Charitable Giving Transforms into a Prevalent Gambling Fad
Charitable organizations and gambling companies teaming up to raise funds for good causes? An age-old debate, right? In many countries, there's this ongoing question: should such charitable organizations that sell lottery tickets or host card tournaments be required to obtain a gambling license? The province of Alberta, Canada, decided yes, but guess what? Strict regulation didn't hinder charitable gambling events one bit. In the 2019-2020 financial year, a whopping 70% of funds raised by local organizations came from these events.
Casinos and other gaming companies join the fray too, making their games partially charitable. Players win, and so do the less fortunate -- a portion of the money wagered goes towards charity. Convenience is key here; many companies have set up their own non-profit foundations, which receive a percentage of betting proceeds or a slice of profits, with the rest usually donated to other non-profit organizations.
High-profile CEOs earning millions while their foundations dish out mere millions? Yup, that's a news headline you'll see in the global media. Take Denise Coats, CEO of Bet 365, who raised her salary by a shocking Β£7 million in 2023, while her foundation donated Β£7.9 million less. However, the amount was still enormous -- Β£11 million compared to Β£18.9 million in the previous year.
Headlines about substantial gambling donations are a dime a dozen in the media. Take the latest report, for example, about Caesar's contributing a hefty $3.1 million. The Boys and Girls Clubs of America, tackling youth issues, and the Arbor Day Foundation, with its focus on environmental initiatives like tree planting, are the lucky recipients of Caesar's corporate foundation's generosity.
In 2023, the Wynn Resorts Foundation doled out nearly $9 million for charitable causes, including $1 million raised by employees. This total includes both personal donations and funds collected through fundraising initiatives. It's worth mentioning that 2023 was the company's most successful fundraising year yet. What's more, Wynn Resorts mentioned in their official release that employees volunteered an impressive 35,000 hours.
Gaming companies can organize charitable events independently as well, without tying them to the game. Boyd Gaming, for instance, held its "Trees of Hope" campaign for the sixteenth consecutive time in December 2023. Non-profit organizations displayed Christmas decorations in the corporation's hotel facilities, and guests could cast their vote for their favorite treeβthe charity they considered most important. Their votes determined the amounts given to the charities. The total budget? A generous $200,000.
Now, let's not forget about gaming companies in Ukraine, which also have charitable foundations. They finance projects in various sectors, and we'll be featuring them in future publications.
So, should charitable organizations obtain a gambling license? The answer isn't as straightforward as it may seem, with regulations varying significantly by jurisdiction. In some cases, bingo events require gambling licenses due to their random outcomes. Multi-event licensing may even mandate separate licenses for each event type in certain regions. It's important for these organizations to meet state-specific reporting and operational rules to avoid penalties and remain tax-exempt. Research shows that compliance requirements, taxes, and proper reporting are crucial for gaming companies involved in charity events.
- Casinos and gambling companies often make their games charitable, with a portion of the money wagered going towards charity, as demonstrated by companies like Caesar's and Wynn Resorts.
- In 2023, the Wynn Resorts Foundation, which includes employee fundraising contributions, donated nearly $9 million for charitable causes, marking their most successful fundraising year yet.
- Gaming companies can also organize independent charitable events, such as Boyd Gaming's "Trees of Hope" campaign in December 2023, which had a generous budget of $200,000.
- It's crucial for charitable organizations, even those hosting charitable gambling events, to meet specific reporting and operational rules to avoid penalties and remain tax-exempt, as regulations vary significantly by jurisdiction.
