Planning a raffle in Wisconsin? Understanding the state's Class B raffle rules is crucial to ensure your event is not only exciting but also compliant with the law. Let's dive into the key aspects you need to know, from eligibility to prize structures and more.
Wisconsin's Class B raffles, also known as 'Special Raffles', are governed by the Wisconsin Department of Revenue. They allow organizations to raise funds for charitable, religious, or educational purposes, with some restrictions in place. Let's explore the rules in detail.
Eligibility and Organization
To host a Class B raffle in Wisconsin, your organization must be a nonprofit, charitable, religious, or educational entity. It's also important to note that only licensed raffle organizations can conduct these raffles, so ensure you obtain the necessary license from the Wisconsin Department of Revenue.
Moreover, the raffle must be conducted by a licensed raffle manager, who is responsible for overseeing the entire process, from ticket sales to prize distribution.
Ticket Sales and Pricing
Tickets for Class B raffles can be sold to individuals aged 18 and above. There's no limit to the number of tickets one person can buy, but each ticket must have a unique number or identifier.
Regarding pricing, there's no fixed rule on ticket costs. However, the total revenue from ticket sales must be used for the organization's specified purpose, with a maximum of 60% allocated for prizes. The remaining 40% can cover expenses related to the raffle and the organization's operations.
Prize Structures and Odds
Class B raffles can offer a variety of prizes, from cash to goods or services. The total value of all prizes must not exceed $50,000. If the total prize value is $10,000 or more, the organization must obtain a surety bond or provide other security to ensure prizes are paid.
The odds of winning depend on the number of tickets sold. To calculate the odds, divide the number of prizes by the number of tickets sold. For example, if you sell 1,000 tickets and have 10 prizes, the odds of winning are 1 in 100.
Conducting the Raffle and Prize Distribution
Raffle drawings must be conducted publicly and in the presence of at least two witnesses. The drawing process should be random and fair, using a method that ensures each ticket has an equal chance of being selected.
Winners must be notified in writing within 14 days of the drawing. Prizes should be distributed promptly, and any unclaimed prizes must be handled according to Wisconsin's unclaimed property laws.
Record Keeping and Reporting
Organizations must maintain accurate records of all raffle-related activities, including ticket sales, prize distribution, and revenue and expense tracking. These records should be kept for at least three years and made available to the Department of Revenue upon request.
After the raffle, organizations must file a report with the Department of Revenue, detailing the total revenue, expenses, and the amount used for the specified purpose. This report is due within 30 days after the raffle's completion.
Understanding and adhering to Wisconsin's Class B raffle rules ensures a successful and compliant fundraising event. Always consult the Wisconsin Department of Revenue for the most up-to-date information and guidance. Good luck with your raffle!