Effective Date of Rule: January 1, 2008.
Purpose: The gambling commission is rewriting its rules manual using plain English techniques. The new chapter incorporates rules regarding charitable and nonprofit organizations offering raffles.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 06-13-077 on June 20, 2006, with a published date of July 5, 2006.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: September 25, 2006.
(2) "Organization" and "organizations" means all bona fide charitable or nonprofit organizations conducting unlicensed raffles authorized by chapter 9.46 RCW, including those authorized by RCW 9.46.0315 and 9.46.0321.
(1) Be consecutively numbered; or
(2) Be printed with letters or symbols which do not repeat within the population of all tickets sold for a particular raffle.
(1) Licensees maintain in writing the method by which the income, expenditures for prizes, and all other expenses, received and expended in connection with the raffle will be divided among them; and
(2) One licensee sets up a separate bank account into which all of the proceeds from the raffle are deposited and from which all of the expenses in connection with the raffle, including but not limited to, all payments for prizes, are made; and
(3) Participating licensees keep records which clearly disclose the amount of money received or each licensee expends in connection with the raffle and the purpose(s) for which the money was spent; and
(4) Licensees count all gross receipts that each participating licensee received toward their gross receipts limit.
(1) All rules by which prizes may be won in the raffle; and
(2) The cost of each ticket; and
(3) All prizes available, whether cash or merchandise; and
(4) Date, time, and location of drawing; and
(5) Whether a participant is required to be present at the raffle drawing in order to be eligible to win a prize; and
(6) Name of the organization conducting the raffle.
(a) Create the discount plan before selling any raffle tickets; and
(b) Do not change the discount plan during the raffle; and
(c) Make single nondiscounted tickets available to all participants; and
(d) Use only one discount plan for each raffle; and
(2) Booklets of bundled discounted tickets must contain the number of tickets named in the discount plan; and
(3) Licensees must not remove tickets from a booklet to sell them individually; and
(4) Each booklet of bundled tickets must have the following information printed on the cover:
(a) A description of the discount plan; and
(b) The number of tickets in the booklet; and
(c) The total cost of the booklet; and
(d) A consecutive number; and
(5) Licensees must establish controls and accounting procedures necessary to determine gross gambling receipts from ticket sales.
(2) Organizations must sell tickets for a particular raffle for the same price unless offering an authorized discount plan; and
(3) Organizations must not:
(a) Sell raffle tickets via the internet; or
(b) Require anyone to purchase more than one raffle ticket; or
(c) Give away raffle tickets; or
(d) Give an opportunity to participate in a raffle drawing to a person who has not purchased a ticket.
(2) Licensees may provide members or volunteers with noncash incentives for selling tickets if the licensee:
(a) Bases the incentives on the number of tickets sold; and
(b) Gives incentives that do not exceed five percent of the gross gambling receipts of the raffle; and
(c) Maintains a record of the name, address, and telephone number of all persons receiving incentives.
(1) Fully disclose to each player the random selection process used in the alternative drawing format before selling tickets; and
(2) Maintain a copy of the disclosure with the permanent raffle records; and
(3) Use controls and accounting procedures that:
(a) Provide the ability to audit gross gambling receipts from ticket sales; and
(b) Have sufficient controls to prevent manipulation of the random selection process; and
(c) Document the random selection process.
(1) The licensee sells participants consecutively numbered tickets that identify a specific corresponding numbered mock animal(s), ball(s), or other similar object(s) that can use natural elements to move the objects (water, gravity, wind) in a race. All objects must be identical in weight, size, and shape, to have an equal opportunity to win. The licensee must release all objects simultaneously at a start line. The first numbered object to cross the finish line wins.
(2) The licensee sells participants consecutively numbered tickets or poker tally sheets to participants. Participants travel a predetermined course with predetermined drawing stations (typically five drawing stations). At each drawing station, participants draw one playing card for each ticket purchased. Station attendants must verify the card drawn and record the card value on the poker ticket tally sheet. After all participants have completed the course, the participant with the best recorded poker hand wins.
(3) The licensee sells participants consecutively numbered tickets that identify a specific corresponding numbered ball. All balls must be equal in size, weight, and shape, to have an equal opportunity to win. The licensee suspends all purchased numbered balls in the air and simultaneously releases them over a target zone. The ball, closest or first, to hit the predetermined target wins.
(4) The licensee sells participants consecutively numbered tickets that identify a specific corresponding square on a numbered grid. The licensee releases the animal into the grid area until the animal has completed its plop. The numbered square containing the plop wins.
Multiple stage drawings.
(5) The licensee sells participants consecutively numbered tickets. The licensee uses multiple drawing phases to eliminate participants until the licensee declares the remaining ticket holder(s) the winner(s). The licensee may use second element of chance plans as long as the plans meet the criteria set out in WAC 230-11-060.
(6) The licensee sells participants consecutively numbered tickets. Participants place their tickets into any number of separate buckets or other receptacles for separate prizes. We consider the multiple drawings one single raffle. If licensees use different tickets for each receptacle, we consider each drawing an individual raffle.
(7) The licensee sells participants consecutively numbered calendars with removable stubs. The licensee places all sold calendar stubs into the drawing receptacle. On predetermined dates identified on the calendar, the licensee conducts drawings. The licensee places all winning stubs back into the drawing receptacle for future drawings.
