wa-law.org > bill > 2025-26 > SB 5443 > Original Bill
"Raffle," as used in this chapter, means a game in which tickets bearing an individual number are sold for not more than $250 each and in which a prize or prizes are awarded on the basis of a drawing from the tickets by the person or persons conducting the game, when the game is conducted by a bona fide charitable or nonprofit organization and no part of the proceeds thereof inure to the benefit of any person other than the organization conducting the game.
Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of rafflesmay conduct raffles without obtaining a license to do so from the commission when such raffles are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the commission; and when gross revenues from all such raffles held by the organization during the calendar year do not exceed $20,000; and when tickets to such raffles are sold only to, and winners are determined only from among, the regular members of the organization conducting the raffle. The organization may provide unopened containers of beverages containing alcohol as raffle prizes if the appropriate permit has been obtained from the liquor and cannabis board. However, raffles that exceed $20,000 may also be conducted under this section if the organization obtains a license from the commission: PROVIDED FURTHER, That the term members for this purpose shall mean only those persons who have become members prior to the commencement of the raffle and whose qualification for membership was not dependent upon, or in any way related to, the purchase of a ticket, or tickets, for such raffles.
Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of such activities may conduct bingo, raffles, and amusement games, without obtaining a license to do so from the commission but only when:
Such activities are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the commission;
Said activities are conducted no more than four times each calendar year and over a period of no more than 12 consecutive days each time, notwithstanding the limitations of RCW 9.46.0205. However, a raffle conducted under this subsection may be conducted for a period longer than 12 days;
Only bona fide members of that organization, who are not paid for such services, participate in the management or operation of the activities;
Gross revenues to the organization from raffles do not exceed $20,000 during any calendar year;
Gross revenues to the organization from bingo and amusement games do not exceed $10,000 during any calendar year;
All revenue therefrom, after deducting the cost of prizes and other expenses of the activity, is devoted solely to the purposes for which the organization qualifies as a bona fide charitable or nonprofit organization;
and
A bona fide charitable or nonprofit organization, as defined in RCW 9.46.0209, may conduct enhanced raffles if licensed by the commission.
The commission has the authority to approve three enhanced raffles per calendar year for western Washington and three enhanced raffles per calendar year for eastern Washington. Whether the enhanced raffle occurs in western Washington or eastern Washington will be determined by the location where the grand prize winning ticket is to be drawn as stated on the organization's application to the commission. An enhanced raffle is considered approved when voted on by the commission.
The commission has the authority to approve enhanced raffles under the following conditions:
The value of the grand prize must not exceed $10,000,000.
Sales may be made in person, by mail, by fax, or by telephone only. Raffle ticket order forms may be printed from the bona fide charitable or nonprofit organization's website. Obtaining the form in this manner does not constitute a sale.
Tickets purchased as part of a multiple ticket package may be purchased at a discount.
Multiple smaller prizes are authorized during the course of an enhanced raffle for a grand prize including, but not limited to, early bird, refer a friend, and multiple ticket drawings.
A purchase contract is not necessary for smaller noncash prizes, but the bona fide charitable or nonprofit organization must be able to demonstrate that such a prize is available and sufficient funds are held in reserve in the event that the winner chooses a noncash prize.
All enhanced raffles and associated smaller raffles must be independently audited, as defined by the commission during rule making. The audit results must be reported to the commission.
Call centers, when licensed by the commission, are authorized. The bona fide charitable or nonprofit organization may contract with a call center vendor to receive enhanced raffle ticket sales. The vendor may not solicit sales. The vendor may be located outside the state, but the bona fide charitable or nonprofit organization must have a contractual relationship with the vendor stating that the vendor must comply with all applicable Washington state laws and rules.
The bona fide charitable or nonprofit organization must be the primary recipient of the funds raised.
Receipts including ticket confirmation numbers may be sent to ticket purchasers either by mail or by email.
In the event the bona fide charitable or nonprofit organization determines ticket sales are insufficient to qualify for a complete enhanced raffle to move forward, the enhanced raffle winner must receive 50 percent of the net proceeds in excess of expenses as the grand prize. The enhanced raffle winner will receive a choice between an annuity value equal to 50 percent of the net proceeds in excess of expenses paid by annuity over 20 years, or a one-time cash payment of 70 percent of the annuity value.
A bona fide charitable or nonprofit organization is authorized to hire a consultant licensed by the commission to run an enhanced raffle; in addition, the bona fide charitable or nonprofit organization must have a dedicated employee who is responsible for oversight of enhanced raffle operations. The bona fide charitable or nonprofit organization is ultimately responsible for ensuring that an enhanced raffle is conducted in accordance with all applicable state laws and rules.
The commission has the authority to set fees for bona fide charitable or nonprofit organizations, call center vendors, and consultants conducting enhanced raffles authorized under this section.
The commission has the authority to adopt rules governing the licensing and operation of enhanced raffles.
Except as specifically authorized in this section, enhanced raffles must be held in accordance with all other requirements of this chapter, other applicable laws, and rules of the commission.
