Launching an online raffle business in 2025 is more than selling tickets; it’s about building a sustainable platform, staying legally compliant, and leveraging technology to scale. Many operators fail due to a lack of proper software, licensing, or marketing.
In this guide, we’ll cover everything you need before launching your raffle platform:
At its core, an online raffle business is about selling digital tickets and running a randomized draw where one or more participants win prizes. Unlike national lotteries that rely on multiple number matches, raffles are simpler.
Each ticket carries a unique number, and the draw continues until there’s a winner. This simplicity makes them highly engaging and easy to scale in the digital era.
For iGaming operators, raffles aren’t just another game; they are a versatile tool. They can generate direct revenue, drive customer acquisition, or even support charity fundraising.
The biggest advantage is accessibility- participants can buy tickets from anywhere using their smartphones, making raffles a high-engagement vertical for both small startups and large gaming platforms. Raffles stand out in the iGaming ecosystem because:
Multi-purpose use cases: For-profit raffles, charity draws, and even NFT draws
Low entry barrier: Tickets are very cheap, often starting at $1. This encourages mass participation.
Scalability: Raffles can easily be expanded across multiple markets and demographics.
High engagement: Simple mechanics ensure repeat participation and customer loyalty.
Types of Online Raffles
Before you launch an online raffle business, it’s important to choose the right raffle type and niche. Each model serves a different purpose. Some are designed for revenue, others for marketing, and many for fundraising. Picking the right type early will help you structure your licensing, software features, and marketing strategies more effectively. Some of the most common types of online raffles are:
Charity Raffles: Nonprofits and community organizations use raffles to raise funds. Transparency and compliance are crucial here.
Business Raffles: Brands and retailers run raffles to boost product sales, customer engagement, and loyalty campaigns.
NFT and Crypto Raffles: A fast-growing segment where digital assets, NFTs, and cryptocurrencies are offered as prizes. This type of raffle is very popular among Web3 audiences.
Lucky Draws: Widely used in emerging markets like India. It is often tied to shopping, sports events, or promotional giveaways.
For-Profit Raffles: Direct revenue-focused raffles where ticket sales generate income and winners receive cash or high-value prizes.
For iGaming operators, blending multiple raffle types, such as combining for-profit raffles with charity campaigns, can maximize engagement and brand trust.
Raffle Industry Insights & Statistics
The global online raffle industry has grown significantly with the shift to mobile-first gaming and digital payments. What was once a community fundraising tool is not a multi-million dollar vertical in the wider iGaming market. For operators, this means there is a proven demand but also rising competition.
$1-$5 tickets dominate most online raffles, lowering entry barriers and driving mass participation.
More than 40% of raffle traffic comes from smartphones, making mobile optimization a necessity.
32% of participants come via Facebook referrals, showcasing the importance of social media marketing.
Email opt-in rates average 44%, making raffles a powerful lead-generation tool.
Charity raffles are among the most trusted formats, with higher participation rates when transparency is clear.
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How to Set Up an Online Raffle? Step-by-Step Guide
Setting up an online raffle business in 2025 requires more than just uploading prizes and selling tickets. Operators need to balance compliance, technology, and marketing to build a sustainable platform. Here’s a step-by-step breakdown:
Step 1: Choose Your Raffle Type and Niche
In order to operate a successful lottery business in the USA, you must first finalize a niche. Choose whether your raffle will be for-profit, charity-focused, promotional, or NFT-based. Your niche will determine licensing needs, software features, and your target audience.
Step 2: Get Legal Approval and Licenses
It is crucial to acquire a license and comply with gambling regulations in your region. Raffles fall under gambling regulations in most jurisdictions. Failure to comply with these regulations can lead to penalties or even a permanent ban on your raffle business. As an operator, you must:
Check state/country-specific raffle and gaming laws
Obtain the necessary raffle or gaming license (For example, gambling licenses in the UK or USA)
Open a dedicated bank account for transparent transactions
Stay compliant with taxation rules for online raffles.
Step 3: Set Up an Online Raffle Platform
Starting an online gambling business for a raffle requires building software that will serve as the backbone of your venture. You have two options:
Building a custom raffle software with features like automated ticketing and RNG-based draws.
Using a ready-made raffle platform for faster entry
In my experience, a turnkey raffle software can help startups and operators cut costs and also gain quick market entry, both of which are pivotal for standing out in the competitive market.
