Montana Raffle Laws: Are Online and 50/50 Raffles Legal for Nonprofits?

Quick Answer

Yes. Qualified nonprofit organizations can legally conduct raffles in Montana, and Montana is one of the states that expressly allows registered nonprofits to sell raffle tickets online.

The Montana Department of Justice Gambling Control Division states that a nonprofit organization that completes the state's one-time Nonprofit Online Raffle Registration Form, Form 46, may conduct raffles online. The state's current FAQ goes even further, identifying nonprofit-sponsored raffles offering tickets online as the only form of legal online gambling in Montana. Montana also permits qualifying nonprofits to accept credit cards for raffle-ticket purchases. The state's current Form 46 notes that this change became effective June 1, 2025.

50/50 raffles are also expressly addressed in current Montana DOJ guidance, although additional requirements apply, particularly when an electronic 50/50 processing system is used.

For nonprofits, schools, churches, veterans organizations, civic organizations, and other qualifying organizations, this makes Montana an important state for modern raffle fundraising.

Montana Raffle Laws at a Glance

Question	Montana Rule
Are nonprofit raffles legal?	Yes
Can qualified nonprofits sell raffle tickets online?	Yes, after completing the required Form 46 registration
Can nonprofit raffle tickets be purchased with a credit card?	Yes
Are 50/50 raffles permitted?	Yes, subject to Montana requirements
Can tickets potentially be sold outside Montana?	Yes, if the purchase is not prohibited where the purchaser resides
Is there a nonprofit raffle prize-value limit?	Montana DOJ guidance states there is no limit on the value of prizes for qualifying nonprofit raffles
Can raffle proceeds pay administrative costs?	No. Raffle proceeds may be used for charitable purposes or prizes, not administrative costs
Primary regulator	Montana Department of Justice, Gambling Control Division

RaffleGives Compliance Tip

Online raffle sales being legal in Montana does not mean tickets can automatically be sold to anyone in the United States. Montana allows registered nonprofits to sell tickets outside the state only when the purchase is not prohibited in the jurisdiction where the purchaser resides. Geographic compliance still matters.

Montana Gives Nonprofits a Real Opportunity to Modernize Raffle Fundraising

For nonprofit leaders, fundraising often creates a frustrating contradiction. Organizations need new revenue, but the people responsible for generating that revenue are already busy running programs, managing volunteers, serving families, communicating with donors, and keeping the organization moving forward. Then someone suggests holding a raffle. The idea sounds simple enough. Supporters understand raffles, the fundraiser can create excitement, and the organization can potentially reach people who may not respond to a traditional donation appeal. Then the questions begin.

Can we legally do this?

Can people buy tickets online?

Can they use a credit card?

Do we need a gambling license?

Can we run a 50/50?

Can people outside Montana participate?

Those questions stop many otherwise promising fundraising ideas before they ever get started. In Montana, nonprofit leaders have clearer answers than they may expect. Montana has specifically created a path for qualified nonprofits to conduct online raffles. The state has a dedicated online raffle registration process, recognizes credit-card purchases for qualifying nonprofit raffles, and provides specific guidance for 50/50 fundraising.

That does not eliminate the nonprofit's responsibility to follow the law. It does, however, create a regulatory framework that can work with modern digital fundraising rather than forcing organizations to rely exclusively on traditional paper-ticket campaigns.

Are Raffles Legal in Montana?

Yes.

Montana regulates gambling through the Montana Department of Justice Gambling Control Division. The state emphasizes that gambling activities must be specifically authorized by statute or rule, but raffles are among the activities Montana law permits when conducted according to applicable requirements. For qualifying nonprofits, the rules are particularly important because Montana provides charitable organizations with certain raffle provisions that differ from those applicable to individuals and for-profit businesses.

Montana's DOJ identifies nonprofit raffle fundraising as an authorized charitable gaming activity and provides dedicated guidance, forms, and compliance resources for organizations that want to conduct raffles.

