Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Commerce & Gaming Committee
HB 1469
Brief Description: Concerning enhanced raffle procedures.
Sponsors: Representatives Wicks, Vick, Robertson, Sutherland and Chambers.
Brief Summary of Bill
  • Raises the maximum value of the grand prize the Washington State Gambling Commission (Commission) may authorize for an enhanced raffle from $5 million to $10 million.
  • Requires the Commission to address enhanced raffles under its existing reporting obligations to the Governor and Legislature.
  • Removes the expiration date for the enhanced raffles statute.
Hearing Date: 2/11/21
Staff: Kyle Raymond (786-7190).
Background:

Raffles.

Bona fide charitable or bona fide nonprofit organizations, organized primarily for purposes other than the conduct of raffles, are authorized to conduct raffles without obtaining a license when:

  • gross revenues from all of the organization's raffles during the calendar year do not exceed $5,000;
  • tickets to the raffles are sold only to, and winners are determined only from among, the regular members of the organization; and
  • the raffles are held in accordance with laws and rules.

 

The maximum raffle ticket price is $100.

 

For licensed organizations, raffle prizes must not exceed $40,000 per prize or $300,000 total raffle prizes in a license year, except as authorized by the Washington State Gambling Commission (Commission) as provided in rule.

 

Enhanced Raffles.

A bona fide charitable or nonprofit organization, whose primary purpose is serving individuals with intellectual disabilities, may conduct enhanced raffles if licensed by the Commission.

 

The Commission may approve enhanced raffles under a number of conditions, including that the value of grand prizes the Commission may authorize for an enhanced raffle may not exceed $5 million.  In the event the organization determines ticket sales are insufficient to qualify for a complete enhanced raffle to move forward, the enhanced raffle winner must receive 50 percent of the net proceeds in excess of expenses as the grand prize.

 

The Commission may approve two enhanced raffles per calendar year for Western Washington and two enhanced raffles per calendar year for Eastern Washington.  The location where the grand prize winning ticket is to be drawn determines whether the raffle is considered to occur in Western or Eastern Washington.

 

All enhanced raffles and associated smaller raffles must be independently audited with the results reported to the Commission.  The bona fide charitable or nonprofit organization must be the primary recipient of the funds raised.  The maximum enhanced raffle ticket price is $250.  An enhanced raffle may include additional related entries and drawings, such as early bird, refer a friend, and multiple ticket drawings when the organization establishes the eligibility standards for the entries and drawings before any enhanced raffle tickets are sold.  No drawing may occur by using a random number generator or similar means.

 

The enhanced raffle statute expires on June 30, 2022.

 
Summary of Bill:

The maximum value of grand prizes the Commission may authorize for an enhanced raffle is $10 million.

 

The Commission must address enhanced raffles under its existing reporting obligations to the Governor and Legislature.

 

The expiration date for the enhanced raffle statute is removed.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.