Fund-raising events

AN ACT Relating to requirements for fund-raising events of bona 1
fide charitable or nonprofit organizations; and amending RCW 2
9.46.0277, 9.46.0315, 9.46.0321, 9.46.0323, and 9.46.0356.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 9.46.0277 and 2009 c 133 s 1 are each amended to 5
read as follows: 6
"Raffle," as used in this chapter, means a game in which tickets 7
bearing an individual number are sold for not more than ((one hundred 8
dollars)) $200 each and in which a prize or prizes are awarded on the 9
basis of a drawing from the tickets by the person or persons 10
conducting the game, when the game is conducted by a bona fide 11
charitable or nonprofit organization ((, no person other than a bona 12
fide member of the organization takes any part in the management or 13
operation of the game,)) and no part of the proceeds thereof inure to 14
the benefit of any person other than the organization conducting the 15
game. 16
Sec. 2. RCW 9.46.0315 and 2012 c 131 s 1 are each amended to 17
read as follows: 18
Bona fide charitable or bona fide nonprofit organizations 19
organized primarily for purposes other than the conduct of raffles, 20
H-2933.1
HOUSE BILL 2625
State of Washington 69th Legislature 2026 Regular Session
By Representatives McClintock, Rule, and Barnard
Read first time 01/22/26. Referred to Committee on State Government
& Tribal Relations.
p. 1 HB 2625
((are hereby authorized to )) may conduct raffles without obtaining a 1
license to do so from the commission when such raffles are held in 2
accordance with all other requirements of this chapter, other 3
applicable laws, and rules of the commission; when gross revenues 4
from all such raffles held by the organization during the calendar 5
year do not exceed ((five thousand dollars )) $10,000; and when 6
tickets to such raffles are sold only to, and winners are determined 7
only from among, the regular members of the organization conducting 8
the raffle. The organization may provide unopened containers of 9
beverages containing alcohol as raffle prizes if the appropriate 10
permit has been obtained from the ((liquor control board )) state 11
liquor and cannabis board ((: PROVIDED, That )). However raffles that 12
exceed ((five thousand dollars )) $10,000 may also be conducted 13
((pursuant to the provisions of )) under this section if the 14
organization obtains a license from the commission: PROVIDED FURTHER, 15
That the term members for this purpose shall mean only those persons 16
who have become members prior to the commencement of the raffle and 17
whose qualification for membership was not dependent upon, or in any 18
way related to, the purchase of a ticket, or tickets, for such 19
raffles. 20
Sec. 3. RCW 9.46.0321 and 1987 c 4 s 28 are each amended to read 21
as follows: 22
Bona fide charitable or bona fide nonprofit organizations 23
organized primarily for purposes other than the conduct of such 24
activities ((are hereby authorized to )) may conduct bingo, raffles, 25
and amusement games, without obtaining a license to do so from the 26
commission but only when: 27
(1) Such activities are held in accordance with all other 28
requirements of this chapter, other applicable laws, and rules of the 29
commission; 30
(2) Said activities are ((, alone or in any combination, )) 31
conducted no more than ((twice)) three times each calendar year and 32
over a period of no more than ((twelve)) 12 consecutive days each 33
time, notwithstanding the limitations of RCW 9.46.0205((: PROVIDED, 34
That a )). However a raffle conducted under this subsection may be 35
conducted for a period longer than ((twelve)) 12 days;36
(3) Only bona fide members of that organization, who are not paid 37
for such services, participate in the management or operation of the 38
activities; 39
p. 2 HB 2625
(4) Gross revenues to the organization from ((all the activities 1
together)) raffles do not exceed ((five thousand dollars )) $10,000 2
during any calendar year; 3
(5) Gross revenues to the organization from bingo and amusement 4
games do not exceed $10,000 during any calendar year;5
(6) All revenue therefrom, after deducting the cost of prizes and 6
other expenses of the activity, is devoted solely to the purposes for 7
which the organization qualifies as a bona fide charitable or 8
nonprofit organization; 9
(((6) The organization gives notice at least five days in advance 10
