A 50/50 Raffle is a raffle in which 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for an organization and the other 50% is paid to the winner that is selected by a manual draw (50/50 Raffle). In California, 50/50 Raffles may only be conducted by private, nonprofit organization established by, or affiliated with, a team from Major League Baseball, the National Hockey League, the National Basketball Association, the National Football League, the Women’s National Basketball Association, Major League Soccer, or a private, nonprofit organization established by the Professional Golfers’ Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that have met certain requirements (Major League Nonprofit).
The only organizations that may receive the funds from a 50/50 Raffle are Major League Nonprofits that are private, nonprofit organizations, have been qualified to conduct business in California for at least one year prior to the raffle, and are exempt from taxation pursuant to applicable California law. The Penal Code section authorizing 50/50 Raffles was set to expire on January 1, 2024.
Senate Bill 650 (SB 650) permanently authorizes Major League Nonprofits to conduct 50/50 Raffles. SB 650 does not extend authority to any other nonprofit organizations to conduct 50/50 Raffles.
(SB 650 amends Section 320.6 of the Penal Code.)