Lawmakers worry about enforcement, accounting if progressive raffles are authorized

Debate over whether to allow progressive-style raffles — such as queen of hearts games where jackpots can carry over between drawings — dominated parts of the Select Committee on Gaming meeting. Members pressed the Gaming Commission director on how carryover funds would be held, whether accounts must be segregated, and how refunds would be handled if gross receipts were insufficient.

Co-chair Kolb warned that vague rulemaking could "make people criminals" if enforcement and accounting safeguards are not in place. Director Laramendi responded that the commission currently has no licensing authority for charitable raffles or a statutory right to compel reporting of tickets sold and purchaser information, making administrative enforcement ineffective unless statute required licensing or reporting. Several members recommended studying other states' statutory carve-outs and regulatory models before deciding whether to legalize progressive raffles with strict sideboards.

"There's ownership of carryover funds, required reserve accounts, how the organizations handle those funds, where they put them, and do they have to have them in a segregated account?" Laramendi said when explaining the kinds of rules the commission would need to implement and enforce. The committee directed LSO to research Colorado, Nebraska and other models and return with draft language at the next meeting.