# 50/50 Raffles at Booster Club Events: Rules and Game-Day Steps

> How booster clubs run a 50/50 raffle at games and events: where it is legal, seller and cash procedures, the count sheet, and when the winner gets a Form W-2G.

- URL: https://boosterclub.org/raffles/50-50-raffles/
- Section: Raffles
- Updated: 2026-10-08

A 50/50 raffle is a raffle in which the winner receives half of the ticket sales and the booster club keeps the other half, usually sold and drawn during a single game or event. It is legally a raffle with a cash prize, so it is legal only where the state allows cash-prize charitable raffles and the club meets the state's conditions. The raffle chair runs game-day sales, and the treasurer controls the count and the payout.

Because the pot is cash collected by many sellers in a crowded venue over a short time, a 50/50 is one of the highest-risk activities a booster club runs. The procedures below exist to protect the volunteers as much as the money.

## Where 50/50 Raffles Are Not Allowed

A 50/50 raffle is illegal in any state that prohibits charitable raffles (Alabama, Hawaii, and Utah; see [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/)). Several states that allow raffles still rule out a typical booster club 50/50:

| State | Rule | Effect on a booster club 50/50 |
|---|---|---|
| [California](https://boosterclub.org/states/california/) | Penal Code § 320.5 requires at least 90% of gross ticket receipts to go to charitable purposes. The Attorney General states that 50/50 raffles "are illegal unless the organization qualifies under Penal Code section 320.6," the Major League Sports Raffle Program | Not allowed for booster clubs |
| [Texas](https://boosterclub.org/states/texas/) | Texas Occupations Code § 2002.056: "A prize offered or awarded at a raffle may not be money" | A cash 50/50 is not allowed |
| [Tennessee](https://boosterclub.org/states/tennessee/) | An approved organization may hold one gaming event per year, conducted with a single type of game, after legislative approval | A 50/50 at every home game is not possible |

In other states, a 50/50 is generally treated as a raffle and follows the state's raffle permit, eligibility, and reporting rules. Some states have rules written specifically for 50/50 drawings. This varies by state; the club's [state page](https://boosterclub.org/states/#raffles-gaming) has the details.

## Before the Season

1. Confirm the state allows cash-prize raffles and that the club is eligible.
2. Get the permit or registration. In states that license each raffle, ask whether one permit covers a season of drawings or each game needs its own.
3. Confirm with the athletic director that the district and the stadium or gym allow 50/50 sales, and whether the visiting school's boosters may sell.
4. Approve the plan by board vote: games covered, ticket prices, sellers, cutoff time, count location, payout method, and unclaimed-prize rule.
5. Recruit adult volunteer sellers. Check the district's policy before letting students sell; in California a raffle must be supervised by a person 18 or older.
6. Buy double-numbered roll tickets (each ticket has two matching halves) and seller aprons or lockable bags.

## Game-Day Procedure

1. **Sign out supplies.** Each seller signs the log for a ticket roll (starting and ending numbers) and a bag with no starting cash, or a recorded starting amount.
2. **Sell.** For each sale, the seller tears off the buyer's half and drops the matching half into the seller's bag or the drawing container. Bundle prices (for example, 3 for $5) are sold as consecutive numbers.
3. **Stop at a published cutoff.** Announce the cutoff in advance (for example, the end of the third quarter) so the count can finish before the drawing.
4. **Check in.** Each seller returns the roll, the stubs, and the money. The treasurer records the ending ticket number.
5. **Count with two people.** The treasurer and a second counter count the money in a private location, compare it to tickets sold (ending number minus starting number, adjusted for bundles), and both sign the count sheet.
6. **Announce the pot.** The prize is 50% of the counted gross, not of an estimate. Announce the total pot and the prize amount.
7. **Draw in public.** A person with no tickets draws one stub from the mixed container in view of the crowd or the press box. Announce the number and post it on the club's website and social media with a claim deadline.
8. **Pay the winner.** Pay by check from the club account when possible, which creates a record. If paying cash, have the winner sign a receipt showing the amount and ticket number. Collect a Form W-9 for any prize of $2,000 or more.
9. **Secure the club's half.** Seal the club's share in a deposit bag with the count sheet, both counters' signatures, and the bag number, and deposit it under the club's cash policy.

## Count Sheet

| Item | Amount |
|---|---|
| Game and date | |
| Seller and roll numbers (start to end) | |
| Tickets sold | |
| Cash counted | |
| Checks or card sales | |
| Gross sales (total) | |
| Prize (50% of gross) | |
| Club share (50% of gross) | |
| Winning ticket number and winner name | |
| Counter 1 signature | |
| Counter 2 signature | |

See [Handling Cash at Booster Club Events](https://boosterclub.org/finance/cash-handling/) for deposit timing and the two-person rule.

## Federal Tax Rules for 50/50 Prizes

A 50/50 prize is a raffle prize. For prizes paid in 2026, the club files Form W-2G when the prize is $2,000 or more and at least 300 times the price of one ticket. The threshold was $600 for prizes paid before 2026. The club may subtract the ticket price when testing the $2,000 threshold. Smaller game-night pots fall below it, but a large playoff or homecoming pot can exceed it.

**Example.** Tickets sell at $5 each or 3 for $10. The gross is $5,000 and the prize is $2,500. Whether the winning ticket was a single at $5 (500 times) or part of a bundle at $3.33 (750 times), the 300-times test is met. The prize less the wager is still over $2,000, so the club files Form W-2G, entering "50-50 drawing" as the type of wager. Proceeds are under $5,000, so no regular withholding applies. If the winner will not provide a taxpayer identification number, the club must backup withhold 24% ($600) and pay the winner $1,900.

