Football squares raffle rules in Texas

Are charitable football raffles legal in Texas?

Texas lets qualified nonprofits hold charitable raffles, and unlike California it does not dictate how the winner is picked. But a Texas raffle awards its prizes “at a single occasion,” every ticket must state the date the prize will be awarded, and an organization may award prizes in no more than five raffles a calendar year. A single-game football squares raffle can fit that. A season-long one does not — each game's drawing would be its own raffle. Texas also forbids money as a prize.

Texas's charitable raffles are governed by Texas Charitable Raffle Enabling Act (Occupations Code ch. 2002). Regulator: Texas Attorney General and local county / district attorneys (no state raffle permit).

Do you need to register to run a raffle in Texas?

Texas doesn't issue a state raffle permit or require registration, but only a “qualified organization” may hold a raffle — generally a 501(c) nonprofit that has existed for at least three years (a qualified religious society must have existed at least ten years). An organization may not award prizes in more than five raffles in a calendar year (Occupations Code §2002.052).

Can you sell raffle tickets online in Texas?

Texas raffles are run and sold by the organization's own members and are generally sold in person; statewide online ticket sales aren't authorized for standard qualified-organization raffles. (A separate law lets certain professional sports team foundations run 50/50 raffles with electronic sales.) Buyers can pay by cash, check, or card in person.

Who can run a charitable raffle in Texas?

Qualified nonprofits — a 501(c) tax-exempt organization in existence at least three years, a qualified religious society (at least ten years), a qualified volunteer fire department, or a qualified volunteer emergency medical service. Booster clubs, Knights of Columbus councils, parishes, and PTAs commonly qualify.

How do you stay compliant in Texas?

• Only a qualified organization may hold the raffle — never an individual — and it must meet the existence requirement.
• Award the prizes at a single occasion. Texas defines a raffle as the award of prizes by chance at one occasion, so a season of drawings is a series of separate raffles, not one raffle.
• Award prizes in no more than five raffles per calendar year (§2002.052).
• Don't award money as a prize; offer merchandise or gift cards. A prize the organization buys may not exceed $75,000; donated prizes have no cap.
• Print on every ticket the organization's name, its address or a named officer's, the ticket price, a description of each prize worth more than $10, and the date the prize will be awarded (§2002.055).
• Sell tickets in person through the organization's members.
• Spend the proceeds on the organization's authorized purposes.

Texas doesn't set a fixed percentage, but the proceeds must support the organization's authorized purposes. Note: a Texas raffle may not award money (cash) as a prize — use merchandise or gift cards, which is how Sunday Squares prizes work anyway.