Arizona Law Regarding Raffles

Individual clubs and groups are not encouraged to conduct raffles on their own. If any group is interested, they must follow Arizona law (link is external).

Arizona law covering gambling, and exclusions therein, are contained in ARS Chapter 33, Section 13 . Chapter 13-3302 lists the specific exclusions to the normal regulations of gambling activities. Included are raffles operated by tax exempt organizations, subject to certain other restrictions. Sec.13-3302B states the following:

'An organization which has qualified for an exemption from taxation of income under Sec. 43-1201, paragraph 1, 2, 4, 5, 6, 7, 10, or 11 may conduct a raffle that is subject to the following restrictions:

  • The nonprofit organization shall maintain this status and no member, director, officer, employee or agent of the nonprofit organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
  • The nonprofit organization has been in existence continuously in this state for a five year period immediately before conducting the raffle.
  • No person except a bona fide local member of the sponsoring organization may participate directly or indirectly in the management, sales or operation of the raffle.'