Understanding Raffle Scenarios based on Prize Limits
Why are prize limits important?
In Maine, raffle prize limits are the determining factor for eligibility and raffle registration requirements.
What is an internet raffle?
An internet raffle is a special designation when payments and drawings are both virtual where a licensed Interner Raffle Operator is required. Taking payments online requires the use of a licensed Payment Management System but drawings must be done in person. All online payments must come through either a licensed Payment Management System or Internet Raffle Provider to ensure all participants are in the state of Maine at the time of purchase, 18 years or older and that credit cards are prohibited.
$2,500 Prize Limit
| Cash Prizes | Drawing | Online Ticket Sales | Must Register Raffle | 1837-A Subsection | ||
|---|---|---|---|---|---|---|
| Individual or Organization | Yes | In Person | No | No | 2 | |
| Individual or Organization | Yes | In Person | Yes** | No | 2 | |
| Eligible Organization 1832, subsection 2 |
Yes | Virtual | Yes*** | Form 5460 No Filing Fee |
2A, 7 | |
** With use of Licensed Payment Management System *** With use of Licensed Internet Raffle Operator Excluding virtual drawings, an unlimited number of raffles can be run simultaneously by an eligible organization. See Raffle Formats to understand how virtual drawings and online ticket sales may require additional registration. |
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$10,000 Prize Limit
| Cash Prizes | Drawing | Online Ticket Sales | Must Register Raffle | 1837-A Subsection | ||
|---|---|---|---|---|---|---|
| Individual or Organization Must state charitable purpose |
No | In Person | Yes** | 10 business days prior to raffle Registration Form 5425 |
3 | |
| Eligible Organization 1832, subsection 2 |
Yes | In Person | No | No | 2A | |
| Eligible Organization 1832, subsection 2 |
Yes | In Person | Yes** | 10 business days prior to raffle Registration Form 5425 |
2A | |
| Eligible Organization 1832, subsection 2 |
Yes | Virtual | Yes*** 1 Raffle Limit |
10 business days prior to raffle Registration Form 5425 |
2A, 7 | |
** With use of Licensed Payment Management System *** With use of Licensed Internet Raffle Operator https://legislature.maine.gov/legis/statutes/17/title17sec1837-A.html |
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Excluding virtual drawings, an unlimited number of raffles can be run simultaneously by an eligible organization. A festival of trees event is a great example of how this is applied. See Raffle Formats to understand how virtual drawings and online ticket sales may require additional registration. |
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Greater than $10,000 Prize Limit
| Cash Prizes | Drawing | Online Ticket Sales | Must Register Raffle | 1837-A Subsection | ||
|---|---|---|---|---|---|---|
|
Eligible Organization 1832, subsection 2 Must state charitable purpose |
Yes. Multiple $10,000 cash prizes | In Person | Yes** | At least 10 business days prior to raffle Registration Form 5425 |
4, paragraph B | |
|
Eligible Organization 1832, subsection 2 Must state charitable purpose |
No. Up to $150,000 in non-cash prizes | In Person | Yes** | At least 10 business days prior to raffle Registration Form 5425 |
4, paragraph A | |
|
Eligible Organization 1832, subsection 2 Must state charitable purpose |
Yes. Multiple $10,000 cash prizes | Virtual | Yes*** 1 Raffle Limit |
At least 10 business days prior to raffle Registration Form 5425 |
4, paragraph B, 7 | |
|
Eligible Organization 1832, subsection 2 Must state charitable purpose |
No. Up to $150,000 in non-cash prizes | Virtual | Yes*** 1 Raffle Limit |
At least 10 business days prior to raffle Registration Form 5425 |
4, paragraph B, 7 | |
** With use of Licensed Payment Management System *** With use of Licensed Internet Raffle Operator See Raffle Formats to understand how virtual drawings and online ticket sales may require additional registration. https://legislature.maine.gov/legis/statutes/17/title17sec1837-A.html |
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