ALBANY - Charities in New York will soon be able to sell raffle tickets online and accept credit online thanks to a newly signed law.
Gov. Andrew Cuomo signed the Charitable Gaming Act into law late Monday, changing long-held state law that prevented charities from accepting anything other than cash for fundraising raffles.
Cuomo vetoed a similar bill last year, raising concern that it was too broad and perhaps unconstitutional. But he signed it this year after he and lawmakers narrowed the bill's scope.
“This is a tremendous victory and crucial first step toward reforming our gaming laws for the tens of thousands of non-profits, fire departments, churches, Rotary and Kiwanis Clubs and charitable organizations throughout the state,” Assemblyman Steve Hawley R-Batavia, said in a statement.
The new law allows charities to sell and advertise their raffles online and on mobile apps. These organizations will now also be allowed to accept cash, checks, debit and credit cards as payment for raffle sales.
Previously raffle tickets were only allowed to be sold in exchange for cash. Selling and advertising raffles online opens up these sales to a much wider market.
Ticket sales, however, will still be limited to being sold in the county where the fundraiser is being held and the contiguous counties surrounding it, as long as those municipalities allow charity raffles.
Users with zip codes outside those areas will not be able to purchase raffle tickets for fundraisers online.
Last year, the Stafford Fire Department in Genesee County called off its annual vintage car raffle after it was discovered the 70-year-old raffle -- which thrived on ticket sales from across the country -- was violating the state's long-standing raffle rules.
The new law was also pushed, in part, by the Buffalo Sabres Alumni Association, which offers a large 50-50 drawing at the hockey team's home games and was looking for the ability to accept credit and debit cards.
Raffle sales were legally classified as a game of chance in 1994. Since then, technological advances with the Internet in how people pay for things have changed.
The new law will help to modernize how raffle tickets are bought and sold, Hawley said.
“I am so proud of the work we have done and I am hopeful that moving forward we continue to advocate for our charitable and non-profit organizations and make more changes to the state’s gaming laws,” said Hawley.
The bill was sponsored by Sen. Patrick Gallivan, R-Elma, Erie County, and Assemblyman Robin Schimminger, D-Kenmore, Erie County.
The new law will go into effect in 180 days.
