REQUIREMENTS AND RESTRICTIONS IN CONDUCTING RAFFLES UNDER THE PROVISION OF CHAPTER 2002, TEXAS OCCUPATIONS CODE
The minimum requirements for charitable raffles as set forth in Chapter 2002, Texas Occupations Code are:
1. There can only be two (2) raffles per year; a year is deemed to be from January 1 to December 31; and the raffles cannot overlap, i.e. you cannot sell raffle tickets for two raffles at the same time;
2. All proceeds from the sale of tickets must be spent for the charitable purpose of the organization;
3. There can be no paid advertising to promote the raffle, i.e. television, radio, or newspaper;
4. There can be no statewide raffles;
5. There can be no offers to sell tickets for a statewide raffle;
6. There can be no compensation to any person for directly or indirectly organizing or conducting a raffle or for selling or offering to sell tickets to a raffle;
7. Only members of the non- profit organization can sell raffle tickets;
8. Each raffle ticket must contain the name of the organization conducting the raffle; the address of the organization or of a named officer of the organization; the ticket price; and a general description of each prize having a value of more than $10.00.
9. A prize offered may not be money;
10. A prize may not exceed $50,000.00. A residential dwelling offered or awarded as a prize at a raffle that is purchased by the organization may not exceed $250,000.00;
11. A raffle prize may consist of one or more ticket in the state lottery with a face value of $50,000.00 or less, without regard to whether a prize in the lottery game to which the ticket or tickets relate exceeds $50,000.00;
12. A prize has to be in the possession of the organization, or the organization must post a bond with the county clerk of the county in which each raffle is to be held.
A violation of any of these provisions would constitute a violation of the Texas Penal Code, and authorize criminal penalties. As a corporation, the Grand Lodge of Texas could be assessed criminal penalties in the way of fines.
Grand Lodge Recommendations:
Lodges are recommended to adopt a non-profit purpose in a stated meeting for each raffle and record the purpose in the minutes; e.g., scholarships at a local school, contributions to youth organizations; community projects, etc. Lodge officers must ensure that all proceeds are spent for that purpose.
As the violations of the raffle statutes are penal in nature, they are regulated by the local County and District Attorneys. Lodges should advise these authorities of each raffle and its purpose.
Finally, task some member of the Lodge to supervise the sale of the raffle tickets and to ensure the specific requirements of the statute are met in regards to the sale of the tickets.
