Page 177 - Washington Nonprofit Handbook 2018 Edition

CHAPTER 49. Fundraising Involving Gambling

a. Introduction

All gambling in Washington State, with the exception of the state lottery and
horseracing, is subject to regulation by the Washington State Gambling
Commission (and in certain circumstances, controlled by tribal governments).
Qualified nonprofit organizations may hold gambling activities to raise funds. While
some gambling activities are allowed without a gambling license, other activities
require licensure from the Gambling Commission.

Gambling is defined as an activity that has three elements: consideration,
chance and prize. These terms are further defined as:

• Consideration: Payment

• Chance: Outcome not determined by skill

• Prize: Money or anything of value

All three elements must be met for the activity to constitute gambling.

b. Unlicensed Gambling Activities

The forms of gambling that can occur without a license are described, along
with limitations or restrictions, in the Gambling Commission’s pamphlet,
“Unlicensed Gambling Activities for Charitable/Nonprofit Organizations.” This
pamphlet is available on the Gambling Commission’s website, https://
www.wsgc.wa.gov/. Permitted activities include bingo; raffles and amusement
games; raffles for members only; turkey shoots; golfing sweepstakes; card and dice
games and limited social card games. In most cases, the total receipts from such

activities cannot exceed $5,000 per year, and participation is often restricted to
members of the organization or members and their guests.

Only certain authorized charitable and nonprofit organizations are permitted
to host or organize these forms of unlicensed gambling activities. An authorized
organization is one that has been in operation for at least 12 months prior to the
gambling event or activity, and it must be able to show that it has made “significant
progress toward achieving [its] stated purposes” during the preceding 12 months.

WASHINGTON NONPROFIT HANDBOOK -166- 2018