PC 320: Contriving, proposing, or Drawing a lottery: Every Person who contrives, prepares, sets up, proposes, or draws any lottery is guilty of a misdemeanor.
It is common to see Fair queen tickets which involve a drawing or charity events, but making sure they are conducted in the proper, legal manner is important. This is the type of offense that could occur when clubs set up drawing to win prives. There are legal, and illegal ways, of conducting such events, and the line between legal drawining and lillegal lotteries can be hard to define. If you are thinking of selling tickets for a raffle, having a lottery type event, etc... you may want to hire a lawyer to make sure you don't accidently violate a law.