An Act modernizing charitable organization fundraising opportunities

194th Legislature (2025-2026) Introduced by Billy MacGregor

Allows charitable, educational, and religious groups to sell digital pull tab tickets on premises, تحت licensing, with profits and prizes defined under the state lottery framework.

Senate concurred

Summary: An Act modernizing charitable organization fundraising opportunities (HD 3600)

Overview

HD 3600, introduced February 27, 2025, and currently stated as having Senate concurrence, expands fundraising options for charitable, educational, and religious organizations by authorizing the sale of digital pull tab tickets in addition to existing lottery-related instruments. The bill modifies licensing, revenue distribution, and on-premises sale rules under the state lottery framework.

Key Provisions

Addition of digital pull tab tickets: Section 10 Amends Chapter 137 to include “digital pull tab tickets” alongside shares and traditional lottery tickets in relevant fundraising and sale provisions.

Authorization to sell on premises: Section 37 allows the director to license organizations already licensed to conduct beano (and other lottery-related activities) to sell lottery tickets, shares, or digital pull tab tickets on their own premises.

Restricted use of funds: Licensed organizations must use funds derived from these activities exclusively for educational, charitable, or religious purposes.

Pricing and resale: The lottery commission sets resale prices for tickets, which must be printed on each ticket. Licensed organizations may retain up to 30% of the resale value as gross profit and are responsible for paying prizes, which must be at least 45% of resale value.

Commission and revenue sharing: The Lottery Commission sells tickets to licensed organizations at 10% of resale value; 10% of the resale value of digital pull tab tickets reverts to the commission. Revenue is allocated first to costs (limited to no more than 50% of revenue, subject to appropriation) and the remainder to the State Lottery and Gaming Fund, distributed under section 18C of chapter 58.

Legal status of activities: Licensed organizations are deemed sales agents under the state lottery law, and activities remain subject to all applicable lottery laws not inconsistent with the bill.

Affected Parties

Charitable, educational, and religious organizations seeking fundraising opportunities.

Individuals or entities selling lottery shares, tickets, or digital pull tab tickets through licensed organizations.

The Massachusetts Gaming Commission/State Lottery, which administers licensing, pricing, and revenue allocation.

Procedural and Timeline Aspects

Introduced: February 27, 2025.

Referred to the Committee on Consumer Protection and Professional Licensure on February 27, 2025.

Senate concurred on February 27, 2025, indicating agreement with the House version to proceed toward final passage/enrollment.

Potential Impacts

Creates a modernized fundraising mechanism by formalizing digital pull tab tickets.

Expands on-premises fundraising activities for eligible organizations.

Establishes explicit profit and prize benchmarks and a defined revenue split, potentially affecting nonprofit fundraising strategies and compliance requirements.

Adds regulatory oversight and licensing considerations under the state lottery framework.