February 2, 2006

Nonprofits dealt a winning hand for Casino Night fund-raisers

By Kymberli W. Brady
Staff Writer

Nonprofit groups are one step closer to holding legal “Casino Night” fund-raisers as early as next year.

This should come as welcome news for the Almaden Business Association, which had to abruptly cancel its Almaden Branch Library fund-raiser Texas Hold ‘Em Tournament in October due to pressure from law enforcement.

On Monday, the state Assembly approved AB-839, the Gambling Control Act. Introduced by Assemblyman Alberto Torrico, D-Fremont, it would allow charities to host profitable poker night events that had grown in popularity until a crackdown last year by the state Department of Justice closed the tables, citing violations of a gambling law that went into effect in 2003.

The measure, which had bipartisan support, was approved by a vote of 55-12. Thirteen members did not vote.
“Nonprofit organizations provide essential services to California ranging from health care to youth sports,” Torrico said. “This bill will allow nonprofits to host poker night fund-raisers under carefully limited conditions.

Under the current law, it is illegal for nonprofit organizations to raise funds through card games or games of chance other than bingo.

According to Torrico’s bill, which was modified to satisfy card club opposition, charitable groups will be allowed to host one event a year, while venues will be limited to four events each year, provided they pay a $100 fee to cover the cost of administration and enforcement of the bill. Cash awards would be prohibited, although non-cash prizes would be allowed, but limited to a maximum value of $500 each and $5,000 per event. At least 90 percent of the proceeds would have to go to the charity and the sponsoring nonprofit would have to be a minimum of three years old.

Sponsored by Attorney General Bill Lockyer and the California Department of Justice, AB 839 has also been endorsed by major law-enforcement groups.

The bill now advances to the state Senate and pending approval from both houses and a signature by Governor Schwarzenegger, would go into effect on Jan. 1, 2007.