of the conduct of any of the activities to the local police agency of 11
the jurisdiction within which the activities are to be conducted of 12
the organization's intent to conduct the activities, the location of 13
the activities, and the date or dates they will be conducted;)) and14
(7) The organization conducting the activities maintains records 15
for a period of one year from the date of the event which accurately 16
show at a minimum the gross revenue from each activity, details of 17
the expenses of conducting the activities, and details of the uses to 18
which the gross revenue therefrom is put. 19
Sec. 4. RCW 9.46.0323 and 2021 c 81 s 1 are each amended to read 20
as follows: 21
(1) A bona fide charitable or nonprofit organization, as defined 22
in RCW 9.46.0209, (a) whose primary purpose is serving individuals 23
with intellectual disabilities , or (b) that has been licensed by the 24
commission to conduct raffles for at least 10 consecutive years and 25
has demonstrated gross annual raffle revenues exceeding $500,000 in 26
at least one of those years, may conduct enhanced raffles if licensed 27
by the commission. 28
(2) The commission has the authority to approve two enhanced 29
raffles per calendar year for western Washington and two enhanced 30
raffles per calendar year for eastern Washington. For each region, 31
one of the two authorized raffles shall be reserved for an 32
organization defined in subsection (1)(a) of this section. If no such 33
organization applies for the reserved slot by a date certain 34
established by the commission, the slot may be opened to other 35
organizations qualified under subsection (1)(b) of this section. 36
Whether the enhanced raffle occurs in western Washington or eastern 37
Washington will be determined by the location where the grand prize 38
winning ticket is to be drawn as stated on the organization's 39
p. 3 HB 2625
application to the commission. An enhanced raffle is considered 1
approved when voted on by the commission. 2
(3) The commission has the authority to approve enhanced raffles 3
under the following conditions: 4
(a) The value of the grand prize must not exceed $10,000,000 for 5
an organization defined in subsection (1)(a) of this section or 6
$5,000,000 for an organization defined in subsection (1)(b) of this 7
section. 8
(b) Sales may be made in person, by mail, by fax, or by telephone 9
only. Raffle ticket order forms may be printed from the bona fide 10
charitable or nonprofit organization's website. Obtaining the form in 11
this manner does not constitute a sale. 12
(c) Tickets purchased as part of a multiple ticket package may be 13
purchased at a discount. 14
(d) Multiple smaller prizes are authorized during the course of 15
an enhanced raffle for a grand prize including, but not limited to, 16
early bird, refer a friend, and multiple ticket drawings.17
(e) A purchase contract is not necessary for smaller noncash 18
prizes, but the bona fide charitable or nonprofit organization must 19
be able to demonstrate that such a prize is available and sufficient 20
funds are held in reserve in the event that the winner chooses a 21
noncash prize. 22
(f) All enhanced raffles and associated smaller raffles must be 23
independently audited, as defined by the commission during rule 24
making. The audit results must be reported to the commission.25
(g) Call centers, when licensed by the commission, are 26
authorized. The bona fide charitable or nonprofit organization may 27
contract with a call center vendor to receive enhanced raffle ticket 28
sales. The vendor may not solicit sales. The vendor may be located 29
outside the state, but the bona fide charitable or nonprofit 30
organization must have a contractual relationship with the vendor 31
stating that the vendor must comply with all applicable Washington 32
state laws and rules. 33
(h) The bona fide charitable or nonprofit organization must be 34
the primary recipient of the funds raised. 35
(i) Sales data may be transmitted electronically from the vendor 36
to the bona fide charitable or nonprofit organization. Credit cards, 37
issued by a state regulated or federally regulated financial 38
institution, may be used for payment to participate in enhanced 39
raffles. 40
p. 4 HB 2625
(j) Receipts including ticket confirmation numbers may be sent to 1
ticket purchasers either by mail or by email. 2
(k) In the event the bona fide charitable or nonprofit 3
organization determines ticket sales are insufficient to qualify for 4
