Charitable Gaming Event FAQs

A qualified organization may conduct one event during an event period. An event period runs from July 1 (after the close of the application period on January 31) through June 30 of the next year. So, if an organization applies by January 31, 2022, to conduct an annual gaming event, it may only apply for a date between July 1, 2022, and June 30, 2023.

The organization must have documentation from the Internal Revenue Service recognizing it as exempt from federal income taxation pursuant to IRC 501(c)(3) and 501(c)(19).

501(c)(3) and 501(c)(19) organizations must be active and in continuous existence in Tennessee for at least three (3) years or meet one of the statutory exceptions under the Nonprofit Gaming Law.

An event is restricted to a location within a county where the organization has a physical presence or in a county contiguous to one in which it has a physical presence. 

Only two organizations may operate an event each month at the same location. 

An event that meets all of the following criteria:

• Authorized by two thirds ( 2/3 ) vote of all members elected to each house of the general assembly;
   
• Operated for the benefit of a 501(c)(3) or 501(c)(19) organization located in Tennessee;
   
• Conducted with a single type of lottery game;
   
• Conducted on the event date and;
   
• Conducted at a location within a county where the organization maintains a physical presence or in a county that is contiguous to a county where the organization maintains a physical presence.
   

 Events can then be held between July 1st and June 30th of the following year based on the date submitted on the application.

Authorized types of games include raffles, reverse raffles, cakewalks, cake wheels, and bingo.

Unauthorized games include pull-tabs, punchboards, video lottery games, instant and online lottery games of a type operated by the Tennessee Education Lottery Corporation, keno, and games of chance associated with casinos including, but not limited to, slot machines, roulette wheels, and the like.

Raffles, reverse raffles, cakewalks, cake wheels, and bingo are allowed.

A raffle is a game of chance in which a participant is required to purchase a ticket for a chance to win a prize, with the winner to be determined by random drawing.

A political candidate or campaign asking for a donation to be entered into a drawing is not allowed. If someone is required to pay for a chance to win a prize, it is considered a raffle. Only qualified and approved 501(c)(3) and 501(c)(19) organizations may hold a raffle. It does not matter that the payment is called a “donation.”

There is no limit on the number of authorized games you can operate at an annual event.

IRS 501(c)(3) and 501(c)(19) organizations continuously operating in this state for 3 years to qualify for and conduct an annual nonprofit gaming event are eligible to apply.

Organizations must apply and be approved by a two-thirds vote of the General Assembly.

Only a qualified 501(c)(3) or 501(c)(19) organization that has submitted an application to the Division of Charitable Solicitations and Gaming and that has been approved by the Tennessee General Assembly can hold a raffle.

Holding a raffle without approval would be a violation of the law and subject to criminal prosecution.

Political candidates and campaigns for public office are not considered 501(c)(3) or 501(c)(19) tax-exempt organizations and cannot hold a raffle.

The Annual Gaming Event Application, all required attachments, and the non-refundable fee must be filed during the application period.

A non-refundable initial application fee of fifty dollars ($50.00) must be submitted with the application. Within ninety (90) days of the event, the organization must file a financial accounting pursuant to Tenn. Code Ann. Section 3-17-106(a)(1) along with the remaining application fee due according to the organization's gross revenue for the annual event, based on the following scale:

Applications that meet the qualifications of the law will be submitted via the omnibus list to the Tennessee General Assembly by March 1st of each year.

The organization must operate the gaming event and is not allowed to pay a third party to manage or conduct the activity.

Staff and volunteers must be actively involved in the overall planning and operation.

Each participating organization must file an application and each pay the required fee.

All applicants must qualify.  If one organization fails to qualify, then participants will be rejected.

Organizations with an approved gaming event can begin selling tickets 120 days before the event.

The individuals who are not allowed to purchase tickets include:

• Any member of the board of directors of a 501(c)(3) or 501(c)(19) organization authorized by the general assembly to operate an annual event for such organization.
   
• Any officer or employee of a 501(c)(3) or 501(c)(19) organization authorized by the general assembly to operate an annual event for such organization.
   
• Any immediate family member residing in the same household as the board of directors or an officer/employee of the organization. (The Charitable Gaming Law defines immediate family as spouse, child, step-child, brother, sister, son-in-law, daughter-in-law, parent or grandparent)
   
• Any member of the general assembly during such member's term of office as a member of the general assembly.
   
• The Secretary of State or any employee of the Secretary during the Secretary's term of office and such employee's term of employment with the Secretary.
   
• Any vendors including employees, agents, or subcontractors (also includes immediate family members of the same household) who provide printing services, telephone services, and any records, devices, or other gaming-related supplies and those who provide prizes for the authorized annual gaming event.

   

A financial report is due 90 days after the annual event date stated in the application.

Organizations must return at least 25% of its gross proceeds of the event back to its stated charitable purpose or program.

If gross revenue from an event exceeds $75,000, an audited financial statement is also required.

An organization that fails to submit the report by 90 days will be responsible for a $10.00 per month late fee.

If a report is not filed at all, action may be taken against the organization.

Failure to timely file in two (2) of three (3) consecutive gaming event periods could result in disqualification from conducting future events.

The nonprofit must file a notice with the Division stating the reason less than 25% was returned to its charitable purpose or program.

If this happens in two (2) consecutive years, the nonprofit will be disqualified from applying or holding future gaming events for a period of five (5) years.

Conducting an unapproved game of chance may be a violation of the criminal gaming statute, and local law enforcement has jurisdiction to investigate and prosecute the individuals responsible for the event.

If the Secretary of State is notified of an unapproved event, the Division will notify the local district attorney general.

Poker games and/or tournaments, pull-tabs, punchboards, video lottery games, instant and online lottery games, keno, and games of chance associated with casinos including, but not limited to slot machines, roulette wheels, and the like.

Events such as bingo or “casino nights” that are purely recreational in nature and in which participants are not required to pay to participate with the promise of a prize, jackpot, or “winner-takes-all” would not fall into this category.