Vermont Statewide Rule
Vermont Nonprofit Charitable Gaming Rules (13 V.S.A. § 2143)
Key Facts
- Single-game prize cap
- $400 per game, $50,000/year for vehicles or firearms
- Casino events per location
- One per quarter or three per year, 15-day gaps
- Casino events run by a nonprofit
- One per calendar month, statewide
- Worker compensation cap
- $2,000 per person; $15,000 total per year
- Financial reporting trigger
- Report due June 15 if proceeds top $10,000
- Governing law
- 13 V.S.A. § 2143, inside the criminal code
- Penalty for violations
- Up to $500; up to $100,000 and 3 years for repeat violations
Summary
Vermont's criminal code bans gambling outright, but 13 V.S.A. § 2143 carves out nonprofits: charitable, religious, educational, civic, and fraternal groups may run raffles, bingo, and casino nights to raise funds. The carve-out caps individual prizes at $400, allows up to $50,000 for an annual vehicle or firearm prize, limits how often a location can host casino events, and forces financial disclosure once a group's take exceeds $10,000 a year.
(a) Notwithstanding the provisions of this chapter, a nonprofit organization, as defined in 31 V.S.A. § 1201(5), may organize and execute, and an individual may participate in lotteries, raffles, or other games of chance for the purpose of raising funds to be used in charitable, religious, educational, and civic undertakings or used by fraternal organizations to provide direct support to charitable, religious, educational, or civic undertakings with which they are affiliated. Except as provided in subsection (d) of this section, gambling machines and other mechanical devices described in section 2135 of this title shall not be utilized under authority of this section.
Full Breakdown
Title 13, chapter 51 of Vermont's criminal code otherwise treats games of chance as gambling offenses, but § 2143(a) exempts nonprofit organizations, as defined in 31 V.S.A. § 1201(5), and lets them 'organize and execute, and an individual...participate in lotteries, raffles, or other games of chance' to fund charitable, religious, educational, and civic undertakings, or to let fraternal organizations support the causes they're affiliated with. Gambling machines and mechanical devices barred under § 2135 stay off-limits except at the casino events § 2143(d) separately authorizes.
Prize values are capped by frequency: no more than $400 for a single game, $1,000 for one game a day, $5,000 for one game a month, and $50,000 for a single annual game awarding a motor vehicle, firearm, motorcycle, or watercraft. Casino events, any 24-hour stretch featuring games of chance beyond the exempted fairs, bazaars, break-open tickets, bingo, lotteries, and raffles, are rationed by location and organizer: a venue caps out at one event per quarter or three a year with at least 15 days between them; a nonprofit-owned venue gets two a month with 10-day spacing; and a nonprofit itself may run only one casino event a month.
Anyone working a game of chance is capped at $2,000 in compensation per calendar year, and a nonprofit's total payouts to all workers and organizers can't exceed $15,000 in the aggregate annually. Groups that clear more than $10,000 in a year and don't already file IRS Form 990 must submit a financial report to the state by June 15, using forms the Commissioner of Taxes designs under § 2143(g). Alcoholic beverages can be awarded as prizes under a Title 7 exception, but electronic bingo transmitted to a remote location is flatly barred under subsection (c).
Violations & Penalties
Intentionally violating subsection (a), running games of chance without qualifying as a nonprofit, draws a fine of up to $500. Violating the casino-event, prize-limit, compensation-cap, or reporting rules in subsections (c) through (f) is punished more heavily: up to $10,000 for a first offense, and up to $100,000 and three years' imprisonment, or both, for each offense after that.
Frequently Asked Questions
Can a Vermont nonprofit legally run a casino night?
How big can a raffle or bingo prize be under Vermont law?
Does a Vermont charity have to report its gambling income to the state?
What's the penalty for a nonprofit that breaks these gambling rules?
Sources
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