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Clarification Needed on Raffle Policy

We are a 501(c)3 non-profit hosting a virtual fundraiser in Michigan instead of an in-person event due to the pandemic. We have a raffle license and would like to clarify whether or not we can in fact sell 50/50 tickets, raffle tickets for cash prizes, and raffle tickets for donated goods & services on our square site. 


The seller policy states the following is prohibited:

 

  • Betting, including lottery tickets, casino gaming chips, Fantasy Football, off-track betting, and wagers at races

I am not sure if our raffles are considered betting as defined by Square, or if our offerings are permissible since we are operating with a State of Michigan Rafle License. Would like to hear from a Square staffer before we proceed.

 

Thanks in advance.

 

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Verified Answer

Re: Clarification Needed on Raffle Policy

Hey! Thanks for reaching out and welcome to the Seller Community. I'm glad you asked. 50/50 raffles would be prohibited as they offer a cash prize. Unfortunately we can not accept payments for these types of events, even for charitable causes.

22 REPLIES 22
Square Community Moderator

Hey! Thanks for reaching out and welcome to the Seller Community. I'm glad you asked. 50/50 raffles would be prohibited as they offer a cash prize. Unfortunately we can not accept payments for these types of events, even for charitable causes.

AshleyK
Community Moderator, Square
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When I contacted support it sounded like selling raffle tickets for prizes was absolutely okay. The differences is in whether the prize is a physical item or cash, correct?

 

What about an event ticket that includes an entry into a drawing for cash prizes? Is that considered a 50/50?

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Square Community Moderator

I would err on the side of caution and not do 50/50 events through Square at all. I checked with our Account Services team directly and the answer above is what I received.

AshleyK
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I'm looking to do an online raffle using Square to sell tickets. Can you suggest how I could use the Square platform to do this rather seamlessly? I thought about using an item in the online store and then using the individual order or confirmation numbers as ticket numbers, thoughts?

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Square Community Moderator

Hey there, @DraftDr

 

Welcome to the Community & thank you for posting. 

 

Check out this thread on our Raffle Policy for some clarification. @AshleyK was able to provide some insight!

 

Please let me know if you have any other questions. 

 

Thank you! 

Kassi
Community Moderator, Square
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Ok that is good to know, thank you for the information. Cheers!

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We are also a 501(c)3 organization and are holding a raffle for prizes.  Would this be acceptable, and how can I go about setting this up in square

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Square Community Moderator

Welcome to the Community, @SavElks

 

Happy to see a new face here! 

 

What kind of prizes will be in the raffle? Any cash prizes would make it prohibited. 

 

I will keep an eye out for your reply👀

Kassi
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The prizes are guns provided by our local Armory.  No cash and no other prizes.

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Square Community Moderator

Ah okay, @SavElks. You would not be able to use Square for this raffle either.

 

Any gun sales or raffles are prohibited and would result in the account being deactivated. It's a violation of our Terms of Service. 

Kassi
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Understood.  Thank you

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We are a 501(c)8 non-profit organization.  We are interested in selling raffle tickets using our Square account.  The raffle prizes would be gift cards.  For example, first prize could be store-bought gift cards (worth $500), second prize could be store-bought gift cards (worth $250).  Would we be allowed to have folks purchase a ticket ($5 ea) or tickets ($20/5 tickets) toward this raffle using Square?  These would be non-cash prizes.  Folks purchasing online would receive a photo of their tickets with ticket numbers and filled out information after purchase.  Thanks.

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Square Community Moderator

Hi @kofc2141, welcome to the community! 

 

In this case, because the prizes are cash value, you wouldn't be able to use Square to sell tickets, unfortunately. 

 

See you soon! 

Frances
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Super Seller

"

  • Prepaid cards, checks, insurance or other financial merchandise or services"

I think this is what it would fall under as a prohibited item.

Donnie
Multi-Unit Manager
Order Up Cafe/Tombras Cafe/Riverview Cafe/City County Cafe
Roddy Vending Company, Inc.
www.OrderUpCafe.com

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Hi,

We are a 501(c)3 and are looking to hold a raffle where the prizes would be trips (airline tickets, hotel, sightseeing trips), a quilt, a health club membership, packages put together by local vendors (shoes, training, entry into running events) etc. Would these items be permissible? If so, is there a guide on the best way to set something like this up in Square?  Thank you.

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Square Community Moderator

He there @jean649 you should be able to sell raffle tickets on Square as long as the Items are not in our Prohibited Goods and Services with Square Point of Sale document.

JJ
Community Moderator, Square
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Beta Member

How did u go about setting up your raffle tickets online?

 

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Did you every get a response?

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Not sure if this falls into the prohibited items list. I offer knife sharpening as a service for all knives but particularly advertising toward culinary knives. I most recently sharpened some woodworking knives as well for a client. I was thinking of a different type of raffle. I would be offering a chance (1 raffle ticket) per knife I sharpen for them. The only sale is, as always just the knife sharpening service. The reward for the customer is more knives sharpened by me, the better opportunity for them to receive a free knife, at no extra cost to my clients. I have additional questions but need to know if what I am proposing is acceptible or not before proceeding. 


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Square Community Moderator

Hey there @Jayv2251 

 

As long as the items aren't in our Prohibited Goods and Services with Square Point of Sale document and don't have a Cash Value attached to them you should be good. 

JJ
Community Moderator, Square
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