Terraria is grayed out, so when I click on it, it doesn't turn blue. It seems that the system doesn't consider it a "usable" item. I won it in a raffle, if that helps. Thanks for your help!

How long ago did you win it? Each user has their own 'agent' bot, who, stores all their items. The person who raffles the item gives it to their bot, and, issues the raffle. When you win, your bot then has to trade with their bot to acquire the item.

I raffled off some 'Scrap Metal' about half a week ago, and, I noticed the scrap metal stayed in MY (The raffle initiator) inventory for about 24 hours after the sale. I'd say give it 24 hours and try again, if there's still an issue, post back.

If it's already been 24 hours, you could always try hitting the relocate button to try and give it 'push', however, then you'll have a new 'agent' bot and you'll have to wait a couple minutes for all your items to be moved over, which, should be automatic.

Other than that, wait for an administrator to come in and manually move it.