Texas Sports Team Charitable Foundation Raffles Amendment, Proposition 4 (2015)

Proposition 4
Type	Amendment
Origin	Texas Legislature
Topic	Gambling
Status	Approved a

Texas 2015 ballot
Proposition 1 - Taxes
Proposition 2 - Taxes
Proposition 3 - Residency
Proposition 4 - Gambling
Proposition 5 - Roads
Proposition 6 - Hunting
Proposition 7 - Taxes

All 2015 U.S. measures

The Texas Sports Team Charitable Foundation Raffles Amendment, Proposition 4 was on the November 3, 2015 ballot in Texas as a legislatively referred constitutional amendment, where it was approved.

A "yes" vote supported this amendment to authorize professional sports team charitable foundations in existence on January 1, 2016, to operate charitable raffles.

A "no" vote opposed this amendment to authorize professional sports team charitable foundations in existence on January 1, 2016, to operate charitable raffles.

Election results[edit]

Texas Proposition 4
Result		Votes	Percentage
a Yes		1074485	69.41%
No		473460	30.59%

Election results via: Texas Secretary of State

Introduction[edit]

Before the proposition passed, only nonprofit organizations were able to hold raffles, which took effect after voters passed Proposition 15 in 1989.^[1]

The 2015 amendment applied to the charitable foundations in existence on January 1, 2016, of the teams in the National Football League, the National Basketball Association, Major League Baseball, Major League Soccer and the National Hockey League. The measure was designed to allow raffles at home games of the sports teams associated with the foundations.^[2][3][4][1]

House Joint Resolution 73, the enabling legislation for the amendment, outlined who can hold a raffle, how a raffle can be conducted, and penalties for breaking the rules. The measure also mandated how the raffle revenue can be allocated:^[5]

• 50 percent or less would be awarded to the raffle winner
• 40 percent or more would be donated to charity
• 10 percent or less could be used for raffle operating expenses

The measure was introduced into the Texas Legislature by Rep. Charlie Geren (R-99) as House Joint Resolution 73.^[6] He filed the amendment at the request of the Texas Rangers, a Major League Baseball team.^[7]

Text of measure[edit]

Ballot title[edit]

The official ballot title was:^[2]

“

The constitutional amendment authorizing the legislature to permit professional sports team charitable foundations to conduct charitable raffles.[8]

”

Constitutional changes[edit]

Texas Constitution
Preamble
Articles
1 • 2 3 (1-43) • 3 (44-49) • 3 (50-67) 4 • 5 • 6 • 7 • 8 • 9 • 10 • 11 • 12 • 13 • 14 • 15 • 16 • 17 • Appendix

See also: Article 3, Texas Constitution

The measure amended Subsection (a) and added Subsection (d-1) to Section 47 of Article 3 of the Texas Constitution. The following underlined text was added:^[2]

(a) The Legislature shall pass laws prohibiting lotteries and gift enterprises in this State other than those authorized by Subsections (b), (d), (d-1), and (e) of this section. ... (d-1) The legislature by general law may permit a professional sports team charitable foundation to conduct charitable raffles under the terms and conditions imposed by general law. The law may authorize the charitable foundation to pay with the raffle proceeds reasonable advertising, promotional, and administrative expenses. A law enacted under this subsection may apply only to an entity that is defined as a professional sports team charitable foundation on January 1, 2016, and may only allow charitable raffles to be conducted at games hosted at the home venue of the professional sports team associated with a professional sports team charitable foundation.[8]

Enabling legislation[edit]

Proposition 4 was placed on the ballot by HJR 73, which was enabled by House Bill 975. Since voters approved Proposition 4, HB 975 went into effect.^[5]

Teams and foundations[edit]

HB 975 defined both "professional sports teams" and "professional sports team charitable foundation." The former are teams that are members of Major League Baseball (MLB), the National Basketball Association (NBA), the National Hockey League (NHL), the National Football League (NFL) or Major League Soccer (MLS). The latter is an organization that (a) “holds a certificate of formation under the Business Organizations Code or is otherwise incorporated under the laws of this state;” (b) “is associated with a professional sports team; and” (c) "is formed for charitable purposes."

Only foundations in existence on January 1, 2016, are allowed to hold raffles, which can only be held during home games.

