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S 2918Non-Violent Crime Penalties

Criminal Offenses - Gambling and Lotteries

This bill requires nonprofit groups, including sports leagues and condo associations, to register with the state police to hold raffles or bingo.

Held for study
Population
Affected
15
Email Legislator
Introduced Mar 4, 2026Committee Senate Labor & Gaming

Plain-English Summary

This bill updates the state laws regarding gambling and lotteries to explicitly include and define "nonprofit organizations." It lists specific groups such as sports organizations, condominium associations, and political organizations as nonprofits. The legislation requires these groups to register with the division of state police and file detailed financial statements if they wish to conduct games of chance like Bingo or raffles. Additionally, the bill streamlines the approval process by stating that while the state police must notify local authorities, these organizations do not need separate approval from local law enforcement agencies.

For younger readers

Sometimes groups like sports teams, clubs, or neighborhood associations want to raise money by playing games like Bingo or selling raffle tickets. This new rule explains exactly which groups are allowed to do this. It says these groups must sign up with the state police and share records of the money they make to ensure everything is fair. It also changes the rules so that these groups do not need to ask the local town police for permission, only the state police.

Who & Where It Applies

Impacted groups
Nonprofit organizationsSports organizationsCondominium associationsPolitical organizationsLabor organizations
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Increases financial transparency and accountability for organizations conducting games of chance, helping to prevent fraud and protect the public.
  • Streamlines the administrative process by removing the requirement for local law enforcement approval, potentially reducing bureaucratic hurdles for legitimate community organizations.
  • Ensures that a wider range of entities, including condominium associations and sports organizations, are held to the same regulatory standards as traditional charities.
  • The inclusion of "political organizations" as entities authorized to conduct games of chance could potentially create a new avenue for dark money or unregulated fundraising in politics.
  • Imposes strict financial reporting and auditing requirements that may be financially burdensome for small, volunteer-run community groups or sports leagues.
  • Centralizes authority with the State Police while removing local oversight, which reduces the ability of local communities to regulate activities within their own jurisdictions.
For Conservatives
  • Reduces government red tape by eliminating the need for duplicate approval from local law enforcement agencies, streamlining the process for private organizations.
  • Implement strict measures to prevent fraud and misuse of funds, ensuring that organizations are not engaging in deceptive practices.
  • Clarifies definitions and legal requirements, upholding the rule of law and ensuring that all entities operating games of chance are treated equally under the statute.
  • Expands the government registry by requiring private entities like condominium associations to register with the state police, which may be viewed as an invasion of privacy.
  • Mandates the disclosure of names, addresses, and compensation of officers and employees, which could be seen as government overreach into the affairs of private organizations.
  • Imposes regulatory burdens and potential costs on private groups for engaging in voluntary fundraising activities, limiting their operational freedom.

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.