This distinction matters. A nonprofit should not look at the rules governing a private individual's raffle and assume those same requirements automatically apply to its charitable fundraiser.

Who Can Conduct a Charitable Raffle in Montana?

Montana's online raffle registration form identifies a range of nonprofit organization types that may register, including charitable, religious, scholastic, educational, veterans, fraternal, beneficial, civic, senior citizens, and service organizations.

The organization must provide evidence of its nonprofit status as part of the Form 46 registration process. For schools, Montana's 50/50 guidance also specifically identifies colleges, universities, public school districts, and nonpublic schools as organizations that may sponsor and offer qualifying 50/50 raffles. This creates opportunities for a wide range of Montana organizations, but eligibility should always be confirmed before ticket sales begin.

Can Montana Nonprofits Sell Raffle Tickets Online?

Yes.

This is one of the most important differences between Montana and many other states. According to the Montana Department of Justice Gambling Control Division, a nonprofit organization that completes the required one-time Form 46 registration may conduct raffles online. The Department's current FAQ is particularly clear. It states that nonprofit-sponsored raffles offering tickets for sale online are the only legal form of online gambling in Montana.

That makes online raffle fundraising a legally recognized option for qualifying Montana nonprofits rather than an area organizations have to interpret from rules written exclusively for traditional paper tickets.

What Is Montana Form 46?

Form 46 is the Nonprofit Online Raffle Registration Form administered by the Montana Department of Justice Gambling Control Division. The form asks organizations to provide information including their:

organization name and FEIN
mailing address
primary and secondary contacts
nonprofit organization type
proof of nonprofit status
websites where raffles will be advertised

Organizations interested in online raffle fundraising should complete the state's registration requirements before beginning online ticket sales. The Montana DOJ maintains the current version of Form 46 through its Gambling and Alcoholic Beverage Forms page.

Can Supporters Use Credit Cards to Buy Raffle Tickets?

Yes, for qualifying nonprofit raffles.

This is another area where current information matters. Older Montana resources may still appear in search results stating that credit cards cannot be used for raffle-ticket purchases. That information is outdated for qualifying nonprofit organizations. The current Montana DOJ Form 46 states that as of June 1, 2025, raffle tickets may be purchased with a credit card for nonprofit organizations, colleges, universities, and school districts. The Montana DOJ's current Gambling Control Division FAQ likewise identifies nonprofit raffle purchases as an exception to Montana's general prohibition on using credit cards for gambling.

For organizations evaluating digital fundraising, this is a significant change. Credit-card acceptance can make participation considerably easier for supporters who are accustomed to completing purchases through modern online checkout systems.

Can Montana Nonprofits Sell Tickets Outside the State?

Potentially, but this requires careful attention. Montana's current Form 46 states that nonprofits may sell raffle tickets outside Montana if the purchase is not prohibited in the jurisdiction where the purchaser resides. That last part is critical. A nonprofit cannot interpret Montana's permission as authorization to sell tickets indiscriminately throughout the United States. Every state has its own raffle and charitable gaming laws.

If a purchaser is located in another state, the nonprofit must consider the laws applicable in that jurisdiction. For many organizations, the safest strategy is to clearly establish where tickets may be sold and use technology and campaign procedures that support those geographic restrictions. This is exactly why nonprofits should review Raffle Laws by State rather than assuming a campaign legal in Montana is automatically legal everywhere else.

Are 50/50 Raffles Legal in Montana?

Yes, and the Montana Department of Justice publishes dedicated 50/50 Raffle Guidelines. A 50/50 raffle is a raffle in which the cash prize is calculated as a predetermined percentage of gross raffle-ticket sales. A common structure gives 50 percent of the applicable raffle pool to the winner and the remaining portion to the nonprofit sponsor. Montana's current guidance states that only a nonprofit organization, college, university, public school district, or nonpublic school may sponsor and offer a 50/50 raffle.

