A GUIDE TO GAMBLING / GAMING ACTIVITIES IN NEW MEXICO
This guide was first developed by the NM Alcohol and Gaming Division as “A Guide to Conducting Fundraising Activities in New Mexico”. This updated version is prepared by the NM Gaming Control Board. Revised May, 2007.
INTRODUCTION
Unless specifically permitted by law, gambling is prohibited in New Mexico pursuant to the New Mexico Criminal Code, 30-19-1 thru 30-19-15 NMSA 1978. Examples of gambling specifically permitted by law include activities conducted under the a) Gaming Control Act, 60-2E-1 thru 60-2E-62 NMSA 1978, 15.1.1 thru 15.1.26 NMAC, b) the Horse Racing Act, 60-1-1 thru 60-1-26 NMSA 1978, 15.2.1 thru 15.2.7 NMAC, c) the State Lottery Act, 6-24-1 thru 6-24-34 NMSA 1978, and d) the Bingo and Raffle Act, 60-2B-1 thru 60-2B-14, 15.4.1 thru 15.4.9 NMAC. Properly qualified organizations may conduct certain games of chance in New Mexico for fundraising purposes on a limited basis. Following describes qualifying factors, organizational responsibilities, and the gaming limitations imposed by New Mexico law.
IMPORTANT DEFINITIONS
BINGO – is a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random.
GAME – under the Gaming Control Act is an activity where you pay to play a game or on a slot machine, the outcome of which is based on chance and possibly some skill, to receive a prize or something of value.
LOTTERY – is a game of chance in which, for consideration, the player has an opportunity to win a prize, the award of which is determined by chance, even if some skill is required.
PULL TABS – printed tickets that have a pull-tab or seal to be opened by the purchaser where a winning combination is printed on each ticket or on a separate card.
RAFFLE – is a game of chance conducted by drawing for prizes by chance or by selling tickets or rights to participate in such a drawing.
SWEEPSTAKES – used to promote legitimate business objectives. Entry obtained with purchase but must also provide a no purchase necessary alternative method of entry.
ORGANIZATIONS THAT MAY OBTAIN A LICENSE TO CONDUCT REGULARLY SCHEDULED GAMES OF CHANCE
The Bingo and Raffle Act identifies certain non-profit organizations that may obtain licensure from the NM Gaming Control Board to conduct regularly scheduled bingo games and/or to sell pull tabs and raffle tickets in the state. According to §§60-2B-3 and 60-2B-6 of the Act, a non-profit organization that has been in existence in New Mexico for at least three years before applying for licensure may obtain a bingo and raffle license if the organization meets the definition of one of the following (referred to in the Act as “qualified organizations”).
A. chartered branch of a lodge or a chapter of a national or state civic or service organization;
B. religious organization;
C. charitable organization granted federal income tax exemption as a 501(c) organization under the Internal Revenue Code;
D. environmental organization;
E. fraternal organization;
F. educational organization;
G. veteran’s organization;
H. voluntary fireman’s organization; or
I. labor organization.
Except for charitable organizations, the Act does not require that the organization seeking licensure have obtained an exemption from federal income tax under Section 501(c) of the Internal Revenue Code. Therefore, in determining whether any other applicant is a qualified organization, the NMGCB may accept other satisfactory proof of non-profit status, such as a copy of the organization’s Articles of Incorporation filed with the Public Regulation Commission under the state’s Nonprofit Corporation Act, chapter 53, Article 8, NMSA 1978.
All raffle tickets shall specifically state the license number, the word “raffle” and the date, time, and place of drawing printed on each ticket. 15.4.8.8A(1) NMAC.
Pull tabs can be sold by qualified organization pursuant to the rules set out in 15.4.9.1 NMAC.
ORGANIZATIONS THAT MAY CONDUCT CERTAIN GAMES OF CHANCE UNDER LIMITED CIRCUMSTANCES WITHOUT OBTAINING A LICENSE
1. Limited exception under the Bingo and Raffle Act, 60-2B-13 NMSA 1978.
Any bingo or raffle held by any group or organization as defined in §60-2B-3 NMSA1978, of the Bingo and Raffle Act which holds a bingo or raffle only once during three consecutive calendar months and not exceeding four occasions in one calendar year. §60-2B-13B NMSA 1978.
