Gambling.

Plain English Breakdown

The official summary does not mention the impact on sports teams or their home venues, only that eligible organizations can conduct raffles at championship games held in those venues.

Clarifying Gambling Investigations and Expanding Sports Raffles

This law clarifies that the Department of Justice can investigate gambling crimes wherever they happen, not just in licensed places. It also lets certain groups hold special raffle games at championship sports events.

What This Bill Does

• Clarifies that the Department of Justice can look into suspected criminal violations of gambling laws even if these violations occur outside of licensed gambling establishments.
• Allows private nonprofit organizations to conduct major league sports raffles during championship games, in addition to home games.
• Requires at least half of the money from these special raffle tickets to go towards charitable purposes.
• Limits each eligible organization to one such raffle per championship game and requires a manual draw for prize winners.

Who It Names or Affects

• The Department of Justice
• Private nonprofit organizations that conduct sports-related fundraising events

Terms To Know

Licensed gambling establishment

A place where gambling is allowed and regulated by the state.

Major league sports raffle

A special type of fundraising event that involves selling tickets for a chance to win prizes, often associated with professional sports teams.

Limits and Unknowns

• The bill does not specify the exact percentage of gross receipts required to go towards charitable purposes beyond stating it must be at least half.
• It is unclear how this expansion will affect existing regulations on other types of gambling activities.

Official Summary Text

SB 451, Archuleta.
Gambling.
Existing law, the Gambling Control Act, establishes the California Gambling Control Commission, which is responsible for licensing and regulating various gambling activities and establishments. Existing law requires the Department of Justice to investigate any violations of, and to enforce, the act. Existing law also vests the department with the responsibility to investigate violations of prohibitions against specified gambling activities, as enumerated in the Penal Code, including, among others, prohibitions against (1) lotteries, (2) certain games played with cards, dice, or any device, for money, and (3) slot machines.
This bill would clarify that the department’s authority to investigate suspected criminal violations of the aforementioned prohibited gambling activities enumerated in the Penal Code includes suspected violations that occur
outside of a licensed gambling establishment, irrespective of whether the suspected violation involves licensees.
The California Constitution generally prohibits lotteries and raffles. The California Constitution, notwithstanding this general prohibition, authorizes the Legislature to authorize private, nonprofit, eligible organizations to conduct raffles as a funding mechanism to provide support for their own or another private, nonprofit, eligible organizations’ beneficial and charitable works, provided that at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature, by a
2
/
3
vote of each house, to amend the percentage of gross receipts required to be dedicated to
beneficial or charitable purposes. Pursuant to this authority, existing statutory law authorizes an eligible organization to conduct a major league sports raffle if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified. Existing law authorizes these raffles only at a home game and prohibits an eligible organization from conducting more than one major league sports raffle per home game.
This bill would additionally authorize an eligible organization to conduct a major league sports raffle at a championship game, if held at the designated venue where an affiliated sports team plays their home games. The bill would make other technical and conforming changes. By expanding the scope of provisions that revise the percentage of
gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a
2
/
3
vote of each house.

Current Bill Text

Download Bill PDF