The guidance also makes clear that proceeds must be divided between the winner and the sponsor and cannot be used to pay administrative expenses or fees to a third party. This makes the structure of the fundraiser particularly important.

Electronic 50/50 Systems Have Additional Rules

Montana separately regulates 50/50 raffles conducted using an electronic processing system. Current DOJ guidance states that a nonprofit may purchase or contract for such a system, but additional restrictions apply. Among them, the nonprofit must register with the Department for the applicable internet-gambling exemption, use an approved electronic processing system, and comply with specific ticket-sale and drawing requirements. For electronic 50/50 systems, the current Montana guidance states that tickets may be sold only on the day of the drawing.

Organizations planning a digital 50/50 should therefore distinguish between Montana's general online raffle rules and the additional requirements that apply when using an electronic 50/50 processing system.

Are There Limits on Raffle Prizes?

Montana gives qualifying nonprofit raffles considerably more flexibility than ordinary raffles. The Montana Department of Justice's nonprofit fundraising guidance states that qualifying nonprofit raffle sponsors do not have to own the prizes before ticket sales begin, including in 50/50 raffles, and states that there is no limit on the value of the prizes for these nonprofit raffles. That flexibility can make raffles useful for organizations interested in offering donated prizes, large-ticket items, or growing cash prizes.

However, organizations should still clearly describe their prizes and raffle terms before ticket sales begin.

What Information Should Be Disclosed Before Ticket Sales Begin?

Transparency is an important part of Montana's raffle framework. The Montana DOJ states that raffle sponsors must make the raffle terms available to the public before tickets are sold. The drawing date must be established and made available. Other terms may include information such as the sponsor's identity and contact information, eligibility restrictions, ticket price, prize description and value, estimated ticket quantity, sales closing date, and method used to select the winner.

For nonprofits, this is more than a compliance requirement. It is also good fundraising practice. A supporter should never have to wonder who is running the raffle, what they could win, when the drawing occurs, or how the fundraiser benefits the organization.

What Can Montana Nonprofits Do With Raffle Proceeds?

This is one of the most important operational rules for nonprofits to understand. Montana DOJ guidance states that proceeds from qualifying charitable raffles may be used only for charitable purposes or to pay for prizes.

Raffle proceeds cannot be used to pay the administrative costs of conducting the raffle. The raffle must also be publicly identified as a charitable raffle. This distinction should be incorporated into the organization's financial planning before the campaign begins. A nonprofit should understand how applicable costs will be handled rather than discovering after launch that it planned to pay an impermissible expense from raffle proceeds.

Montana Nonprofit Raffle Compliance Checklist

Before You Launch	What to Verify
Confirm nonprofit eligibility	Make sure your organization falls within an eligible category
Review current Montana DOJ guidance	Use the Gambling Control Division's current resources
Register for online raffles	Complete Form 46 before conducting online raffle sales
Publish raffle terms	Make applicable rules available before ticket sales begin
Establish drawing procedures	Clearly state when and how the winner will be selected
Review payment methods	Qualifying nonprofits may accept credit cards under current Montana rules
Determine geographic sales area	Verify legality where purchasers are located
Plan use of proceeds	Raffle proceeds must be used for charitable purposes or prizes
Address administrative costs separately	Do not use raffle proceeds for prohibited administrative expenses
Establish recordkeeping procedures	Maintain the records required under Montana law
Review special 50/50 requirements	Electronic 50/50 processing systems have additional rules

Why Montana's Online Raffle Rules Matter for Small Nonprofits

For a large organization with a full development department, selling paper raffle tickets may simply be inconvenient. For a small nonprofit, it can be a major operational burden. Someone has to distribute ticket books. Volunteers need to collect cash and checks. Sales need to be reconciled. Unsold tickets must be accounted for. Supporters outside the immediate area may have no practical way to participate.

Digital fundraising changes that experience.