For the purposes of this section:
"Enhanced raffle" means a game in which tickets bearing an individual number are sold for not more than $500 each and in which a grand prize and smaller prizes are awarded on the basis of drawings from the tickets by the person or persons conducting the game. An enhanced raffle may include additional related entries and drawings, such as early bird, refer a friend, and multiple ticket drawings when the bona fide charitable or nonprofit organization establishes the eligibility standards for such entries and drawings before any enhanced raffle tickets are sold. No drawing may occur by using a random number generator or similar means.
"Early bird drawing" means a separate drawing for a separate prize held prior to the grand prize drawing. All tickets entered into the early bird drawing, including all early bird winning tickets, are entered into subsequent early bird drawings, and also entered into the drawing for the grand prize.
"Refer a friend drawing" means a completely separate drawing, using tickets distinct from those for the enhanced raffle, for a separate prize held at the conclusion of the enhanced raffle for all enhanced raffle ticket purchasers, known as the referring friend, who refer other persons to the enhanced raffle when the other person ultimately purchases an enhanced raffle ticket. The referring friend will receive one ticket for each friend referred specifically for the refer a friend drawing. In addition, each friend referred could also become a referring friend and receive his or her own additional ticket for the refer a friend drawing.
"Multiple ticket drawing" means a completely separate drawing, using tickets distinct from those for the enhanced raffle, for a separate prize held at the conclusion of the enhanced raffle for all enhanced raffle ticket purchasers who purchase a specified number of enhanced raffle tickets. For example, a multiple ticket drawing could include persons who purchase three or more enhanced raffle tickets in the same order, using the same payment information, with tickets in the same person's name. For each eligible enhanced raffle ticket purchased, the purchaser also receives a ticket for the multiple ticket drawing prize.
"Western Washington" includes those counties west of the Cascade mountains, including Clallam, Clark, Cowlitz, Grays Harbor, Island, Jefferson, King, Kitsap, Lewis, Mason, Pacific, Pierce, San Juan, Skagit, Skamania, Snohomish, Thurston, Wahkiakum, and Whatcom.
"Eastern Washington" includes those counties east of the Cascade mountains that are not listed in (e) of this subsection.
The commission's reporting obligations under RCW 9.46.090 must address enhanced raffles. The report must include results of the raffles, revenue generated by the raffles, and identify any state or federal regulatory actions taken in relation to enhanced raffles in Washington. The report must also make recommendations, if any, for policy changes to the enhanced raffle authority.
The legislature authorizes:
A business or bona fide charitable or nonprofit organization to conduct a promotional contest of chance as defined in this section, in this state, or partially in this state, whereby the elements of prize and chance are present but in which the element of consideration is not present;
A financial institution, as defined in RCW 30A.22.040, to conduct a promotional contest of chance under this section in which: (i) A drawing for an annual prize is held that includes as eligible prize recipients only those persons who deposited funds at the financial institution in a savings account, certificate of deposit, or any other savings program and retained those funds for at least twelve months in the savings account, certificate of deposit, or other savings program; and (ii) drawings for other prizes are held from time to time that include as eligible prize recipients only those persons who deposited funds at the financial institution in a savings account, certificate of deposit, or other savings program. No such contest may be conducted, either wholly or partially, by means of the internet.
Promotional contests of chance under this section are not gambling as defined in RCW 9.46.0237.
Promotional contests of chance shall be conducted as advertising and promotional undertakings solely for the purpose of advertising or promoting the services, goods, wares, and merchandise of a business or mission of the bona fide charitable or nonprofit organization.
Bona fide charitable or nonprofit organizations may solicit a donation in a promotional contest of chance. The donation may not increase the chances of winning a prize.
Language indicating that no purchase or donation is necessary for entry must be present within the promotional advertisement.
No person eligible to receive a prize in a promotional contest of chance under subsection (1)(a) of this section may be required to:
Pay any consideration to the promoter or operator of the business or bona fide charitable or nonprofit organization in order to participate in the contest; or
Purchase any service, goods, wares, merchandise, or anything of value from the business or donate or otherwise contribute to the bona fide charitable or nonprofit organization, however, for other than contests entered through a direct mail solicitation, the promoter or sponsor may give additional entries or chances upon purchase of service, goods, wares, merchandise, or donation if the promoter or sponsor provides an alternate method of entry requiring no consideration.
No person eligible to receive a prize in a promotional contest of chance under subsection (1)(b) of this section may be required to pay any consideration other than the deposit of funds, or purchase any service, goods, wares, merchandise, or anything of value from the financial institution.
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As used in this section, "consideration" means anything of pecuniary value required to be paid to the promoter or sponsor in order to participate in a promotional contest. Such things as visiting a business location, placing or answering a telephone call, completing an entry form or customer survey, or furnishing a stamped, self-addressed envelope do not constitute consideration.
Coupons or entry blanks obtained by purchase of a bona fide newspaper or magazine or in a program sold in conjunction with a regularly scheduled sporting event are not consideration.
Unless authorized by the commission, equipment or devices made for use in a gambling activity are prohibited from use in a promotional contest of chance.
This section shall not be construed to permit noncompliance with chapter 19.170 RCW, promotional advertising of prizes, and chapter 19.86 RCW, unfair business practices.