What is charitable gaming?

• Charitable gaming is a form of gaming that is conducted by or for the benefit of a nonprofit organization, such as a religious, educational, or social service group.
• In Alaska, charitable gaming includes activities such as bingo, raffles, and pull-tabs. Other states allow more types of games.
• Charitable gaming is regulated by the state and local authorities, and the rules vary widely across the country.
• Alaska Indoor Sports Distributing works closely with the State of Alaska Gaming Unit to keep its charitable gaming customers in compliance with the laws and regulations of Alaska Charitable Gaming. Alaska Indoor Sports also gives free of charge prize receipts and prize envelopes to help Alaskan charities stay in compliance with the Alaskan charitable gaming laws and regulations.

How big is the charitable gaming market?

• According to the most recent data from the National Association of Fundraising Ticket Manufacturers (NAFTM), the charitable gaming market in the United States generated $7.2 billion in gross revenue in 2019.
• The largest segment of the market was bingo, accounting for 63% of the revenue, followed by pull-tabs (25%), raffles (8%), and other games (4%).
• The charitable gaming market grew by 3.6% from 2018 to 2019, driven by increased demand, innovation, and online platforms.
• In Alaska, the charitable gaming market has averaged approximately $360,000,000 million in gross revenue and approximately $60,000,000 in profits to Alaskan charities.

What are the main challenges and opportunities for the charitable gaming sector?

• One of the main challenges for the charitable gaming sector is the complex and inconsistent regulatory environment, which can create barriers to entry, compliance costs, and legal risks for operators and beneficiaries.
• Another challenge is the competition from other forms of gambling, such as commercial casinos, lotteries, and online gaming, which can reduce the appeal and profitability of charitable gaming.
• In Alaska one of the biggest dangers to charitable gaming are the illegal “skill based” games operated by unlicensed operators. These games also go by the names “grey market games” and “sweepstakes games”. Recently the police departments in the Kenai area have shut down several of these illegal operators. To date, the Anchorage and Fairbanks police departments have not shut down illegal operators operating in these jurisdictions.