Disclaimer: This article offers general information and is not intended as legal or professional advice. You should consult with legal counsel regarding your specific situation. While the information presented is believed to be factual and current as of November 17, 2021, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subject discussed.
Charitable gaming presents a good means of raising funds and awareness for an organization. Online fundraising events such as raffles and sweepstakes represent a great balance of low cost and far reach. Few things can drive community engagement as effectively as prizes, making online charitable gaming an attractive option for nonprofit organizations. Nonprofits that are tax-exempt in Nevada are eligible to run raffles.
Charitable gaming and raffles regulatory guidance for Nevada
How does the state of Nevada define charitable gaming?
The state of Nevada allows for qualified charitable or nonprofit organizations to operate charitable raffles under certain conditions. The requirements placed upon an organization depend on the total prizes that are given out in a calendar year. All charitable gaming activities in Nevada are overseen by the Nevada Gaming Control Board (NGCB). Here are some of the conditions outlined:
- The organization must be approved by the executive director of the NGCB and the total value of all the prizes offered during a single calendar year must not exceed $500,000;
- The organization must register with the executive director and the total value of all the prizes during a single calendar year does not exceed $25,000; or
- The total value of the prizes offered in the charitable lottery does not exceed $2,500 and the organization operates no more than two charitable lotteries in a calendar year; or the tickets are sold only to members of the organization and their guests during a special event sponsored by the organization, and the total value of all the prizes offered by the organization during a single calendar year does not exceed $15,000.
Who can conduct charitable raffle events in Nevada?
Nevada allows for “qualified organizations” to operate charitable raffles. Nevada Revised Statute 462.165 defines “qualified organizations” as alumni, charitable, civic, educational, fraternal, patriotic, religious, or veterans’ organizations that have been certified by the Nevada Department of Taxation or the Internal Revenue Service as not operated for profit.
Licensing and registration requirements for online charitable raffles in Nevada
Types of charitable raffles licenses
The state of Nevada offers two types of licenses for charitable raffles. One for organizations with less than $100,000 per calendar year in prizes and one for organizations with prizes in excess of $100,000 per calendar year.
How to apply for a charitable raffle license in Nevada?
Depending on the total prize value of a raffle, a qualified organization must either:
- Notify the NGCB of their intent to host a raffle if the total prize value does not exceed $2,500 per calendar quarter;
- Register with the NGCB if the total prizes offered during a calendar quarter are valued between $2,500 and $50,000; or
- Gain approval from the NGCB if the total prize value exceeds $50,000 during a calendar quarter.
How much does a charitable raffle license cost in Nevada?
When submitting an application, an organization must also pay a non-refundable application fee:
- Organizations that offer prizes during a calendar year with a total value of less than $100,000 have no fee requirement;
- Organizations that offer prizes during a calendar year with a total value of $100,000 or more: $25 for each day a qualified organization conducts a drawing or drawings; $25 for each day a qualified organization exposes charitable games, other than a charitable game tournament, for play; $25 for each charitable game tournament conducted by a qualified organization.
In addition, organizations must pay $10 if they are registering with the NGCB or $25 if they are seeking approval from the NGCB.
What is the validity of a charitable raffle license in Nevada?
Charitable raffles licenses in Nevada are valid for one calendar year from January 1 to December 31.
How long does it take to get a charitable raffle license in Nevada?
A submitted application must be evaluated within 30 days of receipt. Any organization that submits a refused application must receive a written notice within this time period stating the reasons for refusal.
Charitable gaming resources for Nevada
Nevada Gaming Control Board
Address:1919 College Parkway
Carson City, NV 89706
Phone: (775) 684-7700
Nevada Department of Taxation
Address: 1550 College Parkway, Suite 115
Carson City, NV 89706
Phone: (775) 684-2000
Nevada Governors Office
Address: 101 N. Carson Street
Carson City, NV 89701
Phone: (775) 684-5670