit businesses may not hold raffles. Only qualified religious societies, volunteer fire departments, volunteer emergency medical services and qualified 501(c) nonprofits can, under Chapter 2002 of the Occupations Code.

How many raffles can a Texas nonprofit hold per year?

Four per calendar year. HB 2757, effective June 15, 2021, raised the limit from two to four.

Can a Texas raffle give away cash?

No. Sec. 2002.056(a) says a raffle prize may not be money. The Attorney General says a U.S. savings bond or a prepaid stored-value card is not prohibited, but a certificate of deposit is.

Do you need a permit to hold a raffle in Texas?

No. The Attorney General says there is no registration or permit; the organization only has to qualify under the law and follow its rules.

Can Texas raffle tickets be sold online?

The Act bars selling or offering tickets statewide. The Attorney General says the term has not been defined by a court, but it is generally thought that statewide would include the Internet.