The Charitable Raffle Enabling Act (“CREA”), permits “qualified organizations” to hold up to four raffles per calendar year, with certain specified restrictions.

The Professional Sports Team Charitable Foundation Raffle Enabling Act permits “professional sports team charitable foundations” to hold raffles during home games, with certain specified restrictions.

The language of the law is very technical, and the two types of raffles have different rules and regulations. If your organization is considering holding a raffle, you should check the statutes to be sure that your raffle qualifies.

Penalties and Enforcement

An unauthorized raffle is considered gambling under the Texas Penal Code, carrying criminal penalties.

A county attorney, district attorney or the Office of the Attorney General (OAG) may bring an action in state court to stop a violation or potential violation of the Charitable Raffle Enabling Act (CREA) or the Professional Sports Team Charitable Foundation Raffle Enabling Act.

Recent Changes to the Laws

HB 2757, effective June 15, 2021, amended the Charitable Raffle Enabling Act to increase the allowable value of each purchased prize from $50,000 to $75,000 and the allowable number of raffles that may be held per calendar year from two to four.

HB 2168, effective June 8, 2021, amended the Professional Sports Team Charitable Foundation Raffle Enabling Act to remove the criminal penalty for a person accepting a form of payment other than U.S. currency or a debit card for the purchase of a raffle ticket.

HB 3012, effective December 1, 2021, amended the Professional Sports Team Charitable Foundation Raffle Enabling Act to allow qualified foundations associated with organizations sanctioned by the Professional Rodeo Cowboys Association or the Women’s Professional Rodeo Association to conduct raffles at rodeo events.