Can small business sell raffle tickets?

It depends. Do you mean sell raffle tickets just for fun or because you are raffling something off? The better question would be, 'can a small business hold a raffle?' You see raffles conducted usually to benefit non-profit agencies who depend entirely on donations and fund-raisers such as this to survive. Of course you could always have a business that sells the actual tickets to the non-profits for them to use during their raffles :0) One thing is for sure - if you're going to sell raffle tickets with the understanding that the buyer has a chance to win something - then there better be something to win and it better be given to someone that has a raffle ticket in their hand. Otherwise - you're asking for some trouble. :)