When permitted by law, an online raffle can allow supporters to learn about the campaign, understand the cause, participate through a mobile device, and receive a consistent experience without requiring the nonprofit to manually manage every interaction. This can be particularly useful in a geographically large state such as Montana, where supporters of an organization may be spread across multiple communities.

Technology does not replace compliance. It makes compliant fundraising easier to administer when the state's rules allow it.

What Should Schools and Booster Clubs Know?

Schools and school-support organizations frequently face a specific fundraising problem: the same families are asked to participate in fundraiser after fundraiser. Raffles can provide a different experience because participation can extend beyond parents alone. Grandparents, alumni, fans, local businesses, and community supporters may all become part of the campaign when permitted.

Montana's guidance specifically recognizes public and nonpublic schools in its 50/50 framework and its current credit-card rules reference colleges, universities, and school districts. PTAs, PTOs, booster clubs, school foundations, and similar organizations should still confirm their own nonprofit eligibility and review any school or district fundraising policies that apply to them.

Organizations looking specifically at school fundraising can also review RaffleGives' School Raffle Platform resource for additional planning guidance.

Common Mistakes Montana Nonprofits Should Avoid

One of the biggest mistakes is relying on outdated information. Montana's rules have evolved. Online nonprofit raffles were expressly accommodated through changes made in 2017, and credit-card purchasing rules changed again in 2025. An old article, PDF, or forum answer can therefore give an organization the wrong impression about what is currently permitted. Another mistake is assuming online sales mean nationwide sales. Montana may allow the transaction from its perspective, but the purchaser's jurisdiction matters too.

Organizations should also avoid treating raffle proceeds like unrestricted operating revenue. Montana places specific restrictions on how qualifying charitable raffle proceeds may be used. Finally, a nonprofit should not assume that every 50/50 configuration follows the same rules as every other raffle. Electronic 50/50 processing systems have specific Montana requirements that need to be evaluated before launch.

RaffleGives Expert Tip

Build compliance into the fundraiser before you build the marketing campaign. Confirm eligibility, registration, sales geography, payment methods, raffle terms, and use of proceeds first. Once those pieces are established, your volunteers can promote the campaign confidently instead of trying to solve compliance questions after tickets are already on sale.

Frequently Asked Questions About Montana Raffle Laws

Are nonprofit raffles legal in Montana?

Yes. Qualifying nonprofit organizations may conduct charitable raffles in Montana when they follow applicable Montana statutes, regulations, and Gambling Control Division requirements.

Can Montana nonprofits sell raffle tickets online?

Yes. The Montana Department of Justice states that a nonprofit organization that completes the required one-time Form 46 registration may conduct raffles online.

Do Montana nonprofits need a gambling license to conduct a raffle?

Montana does not treat ordinary qualifying nonprofit raffles the same way it treats licensed gambling operations. However, online nonprofit raffles require Form 46 registration, and certain other activities, such as casino nights or specific electronic raffle systems, have separate requirements. Organizations should review the rules applicable to the exact fundraiser they intend to conduct.

Can raffle tickets be purchased with a credit card in Montana?

Yes, for qualifying nonprofit organizations, colleges, universities, and school districts. Montana's current Form 46 states that this became permissible effective June 1, 2025.

Can a Montana nonprofit sell raffle tickets to someone in another state?

Montana permits registered nonprofits to sell raffle tickets outside Montana when the purchase is not prohibited in the jurisdiction where the purchaser resides. Organizations must therefore consider the laws of the purchaser's location before allowing an interstate transaction.

Are 50/50 raffles legal in Montana?

Yes. Montana DOJ publishes specific guidance for 50/50 raffles sponsored by qualifying nonprofits and educational institutions.

Can a Montana nonprofit run a 50/50 raffle online?

Montana permits qualifying nonprofits to use approved electronic 50/50 raffle processing systems, but special rules apply. Current guidance includes registration requirements, approved-system requirements, and a rule that tickets using such a system may be sold only on the day of the drawing.

Is there a prize limit for nonprofit raffles in Montana?

