SB 451

Existing law, the Gambling Control Act, establishes the California Gambling Control Commission, which is responsible for licensing and regulating various gambling activities and establishments. Existing law requires the Department of Justice to investigate any violations of, and to enforce, the act. Existing law also vests the department with the responsibility to investigate violations of prohibitions against specified gambling activities, as enumerated in the Penal Code, including, among others, prohibitions against (1) lotteries, (2) certain games played with cards, dice, or any device, for money, and (3) slot machines.

This bill would clarify that the department's authority to investigate suspected criminal violations of the aforementioned prohibited gambling activities enumerated in the Penal Code includes suspected violations that occur outside of a licensed gambling establishment, irrespective of whether the suspected violation involves licensees.

The California Constitution generally prohibits lotteries and raffles. The California Constitution, notwithstanding this general prohibition, authorizes the Legislature to authorize private, nonprofit, eligible organizations to conduct raffles as a funding mechanism to provide support for their own or another private, nonprofit, eligible organizations' beneficial and charitable works, provided that at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature, by a 23 vote of each house, to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes. Pursuant to this authority, existing statutory law authorizes an eligible organization to conduct a major league sports raffle if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified. Existing law authorizes these raffles only at a home game and prohibits an eligible organization from conducting more than one major league sports raffle per home game.

This bill would additionally authorize an eligible organization to conduct a major league sports raffle at a championship game, if held at the designated venue where an affiliated sports team plays their home games. The bill would make other technical and conforming changes. By expanding the scope of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 23 vote of each house.