2. Limited exceptions under the Criminal Code.
Any New Mexico church, public library, religious society in this state or for charitable purposes to conduct a prize drawing at any fair held in this state when all proceeds of the fair are expended in New Mexico for the benefit of the church, public library, religious society for charitable purposes. The entire proceeds of the lottery must go to the organization or charitable purpose and no part of such proceeds go to any individual member or employee thereof. §30-19-6(A) NMSA 1978.
A motion picture theater can offer prizes of cash or merchandise for the purpose of advertising or stimulating business. §30-19-6(B) NMSA 1978.
Any drawing or prize at any fair or fiesta held in New Mexico sponsored by the state or any of its political subdivisions, or for the benefit of any church in the state or for charitable purposes as long as all of the proceeds are spent in NM for the benefit of the church or the charitable purpose. The fair or fiesta must have been held on an annual basis for the immediately preceding two years and is held for not more than 14 consecutive calendar days per year. §30-19-6(C) NMSA 1978.
A religious, educational, benevolent or other non-profit organization that is exempt from both the state income tax and federal income tax may hold no more than two lotteries in any year if all of the gross proceeds, less the reasonable cost of prizes, are expended in the state for the benefit of the organization or public purposes and no part of the proceeds goes to any individual member or employee of the organization except as payment for the purchase of prizes at no more than the reasonable retail price. §30-19-6(D) NMSA 1978.
Senior citizen groups can have bingo at a senior citizen center, so long as no one else, except those playing bingo, gets any of the proceeds, directly or indirectly, from the game. Minors can not be part of the group, conduct or play the games. The majority of the members of the group are age 55 and older and the primary purpose of the group is to provide recreational and social activities for the members. §30-19-7.2 NMSA 1978.
HORSE RACING / TRACKS
Horse Racing is regulated by, §60-1-1 thru §60-1-26 NMSA 1978, of the New Mexico Statutes. Horse racing requires a State license and betting/wagering at a licensed track on live racing is legal. §60-1-10 NMSA 1978, was amended to permit Pari-mutuel betting/wagering, HOWEVER, this section also clearly states that pari-mutuel wagering can be done “only within the enclosure where races are conducted,” at the physical, licensed race track. Slot machines can legally be operated at a Licensed Track. The license for this is separate and issued under the Gaming Control Act.
SLOT MACHINES AND CASINO STYLE GAMING
Casino style gaming is permitted in this State by Tribal/State Compact with the tribes and pueblos of New Mexico.
Slot Machines are permitted by license only in the tribal casinos, licensed racetracks and in certain licensed non-profit organizations.
Non-Profit organizations who can qualify for a gaming operator’s license pursuant to the Gaming Control Act:
(1) a bona fide chartered or incorporated branch, lodge, order or association, in existence in New Mexico prior to January 1, 1997, of a fraternal organization that is described in Section 501(c)(8) of the federal Internal Revenue Code of 1986 and that is exempt from federal income taxation pursuant to Section 501(a) of that code; or
(2) a bona fide chartered or incorporated post, auxiliary unit or society of, or a trust or foundation for the post or auxiliary unit, in existence in New Mexico prior to January 1, 1997, of a veterans’ organization that is described in Section 501(c)(19) or (23) of the federal Internal Revenue Code of 1986 and that is exempt from federal income taxation pursuant to Section 501(a) of that code.
HOME OWNERSHIP OF SLOT MACHINES
Having a Slot Machine in your home has only very recently become available. This came about as a result of the Court of Appeals decision in State v. 10 Gaming Devices, COA 24,479. The court’s decision is very limited. To legally obtain a slot machine in New Mexico, it MUST be purchased from a distributor or manufacturer licensed to distribute or manufacture machines in this state by the State of New Mexico. ONLY New Mexico licensed manufacturers and distributors, licensed in New Mexico may transport gaming machines in New Mexico. You may not purchase a slot machine in another state and bring it into this state without first complying with New Mexico law and federal law, the Johnson Act, 15 USC 1171. Any slot machine purchased and transported into New Mexico without first complying with State and Federal law, is subject under the law to forfeiture and destruction. The homeowner may not make a profit from having the machine. Persons who play on the machine can play for winnings only. The homeowner may not offer the slot machine for resale, to sell a gaming machine in New Mexico, you must be licensed to do so. A homeowner may not transport the slot machine from one location to another, only a licensed manufacturer or distributor may do so and must comply with the state and federal law to do so. A homeowner charging a fee to play or keeping a portion of monies (tokens exchangeable for cash) put into the slot machine for ANY reason, would be commercial gambling, §30-19-3 NMSA, a fourth degree felony.
