AN ACT Relating to increasing the gross revenue threshold for unlicensed bingo, raffles, and amusement games conducted by charitable or nonprofit organizations;
Bill Description
Increasing the gross revenue threshold for unlicensed bingo, raffles, and amusement games conducted by charitable or nonprofit organizations.
What this bill does Powered by Legitron
This bill amends existing gambling law to raise several gross revenue thresholds for unlicensed gambling by bona fide charitable or nonprofit organizations from prior amounts (often $5,000) to $15,000. It allows such organizations to hold raffles without a commission license if gross raffle revenues for the calendar year do not exceed $15,000 and tickets and winners are limited to regular members, permits unopened alcoholic beverages as raffle prizes if a Liquor and Cannabis Board permit is obtained, and allows larger raffles only if the organization obtains a commission license.
The bill authorizes bona fide charitable or nonprofit organizations to conduct bingo, raffles, and amusement games without a commission license when specific conditions are met: no more than two events per calendar year, no more than 12 consecutive days per event (with an exception that a raffle may run longer), management and operation by unpaid bona fide members, combined gross revenues not exceeding $15,000 per year, net proceeds used for qualifying organizational purposes, notice to the local police agency at least five days in advance, and maintenance of event records for one year. It also imposes consumer-protection and operational rules for punchboards and pull-tabs, including adult-only sales, a maximum single-chance price of $5, prize display and immediate removal/award requirements, information-flare adjustments when certain prizes are won, and a requirement that licensees keep a public record of awards above an amount set by the commission for at least 90 days.
The bill changes local taxation rules and tax liens: it sets maximum local tax rates (not greater than 5% for bingo and raffles, not greater than 2% for amusement games to cover enforcement costs), provides tax exemptions for qualifying nonprofits with gross receipts not exceeding $15,000, sets punchboard/pull-tab tax limits (including special local options for commercial operators), allows social card game taxation up to 20% of gross revenue, and establishes that taxes under the chapter become a lien on personal and real property used in the gambling activity that attaches when the tax is due with lien priority equivalent to ad valorem taxes under RCW 84.60.010.
This proposal modifies existing statutes (amending RCW 9.46.0315, 9.46.0321, and 9.46.110) and is primarily a set of procedural changes, tax rules, and exemptions rather than creation of a new crime or alteration of criminal penalties. The text repeatedly references "the commission" and uses the term "bona fide charitable or bona fide nonprofit organization" but does not define those terms here; it also refers to an amount and other items "determined by the commission," and to "commercial stimulant operators," none of which are defined in the provided excerpts. The contents of the cited RCW 9.46.0205 and RCW 84.60.010 are not included, and it is not clear whether the excerpts constitute the entire bill.
Why it matters Powered by Legitron
If enacted, small bona fide charitable and nonprofit groups would be able to run more raffles, bingo, and amusement-game fundraisers without buying a state commission license so long as their combined gross receipts stay under $15,000 and they follow rules like member-only raffles, unpaid member management, limits on event frequency and duration, five-day police notice, and one-year recordkeeping. That will likely lower direct licensing costs and make grassroots fundraising easier to run, and nonprofits can avoid some local taxes up to the stated thresholds, but they will still have to meet operational steps (including obtaining a Liquor and Cannabis Board permit if offering unopened alcohol as a prize) and face the administrative burden of compliance.
Local governments may see reduced small-source tax revenue but still can tax gambling within set caps and recover enforcement costs; taxes under the chapter become liens on property used in the activity, creating a real asset risk if taxes go unpaid. Key terms needed to determine who benefits most remain unclear from the excerpt—“bona fide charitable or nonprofit organization,” which commission sets certain recordkeeping thresholds, and the meaning of “commercial stimulant operators” are not defined here—so the exact scope of groups that qualify and some enforcement details are uncertain.