- Difference Between Raffles And Gambling Games
- Difference Between Raffles And Gambling Board
- Difference Between Raffles And Gambling Sites
Raffles, Gaming, Lotteries and Poker
Explore the differences between raffle fundraisers and charity sweepstakes below. Charity raffles and sweepstakes can be a great way to raise money for your cause. Most organizations are unaware of the differences between the two, however, and aren’t sure which option will best fit their fundraising needs. Charity raffles and sweepstakes can be a great way to raise money for your cause. Most organizations are unaware of the differences between the two, however, and aren’t sure which option will best fit their fundraising needs. This article provides the information you need to. What is the difference between an exempt permit and an excluded permit? The chart below explains the difference. May we sell raffle tickets through our organization’s web site? May we accept credit or debits cards for the sale of our raffle tickets? Only cash or checks may be accepted. Traveler’s checks, cashier’s checks,.
Q: What is a raffle?
A: As described by the Charitable Gaming Division of the Michigan Lottery: “If you are charging people or requiring them to donate or provide something of value to participate in a drawing where a prize will be awarded, then you are conducting a raffle.” See Raffle Guide, state of Michigan Charitable Gaming Division, Page 1. They are games where you (1) give something of value, (2) for a chance, (3) at a prize. Events where you compete, based upon skill, for a prize (such as a poker tournament), are not raffles. Events of this sort may fall under other regulatory requirements and prohibitions, but they are not raffles. Events where a person has a chance at a prize but does not give something of value are called promotional or game activities. These, too, have their own set of regulatory requirements.
Q: Is there any difference between a raffle and a lottery?
A: Not really, at least for state regulatory purposes. Both involve giving something of value for a chance at a prize. The criminal statutes and court cases discussing them tend to use the terms “lottery” or “gift enterprise.” The civil, administrative statutes and related court cases tend to use the term “raffle.”
Q: Are there different types of raffles?
A: The State of Michigan has two types of raffles for regulatory purposes. One type is governed under the state’s Bingo Act (“Bingo Act raffles”). The other type is called a promotional raffle or game promotion and must meet a different set of state law requirements.
Difference Between Raffles And Gambling Games
At U-M, raffle questions arise in three types of settings. These are: research incentives, fundraising, and activity promotions. Fundraising raffles must comply with the Bingo Act.
Q: Are there other types of fundraising games that require a license?
A: Yes, the Bingo Act also provides licensing for Millionaire Parties and Bingo. Millionaire Parties can include several or just a single card game (such as Texas Hold ‘Em) plus other kinds of gambling games. These, too, are regulated by the State of Michigan’s Bingo Act. These activities have very similar licensing requirements as for raffles.
Q: What is needed to comply with the Bingo Act for fundraising?
A: Except for a few, limited, exceptions the Bingo Act requires a license for raffles, Millionaire Parties, Bingo, and other games such as “Charity Games” and “Numeral Games.” Very strict requirements must be met before the state will issue a license. An applicant for a license must represent a “qualified organization.” Strict financial record keeping is mandated. The “principal officer of the organization” must sign the application and, ultimately, must certify an accounting for all the money, resources and reports related to the game. The various reporting requirements are not trivial and require the signing individual to personally certify the accuracy of the information, prepare and handle various tax withholding documents, and file returns with the state. The OGC recommends that you review the requirements carefully before making any decision on proceeding with a licensed game event.
The application forms required by the state’s Charitable Gaming Division differ slightly depending upon the particular game. Application forms and the final report forms can be found on the Charitable Gaming Division website.
Q: Are there restrictions for holding a poker tournament, such as a Texas Hold ‘Em tournament?
A: If the poker tournament is a fundraiser for a “qualified organization”, a license under the State of Michigan’s Bingo Act must be obtained. When prizes are given randomly based upon participation in the event, the prizes are a game promotion and no license is required. However, if the tournament is not a fundraiser for a qualified organization and prizes for winners are given out, only a licensed casino can hold the event.
Q: Is U-M a “qualified organization” and are there other “qualified organizations” that could apply for a license? Who can sign the application?
A: U-M is a “qualified organization” under the applicable statute and administrative rules. The State of Michigan has rejected applications made by a U-M dean as not being signed by the principal officer of the organization, but has accepted applications signed by the Executive Vice President and Chief Financial Officer (EVPCFO).
