HOUSE BILL REPORT

                  SB 5330

                       As Passed House

                        April 8, 1997

Title:  An act relating to golfing sweepstakes.

Brief Description:  Allowing another type of golfing sweepstakes.

Sponsors:  Senators Sellar, Snyder and McCaslin.

Brief History:

Committee Activity:

Commerce & Labor:  3/20/97, 3/31/97 [DP].

Floor Activity:

Passed House:  4/8/97, 78‑19.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.  Signed by 9 members:  Representatives McMorris, Chairman; Honeyford, Vice Chairman; Conway, Ranking Minority Member; Wood, Assistant Ranking Minority Member; Boldt; Clements; Cole; Hatfield and Lisk.

Staff:  Pam Madson (786-7166).

Background:  Bona fide charitable or nonprofit organizations are allowed to conduct certain types of golfing sweepstakes involving the wagering of money.  These sweepstakes are not considered prohibited gambling activity if the outcome of the sweepstakes depends on the scores or playing abilities of individuals or teams of individuals and the sweepstakes is conducted in a manner specified under the gambling law.  Only members and guests of the sponsoring organization may participate in such events.

The auctioning of players or teams of players in a golfing contest, where the highest bidder receives a portion of the proceeds of the auction by placing the highest bid on the winning player or team, is not an authorized method of conducting a golfing sweepstakes under the gambling law.

Summary of Bill:  An additional method of conducting a golfing sweepstakes is authorized for charitable or nonprofit organizations where members and their guests bid at an auction on players or teams of players, and the bidder who places the highest bid on the winning player or teams of players receives some portion of the proceeds from the auction.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill authorizes the most sensible way to run a Acalcutta@ which is a form of golfing sweepstakes.  Two forms are currently legal, but they are complex and not very usable.  The way calcuttas currently operate may not be technically legal.  Participants bid on various teams or individuals and, after expenses, the proceeds are awarded as prizes to the bidders of the winning teams.  Technically this may be called an expansion of gambling, but it is insignificant given the gambling activity in the state today.

Testimony Against:  None.

Testified:  Stu Halsan, Washington State Federation of Clubs.