The short answer is yes. California law explicitly allows 501(c)(3) nonprofits to run casino-night fundraisers under Penal Code §319.5, sometimes called the "Charity Bingo and Raffles Act" addendum. The long answer is the part most planners don't read until something goes wrong, so let's walk through it.
Quick note: This article is general information, not legal advice. Always verify current rules with the California Bureau of Gambling Control and your organization's counsel before your event.
What Penal Code §319.5 actually says
Enacted in 2007 and amended several times since, Penal Code §319.5 lets eligible 501(c)(3) nonprofit organizations host one "casino night" style fundraiser per year (some counties allow more) where guests can play traditional casino games using chips that are not redeemable for cash. The chips have to convert exclusively to non-cash prizes, raffle tickets, or auction credits.
The statute also restricts how much of the proceeds can go to operating expenses (the rest must benefit the charitable purpose), prohibits paid professional gamblers from playing, and requires advance registration with the state. It's a real law, with real rules, and a real upside — nonprofits that run a compliant event can net more in a single night than they raise in a quarter of normal fundraising.
Who qualifies to run one
- You must be a registered 501(c)(3) tax-exempt nonprofit.
- You must have been operating in California for at least one year before the event.
- You must register the event with the Bureau of Gambling Control at least 30 days in advance.
- Schools, churches, PTAs, booster clubs, and most community nonprofits qualify. Political organizations and most 501(c)(4)s do not.
What you can do
- Run traditional casino games: blackjack, roulette, craps, poker, baccarat, big-six wheel.
- Charge an admission or "buy-in" that includes a starter chip stack.
- Sell additional chips ("rebuys") during the event.
- Award non-cash prizes at the end of the night based on chip count, tournament finish, or raffle drawings keyed to chip totals.
- Run silent or live auctions in parallel with the gaming.
- Accept donations on top of buy-ins.
What you can't do
- Cash payouts at the tables. Chips must never be redeemable for money.
- "House cuts" where the charity takes a percentage of each hand or spin. The only way the charity earns money is the buy-in, rebuys, prizes, auction, raffle, and donations — not the gambling itself.
- Pay players (e.g. ringers, professional dealers as players, hired hosts who play).
- Hold more than the legally allowed number of events per year (commonly one, but check your county).
- Spend more than the allowed percentage of gross receipts on operating expenses (rules vary — many events keep this conservatively under 30%).
Registration and reporting
You must register your event with the California Bureau of Gambling Control. Registration includes basic information about your organization, the date of the event, the venue, and the expected attendance. There is a modest registration fee (currently around $100). After the event, you file a financial report showing gross receipts, prizes awarded, and net proceeds. We've walked dozens of San Francisco nonprofits through this process — it's straightforward, but it takes 30+ days, so don't leave it until the last minute.
The economics — why nonprofits love this format
A well-run California casino-night fundraiser commonly out-raises a sit-down dinner or silent auction at the same guest count. The Bay Area events we support routinely net $20,000 to $200,000+ depending on guest count, ticket price, sponsorships, and auction structure. The reason: casino-night fundraisers stack revenue streams. A typical 200-guest event in San Francisco might bring in:
- $30,000–$50,000 in ticket sales ($150–$250 per guest)
- $5,000–$15,000 in chip rebuys and "casino bucks" donations
- $20,000–$80,000 in silent and live auction proceeds
- $5,000–$50,000+ in corporate sponsorships (table sponsors, prize sponsors, drink sponsors)
The casino entertainment is the gravity that holds the night together — guests who'd leave a silent-auction-only event after an hour will stay for four at a real casino party. We've covered the full economics in our companion guide on how to run a 501(c)(3) casino-night fundraiser that actually nets money.
Our role — and what we don't do
San Francisco Casino Parties provides the tables, dealers, chips, and floor management. We are a vendor, not a charity. We bill the nonprofit for our services and the nonprofit handles its own §319.5 registration, prize procurement, and accounting. We can refer you to the standard registration form, share templates other Bay Area nonprofits have used, and help you structure buy-ins and prize tiers, but we never handle gambling proceeds or chips that touch real money.
Ready to plan a compliant fundraiser?
Call (415) 564-2121 or request a free quote. We'll size the room, recommend a buy-in structure, and walk you through the §319.5 registration timeline. Read more on our fundraiser casino nights service page and browse the related FAQ library.