Massachusetts Charitable Raffle and Bazaar Licensing Law

c. 271, § 7A is the sole statutory basis for charitable gaming in Massachusetts and the only exception to the commonwealth's general gambling prohibition for raffles and bazaars. The statute defines a "raffle" as an arrangement for raising money by the sale of tickets, some of which, chosen by chance after the sale, entitle holders to prizes, and a "bazaar" as chance-based disposal of merchandise of any value or cash awards not to exceed $250 each. Only six categories of sponsor qualify: congressionally chartered veterans' organizations, churches or religious organizations, fraternal or fraternal benefit societies, educational or charitable organizations, civic or service clubs, and nonprofit pleasure or recreation clubs whose earnings inure to no member.

A sponsor must have been organized and actively functioning as a nonprofit in Massachusetts for at least two years before it may even apply. Permits run through the city or town clerk where the raffle is drawn or the bazaar held: the clerk checks the application for conformity, forwards it to the local police chief for a qualification determination, and once endorsed, issues a permit valid for one year. The statutory fee is $10, though a municipality's town meeting or city council can raise it, capped at $50.

A single organization may hold no more than three bazaars a year, one per calendar day, and each bazaar is capped at five consecutive hours. Every permit holder must file a return with the state lottery commission within ten days of the event and remit a 5% tax on gross proceeds. c. 10, §§ 37-38, not through the local clerk and police-chief process described here.

Violating § 7A, or filing false information on a permit application or the required lottery-commission return, is a criminal offense: a fine of up to $1,000, up to one year in a house of correction, or both. Running a raffle, bazaar, or beano game without the clerk-and-police-chief-endorsed permit, exceeding the $250 bazaar prize cap, holding a fourth bazaar in a calendar year, or paying a member for time spent operating the event all fall outside the statute's protection and expose the organization and its officers to prosecution.