For Immediate Release
August 22, 2006
Contact: Sam Delson
(916) 319-2723

Bill to Legalize Non-Profit Casino Nights Clears Senate

Torrico Legislation Would Allow Charities to Host Limited Gambling Events

SACRAMENTO - Non-profit charitable organizations would be able to host “Casino Night” fund-raising events under legislation approved by the state Senate today.

The measure, Assembly Bill 839 by Assemblymember Alberto Torrico, D-Newark, was approved with 23 votes in favor, 13 opposed and four senators not voting.

“Non-profit organizations provide essential services to California ranging from health care to youth sports,” Torrico said. “This bill strikes a careful balance by allowing non-profits to host ‘poker night’ fundraisers while imposing strict limits on the number of events that can be held and the value of prizes that can be awarded.”

AB 839 was earlier approved by the Assembly on a 56-14 vote. The bill now returns to the Assembly for a final vote to concur in the Senate’s amendments and send it to Gov. Schwarzenegger. If signed by the governor, it would take effect on January 1, 2007.

Under existing law, it is illegal for non-profit organizations to raise funds through card games or games of chance other than bingo. In recent years many non-profits in all regions of California that had planned to raise funds through poker or casino nights were forced to cancel events after being told they would be illegal.

Torrico’s bill would permit each non-profit organization to host no more than one casino night per year and offer non-cash prizes limited to values of $500 per prize and $5,000 per event. Cash prizes would be prohibited and at least 90 percent of all proceeds would have to be contributed to a non-profit organization.

Non-profits would pay a $100 fee to the state to cover the cost of administering the law and enforcing its provisions. The bill also would limit sponsorship of casino events to non-profit groups that are at least three years old.

AB 839 is sponsored by Attorney General Bill Lockyer and the California Department of Justice. It has been endorsed by major law-enforcement groups. Several card clubs that initially opposed the bill dropped their opposition after it was amended to impose stricter limits on non-profits’ gambling events.

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