Generally, unincorporated groups, such as most student organizations, will not be eligible for “qualified organization” status. Student groups interested in general fundraising strategies may contact the Office of Student Activities and Leadership at (734) 763-5900. U-M units interested in fundraising may wish to discuss the matter with the unit’s development coordinator or with the Office of University Development.
Q: For U-M institutional fundraising activities, what does the Executive Vice President and Chief Financial Officer (EVPCFO) require before signing an application for a raffle license?
A: Generally, U-M strongly disfavors using raffles as an institutional fundraiser. There are some exceptions, provided the Vice President for Development (VPD) recommends to the EVPCFO that the raffle proceed, the VPD oversees or arranges for oversight of all raffle activities, and the EVPCFO approves of the exception. The VPD will consider recommending an exception when (1) a high-level donor or senior U-M official is personally involved in the fundraising event, (2) the unit development office supports the raffle as a U-M fundraising event, (3) the item or items to be raffled are of significant value and are expected to raise significant funds, and (4) there are no negative factors that would diminish U-M’s reputation by its sponsorship of the raffle. Other unique factors would be considered, but only on a case-by-case basis.
If you and your unit wish to pursue a fundraising raffle, forward the request to the VPD along with the reasons supporting the raffle and the methods, which are to be coordinated through the unit development office, to be used to ensure accountability as required by the license from the State of Michigan.
Q: For raffle winners, what tax laws must be followed?
A: All winnings are taxable and must be reported as income by persons that must file a federal or state tax return. Winnings include cash prizes and, for non-cash prizes, the fair market value of the prize. For some raffle winnings and winners, tax laws require withholding a percentage of the winnings by the raffle organizers. If the prize is a non-cash prize, the raffle organizer must obtain cash or a check for the required withholding prior to turning over the prize. Yet additional tax laws may require tax reporting, even though withholding may not be mandatory.
If a winner is a United States citizen or foreign national permanent resident, winnings over $600 trigger reporting requirements. Winnings over $5,000 trigger mandatory withholding requirements. Please contact U-M’s Tax Department to obtain the appropriate forms for withholding and/or reporting. If a winner is a non-resident foreign national, every winning requires certain reporting and withholding requirements. The U-M community is a diverse one. The OGC recommends having available at the raffle drawing IRS Form W-8BEN, which must be completed by a non-resident foreign national winner. And, for the non-resident foreign national winner, you must withhold 30% of the winnings. Contact U-M’s Tax Department for additional information on processing the forms and the withholding for non-resident foreign national.
Q: Our student organization is interested in using a raffle or some gambling event for fundraising. How do we go about this?
A: Most events of this type require obtaining a license from the state. Only “qualified organizations” can apply for a license. Generally, unincorporated groups, such as most student organizations, will not be eligible for “qualified organization” status. Student groups interested in general fundraising strategies may contact the Office of Student Activities and Leadership at (734) 763-5900.
Difference Between Raffles And Gambling Board
Q: What qualifies for the promotional or game activity exceptions?
A: A promotional or game activity is an event where you have a chance at a prize—BUT you don’t have to provide something of value to obtain the chance. The promotional activity must be clearly occasional and ancillary to the primary business of the activity organizer. It must also be “calculated to promote” the business of the activity organizer. For example, the Michigan Union could hand out raffle tickets to persons on the Diag that, if turned in at some grand opening ceremony for newly refurbished facilities at the Union, gives the person a chance to win a new Blu-ray DVD player. The raffle ticket (or some other related game paraphernalia) must also inform the person of the prizes to be awarded and other details related to the raffle.
Q: Can you offer a chance at a prize in exchange for a person filling out a research survey?
A: Yes, but there are several requirements that must be met. The research protocols must meet both U-M institutional requirements related to human subject research and state regulatory requirements related to raffles. For surveys where the prizes awarded in any one (1) day have a value of $100 or less, the state regulations allow streamlined procedures. All other situations are considerably more involved. The Institutional Review Boards have incorporated the state regulatory requirements into its processes for handling the human subject research oversight. Contact the U-M Institutional Review Board with questions.
Fri, May 24, 1:58pm by Mia Chapman
Last Updated Tue, Oct 8, 12:24am
Some people place gaming and gambling into different categories, while others look at them as one in the same. For these latter individuals, both words refer to wagering money at games like pokies, roulette, and blackjack in the hopes of winning even larger sums of cash.
