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How to hold a Texas Hold'em fundraiser in Texas - with Cash Prizes?
We are looking to hold a Texas Hold'em fundraiser to raise funds for our softball team. We would like to give cash prizes, but not sure if we can. We thought if the cash was donated for the prize(s), it would be ok to do that. Can anyone offer legit advise on this?
The cash prize is what could get you in the most trouble.
Let me first say that I'm not an attorney so I can't give you the most concrete advice but I will say this.....
I've been around a TON of casino night fundraisers and in order for it to be a problem, someone has to complain and generally anyone who attends these are there to have a good time. I've been at casino night fundraisers in small Texas towns with the LOCAL SHERRIFF in attendance and they enjoy it as much as the next guy.
Events that raise eyebrows are the ones that buy radio spots, take out huge ads in newspapers and offer thousands of dollars in prizes. People don't seem to care much about local organizations looking to raise a few thousand dollars for their cause.
Now as far as giving prizes away is concerned, consider this idea....
Instead of cash prizes, give away raffle tickets. First place gets 500 tickets, second place gets 300 and so on down the line. Even last place or anyone attending gets at least one ticket and EVERYONE has some kind of chance at winning.
Consider this: The Texas State Gambling Statute says
(1) "Bet" means an agreement to win or lose something of value solely or partially by chance.
And further down it says...
A bet does not include:
"an offer of merchandise, with a value not greater than $25, made by the proprietor of a bona fide carnival contest conducted at a carnival sponsored by a nonprofit religious, fraternal, school, law enforcement, youth, agricultural, or civic group, including any nonprofit agricultural or civic group incorporated by the state before 1955, if the person to receive the merchandise from the proprietor is the person who performs the carnival contest."
Your offer of merchandise would be raffle tickets, and five rolls of raffle tickets does not equal $25.
Also, consider giving everyone in attendance something just for participating. Chuck E. Cheese pizza, The State Fair (the midway) and similar groups give you something just for participating and I assure you their legal departments have researched this long and hard.
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