**Second example.** A $3,000 pot produces a $1,500 prize. No Form W-2G is required for a 2026 payment.

Any withholding is deposited and reported on Form 945. See [Federal Tax Rules for Raffles](https://boosterclub.org/raffles/federal-rules/).

## Annual Return and UBIT

The club reports the **full pot** as gross gaming income on its Form 990-series return, and the winner's half as a prize expense. On Form 990-EZ, gross gaming income is line 6a and direct gaming expenses, including prizes, are line 6c. A season of 50/50 drawings can push a club over the Form 990-N gross receipts limit or the $15,000 Schedule G Part III threshold. See [Which Form 990 a Booster Club Files](https://boosterclub.org/taxes/form-990/).

A drawing at every home game may be "regularly carried on." Internal Revenue Service (IRS) Publication 3079 states that weekly gaming is regularly carried on, while gaming only at an annual event is not. Regular gaming income is still not subject to unrelated business income tax (UBIT) when substantially all the work is done by unpaid volunteers, and Publication 3079 recommends keeping records of hours worked by volunteers and any paid workers. Free tickets, meals, game passes, or account credits given to sellers can count as compensation. See [Unrelated Business Income Tax for Booster Clubs](https://boosterclub.org/taxes/ubit/).

## Electronic 50/50 Systems

Some vendors sell handheld or online systems that sell 50/50 tickets by card and display a live jackpot. Whether a booster club may use one depends on state law, which may address electronic raffles separately or prohibit online raffle sales. California, for example, prohibits conducting a raffle via the Internet. See [Online and Electronic Raffles](https://boosterclub.org/raffles/online-raffles/) before signing any contract.

> Event payment tools built for schools and nonprofits can record each 50/50 sale and produce a count report, which helps the treasurer reconcile, but they do not make an otherwise illegal raffle legal.

## Common Mistakes

- **Running a cash 50/50 where cash prizes are banned.** It is routine in some states and illegal in California and Texas. Clubs copy what they saw at another school.
- **Announcing the pot before counting.** Volunteers estimate to keep the crowd excited, then the counted gross differs. The prize must match the count sheet.
- **One person sells, counts, and pays.** It is faster on a busy night and is exactly how shortages and accusations happen.
- **Paying the winner cash with no receipt.** The club cannot prove the payout, and a $2,000-plus prize then has no Form W-9 or W-2G.
- **Rewarding sellers.** Free admission, food vouchers, or student-account credits can turn volunteers into compensated workers.

## Checklist

### Before the season
- [ ] Confirm cash-prize raffles are legal in the state and the club is eligible (president)
- [ ] Obtain the permit or registration and confirm what it covers
- [ ] Get district and venue approval in writing
- [ ] Approve the 50/50 plan by board vote and record it in the minutes
- [ ] Recruit adult volunteer sellers and buy double-numbered roll tickets

### Each game
- [ ] Sign out rolls and bags on the seller log
- [ ] Stop sales at the published cutoff
- [ ] Count with two people and complete and sign the count sheet
- [ ] Announce the pot and prize from the counted total
- [ ] Draw publicly and record the winning number
- [ ] Collect Form W-9 for any prize of $2,000 or more and pay by check when possible
- [ ] Deposit the club's share under the cash policy (treasurer)

### Year end
- [ ] File Forms W-2G and 945 if required
- [ ] Report full 50/50 gross receipts on the annual return

## Related Pages

- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) state rules that decide whether a 50/50 is allowed
- [How to Run a Booster Club Raffle](https://boosterclub.org/raffles/how-to-run-a-raffle/) the full raffle procedure
- [Federal Tax Rules for Raffles](https://boosterclub.org/raffles/federal-rules/) W-2G and withholding details
- [Handling Cash at Booster Club Events](https://boosterclub.org/finance/cash-handling/) cash controls at the gate and concession stand
- [Internal Controls for Booster Clubs](https://boosterclub.org/finance/internal-controls/) segregation of duties

---

*This page is general information for volunteer-run booster clubs. It is not legal,
tax, or accounting advice, and BoosterClub.org is not a law firm, accounting firm, or
government agency. Rules change and vary by state and district. Confirm current
requirements with the IRS, the relevant state agency, the school district, and a
qualified professional before acting. If a fact on this page is out of date, we want
to know.*

## Sources

1. California Attorney General: https://oag.ca.gov/charities/raffles
2. Texas Legislature: https://tcss.legis.texas.gov/resources/OC/htm/OC.2002.htm
3. Tennessee Secretary of State: https://sos.tn.gov/charities/guides/charitable-gaming-event-faqs
4. IRS: https://www.irs.gov/pub/irs-pdf/p3079.pdf
5. IRS: https://www.irs.gov/instructions/iw2g
6. IRS: https://www.irs.gov/publications/p1099
7. IRS: https://www.irs.gov/instructions/i990ez
8. Utah Legislature: https://le.utah.gov/xcode/ArticleVI/UC_AVI_S27_1800010118000101.pdf
9. Alabama Legislature: https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB47-int.pdf
10. data.capitol.hawaii.gov: https://data.capitol.hawaii.gov/hrscurrent/Vol14_Ch0701-0853/HRS0712/HRS_0712-1220.htm