AN ACT Relating to requirements for fund-raising events of bona fide charitable or nonprofit organizations;
SB 5443 revises Washington’s gambling and charitable gaming laws to expand what bona fide charitable and nonprofit organizations may do without obtaining a gambling license from the state commission. The bill authorizes qualifying organizations to conduct certain raffles without a license when annual gross raffle revenue stays at or below $5,000 and tickets are sold only to, and winners selected only from, regular members of the organization. It also allows such organizations to provide unopened alcoholic beverages as raffle prizes if the proper liquor and cannabis board permit is obtained.
The bill further authorizes qualifying nonprofits to conduct bingo raffles and amusement games without a license, subject to limits on frequency, duration, revenue, notice to local police, and recordkeeping. It creates a separate framework for “enhanced raffles” for organizations whose primary purpose is serving individuals with intellectual disabilities, allowing licensed enhanced raffles with detailed rules on prize value, ticket sales methods, auditing, vendor/call center use, and reporting. The bill also permits promotional contests of chance by businesses and nonprofits under specified no-consideration rules, and clarifies that these contests are not gambling if they meet the statutory requirements.
SB 5443 would amend multiple sections of Washington’s gambling statutes in Title 9 to create new exemptions and licensing pathways for charitable gaming, especially raffles, bingo raffles, amusement games, and enhanced raffles. It would raise or clarify revenue thresholds, define who counts as a member for raffle eligibility, authorize certain prize types and sales methods, and give the gambling commission rulemaking and fee-setting authority over enhanced raffles and related vendors. The bill would also add reporting obligations for the commission regarding enhanced raffles and would affect bona fide charitable and nonprofit organizations, businesses running promotional contests, and state regulators including the gambling commission and liquor and cannabis board.
The bill appears generally supportive of charitable fundraising and nonprofit flexibility, with the structure of the proposal suggesting an effort to modernize and expand lawful fundraising options while keeping regulatory controls in place. Because no committee transcripts or vote history were provided, there is no recorded floor or committee sentiment to indicate formal support or opposition. On its face, the bill is framed as a permissive measure for nonprofits, particularly those serving people with intellectual disabilities, while still preserving oversight through licensing, auditing, and reporting requirements.
The main points of potential contention are the expansion of gambling-like activities without a license, the creation of enhanced raffle authority, and the use of more commercial fundraising tools such as call centers, credit card sales, online-related order forms, and promotional contests. Regulators may be concerned about enforcement, auditing, and the risk that expanded raffle activity could resemble broader gambling operations. Opponents could also question the allowance of alcohol as raffle prizes and the special treatment for enhanced raffles, while supporters are likely to emphasize the bill’s nonprofit fundraising benefits and the safeguards built into the licensing and reporting rules.