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Bill

LC 1367

Revise laws relating to raffles conducted by certain nonprofit entities to allow credit cards

2025 Regular Session

Montana bill allows nonprofits to accept credit cards for raffle ticket sales, modernizing fundraising but introducing processing costs and regulatory compliance challenges.

(LC) Draft Delivered to Requester
#corporations/partnerships/associations #gambling
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WeVote Research Nonpartisan
Bill Summary · LC 1367

Legislative bill overview

LC 1367 would modify Montana's nonprofit raffle laws to permit credit card payments for raffle ticket purchases, where current law likely restricts payment methods to cash or check. This represents a modernization of fundraising mechanisms for qualifying nonprofit organizations.

Why is this important

Nonprofits rely on raffle revenue for operations and community programs. Allowing credit card payments removes a barrier to participation, particularly for younger donors and those without cash, potentially increasing fundraising efficiency. However, this also introduces processing fees and fraud risks that nonprofits must manage.

Potential points of contention

  • Payment processor fees: Credit card transactions incur 2-4% fees that reduce net raffle proceeds, raising questions about whether nonprofits or participants should absorb costs
  • Gambling regulation scope: Expanding payment methods may trigger closer regulatory scrutiny or require enhanced oversight mechanisms to prevent fraud and underage participation
  • Technology requirements: Nonprofits may lack infrastructure or expertise for secure card processing, creating implementation barriers and potential cybersecurity vulnerabilities

Compiled from official sources — confirm details with the bill’s official record.

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