The New York State Gaming Commission recently issued rules for the sale of raffle tickets by an authorized organization over the Internet or mobile device platforms. The New York State Legislature`s approval of the sale of raffle tickets online and via mobile devices for charitable gaming under Chapter 464 of the Statutes of 2017 was contingent on the Gambling Commission passing regulations for such sales. Now that these regulations have been adopted, authorized organizations are one step closer to the possibility of selling raffles online or via a mobile app in connection with their nonprofit raffles. The relevant regulations require licensed organisations to obtain approval from the Gaming Commission at least 60 days before offering tickets for sale over the internet or via a mobile device. The Gaming Commission is in the process of developing an application form to be used for such a licence. Until such an application form is developed and made available, it will be difficult for authorized organizations to meet all the requirements of the relevant regulations. State Senator Pat Gallivan, R-Elma, said that with the coronavirus pandemic and far fewer face-to-face events, online raffles are more important than ever. There are other notable requirements and restrictions imposed by these regulations on the sale of raffle tickets online or via a mobile device. For example, authorized organizations wishing to sell such raffle tickets must first obtain a game identification number and raffle license from the Gaming Commission.
The electronic equipment (including the server) that initiates the offer to sell tickets and accepts a purchase must be located in New York State. Buyers must be physically located in New York City at the exact time of purchase, and the raffle ticket sales platform must block any attempt to purchase lottery tickets outside of New York State. Buyers must also first create a contest ticket account with the authorized organization administering the contest, and this account must include the buyer`s official name, date of birth, unique account number, address, email address, and phone number. The relevant provisions („Rules and Regulations, Chapter II (Charitable Gaming Division), Subchapter B (Licensed Gambling, Gambling Currency, Gaming Conduct and Supplies and Equipment (pdf) opens in new window)”, NYCRR 9 §§ 4620-4627.19), which contain additional restrictions and obligations, are available on the New York State Gaming Commission`s website. The legislation was subject to the National Gaming Commission drawing up and approving new regulations concerning non-profit gambling, and the Commission has not yet done so. In light of the adoption of the relevant regulations by the Gaming Commission, authorised organisations interested in organising sweepstakes must continue to comply with existing laws and regulations until the Gaming Commission makes its Raffle Ticket Application Form available online and via a mobile device. Currently, nonprofits can only hold these types of raffles in person and cannot accept any form of electronic payment or credit or debit cards. The state legislature passed a law in 2017 allowing nonprofits to sell raffle tickets online, but three years later, those organizations still couldn`t take advantage of that law. The Gambling Commission said it had reviewed the necessary regulations and approved their publication, but had not yet formally adopted them.
For assistance, please contact one of the lawyers on our non-profit practice team or the Phillips Lytle lawyer with whom you have a relationship. „Nonprofits are all struggling. There are more people in need than ever before and there are these different organizations that are willing to help, but a lot of it depends on their ability to fundraise,” Gallivan said.