What Tennessee School Officials and Sponsors Need to Know About Raffles

In Tennessee, raffles are considered gambling, not fundraising. Under Tenn. Code Ann. § 39-17-501, selling chances to win prizes is illegal unless approved under the Nonprofit Gaming Act. Public schools cannot hold raffles because they are government entities, not nonprofits. Only approved 501(c)(3) booster clubs or school foundations may apply for one “annual event” raffle each year through the Secretary of State and must receive General Assembly approval before selling tickets. Unapproved raffles can lead to criminal penalties. Schools should rely on legal fundraisers—auctions, merchandise sales, sponsorships, or free drawings—to stay compliant and protect their staff and supporters.