Mason Delacroix
The requirements for raffling alcohol vary depending on the location and the nature of the event. In Victoria, Australia, a liquor license is generally not required for a raffle with a single prize containing alcohol, where every participant has an equal chance of winning. However, if the raffle includes multiple prizes with alcohol, or if not all participants have an equal chance of winning, a temporary limited liquor license may be necessary. In the state of Arizona, different rules apply for on-sale and off-sale events, with specific requirements for obtaining and serving alcohol. In Washington state, a raffle permit is required for nonprofit organizations to raffle liquor to their members, with certain restrictions on ticket sales and the source of the alcohol. Other locations, such as Pennsylvania, also have special occasion permits with specific duration limitations. It is important to review the specific regulations in your area to ensure compliance with local laws and requirements.
| Characteristics | Values |
|---|---|
| Location | Arizona |
| License requirement | A license is required to deal in liquor in the state of Arizona. |
| Special event types | On-sale and off-sale |
| On-sale special event | Liquor is sold and consumed on the licensed premises |
| Off-sale special event | Liquor is auctioned or wine/spirit pulled in the original container for later consumption, not at the event |
| Location | Washington |
| License requirement | A raffle permit is required for a nonprofit organization to raffle liquor to its members at a specified date and place. |
| Raffle permits | Allows raffle of bottles of liquor or baskets that include liquor |
| Ticket sales | Tickets may only be sold to members of the nonprofit organization |
| Ticket sales limit | Organizations may not sell more than $5,000 worth of raffle tickets in a calendar year |
| Alcohol procurement | The nonprofit must buy the alcohol at retail price, or it must be donated by a private individual |
| Special occasion license | Allows a bona fide nonprofit organization to sell liquor at a specific time, date, and place for events like fundraising dinners, auctions, etc. |
| Location | Pennsylvania |
| Special occasion permits | Only the area where alcohol sales will take place needs to be licensed under the permit. Permits may be used for nine consecutive or non-consecutive days and an additional 10 days in a calendar year. |
| Location | Victoria, Australia |
| License requirement | If the raffle has only one prize with alcohol and everyone who buys a ticket has an equal chance to win, a liquor license is not required. |
| Temporary limited license | Required if the event organizer wants to increase trading hours or have multiple suppliers at an event. |
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What You'll Learn
Raffles where everyone receives alcohol prizes require a license
In the US, the requirement for a liquor licence to raffle alcohol depends on the state in which the raffle is taking place. In Washington, a raffle permit is required for a bona fide nonprofit organisation to raffle liquor to its members at a specified date and place. The raffle permit allows the raffle of bottles of liquor or baskets that include liquor. The nonprofit must buy the alcohol at retail price or it must be donated by a private individual. The state of Arizona also requires a liquor licence to deal with liquor, including raffling alcohol.
In Australia, the requirement for a liquor licence for raffling alcohol depends on how the raffle is being run. If the raffle has only one prize that contains alcohol and every participant has an equal chance of winning, a liquor licence is not required. However, if everyone participating in the raffle receives a prize with alcohol included, a liquor licence is required.
Temporary limited liquor licences are also available in Australia for individuals or organisations to supply alcohol at a one-off event or a series of one-off events. These licences can be used to cover up to six events per location over a calendar year.
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Nonprofits must follow specific rules to raffle liquor
Nonprofits must adhere to specific rules and regulations to raffle liquor, as these activities are considered a form of gambling and are subject to state and local laws. While raffle laws vary across the United States, here are some general guidelines for nonprofits to follow:
Licensing and Permits
Before conducting a raffle, nonprofits should consult the relevant state and local authorities to determine if a license or permit is required. In some states, such as Florida, Maine, Montana, Ohio, Oklahoma, Texas, Vermont, and Wyoming, nonprofits are exempt from obtaining a license or permit. However, most states mandate a permit or license if raffle ticket sales exceed a certain amount or if prizes exceed a certain value. A raffle permit typically allows nonprofits to sell a limited number of tickets and restricts the total ticket sales amount per calendar year.
Eligible Organizations
Only certain types of charitable or nonprofit organizations are permitted to conduct raffles. These typically include nonprofit entities with a specific charitable purpose, such as a 501(c)3 status. The organization must have been operating for at least 12 months, and its bylaws or articles of incorporation must align with eligible purposes outlined by the state.
Ticket Sales and Restrictions
Nonprofits should limit the number of tickets sold and the value of prizes to remain compliant. Ticket sales must adhere to state-specific price caps, and tickets can only be sold to individuals above a certain age (usually 18 or 21 years old). Tickets must be sold by organization members, and certain states prohibit online ticket sales or sales over the phone or mail. Additionally, the proceeds from ticket sales must be used for the organization's stated charitable purpose.
Raffle Mechanics
The raffle process must be transparent, with clear rules and regulations disclosed to participants. This includes printing specific information on tickets, such as the cost per chance, date, time, location of the drawing, sponsoring organization, and a description of prizes. Winners are typically selected randomly, ensuring an equal chance of winning. Nonprofits should also maintain accurate records of ticket sales and expenses for a specified period after the raffle.
