Page 178 - Washington Nonprofit Handbook 2018 Edition

c. Gambling Licensing

All other gambling activities require a license. RCW 9.46.010 states gambling

activities must be for “the raising of funds for the promotion of bona fide charitable
or nonprofit organizations is in the public interest” when conducted as authorized
by the law. Accordingly, charitable and nonprofit organizations may apply for a
license to engage in various sorts of gambling for fundraising purposes. In addition
to the requirements for unlicensed activities, organizations seeking a license for
gambling activities must have at least 15 members with authority to elect board
members, and there are many other requirements to consider before proceeding.

Generally, a nonprofit needs a gambling license for gambling activities if
either 1) the total annual receipts from such activities is more than $5,000 or the
nonprofit holds more than 2 gambling events (raffles, bingo or amusements games)
in a year. In addition, there are different licensing requirements for public and
private (member only) activities. If your activity is open to the public, a license may

be required. Please review specific rules on the Gambling Commission’s website,
see the Liquor, Cannabis, Gambling…and Your Fundraising Event Toolkit or call the
Gambling Commission directly.

d. Record Keeping

The Gambling Commission requires organizations to keep records, of certain
gambling activities, such as licensed raffles. Example records can be found on the
Gambling Commission website. The Gambling Commission also requires that all
funds collected from gambling be accounted for with an audit trail showing the
funds raised from gambling were used to further the organization’s stated purpose.
Some activities even require organizations to maintain a separate gambling receipts
bank account.

e. Reporting Theft

The Gambling Commission is a limited jurisdiction law enforcement agency.
Their agents are trained in conducting investigations. If you suspect a theft of
gambling funds, contact them for help. Their agents will also help answer
questions regarding gambling.

WASHINGTON NONPROFIT HANDBOOK -167- 2018