Ballot measure could legalize raffles in Kansas

Saturday, November 1, 2014

A legislative measure on the Nov. 4 ballot, if passed, would legalize the conducting of raffles in Kansas.

During the general election, Kansas voters will be able to choose whether to make raffles a legal form of gaming in Kansas. At this time, raffles of any nature continue to be illegal. The state constitutional amendment, if approved by voters, will allow charitable raffles by certain nonprofit organizations.

Kansas Sen. Caryn Tyson, representing District 12, said she supports the amendment authorizing raffles, which originated in the Senate in February and passed in the Senate by a 35-0 vote in March.

"I support people to have the option for it," Tyson said. "There are so many church functions, nonprofits, veterans, medical expenses ... the intent is to raise money to donate ... I think a majority of people (support it.) Some will not want to see this pass. I feel it should be on the ballot and let voters decide."

"When church women spend hours making a quilt to raffle to raise money for charity, should this be legal?" Tyson asked.

The legislative amendment originated in the Senate Committee on Federal and State Affairs, of which Tyson and District 13 Sen. Jacob LaTurner are members. After passing through Senate committee, it was received and introduced in the House. It passed by a 102-19 vote in March through the House Committee on Federal and State Affairs, of which current District 4 Rep. Marty Read is a member, and passed in that chamber. The amendment was enrolled and presented to the Secretary of State in April, according to the Kansas Legislature website, www.kslegislature.org.

Tyson said District 40 Sen. Ralph Ostmeyer originated the amendment.

"He has been working on this for a few years," she said.

The resolution goes through the typical legislative process by going through both chambers. Tyson said it must pass both chambers by a two-thirds vote and since it is a constitutional amendment, the resolution does not go to the governor's desk.

"The amendment allows it to go on the ballot to decide whether we amend the constitution or not," Tyson said. "It goes on the ballot and the legislature chooses the ballot it goes on. It has to be voted on. It has to go through a vote of the people."

"It's not often we do this, but it does occur," Tyson said.

If the amendment passes and raffles are legalized, lawmakers will write the statutes regulating raffles during the 2015 legislative session, a news release said.

Lawmakers will consider several options, including the cost of a raffle license, how often an organization can conduct raffles, whether all organizations will need a raffle license if the prize value is minimal, whether the sale of raffle tickets will be taxable, and whether organizations can make their own tickets or if tickets would need to be purchased from a licensed distributor.

While lawmakers will establish regulations for raffles if the amendment passes, the ballot question on SCR 1618 states that "Only nonprofit, religious, charitable, fraternal, educational and veterans organizations may apply for a raffle license. Electronic gaming or vending machines may not sell or conduct raffles. The Kansas Department of Revenue will oversee the licensing and regulation of raffles if the constitutional amendment passes in November. The new regulations would likely not take effect until July 2015.

"The proposal would amend Section 3 of Article 15 in the Kansas Constitution to permit raffles if authorized by the legislature," the release states. "The amendment will allow the legislature to authorize the licensing, conduct and regulation of charitable raffles by nonprofit, religious, charitable, fraternal, educational and veterans organizations."

A raffle is defined in the proposed amendment to mean "a game of chance in which each participant buys a ticket or tickets from a nonprofit organization, with each ticket providing an equal chance to win a prize and the winner being determined by a random drawing."

The following limitations are also included in the constitutional amendment:

* An organization shall not be able to use an electronic gaming or vending machine to sell tickets or conduct raffles.

* An organization shall not contract with a professional raffle or other lottery vendor for the management, operation or conduct of any raffle.

* Raffles shall be licensed and regulated by the Office of Charitable Gaming, in the Department of Revenue, or by a successor agency.

Section 3 of Article 15 of the Kansas Constitution prohibits lotteries and the sale of lottery tickets. Voters previously approved three amendments to Section 3, allowing exceptions for bingo in 1974, parimutuel wagering in 1986 and a state-owned and -operated lottery in 1986.

The proposal adds a fourth exception in the amendment for raffles, if approved by voters, the release said.