If an activity meets the definition of "gambling" in the Gambling Act, it is prohibited unless authorized in law.  The word "gambling" is defined as staking or risking something of value upon the outcome of a contest of chance or a future contingent event not under the person's control or influence, upon an agreement or understanding that the person or someone else will receive something of value in the event of a certain outcome.  Specific activities are excluded from the definition, such as fishing derbies, pari-mutuel betting on horse racing regulated under other statutes, and bona fide business transactions valid under the law of contracts, including futures contracts for commodities.
 
The Gambling Act expressly authorizes certain gambling activities or specifies that certain activities do not constitute gambling.  Golfing sweepstakes are one of these activities.  Bona fide charitable or nonprofit organizations are authorized to conduct, without being required to obtain a permit or license from the Washington State Gambling Commission (WSGC), golfing sweepstakes permitting wagers of money when conducted in one of three ways and when participation is limited to members of the sponsoring organization and their bona fide guests.
 
Golfing sweepstakes do not constitute gambling or a lottery and are not subject to criminal or civil penalties if the outcome of the golfing sweepstakes is dependent upon the score, or scores, or the playing ability, or abilities, of a golfing contest between individual players or teams of players where:

• wagers are placed by buying tickets on any players in a golfing contest to "win," "place," or "show" and those holding tickets on the three winners may receive a payoff similar to the pari-mutuel system of betting, where moneys placed as wagers are used primarily as winners' proceeds, except moneys used to defray the expenses of the golfing sweepstakes or otherwise used to carry out the purposes of the organization;
• participants in any golfing contest(s) pay a like sum of money into a common fund on the basis of attaining a stated number of points ascertainable from the score of participants, and those participants attaining the stated number of points share equally in the moneys in the common fund, without any percentage of the moneys going to the sponsoring organization; or
• an auction is held in which persons may bid on the players or teams of players in the golfing contest, and the person placing the highest bid on the player or team that wins the golfing contest receives the proceeds of the auction, except moneys used to defray the expenses of the golfing sweepstakes or otherwise used to carry out the purposes of the organizations.

 
To be considered an eligible bona fide charitable or nonprofit organization, the organization must be organized for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, religious, scientific, social, fraternal, athletic, or agricultural purposes only.  In the opinion of the WSGC, the organization must have been organized and be operated primarily for purposes other than the operation of gambling activities.

Organizations meeting the definition of a bona fide charitable or nonprofit organization under the Gambling Act are authorized to conduct, without being required to obtain a permit or license from the Washington State Gambling Commission, shooting sports and activities sweepstakes permitting wagers of money.  It is provided that this activity does not constitute gambling or a lottery and is not subject to civil or criminal penalties if conducted in a manner authorized by the bill and when participation is limited to members of the sponsoring organization and their bona fide guests.
 
The outcome of the sweepstakes must be dependent upon the score, or scores, or the shooting ability, or abilities, of a shooting sports contest between individual shooters or teams of such shooters where:

• wagers are placed by buying tickets on any players in a shooting sports contest to "win," "place," or "show" and those holding tickets on the three winners may receive a payoff similar to the pari-mutuel system of betting, where moneys placed as wagers are used primarily as winners' proceeds, except moneys used to defray the expenses of the shooting sports contest or otherwise used to carry out the purposes of the organization;
• participants in any shooting sports contest(s) pay a like sum of money into a common fund on the basis of attaining a stated number of points ascertainable from the score of such participants, and those participants attaining the stated number of points share equally in the moneys in the common fund, without any percentage of the moneys going to the sponsoring organization; or
• an auction is held in which persons may bid on the shooters or teams of shooters in the shooting sports contest, and the person placing the highest bid on the shooter or team that wins the shooting sports contest receives the proceeds of the auction, except moneys used to defray the expenses of the shooting sports sweepstakes or otherwise used to carry out the purposes of the organizations.

For purposes of the new authorization, the term "shooting sports" means shooting sports and activities such as target shooting, skeet, trap, sporting clays, 5-stand, and archery.

(In support) This bill is an updated and streamlined version of House Bill 1438, but with a new title, to allow bona fide charitable and nonprofit organizations to conduct shooting sports and activities sweepstakes similar to the authorization that exists for golfing sweepstakes. 

(Opposed) None.

(Other) The Washington State Gambling Commission (WSGC) has not had an opportunity to take a formal position on this specific bill, but the WSGC appreciates working with the sponsor on the policy issue to address any regulatory concerns while staying within the WSGC's legislative purpose.  There are currently no technical concerns related to the bill.