What Tennessee School Officials and Sponsors Need to Know About Raffles
In schools across Tennessee, raffles have long been viewed as an easy way to raise money — a few tickets sold at a ball game, a donated prize, and one lucky winner. But what many well-meaning coaches, sponsors, and administrators don’t realize is that under Tennessee law, most of those raffles are illegal. Here’s what every school leader and booster organization needs to know before selling that next 'chance to win.'
Raffles Are Considered Gambling in Tennessee
Tennessee law defines gambling as 'risking anything of value for a profit whose return is to any degree contingent on chance.' That means if someone pays money for a chance to win a prize, the event is classified as a lottery or game of chance — not a harmless fundraiser. Under Tenn. Code Ann. § 39-17-501, these activities are strictly prohibited unless they qualify for a specific exemption. Selling raffle tickets at a school event without approval is, by definition, a violation of the state’s gambling laws.
Public Schools Themselves Cannot Hold Raffles
A public school or school district is a governmental entity, not a nonprofit corporation. Only qualifying nonprofits — specifically 501(c)(3) or 501(c)(19) organizations — are eligible to apply for permission to hold raffles in Tennessee. That means a principal, teacher, or coach cannot simply decide to run a raffle 'for the school.' The law does not allow it.
The Exception: Approved Nonprofit “Annual Events”
The Tennessee Nonprofit Gaming Law (Tenn. Code Ann. § 3-17-101 et seq.) provides one limited path for a raffle to be legal: a nonprofit may hold an 'annual event' — but only after meeting all of the following requirements:
• The organization must be a qualifying 501(c)(3) or 501(c)(19) nonprofit (for example, a properly organized booster club or school foundation).
• It must submit an Annual Event Application to the Tennessee Secretary of State by January 31 each year.
• The organization must then be approved by a two-thirds vote of the Tennessee General Assembly.
• Tickets cannot be sold until that legislative approval is granted.
Even then, only one event per year is allowed, and detailed record-keeping and reporting are required.
Why This Matters for Coaches and Sponsors
Many raffles happen simply because 'that’s what we’ve always done.' But those small fundraisers — a 50/50 drawing at the gym, a 'chance to win a Yeti cooler,' or an online giveaway — all technically violate state law if they aren’t approved under the gaming statute. If discovered, the individuals involved (not just the organization) could face criminal penalties, and the school could face administrative consequences or media scrutiny.
Safer (and Legal) Alternatives
Fortunately, there are plenty of legal ways to raise funds that don’t involve chance:
Silent or live auctions (winning is based on bidding, not luck)
Merchandise or concession sales
Free door-prize drawings (as long as no purchase or donation is required to enter)
Sponsorships or advertising sales
Practical Tips for Administrators
• Make sure all booster clubs are recognized School Support Organizations under T.C.A. § 49-2-601 et seq.
• Require written approval from the district’s finance office before any raffle-type fundraiser is advertised.
• Share guidance early in the school year, so well-meaning volunteers don’t unknowingly create liability for themselves or the school.
The Bottom Line
A raffle isn’t just a harmless drawing — under Tennessee law, it’s gambling, unless it’s properly approved through the Nonprofit Gaming Act. For schools, the safest approach is simple: don’t sell chances. Work with your booster clubs to find creative, compliant ways to raise money without risking a criminal violation.