I looked up "Holding a Raffle". It appears I have been wrong on most counts.
Raffle laws vary greatly from state to state. Because a raffle is an exercise in chance that requires no analytical effort on the part of the purchaser, states regard it as a form of gambling. According to Raffle FAQ, a raffle is governed by the laws of the state in which the drawing occurs.
Nonprofits
Generally, only nonprofit organizations may legally conduct a raffle. For instance, Unity Point Elementary School in Carbondale, Illinois, hosts an annual cake raffle to benefit the Parent-Teacher Organization, which uses the funds to purchase items for the school. In Arkansas, Hawaii and Kansas, however, raffles are strictly prohibited, regardless of whether the sponsor is a nonprofit organization.
Read more: Laws on Holding a Raffle | eHow.com
Laws on Holding a Raffle | eHow.com
Best,
Tom