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The fundamental difference in between a raffle and a lottery is that a raffle always has a winner (i.e. all the purchased tickets are entered into a raffle draw) while a lottery may return a non-winning result (i.e. a combination of number that nobody has selected for their entry).
Use of the term raffle is acceptable when tickets are randomly distributed and there is no financial donation connected with the allocation of tickets. For events such as a Night, the term drawing must be used instead of the term raffle.
Lottery or raffle; restriction on gross proceeds; violation; penalty. No person, except a licensed organization operating pursuant to the Nebraska Lottery and Raffle Act, shall conduct any lottery with gross proceeds in excess of one thousand dollars or any raffle with gross proceeds in excess of five thousand dollars.
The purpose of the Nebraska County and City Lottery Act is to allow any county, city, or village to conduct a lottery for community betterment purposes. Any lottery conducted by a county, city, or village shall be conducted only by those methods and under those circumstances prescribed in the act.
At a set time, the winners are drawn at random from a container holding a copy of each number. The drawn tickets are checked against a collection of prizes with numbers attached to them, and the holder of the ticket wins the prize.

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The Nebraska Lottery and Raffle Act governs lotteries which exceed $1,000 in gross proceeds (ticket sales) and raffles which exceed $5,000 in gross proceeds. The Nebraska Small Lottery and Raffle Act governs lotteries and raffles which do not exceed the $1,000/$5,000 thresholds.

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