The rules of the raffle

We all

know that gambling is evil, as our Legislature has deigned it unlawful in every

form, except when they sanction it for education. Something ironic about that,

isn’t it?

I belong to a couple of civic clubs that, on occasion, use a raffle as a

fundraiser for the worthy projects that the club supports. Raffles are

generally prohibited under Georgia law. O.C.G.A. Sec. 16-12-22 defines

“commercial gambling” and sets the penalty as a felony and eligible for a five

year prison stint. There is an exception to the unlawfulness of a raffle,

and that is when a “nonprofit”, “tax exempt” “church, school, civic

organization”, “501(c)(3) organizations, or “bona fide nonprofit organizations

approved by the local sheriff” conducts the raffle. Now, I’m assuming we all know

what a raffle is, but in case you don’t, it is defined as “any scheme or

procedure whereby one or more prizes are distributed by chance among persons

who have paid or promised consideration for a chance to win such prize.” Yes,

that includes door prizes.

So what does the Sheriff have to do with this process? The organization shall

apply to the Sheriff with a variety of information such as who is running the

raffle, a determination by the Infernal Revenue Service that the organization

is tax exempt, where and when the raffle will be conducted, and any convictions

of principals in the applying organization. The Sheriff and the prosecuting

attorney are authorized to come to the premises during the raffle. Got to

admit, I didn’t know that one. The raffle then has some rules: No one under 18

allowed to play; an accounting must be filed with the Sheriff showing the

activity which occurred, including an itemized list of all expenses; a list of

all prizes awarded; the identity of everyone who won something and what they

won; and a record of the number of people who played.

The Sheriff can promulgate additional rules and regulations which the Sheriff

deems necessary to administer this responsibility.

Interestingly, this law has been on the books since 1981 and there has never

been a Georgia court case which cites to a violation of this law. Either

everyone is complying with the law (which I doubt) or this is one that doesn’t

get too much attention unless it turns into a big gambling operation, in which

case the Sheriff would charge commercial gambling and not a violation of this

code section. Bingo anyone?

Kelly Burke, former district attorney and magistrate

judge, is engaged in private practice where he focuses on personal injury

cases. These articles are not designed to give legal advice, but are designed

to inform the public about how the law affects their daily lives. Contact Kelly

at kelly@burkelasseterllc.com to

comment on this article or suggest articles about the law that you’d like to

see.

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