Liquor-Specific Regulations
When raffling liquor, nonprofits must comply with additional regulations. Liquor can generally only be awarded as a prize at members-only raffles, and the alcohol must be purchased at retail price or donated by a private individual. Organizations should also be mindful of the type of event they are holding—on-sale (where liquor is consumed on-site) or off-sale (where liquor is auctioned for later consumption)—as this will dictate the manner in which liquor is obtained and the applicable licenses required.
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Special occasion licenses for nonprofits to sell liquor
In the state of Arizona, a license is required to deal with liquor. If an organisation will purchase, store, serve, or provide liquor, a license will be needed. A special event (series 15) liquor license can be applied for if the organisation is a nonprofit entity. This is a temporary license that allows the organisation to serve wine, beer, and/or spirits for consumption at the event. In some cases, liquor in a sealed container may be offered in an auction or wine/spirit pull.
There are two types of special events: on-sale and off-sale. On-sale events are where liquor is sold and consumed on the licensed premises, while off-sale events are where liquor is auctioned or sold for later consumption, not at the event. For on-sale events, there are several ways to obtain alcohol: it can be purchased from a liquor retail store, donated by a liquor wholesaler, donated by a liquor producer, or purchased or received from a craft distiller, farm winery, or microbrewery. For off-sale events, alcohol can be received from a donor who receives no payment or purchased or received from a wholesaler or producer.
In Washington state, a special occasion license allows a bona fide nonprofit organisation to sell liquor at a specific time, date, and place. This includes fundraising dinners, gala events, auctions, and wine tastings. Applications must be made on the LCB's Portal, and the local authority will be notified of the application. Organisations are limited to 12 single-day events per calendar year.
A raffle permit is also available for nonprofits in Washington state. This allows liquor to be raffled to members at a specified date and place. The alcohol must be bought at retail price or donated by a private individual.
It is important to note that special licenses and permits are subject to state-specific laws and regulations.
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Temporary limited licenses for individuals and organisations
Temporary limited liquor licences allow individuals or organisations to supply alcohol at a one-off event or a series of one-off events. They can also be used to temporarily increase trading hours, such as extending them into the night or on public holidays. In Victoria, Australia, individuals or organisations can apply for temporary licences to cover up to six events per location over a calendar year.
In the US, state laws vary. In Arizona, a license is required to deal in liquor, and a special event license must be obtained at least 10 days prior to the event. In Washington State, a raffle permit allows a bona fide nonprofit organisation to raffle liquor to its members at a specified date and place. A special occasion license allows a nonprofit to sell liquor at a specific time, date, and place. A banquet permit allows the service and consumption of liquor at a private, invitation-only banquet or gathering held in a public place or business.
In the UK, a temporary event notice (TEN) is required for a temporary event with fewer than 500 people lasting no more than 168 hours. In England and Wales, an online application can be made, or a postal form can be downloaded. In Scotland, an occasional licence can be applied for online.
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State-specific rules for raffling alcohol
Arizona
A license is required to deal with liquor in the state of Arizona. If your organization will purchase, store, serve, or provide liquor, you will be dealing with liquor and will need to be licensed. There are two types of special events: on-sale and off-sale. For an on-sale special event, you can purchase liquor from an Arizona-licensed liquor retail store, or receive liquor donated by an Arizona-licensed liquor producer. For an off-sale special event, you can receive liquor from a donor who receives no remuneration other than tax benefits, or purchase or receive liquor from a wholesaler or producer.
Washington
In Washington, a raffle permit costs $10 for a single event or $25 for an annual permit. This allows a nonprofit organization to raffle bottles of liquor or baskets that include liquor to its members at a specified date and place. Tickets may only be sold to members of the nonprofit organization, and organizations may not sell more than $5,000 worth of raffle tickets in a calendar year. The nonprofit must buy the alcohol at retail price or it must be donated by a private individual.
California
The Alcoholic Beverage Control Act prohibits any licensee from giving any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage. However, alcoholic beverages can be provided in consumer contests and sweepstakes subject to specified conditions. The Act also permits the department to issue a special temporary on-sale or off-sale beer or wine license to certain nonprofit corporations, allowing them to sell beer or wine. This license is valid for a maximum of 15 days and can only be used for retail sales in conjunction with an identifiable fundraising event.
Alabama
Alabama's local alcohol code is reportedly very prohibitive, and bar owners have to constantly skirt it.
North Carolina
North Carolina does not allow happy hour of any kind, meaning the prices for drinks must remain the same on any given day.
Minnesota
There may be specific gaming rules or regulations in Minnesota that bar owners must follow.
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Frequently asked questions
Yes, a license is required to deal with liquor in the state of Arizona. If your raffle will purchase, store, serve, or provide liquor, you will need to be licensed.
It depends. If the raffle has only one prize, which contains alcohol, and every participant has an equal chance to win, a liquor license is not required. However, if everyone participating in the raffle receives a prize that includes alcohol, a liquor license is necessary.
A raffle permit is required for a nonprofit organization to raffle liquor to its members. The cost is $10 for a single event or $25 for an annual permit.
