HB 2625
In CommitteeHouse
Fund-raising events
Concerning requirements for fund-raising events of bona fide charitable or nonprofit organizations.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill updates Washington’s gambling laws to expand fundraising flexibility for nonprofits and financial institutions. It raises raffle revenue and ticket limits, creates a new ‘enhanced raffle’ category for large or specialized nonprofits, and permits financial institutions to run prize-based promotions tied to savings accounts—without requiring a gambling license.
- Raises the raffle ticket price cap from $100 to $200 and increases the annual raffle revenue cap for small raffles from $5,000 to $10,000 for qualifying nonprofits.
- Allows qualifying nonprofits to hold raffles, bingo, and amusement games up to three times per year (instead of two) and for up to 12 consecutive days per event (though raffles may run longer).
- Creates a new ‘enhanced raffle’ category for large or specialized nonprofits, permitting grand prizes up to $5 million or $10 million, sales via call centers, mail, and online, and multiple prize drawings (e.g., ‘early bird’, ‘refer a friend’).
- Authorizes financial institutions to run promotional contests of chance (e.g., savings account-based sweepstakes) without a gambling license, provided no purchase is required to enter.
- Allows nonprofits to offer alcoholic beverages as raffle prizes if they hold the appropriate permit from the state liquor and cannabis board.
Who is affected
- Bona fide charitable or nonprofit organizations not primarily focused on fundraising — Can hold raffles, bingo, and amusement games more frequently (up to three times per year instead of two), with longer raffle durations, and with higher revenue caps ($10,000 for raffles and $10,000 for bingo/amusement games combined).
- Large or specialized nonprofits (e.g., those serving people with intellectual disabilities or with $500K+ annual raffle revenue for 10+ years) — Can apply for licenses to run high-value raffles (up to $5 million or $10 million grand prizes) with expanded sales methods (e.g., call centers, mail, online forms), including special eligibility for organizations serving people with intellectual disabilities.
- Financial institutions (banks, credit unions) — Can run promotional contests (e.g., sweepstakes tied to savings accounts) without needing a gambling license, as long as no purchase is required to enter.
- Charitable and nonprofit groups running raffles — Can now offer alcohol as raffle prizes if they have the proper permit, and can run raffles with higher ticket prices ($200 instead of $100).
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Raises raffle revenue cap from $5K to $10K and increases event frequency (3x/year vs. 2x) for small nonprofits, enabling greater fundraising for core mission activities—especially beneficial for community-based organizations serving vulnerable populations with limited alternative funding sources.
Business & EmploymentPeopleRef: Sec. 2, Sec. 3Creates dedicated enhanced raffle pathway for organizations serving people with intellectual disabilities, allowing them to raise significant funds (up to $5M grand prize) to expand services—this directly benefits a historically underfunded and marginalized population.
Public SafetyPeopleRef: Sec. 4(1)(a)Authorizes financial institutions to run savings-account-based sweepstakes without a gambling license, encouraging low- and middle-income savers to build emergency funds—especially impactful for unbanked or underbanked Washingtonians seeking financial stability.
FinancialPeopleRef: Sec. 5(1)(b)Allows nonprofits to offer alcohol as raffle prizes (with proper permit), which—while not a direct housing benefit—can increase donor appeal and event attendance, thereby supporting housing-focused nonprofits’ fundraising capacity for affordable housing programs.
HousingPeopleRef: Sec. 2, Sec. 3Expands raffle sales to mail, phone, and call centers—including out-of-state vendors—while permitting electronic data transmission and credit card payments, increasing fundraising efficiency and reach for qualified nonprofits, though with added compliance burden for small orgs.
Business & EmploymentLean peopleRef: Sec. 4(3)(b), (g), (i)
Potential Concerns (5)
Increases scale and frequency of raffles (up to 3x/year, 12-day events, $200 tickets, $10K revenue cap) may strain local law enforcement oversight capacity, especially in rural or under-resourced jurisdictions, without corresponding increases in regulatory or compliance staffing.
Public SafetyRef: Sec. 1, Sec. 2, Sec. 3Removes the requirement for nonprofits to notify local police agencies 5 days in advance of bingo/raffle/amusement events, reducing local government’s ability to monitor and respond to potential public safety or noise complaints related to high-frequency events.
Local GovernmentRef: Sec. 3Prohibition on internet-based promotional contests for financial institutions limits scalability and reach of savings-based sweepstakes, potentially reducing consumer engagement and financial inclusion benefits for low- and middle-income account holders who rely on digital access.
Business & EmploymentRef: Sec. 5(1)(b)Allowing alcohol as raffle prizes without purchase restrictions may increase alcohol consumption at nonprofit-run events, especially when combined with longer event durations and higher ticket volumes—though this risk is mitigated by existing liquor licensing requirements.
Public SafetyRef: Sec. 2, Sec. 3The “insufficient sales” clause (Sec. 4(3)(k)) allows winners to receive 50% of net proceeds as a cash or annuity prize, but creates ambiguity around payout timing, tax treatment, and financial sustainability—especially for smaller or less-resourced nonprofits attempting enhanced raffles.
FinancialRef: Sec. 4(3)(k)
Who Is Most Affected
Small to mid-sized nonprofits (e.g., neighborhood associations, faith groups, service clubs) benefit significantly from higher revenue caps and more frequent events—this enables greater program funding, especially for local services like food banks, youth programs, and senior support. However, they face increased administrative complexity if they attempt enhanced raffles without dedicated staff.
Organizations serving people with intellectual disabilities gain a dedicated, streamlined path to high-value raffles (up to $5M), which can dramatically increase service capacity. This is a targeted, high-impact benefit for a historically underserved population and its advocates.
Banks and credit unions can now run savings-based sweepstakes to attract and retain depositors—especially low-income account holders. This promotes financial inclusion, but the internet ban limits digital engagement and may disproportionately benefit institutions with strong in-branch marketing capacity.
Call center vendors and consultants may see new business opportunities supporting enhanced raffles, but the requirement that nonprofits remain the “primary recipient” of funds limits vendor profit potential and ensures most revenue stays in the nonprofit sector.
Low- and middle-income Washingtonians benefit from increased nonprofit services (e.g., housing, food, mental health) funded by expanded raffles, and from financial incentives to save via sweepstakes. However, they bear no direct cost and face no risk—this is a net positive for everyday residents.