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School Fundraising Organizations and Games of Chance
October 17, 2016
School Fundraising Organizations and Games of Chance

Under the law, certain Qualified Organizations, such as educational organizations and service clubs, may, upon proper licensure and as part of a fundraising effort, offer Games of Chance.

What are Games of Chance?

  • Games whereby the outcome is determined by chance rather than by the skill of its players. 

What are Examples of Games of Chance?

  • Bingo or lotto
  • Raffles (50/50’s, duck race raffles)
  • Casino Night (Baccarat, Blackjack, Caribbean Stud Poker, Craps)
  • Armchair races
  • A Golf Hole-In-One Contest

What type of licensure is required by a Qualified Organization to conduct  Games of Chance?

  • Legalized Games of Chance Commission (“LGCC”)
  • Municipal License

What does the licensing process entail?

  • Register and obtain an Identification Number from the LGCC  
  • Determination by the LGCC that the organization is “qualified”
  • Application to the Municipal Clerk’s Office where the gaming activity will be conducted
  • Determination by the Municipality as to qualification of the organization
  • Municipality authorizing the issuance of a license

Are all Games of Chance licensed the same?

  • No.  Certain types of Games of Chance such as raffles and bingo are licensed differently.

Are there restrictions on how the Games of Chance can be offered?

  • Yes.  The laws are very specific regarding the conduct of certain games. 

Are there Prize Limitations?

  • Yes.  For instance, to mention a few, no prizes may be offered that involve real estate or an interest therein, bonds, shares of stock or securities, live animals, tobacco products, motor vehicle leases or merchandise that is refundable in any way of the foregoing or as money or cash.  

What can an organization do with the proceeds?

  • Net proceeds from the event must be devoted to one or more authorized purposes within one year of the event.  Net proceeds from bingo may be used for capital improvements to a facility under certain conditions. 

Are there Advertising Restrictions?

  • Yes.  The restrictions on advertising include among other things, providing the name of the organization, time/place/location of the event, current retail value of the prize(s) to be awarded, where the money will be utilized.

While offering Games of Chance as a fundraising tool is both a fun and a great source of revenue for the organization, organizations such as Parent Teacher Associations should be cognizant of their obligations under the law when considering hosting an event offering Games of Chance. 

This info-bite has been offered by Parker McCay.  It is not representative of all of the requirements under the law however has been provided as an overview of the requirements when a Qualified Organization wishes to promote an event utilizing Games of Chance.  

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