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H 8059Non-Violent Crime Penalties

Criminal Offenses - Gambling and Lotteries

Requires nonprofits to register with State Police to conduct games of chance and removes the need for local police approval.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 27, 2026Committee House Judiciary

Plain-English Summary

This legislation amends Rhode Island's gambling and lottery laws regarding charitable games of chance, such as Bingo and raffles. It creates a specific legal definition for "nonprofit organizations," which includes entities like condo associations, labor unions, and political organizations. The bill mandates that these nonprofits must register with the Division of State Police to conduct such games. Furthermore, the bill streamlines the approval process by removing the requirement for local law enforcement approval; instead, the State Police will investigate applications and certify their approval or disapproval directly to local licensing authorities.

For younger readers

Sometimes, groups like sports teams, clubs, or community centers hold games like Bingo or raffles to raise money. This new law creates a rule that these groups, called nonprofits, must sign up with the State Police before they can play these games. They also have to show where the money goes. Before this law, the local town police had to give permission. Now, the State Police will check to make sure everything is fair and then tell the town if the group is allowed to play.

Who & Where It Applies

Impacted groups
Nonprofit organizationsCondominium associationsLabor organizationsPolitical organizationsSports organizations
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Explicitly includes labor organizations and social service groups in the definition of nonprofits, ensuring they have clear legal pathways to fundraise through games of chance.
  • Centralizes oversight with the State Police, potentially reducing cronyism or inconsistent application of the law that might occur at the local municipal level.
  • Increases transparency by requiring detailed financial statements and audits, ensuring that funds raised are actually used for the stated charitable or organizational purposes.
  • Increases the involvement of state law enforcement (State Police) in the activities of community-based and civil society organizations.
  • Explicitly permits political organizations to conduct gambling activities, which could be viewed as exacerbating the influence of money in politics.
  • Imposes administrative burdens and potential audit costs on small, grassroots nonprofit organizations that may struggle with the paperwork compared to larger entities.
For Conservatives
  • Reduces bureaucratic red tape by eliminating the requirement for a separate approval process from local law enforcement agencies.
  • Explicitly affirms the rights of private entities, such as condominium associations and religious organizations, to conduct fundraising activities.
  • Strengthens the rule of law and fiscal responsibility by mandating strict financial reporting and audits to prevent fraud.
  • Expands the size and scope of the state government by granting the State Police broad investigatory powers over private organizations.
  • Requires private organizations to submit detailed lists of officers, addresses, and compensation to a government database, raising privacy concerns.
  • Allows labor unions and political organizations to utilize gambling proceeds for their operations, which may be objectionable to some conservatives.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 12 additions · 2 deletions

SECTION 1. Sections 11-19-30 and 11-19-31 of the General Laws in Chapter 11-19 entitled "Gambling and Lotteries" are hereby amended to read as follows: 11-19-30. Definitions. The following definitions apply within this chapter:

(a) “Charitable organization” means any benevolent, educational, philanthropic, humane, patriotic, social service, civic, fraternal, police, labor, religious, eleemosynary person, and/or persons holding themselves out to be a charitable organization.

(b) “Charitable purpose” means any benevolent, educational, humane, patriotic, social service, civic, fraternal, police, labor, religious, or eleemosynary purpose, provided that no part of the net earnings inures to the benefit of any private shareholder or individual.

(c) “Department” means the division of state police unless otherwise described.

(d) “Director” means the superintendent of state police or the director’s designee.

(e) “Nonprofit organization” means an organization that operates for a purpose other than generating a profit and no part of the organization income is distributed to its members, directors or officers. Nonprofit organizations include churches, charities, clinics, hospitals, sports organizations, condominium associations, political organizations, labor organizations, museums and research facilities. (e)(f) “Permitted game of chance” means the game commonly known as “Bingo” or “Beano” or substantially the same game under any other name, or a raffle or lottery or that lottery commonly known as a “twenty (20) week club”. 11-19-31. Registration of charitable organizations Registration of charitable and non- profit organizations.

(a) No charitable or non-profit organization which intends to conduct a permitted game of chance within the state of Rhode Island shall conduct a game unless it shall file a registration statement with the department upon prescribed forms and receives a certificate of approval.

(b) In addition, in order to obtain a renewal of registration, charitable organizations shall file the statements required by this chapter prior to June 1st of each year.

(c) It shall be the duty of the president, chair, or principal officer of a charitable organization to file the statements required under this chapter. These statements shall be sworn to and shall contain the following information:

(1) The name of the organization and the purpose for which it was organized.

(2) The principal address of the organization and the address of any offices in this state. If the organization does not maintain an office, the name and address of the person having custody of its financial records.

(3) The place where and the date when the organization was legally established and the form of its organization.

(4) The names and addresses of the officers, directors, and/or trustees of the organization and the names and addresses of officers, staff, and/or members who receive a salary or any other form of compensation, the source of which is the proceeds from the permitted games of chance subject to subdivision (9) of this subsection.

(5) A copy of the annual financial statement of the organization audited by an independent public accountant licensed by the state of Rhode Island for the organization’s immediately preceding fiscal year, or a copy of a financial statement covering, in a consolidated report, complete information as to all the preceding year’s fund-raising from the above-mentioned games showing kind and amount of funds raised, costs and expenses incidental to it, and allocation or disbursements of funds raised.

(6) The general purpose or purposes for which the proceeds from the game shall be used.

(7) The name or names under which it intends to conduct the game.

(8) The names of the individuals or officers of the organization who will have final responsibility for the custody of the proceeds from the game.

(9) A listing of the names, addresses and the compensation of all individuals, directors, officers, agents, servants, and/or employees of the organization who receive compensation, commission, or other remuneration, directly or indirectly, from the gross receipts of such games in excess of seven hundred fifty dollars ($750) annually.

(10) The names of the individuals or officers of the organization responsible for the final distribution of the proceeds. The director or the director’s designee shall examine each initial application of charitable organizations for the right to conduct the above-mentioned games and each renewal application of charitable organizations for the right to conduct such games and if found to be in conformity with the requirements of this chapter and all relevant rules and regulations it shall be approved for registration.

(d) The registration forms and any other documents prescribed by the department shall be signed by an authorized officer, an independent public accountant, and by the chief fiscal officer of the charitable organization and shall be verified under oath.

(e) The department shall make or cause to be made any investigation of any applicant that it shall deem necessary. No approval shall be required by any local law enforcement agency. As a result of its investigation and action, the department shall certify to the local police department or local licensing authority its approval or disapproval of the application. No applicant shall be approved if one or more of the following facts is found to exist:

(1) That one or more of the statements in the application are not true;

(2) That the applicant is or has engaged in a fraudulent transaction or enterprise;

(3) That the game would be a fraud upon the public;

(4) That game expenses during any of the three (3) years immediately preceding the date of application have exceeded twenty-five percent (25%) of the total gross money or gross receipts raised or received by reason of the games. In the event special facts or circumstances are presented showing that expenses higher than twenty-five percent (25%) were not unreasonable, the department, pursuant to rule and regulation, has the discretion to allow the higher expenses;

(5) That the expected cost of conducting the games for the specific year for which the application will exceed twenty-five percent (25%) of the total gross money or receipts to be raised or received by reason of the games; or

(6) That the activities to be financed will be incompatible with the health, safety, or welfare of the state of Rhode Island.

SECTION 2. This act shall take effect upon passage.