On May 21, 2018, the New York State Gaming Commission (the “Commission”) proposed draft regulations set to modernize charitable gaming in New York in accordance with the Legislature’s passage of the Charitable Gaming Act in December of 2017. Once these proposed regulations are officially adopted, authorized organizations will be able to accept payment for raffle tickets via credit or debit cards and individuals will be able to purchase raffle tickets via the internet or on mobile applications.

Under current law, authorized organizations such as charitable organizations, bona fide educational organizations, fraternal and service organizations or veterans’ organizations must receive permission from the local municipality and/or the Gaming Commission to participate in charitable gaming. Also under current law, such organizations can only sell paper tickets and accept cash or checks for tickets at an event. However, once the Charitable Gaming Act and corresponding regulations take effect, authorized organizations will be able to sell their raffle tickets online or via a mobile application.

Entities interested in conducting online sales of raffle tickets will first be required to seek approval from the Gaming Commission prior to conducting any online sales.

As part of this process, entities must submit:

• privacy policies which demonstrate geolocation capabilities
• age verification requirements
• parental controls
• procedures to protect the personal information of ticket purchasers

Online and mobile application ticket sales will be limited to the county where the fundraiser is being held and contiguous counties. Thus, users with zip codes outside of those areas will not be able to purchase raffle tickets for the fundraiser online.

The Charitable Gaming Act of 2017 will become effective June 18, 2018.  The proposed regulations, however, will be subject to a 60-day public comment period.  Assuming no material changes are made following the public comment period, the regulations permitting raffle tickets to be sold online may be final as early as late-summer 2018.