Step 4: Handling Online Raffle Payments and Finances
Every raffle software requires secure payment systems. Players must be able to make deposits and withdrawals without any hassle. Some of the most common payment methods that should be integrated into the software include:
Stripe & PayPal for secure transactions
Crypto payments for NFT Raffle services
Raffle Business Bank Account ensures compliance
Step 5: Create Raffles and Sell Tickets
After the software is in place, you can start creating online raffles. Launch your first raffle by uploading prize details, ticket pricing, and draw dates. Ensure you integrate:
Use Random Number Generators (RNG) or online raffle machines to ensure fairness. Winners should be announced via:
Your raffle platform
Social media channels for visibility
Direct email or SMS to participants
Personally, I believe that social media results are a great way to inform your players and also to actively interact with them.
Step 7: Ensure Transparency and Compliance
Publish clear terms and conditions, payout structures, and winner details. Transparency builds trust and ensures your raffle remains compliant. A legally compliant raffle business will also help you avoid any legal penalties
The short answer- yes, if managed correctly. Online raffles are more than just side ventures; they can be a core revenue stream for iGaming operators, startups, and even non-profits. Profitability comes from the model’s simplicity, like low ticket costs, high participation rates, and scalable digital platforms. Here’s how you can generate revenue from raffles:
Ticket Sales: The primary income stream is ticket sales. Even a $5 ticket sold at scale can generate hundreds of thousands in revenue.
Sponsorships and Partnerships: Brands often supply prizes or co-market raffles in exchange for exposure.
Premium Memberships: Exclusive raffles for paying members create recurring revenue
NFT and Digital Raffles: A growing segment where digital assets are sold or raffled to Web3 audiences.
For example, a lottery ticket application selling 100,000 raffle tickets at $5 each generates $500,000 in gross revenue. Even with a 50/50 prize split, the operator retains $250,000, excluding additional sponsorship deals.
What is the Difference Between a Lottery and a Raffle?
While raffles are technically a type of lottery, there are key differences that operators must understand before choosing which model to pursue. Both involve ticket sales and random draws, but their mechanics, reward structures, and player psychology vary.
Feature
Lottery
Raffle
Rewards
Primarily cash prizes
Cash, physical goods, or digital assets (NFTs, crypto, vouchers)
Ticket Numbers
Multiple numbers per ticket; payout depends on matches
One unique number per ticket; if drawn, you win
Draw Mechanism
Rollovers allowed if no winner is found
Winner is always declared—draw continues until one is chosen
Regulation
Strictly regulated by state or government authorities
Often easier licensing; used by charities, businesses, or private ops
Scale
National or regional (millions of players)
Local, business-driven, or global online raffles with smaller pools
Not every market is equally friendly to online raffles. Some regions have strict gambling laws, while others provide clear licensing paths and growing demand. Choosing the right jurisdiction is one of the most important decisions you will make as an operator. Here are some of the best countries and regions to launch an online lucky draw business in 2025:
United States: High demand, especially for charity and fundraising raffles. However, licensing is state-specific, so compliance varies by jurisdiction.
United Kingdom: One of the most regulated yet raffle-friendly markets under the UK Gambling Commission. Clear licensing structure for charity and commercial raffles.
Australia and New Zealand: Strong tradition of fundraising raffles, plus growing appetite for digital raffles.
Italy: A regulated market where raffles fall under lottery and promotional gaming categories, making it structured but profitable.
Minnesota and Rhode Island: States with clearer raffle regulations. These regions are especially popular for community-based raffles.
Note: If you are targeting global growth, consider starting in a country with straightforward raffle licensing (USA or Australia) before expanding into complex regulatory markets like the USA
Top Online Raffle Software & Apps
The market is full of raffle tools, but not every platform is built for serious operators. Some are designed for small giveaways, while others scale into full-fledged iGaming solutions. Here are some of the most popular raffle software in 2025 that you can take inspiration from:
RafflePress: Best for marketing-driven raffles. Ideal if you are running giveaways to build email lists, generate leads, or boost social media engagement.
Gleam.io: A versatile platform for lucky draws, sweepstakes, and promotional campaigns. Great for e-commerce and brand raffles.
Rafflecopter: Simple and user-friendly software. Suitable for small to medium-sized raffles and startups that are testing the waters.
NFT Raffle Platforms: Custom-built solutions for crypto and Web3 raffles, offering blockchain-based transparency and digital prize management.
Custom iGaming Raffle Software: For operators targeting global markets, a bespoke raffle solution built by an iGaming software provider ensures compliance, scalability, and monetization.
