Charitable Gaming

News

Gaming Law Amendment

• Public Chapter 18

General Information

The “Charitable Gaming Implementation Law” establishes a framework for a qualified §501(c)(3) organization to operate a “game of chance” as an annual fundraising event.  The organization must have documentation from the Internal Revenue Service recognizing it as exempt from federal income taxation pursuant to Section 501(c)(3) of the federal tax code.  A §501(c)(3) organization, including chapters or affiliates operating under the same tax exemption, can only operate one event within a twelve-month period (July 1 – June 30).  Permitted games include raffles, cakewalks and the like. The following games are prohibited: pulltabs, punchboards, bingo, instant bingo, video lottery, instant and on-line lottery games of a type operated by the Tennessee education lottery corporation, keno and games of chance associated with casinos including, but not limited to, slot machines, roulette wheels, and the like.

There is a strict filing deadline.  An organization must submit an application with the Division of Charitable Solicitations between July 1 and December 31 each year.  If a filing deadline falls on a non-business day, applications will be accepted on the next business day.   The Division is located at 312 8th Avenue North, 8th Floor, William Snodgrass Towers, Nashville, Tennessee 37243.  Business hours are 8:00 a.m. to 4:30 p.m., weekdays.

A nonrefundable fee must be submitted with the application in accordance with the following “Sliding Fee Scale”:

Event Gross	Revenue Filing Fee
$0.00 to $5,000.00	$150.00
$5,001.00 to $10,000.00	$300.00
$10,001.00 to $20,000.00	$450.00
over $20,001.00	$600.00

A §501(c)(3) organization must be active and in continuous existence in Tennessee for at least five (5) years and meet all statutory requirements.  An event is restricted to a location within a county where the organization has a physical presence.  Only two organizations may operate an event each month at the same location.  A §501(c)(3) organization may be authorized to operate an event in conjunction with one or more §501(c)(3) organizations; however, each organization must file an application and all organizations must qualify to operate the event. 

A list of qualified organizations will be sent to the General Assembly by March 1 each year to be voted by two-thirds of all elected members of both houses.  The Division will send notice of the Assembly’s action by certified mail to each organization authorized to operate an event.  Only directors, officers or employees of the organization may operate the event. 

Upon receipt of notice of authorization, your organization may begin advertising and other planning activities.  The sale of tickets, chances or other similar “gambling records” is restricted to 120 days before the event date.  You must notify the chief law enforcement officer in the county or municipality where the event will be conducted within a specified time before the event takes place.  An event may be rescheduled so long as it is held within 28 days of the date indicated in the application filed with the Division.  If an event is cancelled, a refund from ticket sales must be offered.  A financial accounting must be filed with the Division within ninety (90) days after the event date indicated on the application.  An audit is required if the event grossed more than $50,000.  The Tennessee Bureau of Investigations will investigate violations of the gaming law.
 

For more information call the Division of Charitable Solicitations at (615) 741-2555.