How to Run a 50/50 Raffle (and Keep It Legal)

You ran a 50/50 at last year's fish fry. Sold $600 in tickets, handed $300 to the winner, and the whole thing took maybe 45 minutes. Everybody loved it. This year, two weeks before the event, somebody at the board meeting mentions that the county sheriff's office requires a raffle license. You had no idea. The event is three weeks out. Applications can take up to 30 days. Now you're either scrambling for a rush permit, calling the sheriff's office to beg, or quietly deciding to hope nobody notices — none of which is a great position to be in.

That situation is avoidable. It just requires one phone call or web search before you print tickets.

Do You Need a License?

The honest answer is: it depends on your state and county, and you need to find out before you sell a single ticket.

Most states classify a 50/50 raffle as charitable gaming. That means it falls under the same regulatory umbrella as bingo nights and casino-style fundraisers — not the same rules as a bake sale. The paperwork requirements vary widely.

Where to look:

Your state's Department of Justice, Attorney General's office, or Secretary of State depending on the state — there is no single federal agency for this
Search for "[your state] charitable gaming license" or "[your state] raffle permit nonprofit"
If your state has a Gaming Control Board, start there

What you'll typically find:

Some states require an annual charitable gaming license that covers all your events for the year
Some require a per-event permit — one application per raffle
Many states have an exemption threshold for nonprofits below a certain gross receipts amount per event — often somewhere between $1,000 and $5,000 — but you must confirm this threshold explicitly for your state and not assume it applies

Michigan specifically: Michigan requires a license from the Michigan Gaming Control Board for any raffle with prizes over $100. The application is not instant. If you're in Michigan, factor in processing time and start early.

Timeline reality: Permit applications in some states take two to four weeks. A few states can process in a few days. Do not assume yours is fast. Check before you set your event date, not after.

The one thing you do not want to do is sell tickets first and ask questions later. Enforcement varies — most county prosecutors have bigger concerns than your fish fry — but if something goes wrong (a complaint, a dispute over the drawing, anything that draws attention), not having a license is the detail that turns a minor issue into a real problem.

How a 50/50 Works

This is worth stating clearly for anyone running their first one.

You sell numbered tickets at a fixed price throughout the event
All ticket revenue goes into one pot
At drawing time, you pull one ticket from the drum
The winner gets exactly 50% of the total pot; your organization keeps 50%
Example: $800 in total ticket sales — winner receives $400, your org keeps $400

The math is transparent, which is part of why it works. People know what they might win and they know the odds go up as the pot grows. That creates a genuine incentive to buy more tickets, which is not true of most raffle structures.

The other thing that makes it work: the winner is announced during the event, usually from the PA, and the crowd watches. It feels fair because it is.

Setting Your Ticket Price

The most common structures:

1 for $1 — low barrier, works well at events with high foot traffic and tight budgets
3 for $5 — bundles move more tickets per transaction than singles
1 for $2 / 3 for $5 — the hybrid is the most common structure at mid-sized events; it moves volume without feeling cheap
Arm's length for $10 — a strip of tickets as long as your arm; generates buzz and works well at car shows and annual dinners where people are in a spending mood

The principle: match the price to the room. A $1 ticket at a VFW dinner where the bar tab is already $40 a head leaves money on the table. A $5 ticket at a youth league potluck will kill sales before they start. Look at what people are already spending at the event and price slightly below that threshold.

One thing to avoid: too many pricing tiers. One or two options is enough. If your ticket sellers have to explain the pricing, you've already slowed down the line.

Running the Raffle at Your Event

Staffing:

Assign one or two dedicated ticket sellers — not a rotating cast of whoever is available
Give your sellers a float of small bills (fives, ones) in a dedicated cash box before the event starts, separate from the door cash
Sellers should each have their own roll or book of pre-numbered tickets with a clear stub system: buyer keeps one half, seller keeps the matching stub for the drum

The drum:

Use a visible container — a wire drum, a clear bowl, a coffee can with a lid — something people can see into or that clearly can't be manipulated
Do not use an opaque bag. The appearance of fairness matters as much as actual fairness.
Keep the drum in a fixed location so people know where it is

Building the pot:

Announce the running total periodically throughout the event over the PA: "The 50/50 pot is at $420 — drawing happens at 7:30, get your tickets at the back table"
This drives late-event ticket sales more effectively than any other single tactic
Time the drawing so it happens before people start leaving — typically 30 to 45 minutes before the event wraps

The drawing itself:

Run it from the stage or PA — make it a moment, not an announcement from a folding table in the corner
Have someone pull the ticket who is visibly not involved in ticket sales
Read the ticket number clearly and repeat it twice
If the winner must be present: announce this policy before the drawing, not at the drawing. Deciding in the moment that the winner has to be present is a fast way to create an argument.
If the winner can be absent: have their contact information collected at the time of ticket purchase and a documented process for reaching them

Potluck handles online donation tracking and presales automatically — so if you want to sell raffle tickets in advance online, or just keep fundraising records in one place instead of a spreadsheet, that's already built in. Free to start.

Cash Handling

This is where small-org fundraisers go wrong most often — not from dishonesty, but from sloppy documentation that creates suspicion or makes reconciliation impossible later.

The rules:

Two people count the money together. Always. Not because you don't trust anyone — because one person counting alone is how misunderstandings happen and how accusations start
Count the total before the drawing so you can announce the exact pot publicly
Record total tickets sold and total cash collected — these numbers should match; if they don't, find out why before you close the cash box
Pay the winner in cash or check. Get a signed receipt. A handwritten receipt with the winner's name, the amount, the date, and the event name is sufficient and takes 30 seconds.
The signed receipt goes in your treasurer's records and stays there

What the treasurer needs:

Total tickets sold
Total gross receipts
Winner's name and amount paid
Net amount retained by the organization
Copy of signed winner's receipt

Keep this documentation with your event records. If your state requires post-event reporting on your raffle license, this is the information you'll need.

Required Reporting After the Event

This part surprises people. Getting the license is not the end of the paperwork.

Many states require a post-event report after a licensed raffle that includes:

Total tickets sold
Total gross proceeds
Winner's name and prize amount
How the proceeds were used

Missing this report can affect your ability to renew your license or get approved for a future permit. Some states impose fines for late or missing reports. Check your license documentation for the specific deadline — it is often 30 to 60 days after the event.

If your state has an exemption and you did not need a license, you still want to maintain internal records consistent with what a licensed raffle would require. Your bylaws may require it, your auditor will appreciate it, and it protects everyone on the board if questions come up later.

The Short Version

If you're running a 50/50 and want a single checklist:

Before anything else: check your state's charitable gaming regulations and confirm whether you need a license or permit
Leave 4 weeks minimum for license processing; some states are faster, don't assume yours is
Price your tickets to match the event — hybrid bundles (1 for $2, 3 for $5) move the most volume at most events
Use pre-numbered tickets with stubs — buyer keeps one half, you keep the other for the drum
Two people count all cash together, before the drawing, with a written record
Get a signed receipt from the winner
File any required post-event report on time — missing it affects your next license application

Running a 50/50 well is not complicated. The one thing that trips people up is the licensing step, because it's invisible until someone mentions it three weeks before the event. Check it first and the rest is straightforward.

Potluck keeps your fundraising records organized so your next treasurer doesn't have to reconstruct the year from a cash box. Free to start.

Looking for more ideas? See the full list: Fundraising Ideas for Small Nonprofits and Community Clubs.