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Committee keeps restrictions on out-of-state payments for electronic raffles, citing federal risk
Summary
The committee approved an amended Senate Bill 108, leaving current limits on out-of-state payments for electronic raffles in place to avoid potential federal Wire Act and UIGEA violations; committee members said they may revisit the issue later.
The Indiana House Committee on Public Policy on an unspecified date approved an amended version of Senate Bill 108, concluding it is premature to allow out-of-state payments for electronic raffles because of potential conflicts with federal gambling laws.
Chairman Manning told the committee the panel had heard testimony the prior week and discussed whether charities should be allowed to accept out-of-state payments for electronic raffles. He said committee members were wary of exposing charities and payment processors to potential violations of the Unlawful Internet Gambling Enforcement Act (UIGEA) or the federal Wire Act and therefore decided to retain the current restriction for now.
Representative Ed Clere echoed the chairman’s remarks and said it would be beneficial in the future to find a way for Indiana residents who are temporarily out of state to participate, but called the committee’s current decision “a big win.”
There were no registered witnesses for today's consideration. Committee members moved to pass the bill as amended; the motion carried on a roll call vote of 11-0.
The committee did not adopt any new statutory exceptions in committee; members indicated interest in further study of cross-jurisdictional payment issues before changing the existing statutory approach.
