Nonprofit leaders urge OK for credit-card raffle sales; gaming groups warn of slippery slope

House Bill 141 would permit charitable nonprofits, colleges, universities and school districts to accept credit-card payments for raffle tickets and online raffle sales. Proponents argued the change modernizes fundraising and removes practical barriers for volunteers and donors.

Representative Ed Buttry said the change would be tightly scoped to charitable raffles and stressed that debit cards and cash would still be allowed; he argued credit-card acceptance would increase participation and help organizations that rely on volunteer sellers. Adam Jespersen of the Montana Nonprofit Association and multiple nonprofit CEOs and development leaders described substantial revenues raised through raffle programs and urged the committee to allow credit-card sales to expand fundraising reach.

Special Olympics Montana cited a recent raffle that raised more than $675,000 on $5 tickets and said a prior payment-platform problem reduced revenue in 2018; other conservation and veterans' nonprofits described similar gains. Supporters said modern payment systems make it feasible to accept cards securely and that DOJ raffle rules and reporting requirements would continue to apply.

Opponents from the gaming industry, tavern associations and coin-machine operators said the state has long barred credit-card gambling for public-safety reasons and that permitting credit-card raffle purchases risks widening the exception over time. They asked the committee to preserve Montana's bright line against credit-card gambling and warned of consumer harm if people use borrowed money to gamble.

Representative Buttry said the bill is narrowly written to apply only to certain nonprofit sponsors and argued safeguards and existing DOJ oversight will prevent abuse. The committee heard both sides and did not take an immediate vote.