a complete enhanced raffle to move forward, the enhanced raffle 5
winner must receive fifty percent of the net proceeds in excess of 6
expenses as the grand prize. The enhanced raffle winner will receive 7
a choice between an annuity value equal to fifty percent of the net 8
proceeds in excess of expenses paid by annuity over twenty years, or 9
a one-time cash payment of seventy percent of the annuity value.10
(l) A bona fide charitable or nonprofit organization is 11
authorized to hire a consultant licensed by the commission to run an 12
enhanced raffle; in addition, the bona fide charitable or nonprofit 13
organization must have a dedicated employee who is responsible for 14
oversight of enhanced raffle operations. The bona fide charitable or 15
nonprofit organization is ultimately responsible for ensuring that an 16
enhanced raffle is conducted in accordance with all applicable state 17
laws and rules. 18
(4) The commission has the authority to set fees for bona fide 19
charitable or nonprofit organizations, call center vendors, and 20
consultants conducting enhanced raffles authorized under this 21
section. 22
(5) The commission has the authority to adopt rules governing the 23
licensing and operation of enhanced raffles. 24
(6) Except as specifically authorized in this section, enhanced 25
raffles must be held in accordance with all other requirements of 26
this chapter, other applicable laws, and rules of the commission.27
(7) For the purposes of this section: 28
(a) "Enhanced raffle" means a game in which tickets bearing an 29
individual number are sold for not more than two hundred fifty 30
dollars each and in which a grand prize and smaller prizes are 31
awarded on the basis of drawings from the tickets by the person or 32
persons conducting the game. An enhanced raffle may include 33
additional related entries and drawings, such as early bird, refer a 34
friend, and multiple ticket drawings when the bona fide charitable or 35
nonprofit organization establishes the eligibility standards for such 36
entries and drawings before any enhanced raffle tickets are sold. No 37
drawing may occur by using a random number generator or similar 38
means. 39
p. 5 HB 2625
(b) "Early bird drawing" means a separate drawing for a separate 1
prize held prior to the grand prize drawing. All tickets entered into 2
the early bird drawing, including all early bird winning tickets, are 3
entered into subsequent early bird drawings, and also entered into 4
the drawing for the grand prize. 5
(c) "Refer a friend drawing" means a completely separate drawing, 6
using tickets distinct from those for the enhanced raffle, for a 7
separate prize held at the conclusion of the enhanced raffle for all 8
enhanced raffle ticket purchasers, known as the referring friend, who 9
refer other persons to the enhanced raffle when the other person 10
ultimately purchases an enhanced raffle ticket. The referring friend 11
will receive one ticket for each friend referred specifically for the 12
refer a friend drawing. In addition, each friend referred could also 13
become a referring friend and receive his or her own additional 14
ticket for the refer a friend drawing. 15
(d) "Multiple ticket drawing" means a completely separate 16
drawing, using tickets distinct from those for the enhanced raffle, 17
for a separate prize held at the conclusion of the enhanced raffle 18
for all enhanced raffle ticket purchasers who purchase a specified 19
number of enhanced raffle tickets. For example, a multiple ticket 20
drawing could include persons who purchase three or more enhanced 21
raffle tickets in the same order, using the same payment information, 22
with tickets in the same person's name. For each eligible enhanced 23
raffle ticket purchased, the purchaser also receives a ticket for the 24
multiple ticket drawing prize. 25
(e) "Western Washington" includes those counties west of the 26
Cascade mountains, including Clallam, Clark, Cowlitz, Grays Harbor, 27
Island, Jefferson, King, Kitsap, Lewis, Mason, Pacific, Pierce, San 28
Juan, Skagit, Skamania, Snohomish, Thurston, Wahkiakum, and Whatcom.29
(f) "Eastern Washington" includes those counties east of the 30
Cascade mountains that are not listed in (e) of this subsection.31
(8) The commission's reporting obligations under RCW 9.46.090 32
must address enhanced raffles. The report must include results of the 33
raffles, revenue generated by the raffles, and identify any state or 34
