O'Fallon, MO asked in Constitutional Law for Missouri

Q: In regard to Missouri Constitution Article III - Legislative Department Section 39(f)

I am trying to determine if a 501(c) 3 is allowed to sell raffle tickets, for a prize less than $2000, in another state. The organization is in Missouri. Thank you.

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James L. Arrasmith
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  • Consumer Law Lawyer
  • Sacramento, CA

A: The Missouri Constitution Article III, Section 39(f) allows 501(c)(3) organizations to conduct raffles, provided they follow state regulations. However, selling raffle tickets in another state involves additional considerations and compliance with that state's laws. Each state has its own regulations regarding raffles, and what is permissible in Missouri might not be allowed elsewhere.

For your Missouri-based 501(c)(3) organization to sell raffle tickets for a prize less than $2,000 in another state, you must check the specific laws of the state where you intend to sell the tickets. Some states have strict regulations, including registration requirements, limitations on prize amounts, and restrictions on interstate raffle sales. Failing to comply with these regulations could result in legal issues for your organization.

To ensure compliance, contact the regulatory agency in the state where you plan to sell the raffle tickets. This might be the state’s Attorney General's office or a similar entity overseeing charitable gaming. Additionally, consulting with a legal professional familiar with non-profit and gaming laws can provide guidance on navigating both Missouri's regulations and those of the other state, ensuring that your raffle is conducted legally and without complications.

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