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Responsibilities for Paying Taxes on Raffle Proceeds

Raffles are a game of chance managed through the Massachusetts Lottery Commission. Further information and regulations, as required by the Office of the Attorney General, can be located at: or at; go to Attorney General.

940 CMR 12.00 Regulations Governing Raffles

Treasurer’s Checklist for Raffles

Check the following steps to ensure that you have complied with all regulations and procedures.

Before you start:

  • Contact the Massachusetts Lottery to obtain all the lottery tax forms. Call the headquarters in Braintree at (781) 849-5555 or go to
  • Contact the town clerk’s office in the town where the winning number will be drawn to inform them that you will be conducting a raffle and obtain a permit.
  • If the raffle prize is greater than $10,000 or an individual ticket price exceeds $10 then you must follow the rules for large raffles (see item number 4 in this document).

Handling money:

  • As you collect money, use the witnessed cash count forms (available on this website).

Taxes and record keeping:

  • After the raffle is over, fill out the tax forms and mail them to the lottery commission. The tax due is 5% of your proceeds.
    To calculate the tax, multiply the total amount of money collected by .05. For example, if you collected $100, the amount to be paid is $100 x .05 = $5.
  • You must issue a 1099-MISC if the raffle prize is valued at $600 or more. These are typically filled out at the end of the year but you must obtain the winner’s name, address and social security number (and other contact information such as their phone number and email address so that you can reach them later, if necessary.)

Common Questions