Provides that authorized organizations may advertise certain raffles; increases the maximum value of certain raffle prizes to one million dollars

Title of bill

An act to amend the general municipal law, in relation to raffles conducted within this state

Purpose

To enhance the fundraising capabilities of certain charitable organizations, this bill would increase the maximum value of certain raffle prizes to one million dollars; it would provide that authorized organizations may advertise certain raffles; it allows such organizations to raffle real property as a prize.

Summary of provisions

Section 1 of the bill amends section 186 of the general municipal law. Specifically, subdivision 6 is amended to include advertising costs as an expense when calculating the "net proceeds" of games of chance. Subdivisions 11 and 12 are amended to add real property into the definition of a "single prize" and a "series of prizes."

Section 2 of the bill amends section 189 of the general municipal law. Specifically, subdivisions 5 and 6 are amended to raise the maximum value of a single prize and series of prizes awarded by one raffle from one-hundred thousand dollars to one million dollars. Subdivision 8 is amended to raise the maximum aggregate value of a either a single prize series of prizes awarded in games of chance by one organization during anyone license period from one-hundred thousand dollars to one million dollars. Subdivision 12 is amended to permit the use of credit cards to make purchases during games of chance. Subdivision 13 is amended to allow games of chance to by conducted on the premises of media outlets, shopping malls; and, if the prize is real estate,at the location of the real estate.

Section 3 of the bill amends section 195 of the general municipal law allows games of chance to be conducted on days except Easter Sunday and Christmas Day.

Section 4 of the bill amends section 195-e of the general municipal law to advertising for games of chance through means of television, radio, internet and direct mail.

Justification

This bill would significantly enhance the fundraising capabilities of charitable organizations in New York, most significantly, by amending the Raffle law to allow such organizations to raffle off real property as a prize. Such raffles have proven to be an effective fund raising mechanism throughout the country, bringing in hundreds of thousands of dollars to fund various noble causes. Many charitable organizations in New York already have the ability to conduct such raffles, yet are precluded by current law to do so.

At present, a charitable organization may not raffle real property as a prize. Further, an organization may only presently offer no more than $100,000 worth of prizes annually, which limits the ability to market attractive real property to potential contest participants. Raising the cap for both a single prize, series of prize and aggregate value of prizes awarded annually to $1 million would make it more feasible for organizations to conduct such raffles.

This legislation allows those conducting such raffles to advertise through all mediums, including television, radio, internet and direct mail. Also, tickets sales would be permitted in venues such as malls, television studios and on the actual site of the property being raffled.

Budget implications

None to the state.

Effective date

This act shall take effect immediately.