federal regulatory actions taken in relation to enhanced raffles in 35
Washington. The report must also make recommendations, if any, for 36
policy changes to the enhanced raffle authority. 37
Sec. 5. RCW 9.46.0356 and 2011 c 303 s 2 are each amended to 38
read as follows: 39
p. 6 HB 2625
(1) The legislature authorizes: 1
(a) A business or bona fide charitable or nonprofit organization 2
to conduct a promotional contest of chance as defined in this 3
section, in this state, or partially in this state, whereby the 4
elements of prize and chance are present but in which the element of 5
consideration is not present; 6
(b) A financial institution, as defined in RCW ((30.22.040)) 7
30A.22.040, to conduct a promotional contest of chance under this 8
section in which: (i) A drawing for an annual prize is held that 9
includes as eligible prize recipients only those persons who 10
deposited funds at the financial institution in a savings account, 11
certificate of deposit, or any other savings program and retained 12
those funds for at least twelve months in the savings account, 13
certificate of deposit, or other savings program; and (ii) drawings 14
for other prizes are held from time to time that include as eligible 15
prize recipients only those persons who deposited funds at the 16
financial institution in a savings account, certificate of deposit, 17
or other savings program. No such contest may be conducted, either 18
wholly or partially, by means of the internet. 19
(2) Promotional contests of chance under this section are not 20
gambling as defined in RCW 9.46.0237. 21
(3) Promotional contests of chance shall be conducted as 22
advertising and promotional undertakings solely for the purpose of 23
advertising or promoting the services, goods, wares, and merchandise 24
of a business or mission of the bona fide charitable or nonprofit 25
organization. A bona fide charitable or nonprofit organization may 26
solicit a donation in a promotional contest of chance. However, such 27
organizations may not provide additional entries or chances upon 28
receipt of a donation. The donation may not increase the chances of 29
winning a prize. 30
(4) No person eligible to receive a prize in a promotional 31
contest of chance under subsection (1)(a) of this section may be 32
required to: 33
(a) Pay any consideration to the promoter or operator of the 34
business or bona fide charitable or nonprofit organization in order 35
to participate in the contest; or 36
(b) Purchase any service, goods, wares, merchandise, or anything 37
of value from the business or donate or otherwise contribute to the 38
bona fide charitable or nonprofit organization , however, for other 39
than contests entered through a direct mail solicitation, the 40
p. 7 HB 2625
promoter or sponsor of a business may give additional entries or 1
chances upon purchase of service, goods, wares, or merchandise if the 2
promoter or sponsor provides an alternate method of entry requiring 3
no consideration. This provision allowing for additional entries 4
shall not apply to promotional contests conducted by bona fide 5
charitable or nonprofit organizations.6
(5) No person eligible to receive a prize in a promotional 7
contest of chance under subsection (1)(b) of this section may be 8
required to pay any consideration other than the deposit of funds, or 9
purchase any service, goods, wares, merchandise, or anything of value 10
from the financial institution. 11
(6)(a) As used in this section, "consideration" means anything of 12
pecuniary value required to be paid to the promoter or sponsor in 13
order to participate in a promotional contest. Such things as 14
visiting a business location, placing or answering a telephone call, 15
completing an entry form or customer survey, or furnishing a stamped, 16
self-addressed envelope do not constitute consideration.17
(b) Coupons or entry blanks obtained by purchase of a bona fide 18
newspaper or magazine or in a program sold in conjunction with a 19
regularly scheduled sporting event are not consideration.20
(7) Unless authorized by the commission, equipment or devices 21
made for use in a gambling activity are prohibited from use in a 22
promotional contest of chance. 23
(8) This section shall not be construed to permit noncompliance 24
with chapter 19.170 RCW, promotional advertising of prizes, and 25
chapter 19.86 RCW, unfair business practices. 26
--- END ---
p. 8 HB 2625