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Note: many municipalities consider raffles a form of gambling if tickets are sold, so be sure to check with local authorities for legal requirements. State regulations governing raffle ticket events. Fundraising with raffle tickets is legal and effective for most types of nonprofit organizations. A form of gambling: federal government regulators view raffles as a form of gambling since donors make a payment in exchange for a chance to win. Taxes: all federal, state, and local income taxes are the sole responsibility of each raffle winner. The taxable value of the prizes will be treated as gambling. All raffle winners will be subject to the internal revenue service (“irs”) and california franchise tax board rules and regulations regarding gambling winnings. The term “raffle” for everything normalizes gambling Most online casinos now feature slots from various game designers, is 50/50 raffle gambling.
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