The Montana DOJ's current nonprofit fundraising guidance states there is no limit on the value of prizes for qualifying nonprofit raffles.

Can raffle proceeds pay administrative expenses?

No. Montana DOJ guidance states that proceeds from qualifying charitable raffle ticket sales may be used for charitable purposes or prizes and may not be used to pay the administrative costs of conducting the raffle.

Can churches hold raffles in Montana?

Religious organizations are among the nonprofit organization types identified on Montana's Form 46. A qualifying religious organization should still satisfy applicable registration and operational requirements.

Can schools hold raffles in Montana?

Montana expressly recognizes certain educational institutions in its raffle guidance. School-affiliated organizations such as PTAs, PTOs, booster clubs, and foundations should separately verify their nonprofit eligibility and any applicable district policies.

Official Montana Raffle Resources

Nonprofits should verify current requirements directly through the Montana Department of Justice before launching a campaign.

The most useful official resources include:

Montana Department of Justice Gambling Control Division

Provides current gambling regulations, compliance information, and regulatory resources.

Nonprofit Online Raffle Registration Form, Form 46

Used by qualifying nonprofit organizations registering to conduct online raffles.

Montana Gambling Control Division Frequently Asked Questions

Provides current guidance regarding online raffles, credit-card payments, and other gambling questions.

Montana 50/50 Raffle Guidelines

Explains requirements specifically applicable to 50/50 raffles and electronic 50/50 processing systems.

Gambling-Related Nonprofit Fundraising Guide

Summarizes important rules for nonprofit raffles and other charitable gaming activities.

Modern Fundraising Can Work With Compliance

Montana provides nonprofits with something organizations in many states are still asking for: a clear pathway toward digital raffle fundraising. Qualifying organizations can conduct online raffles after registering with the state. Credit-card ticket purchases are permitted for qualifying nonprofits. Montana provides specific guidance for 50/50 raffles. The state even recognizes that registered nonprofits may receive purchases from outside Montana when those transactions are lawful where the purchaser resides. Those rules create real opportunities for nonprofits to modernize fundraising.

But the opportunity works best when compliance and technology are considered together. The goal should not simply be to put a traditional paper raffle on the internet. It should be to create a fundraiser that is transparent, easy for supporters to understand, efficient for volunteers to administer, and structured around the organization's mission. That is where modern nonprofit raffle software can make a meaningful difference.

How RaffleGives Helps Nonprofits Modernize Raffle Fundraising

RaffleGives was built specifically for nonprofit organizations.

The new RaffleGives platform provides a self-service digital experience designed to make creating, managing, and promoting nonprofit raffles easier to understand from beginning to end.

Organizations can create their profile, build their campaign, manage their raffle, connect payment processing, and follow a guided workflow without needing to become fundraising-technology experts. For volunteer-led organizations and small nonprofit teams, that simplicity matters.

The technology should not become another project the nonprofit has to manage. It should reduce the administrative burden so the organization can focus on its supporters and its mission. For Montana organizations interested in online raffle fundraising, the combination of a modern digital platform and a state regulatory framework that expressly permits qualifying online nonprofit raffles creates an exciting opportunity. Compliance always comes first. Once your organization understands the rules that apply, RaffleGives can help make the fundraising experience easier.

Ready to Explore Online Raffle Fundraising?

If your Montana nonprofit is considering a raffle, start by reviewing the current requirements from the Montana Department of Justice Gambling Control Division and determining which rules apply to your organization and campaign.

Once you understand those requirements, RaffleGives can help you take the next step.

Our digital raffle platform is designed to make nonprofit fundraising simple, transparent, and easy for supporters to use, with a completely self-service experience that helps organizations move from setup to launch without unnecessary complexity.

Contact RaffleGives to learn how your organization can get started.

For more nonprofit fundraising strategies, raffle compliance resources, and digital fundraising insights, follow RaffleGives on LinkedIn and Facebook.