SENATE BILL REPORT

SB 6107

BYSenators Newhouse, Moore and Conner; by request of Washington State Gambling Commission

Changing provisions relating to promotional contests of chance.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 29, 1988

Majority Report:  That Substitute Senate Bill No. 6107 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Conner, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Patrick Woods (786-7430)

                  January 29, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 29, 1988

BACKGROUND:

Currently the Gambling Commission is statutorily authorized to regulate promotional contests of chance.  However, such contests are not required to be registered or licensed by the Commission.  The events are primarily conducted by businesses as commercial stimulants.  In order for a contest to meet statutory requirements a comprehensive set of guidelines must be adhered to.

SUMMARY:

Promotional contests of chance are defined as schemes in which money or property is distributed among individuals who have agreed to participate equally in a contest which meet statutory requirements. 

The payment of an admission fee to a regularly scheduled sporting event is added to the list of permissible methods of entering a promotional contest of chance.

A promotional contest of chance in which the retail value of prizes is in excess of $5,000 is required to be registered with the Gambling Commission 30 days prior to its commencement.

A violation of the provision pertaining to contests of chance is changed from a felony to a gross misdemeanor with a penalty of one year in jail or a maximum $5,000 fine.  The term"registration" is added to the Commission's statutory powers and duties provisions.

EFFECT OF PROPOSED SUBSTITUTE:

The provisions requiring that a contest with prizes in excess of $5,000 be registered with the Gambling Commission are given a delayed effective date of January 1, 1989.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 22, 1988

Senate Committee - Testified: Frank Miller, Gambling Commission