Kentucky Assembly approves new regulations for charitable raffle licensing

Kentucky's House Bill 566, introduced on February 21, 2025, is stirring significant conversation as it aims to reshape the landscape of charitable gaming in the state. The bill proposes a framework for special event raffles, allowing organizations to raise funds while ensuring that all proceeds are directed towards charitable purposes.

At the heart of HB 566 is a provision that mandates 100% of net raffle receipts be allocated to licensed charitable organizations. This requirement is designed to enhance transparency and accountability in charitable gaming, compelling organizations to maintain a dedicated "raffle recipient account" for these funds. The bill also stipulates that all expenditures from this account must be reported and are subject to auditing by state authorities, reinforcing the integrity of the charitable gaming process.

Debate surrounding the bill has been lively, with proponents arguing that it will bolster charitable contributions and provide a clear pathway for organizations to engage in fundraising activities. Critics, however, express concerns about the potential for increased regulatory burdens on smaller organizations, which may struggle to comply with the stringent reporting and auditing requirements.

The implications of HB 566 extend beyond just fundraising; it could significantly impact the operational dynamics of charitable organizations across Kentucky. Experts suggest that while the bill may streamline the process for larger entities, it could inadvertently stifle smaller charities that lack the resources to navigate the new regulations.

As the bill moves through the legislative process, stakeholders are closely monitoring its progress. If passed, HB 566 could redefine how charitable gaming is conducted in Kentucky, potentially setting a precedent for similar legislation in other states. The outcome remains uncertain, but the conversation around the bill highlights a growing emphasis on accountability and transparency in charitable fundraising efforts.