Pro Tip: If you are running Raffles as a core iGaming vertical (not just as a marketing tool), a custom or white label raffle software solution is the best choice. It gives you full control over compliance, payments, and branding.
How to Choose the Right Online Raffle Software?
The success of your online raffle business depends on using the right software. A robust platform ensures ticket sales, fair draws, and secure payments. From my experience working with iGaming startups, choosing the wrong software can lead to compliance issues, lost revenue, and poor user experience. Look for these key features when choosing an online raffle software:
Automated Ticket Sales: Reduces manual work and allows players to buy tickets instantly.
Randomized Draw System: Ensure fair, unbiased outcomes with Random Number Generation technology.
Secure Payment Processing: Include multiple payment options like PayPal, credit/debit cards, and crypto for NFT raffles.
Customizable Raffle Templates: Quickly launch different raffle types without coding.
Legal Compliance Tools: Stay aligned with local and international gambling regulations.
Analytics and Reporting: Track ticket sales, revenue, and user engagement in real-time
Scaling and Growing Your Raffle Business
Launching a raffle platform is only the first step; scaling it into a profitable and sustainable business is where the real work begins. Many operators fail because they underestimate the ongoing marketing, compliance, and user engagement required to grow beyond a single campaign. Here are the best ways to scale your online raffle business:
Expand Raffle Types: Mix for-profit raffles, charity campaigns, and NFT draws to attract diverse audiences.
Leverage Multi-Market Expansion: Start in raffle-friendly regions (like the UK or Australia) and expand into US states with clearer regulations.
Invest in Digital Marketing: SEO, social media ads, influencer partnerships, and email campaigns remain the biggest growth drivers.
Gamify the Experience: Add leaderboards, loyalty rewards, or exclusive VIP raffles to increase retention.
Build Trust Through Transparency: Publish the winner details, payout breakdowns, and use RNG technology to prove fairness.
Automated Operations: Use raffle software with built-in analytics, reporting, and compliance tools to reduce manual overhead.
Key Takeaways
Online raffles are a fast-growing opportunity, but require careful planning from research to deployment.
A raffle platform’s success depends on user-friendly design, secure payments, and strong backend systems.
Costs range widely, depending on features, with DIY setups starting low and professional platforms scaling up to $50,000+
Licensing, age restrictions, and tax rules vary by region, making legal compliance a necessity.
Smart marketing strategies like SEO, social media, influencer partnerships, and referral bonuses drive participation and trust.
Ongoing maintenance, customer support, and prize transparency are crucial for long-term success.
Partnering with an experienced raffle software provider or iGaming platform vendor can cut down time, cost, and risk.
Final Words
Launching an online raffle can be an exciting venture, but it requires more than just putting tickets on sale. From secure payment gateways and legal compliance to marketing strategies and platform scalability, every detail contributes to building trust and ensuring growth.
If done right, raffles can serve as both an engaging entertainment product and a profitable business model. The key is to balance user experience, compliance, and innovation while keeping transparency at the core.
It depends on your jurisdiction. Some countries require a license, while others allow raffles for charitable purposes only. Always check local laws before launching.
How much does it cost to set up an online raffle platform?
The costs can range from $10,000 to $50,000+, depending on whether you choose a readymade white label solution or a custom-built platform.
Can I accept cryptocurrency payments for raffles?
Yes, many modern raffle platforms now support Bitcoin, Ethereum, and stablecoins. However, ensure your payment processor and local laws permit crypto transactions.
What is the best way to promote my online raffle?
Use a mix of social media ads, SEO-driven blogs, influencer partnerships, and referral bonuses to attract participants.
How do I ensure winners trust the results in an online raffle platform?
Use a transparent RNG or blockchain-based draw system, and publish results publicly to maintain credibility.
Nitin Garg is a seasoned tech entrepreneur and the visionary founder of BR Softech, a globally recognized leader in game development. With over 13 years of industry experience, he has been instrumental in transforming BR Softech into a powerhouse of innovation, offering cutting-edge solutions in Video Games, Blockchain Games, NFT Game Development, and card games like Poker, Rummy, and Teen Patti.
Nitin’s deep expertise in emerging technologies, combined with a sharp business acumen, has helped position BR Softech as a trusted name in the international gaming arena. Under his leadership, BR Softech has built a global clientele of 3,000+ satisfied customers and scaled a dedicated in-house team of 180+ skilled professionals.