The average bloke tends to refer to the hobby as gambling, because that’s exactly what the definition of the word refers to. Whether they’re wagering money at a land-based casino or in the back of their local pub, they’re not ashamed to admit that they’re gambling.
Difference Between Raffles And Gambling Sites
The gambling industry, however, isn’t too fond of the word “gambling.” They think it presents their customers as greedy deviants and unlucky losers, as well as fostering the idea that casino games are a major risk to the player’s wallet (which is correct). To combat this negative stereotype, they cooked up the word “gaming” and started using it in place of gambling. It makes the process of wagering money sound more fun and less random, which is a great way to draw more patrons into their establishments.
In summary, anyone who uses the word “gaming” around a casino is probably an industry insider. If they call it “gambling,” then they’re likely a regular individual. But either way, they’re talking about the same thing.
A Stark Difference
For others, the terms “gaming” and “gambling” mean entirely different things. In the next two sections, I’ll define the terms and offer a number of examples.
Types of Gaming
If someone uses the term “gaming” and they’re not talking about pastimes such as poker or blackjack, then they may be talking about one of the following hobbies:
Video Games – It might surprise you to know that video games were being patented as early as the 1940s. However, it wasn’t until Atari came out with Pong in the 1970s that the video game revolution got underway. Arcades thrived during the ‘70s and early ‘80s, and home gaming consoles by Atari, ColecoVision, and others started appearing in homes in record numbers.
The second half of the ‘80s saw another boom in the industry with the release of the original Nintendo, and advances in technology slowly resulted in the decline of arcades in favour of more sophisticated home systems.
The video game revolution is still underway, as systems such as Nintendo, Xbox, and Playstation amass record sales for home and portable use. The age of the Internet is also involved, as multi-player online games like World of Warcraft bring in droves of new subscribers each year. (See also: Video Casino Games)
Miniature Wargaming – The hobby of miniature wargaming has been around for centuries, and you can still find it alive and well at hobby shops and gaming conventions. Intricate miniature figures comprise entire armies, and players use a complex series of rules to manoeuvre them around detailed landscapes and engage in battles. These armies can take the form of actual troops from history, while others are comprised of fantasy creatures such as orcs and dwarves.
Role-playing Games – Popularized by the release of Gary Gygax’s Dungeons & Dragons, role-playing games allow players to take on the persona of a fictional character and engage in all manner of adventures. Numerous genres are available, from horror RPGs such as Call of Cthulhu to sci-fi games like Nova Praxis.
Varieties of Gambling
If someone is talking about games of chance, there’s a strong chance they’re discussing one of the following:
Poker – Players compete against one another to make a poker hand with the highest rank. Numerous variations of the game exist, but the current favourite is known as Texas hold’em. This is due to the success of amateur players like Chris Moneymaker at the World Series of Poker Main Event, where the winning individual walks away with millions of dollars.
Blackjack – The objective of this popular casino game is to get as close to 21 as possible without going over (and having a higher total than the dealer in the process). The art of card counting can greatly increase a player’s chances of success.
Sports Betting – Players wager money on various sporting events, from football to auto racing. The payout for a win is determined in advanced by fixed odds.
Craps – The player rolls a pair of dice and attempts to throw certain totals while avoiding other numbers. Those not currently shooting the dice can also bet on the outcome. A wide range of betting options is available, and craps is known for its community experience.
Pokies – Called slot machines in other parts of the world, pokies offer various cash prizes for players who match various symbols on the machine’s spinning reels. Pokies have become more advanced in the last decade, especially those featuring audio and video clips from popular movies and TV shows.
Video Poker – The player receives a hand of five cards on a video screen, and they can then opt to exchange one or all of their cards for new ones. In order to win, their final hand must usually contain a pair of jacks or better. With perfect play, the house edge can be eliminated.
Keno – Similar to the lottery, keno allows players to choose a series of numbers. A drawing of 20 numbers is then held, and the player wins money for all numbers that result in a match. In the history of keno, no player has ever matched all 20 numbers.
For some, gaming may mean pokies or blackjack, while others may limit the definition to pastimes such as video games or role-playing; meanwhile, gambling is almost universally regarded as participating in various games of chance, although the connotations of the word can range from neutral to quite negative. Keep in mind these are just terms and whether you game or gamble, most importantly, enjoy it.