INTERNET GAMBLING/WAGERING
Internet gambling is expressly prohibited by Federal law. This falls under 31 U.S.C.A. §5361, Unlawful Internet Gambling Enforcement Act. The State of New Mexico, and the New Mexico Gaming Control Board do not regulate, license, control or in ANY way sanction, endorse or approve any Internet or on-line gambling, betting activity, wagering or any aspect thereof. Any statement, reference or opinion to the contrary is wrong. Such activity is strictly prohibited and not authorized, approved or sanctioned in any manner by New Mexico regulatory authorities.
SPORTS BETTING
Betting on professional and amateur sports is a violation of federal law. This falls under 28 U.S.C.A. §3702, Unlawful sports gambling.
FREQUENTLY ASKED QUESTIONS
What types of games and activities are permitted under the Bingo & Raffle Act?
Examples of Permitted Activities by Qualified Organizations–
- Raffles and Lotteries where tickets are sold in advance and the winners’ names are drawn at a specific date, time and place for predetermined prizes.
- Reverse drawings in which the prizewinner is the person whose name is drawn last at a specific date, time, and place.
- Door prizes where money paid, if any, is to attend the event or for the entertainment offered but not for the chance to win a prize. All door prizes with a monetary value over $100 shall be approved by the Gaming Control Board, 15.4.4.8F NMAC.
What types of games and activities are prohibited by law?
Examples of prohibited games and activities include but may not be limited to –
- Calcutta’s, side bets, or any other method or game in which a participant bets on a ticket, number or other item to become a winner.
- “Casino nights” where money is paid for the opportunity to play a game of chance and win money, prizes or other things of value based on the random outcome of a game even though there may be some skill involved.
- Wagering on the outcome of sporting event, or betting pools, with the exception of horseracing, where bets are placed AT a licensed track. Parimutual or any other type betting by phone or “on-line” is not permitted.
- Raffles or lotteries in which all or part of the prize consists of alcoholic beverages.
- Poker Runs / Poker Tournaments.
Can an organization conduct games of chance on a liquor licensed premise?
NO, commercial gambling is strictly prohibit on liquor licensed premises. 60-7A-19(A) NMSA 1978. Pursuant to 60-7A-19(C)(2) NMSA 1978, commercial gambling does not mean:
(a) activities authorized pursuant to the New Mexico Lottery Act, 6-24-1 to 6-24-34 NMSA 1978; and
(b) the conduct of activities pursuant to Subsection D of Section 30-19-6 NMSA 1978; and
(c) gaming authorized pursuant to the Gaming Control Act, 60-2E NMSA 1978, and as in a manner limited by and permitted by this Act.
The Liquor Licensee remains subject to all of the duties and responsibilities prescribed by the New Mexico Liquor Control Act. Liquor Licensees and charitable organizations are encouraged to work cooperatively to provide a safe environment for each event.
Can I use a game of chance to solicit donations?
The Charitable Solicitations Act is found at §57-22-4 NMSA. There is no provision in this act providing for the general use of games of chance to solicit charitable donations. However there are specific statutes, the Gaming Control Act, and the Bingo and Raffle Act which permits using specific games of chance for charitable purposes and which set out specific legal guidelines for doing so. There are no statutes permitting the use of ANY other game of chance for the purpose of soliciting charitable donations.
DISCLAIMER
This document is NOT a comprehensive statement of all the laws applicable to fundraising or gambling in New Mexico. This is NOT intended to provide any legal advice to any person or organization. The NM Gaming Control Board strongly urges any person or organization to consult an attorney regarding the possible consequences, effects, criminal and otherwise, of conducting various games of chance. Additionally, organizations conducting fundraising activities have specific tax reporting obligations. More detailed information about these obligations can be obtained from the New Mexico Taxation and Revenue Department, Tax information and Policy Office, at 827-0700, and the Internal Revenue Service, at 1-800-829-1040. Organizations conducting fundraising activities may have certain registration and reporting obligations. Contact the Public Regulation Commission, Corporations Bureau at 827-4500, and the (57-22-5 NMSA) Attorney General’s Office, Registry of Charitable Organizations, at 827-6000, for more information.
THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES AND USE ONLY AND IS IN NO WAY MEANT TO BE ADVISORY IN NATURE.
