Is selling raffle tickets considered gambling

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Regular Gambling Withholding: An organization that pays raffle prizes must withhold 25% from the winnings and report this amount to the IRS on Form W -2G. This regular gambling withholding applies to winnings of more than $5,000. If the organization fails to withhold correctly, it is liable for the tax.

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A raffle is a gambling activity, where tickets are sold and prizes are awarded based on chance. Individuals and commercial businesses cannot offer raffles, even if the money is given to charity. Only certain charitable or nonprofit organizations can offer raffles (see below).

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Resources By State - Raffle Ticket Online Raffle Ticket Sales Resources by State list Raffle Tickets for Sale resources to help you check with your state regarding rules. Raffle Gambling Licence - You can surrender your operating