California allows Fundraising Raffles and there is some confusion about the issue about online charity raffles:
You need to make sure your charity follows the appropriate guidelines.
Governing legislation California Penal Code Section 320.5 State of California Department of Justice, Office of the Attorney General
Special Circumstances to pay attention to when creating your rules and your raffle:
320.5.b.4A At least 90% of the gross receipts generated from the sale of raffle tickets for any given draw are used by the eligible organization conducting the raffle to benefit or provide support for beneficial or charitable purposes…..
This makes 50/50 raffles in California difficult to do. The following two points make electronic raffles in California very difficult to do as well.
320.5.b.4C.e No raffle otherwise permitted under this section may be conducted by means of, or otherwise utilize, any gaming machine, apparatus, or device, whether or not that machine, apparatus or device meets the definition of slot machine contained in Section 330a, 330b, or 330.1
320.5.2 (2) A raffle may not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet……