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Gambling Control Act - Charity FundraisersProvisions At-A-Glance

(Business and Professions Code 19985et seq.)

  • Limits charity fundraisers involving controlled games to nonprofit organizations that are qualified to conduct business in California; have been in existence for at least three years; and are exempt from taxation under the Revenue and Taxation Code sections 23701, pdf (a)(b)(d)(e)(f)(g)(k)(l) or (w).
  • Requires eligible nonprofit organizations to register annually with the Bureau of Gambling Control, pay a registration fee of up to $100 to cover the cost of administration and enforcement, and maintain annual disclosure reports for each event.
  • Allows charities to conduct fundraisers using controlled games
  • Limits an eligible nonprofit organization to only one fundraiser per calendar year using controlled games.
  • Allows eligible organizations that have multiple chapters to hold one fundraiser per chapter per calendar year.
  • Limits each fundraiser to no more than five (5) hours in duration.
  • Sets a limit of four (4) events per location, unless pre-approved by the Division of Gambling Control for a “rural” area.
  • Prohibits cash prizes or wagers from being awarded to participants. Winners may be entitled to a donated prize. Individual prizes must not exceed a cash value of $500, and total value of prizes awarded must not exceed a cash value of $5,000.
  • Requires at least 90% of the revenue to go directly to the eligible nonprofit organization.
  • Prohibits more than 10% of the gross receipts of a fundraiser from being paid as compensation to the entity or persons conducting the fundraiser, excluding a facility rental fee.
  • Prohibits persons under 21 years of age from participating in the fundraiser.
  • Requires any supplier of equipment used in the playing of the controlled games by an eligible organization to register with the Division of Gambling Control.
  • Requires eligible organizations holding fundraisers using controlled games to maintain records for each fundraising event and upon request provide the Division of Gambling Control an itemized report which includes the following information:
    • Gross receipts;
    • List of recipients of the net profit;
    • The number of persons who participated in the fundraiser;
    • A list of direct costs incurred;
    • A list of all prizes awarded; and
    • Date, hours and location for each fundraiser held.
  • Authorizes the Division of Gambling Control to take legal action against a registrant for unsuitable conduct. Local jurisdictions may have additional requirements or limitations for nonprofit organizations conducting fundraising events where controlled games are used.

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