(1) Determine the final prize winner. For example: Ten finalists are drawn and each finalist chooses a key. The finalist with the key that starts the vehicle wins; or
(2) Determine which prize is awarded among a group of prizes. For example: Each winner selects one of three keys and each wins the contents of the safe which the key unlocks; or
(3) Increase the prize award. For example: The winning ticket matches a predetermined sequence of numbers and wins an additional prize.
(2) At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle. The organization must have these funds deposited in the gambling receipts account, if required, or in a recognized Washington state depository authorized to receive funds. The organization must not reduce the balance of funds available from this account below the required amount before awarding the prize(s).
(3) Raffle prizes must:
(a) Be available at the time and place of the drawing; and
(b) If cash, be United States currency or an equivalent amount of negotiable instruments; and
(c) For licensees, not exceed forty thousand dollars per prize or eighty thousand dollars in total raffle prizes in a license year. The commissioners may vote to permit licensees to exceed these limits on specific occasions if the licensees show good cause in writing.
CONDUCTING A MEMBERS-ONLY RAFFLE
(2) In modified pricing plans, licensees may sell tickets to enter a raffle for different values, not to exceed ten dollars for a single ticket, if the licensee:
(a) Tells the players the pricing plan before selling them a ticket to participate. The licensee must tell the player the total number of tickets in the population available and the number of tickets at each price level; and
(b) Allows participants to randomly select their ticket from the population of remaining tickets and pay the amount printed on the ticket they select; and
(c) Establishes records for an adequate audit trail to determine gross gambling receipts; and
(d) Holds no more than two such drawings during a meeting or event; and
(e) Sells multiple tickets to enter one or more drawings as a package and the total price of the package must not exceed twenty-five dollars.
(1) The amount of the discount is set before any raffle tickets are sold; and
(2) Participants are allowed to purchase a single ticket; and
(3) There is only one discount plan for each raffle; and
(4) The cost of a single ticket, without a discount, does not exceed ten dollars; and
(5) The total cost of a discount package does not exceed twenty-five dollars; and
(6) The cost of a single ticket is printed on each ticket (for example, one dollar each); and
(7) The discounted tickets are identified by a unique ticket audit numbering system; and
(8) The licensee establishes an audit system that includes internal controls and procedures to determine gross gambling receipts from the sale of tickets using a discounted pricing plan.
(2) Licensees may include tickets to enter a raffle as a part of a package that includes dues, entertainment, or other fund-raising activities if:
(a) The package discloses the value of each component of the package to the purchaser; and
(b) The value of each individual raffle ticket does not exceed twenty-five dollars.
Mock animal races.
(1) The licensee sells participants consecutively numbered tickets to wager on a specific mock animal in a field of mock animal racers, typically five to ten racers. The mock animals race in individual lanes divided into equal spaces or squares; for example, bingo boards are sometimes used as race lanes. Animals move forward based on the numbers rolled on dice or balls drawn from a set of bingo balls. The first mock animal to cross the finish line is the winner. All winning ticket holders split the prize pool or the licensee may hold a drawing of winning tickets to determine a single winner.
(2) The licensee sells participants consecutively numbered tickets/race forms to wager on the outcome of an unknown videotaped race, typically horse races. The previously taped races must be obtained from an outside source and participants must have no knowledge of the specific race outcome before conducting the video race drawing. Participants wager on the specific racers, identified by numbers, or a specific race lane. All participants holding a winning race number ticket or winning lane number ticket are the winners. All winning ticket holders split the prize pool or the licensee may hold a drawing of winning tickets to determine a single winner.
Paddle wheel raffles.
(3) The licensee sells participants numbered paddles or numbered tickets that correspond to numbered spaces on a balanced, spinning wheel. The licensee spins the wheel at least one full revolution. The ticket that matches the number that the wheel stops on is the winning ticket.
Card deck raffle.
(4) The licensee sells participants a single playing card or similar object. The card is then torn or cut in half and one half is placed in the drawing receptacle. The participant holds the other half until the drawing takes place. The holder of the matching half to that drawn is the winner.
RECORDKEEPING FOR RAFFLES
(1) Gross receipts; and
(2) Prizes paid; and
(3) Net income; and
(4) Documentation of expenses; and
(5) Documentation of how the proceeds were used.
(1) Record all data required in the standard format we provide; and
(2) Maintain the following:
(a) Validated deposit receipts for each deposit of raffle proceeds; and
(b) All winning tickets; and
(c) Name, address, and telephone number of all winners of a prize with a fair market value of more than fifty dollars; and
(d) All ticket stubs for raffles that participants are not required to be present at the drawing; and
(e) All unsold tickets for individual raffles for which gross gambling receipts exceed five thousand dollars; and
(f) Invoices and other documentation recording the purchase or receipt of prizes; and
(g) Invoices and other documentation recording the purchase of tickets and other expenses of the raffle; and
(3) Complete all records no later than thirty days following the drawing.
(2) Records for licensed raffles must be kept for three years from the end of the licensees' fiscal year in which the raffle was completed.
(3) Organizations must keep all records at the main administrative or business office of all organizations that are located in Washington and have the records available for our review or audit.
(4) Organizations that do not have an administrative or business office must have and designate a records custodian that resides in Washington.
(5) We may allow an organization to maintain records outside the state of Washington if the organization submits a written request. We may withdraw this permission at any time.