The following table is a list of professional sports teams based in Texas at the time of the proposition:^[9]

Team	City	Stadium
Major League Baseball (MLB)
Houston Astros	Houston	Minute Maid Park
Texas Rangers	Arlington	Globe Life Park
National Football League (NFL)
Houston Texans	Houston	NRG Stadium
Dallas Cowboys	Arlington	AT&T Stadium
National Basketball Association (NBA)
Dallas Mavericks	Dallas	American Airlines Center
Houston Rockets	Houston	Toyota Center
San Antonio Spurs	San Antonio	AT&T Center
National Hockey League (NHL)
Dallas Stars	Dallas	American Airlines Center
Major League Soccer (MLS)
FC Dallas	Frisco	Toyota Stadium
Houston Dynamo	Houston	BBVA Compass Stadium

Qualifications to conduct raffle[edit]

Under HB 975, charitable sports foundations need to meet six requirements to be permitted to hold raffles:^[5]

1. A foundation must be "associated with a professional sports team with a home venue located in" Texas;
2. A foundation must not distribute "any of its income to its members, officers, or governing body, other than as reasonable compensation for services;"
3. A foundation must have existed "for at least the three years preceding the conduct of a raffle;"
4. A foundation must not devote a "substantial part of its activities to attempting to influence legislation and does not participate or intervene in any political campaign on behalf of any candidate for public office in any manner, including by publishing or distributing statements or making campaign contributions;"
5. A foundation must qualify and obtain "an exemption from federal income tax from the Internal Revenue Service as a charitable organization described in Section 501(c)(3), Internal Revenue Code of 1986;" and
6. A foundation must not "have or recognize any local chapter, affiliate, unit, or subsidiary organization in this state."

Raffle and ticket sales[edit]

The enabling legislation also provided the rules governing raffles and ticket sales. An individual needs to be 18 years of age or older to purchase raffle tickets from a foundation. Only volunteers or employees of a foundation or the professional sports team associated with a foundation are authorized to sell raffle tickets. A foundation is allowed to award a winner, selected by random draw, a cash prize amounting to "50 percent of the gross proceeds collected from the sale of raffle tickets" or less.^[5]

Each ticket sold in a raffle must contain information on (1) the name of the raffle, (2) the sales station where the ticket was purchased, (3) the date the random draw will occur, (4) how the winner will be announced, (5) the procedure and location for claiming a prize, (6) the time period in which a winner must claim his or her prize, and (7) the logo of the foundation, the logo of the associated sports team, or both.^[5]

Foundations are prevented from announcing raffle winners "by means of interactive and instantaneous technology."^[5]

Operating expenses[edit]

HB 975 prescribed rules regarding the operating expenses of raffles. No more than 10 percent of the revenue from a raffle can be used to pay the "reasonable operating expenses" of conducting the raffle. "Reasonable operating expenses" includes promotion, advertisements, fund-raising events, administrative expenses, fees for equipment, hardware, and software necessary to sell raffle tickets, conduct random drawings, and calculate money collected, the cash prize, amount raised for charity and the amount that may be deducted for "reasonable operating expenses."^[5]

Criminal offenses and injunctions[edit]

The legislation established four criminal penalties, all of which are Class C misdemeanors. First, an offense is committed if a seller accepts payment "other than the United States currency for the purchase of a ticket." Second, an offense is committed if a seller knowingly sells a ticket to a minor. Third, an offense is committed if a purchaser misrepresents his or her age or displays fraudulent evidence of being 18 years of age or older in order to purchase a ticket. Fourth, an offense is committed if a purchaser uses money from a "check issued as a payment under the financial assistance program administered under Chapter 31, Human Resources Code."^[5]

HB 975 provided that a raffle violating or threatening to violate state law or is not authorized may be shut down, temporarily or permanently, by a county or district court in a case brought forward by a county attorney, district attorney, criminal district attorney or the Texas Attorney General.

Background[edit]

Raffles in Texas[edit]

See also: Texas Raffle Regulation, Proposition 15 (1989)

In 1989, voters passed Proposition 15, which allowed nonprofit organizations to conduct raffles for charity. Before Proposition 15 was approved, the Texas Constitution banned all raffles from 1876 until 1990 for a total of 114 years.^[10]

Support[edit]

The Texans for Prop 4 campaign lead support for the proposition.

Supporters[edit]

Officials[edit]

The following state legislators sponsored the measure:^[11]

• Rep. Charlie Geren (R-99)
• Rep. Lyle Larson (R-122)
• Rep. Senfronia Thompson (D-141)
• Rep. Kenneth Sheets (R-107)
• Rep. Rodney Anderson (R-105)

Athletic teams and organizations[edit]

Businesses[edit]

• Spurs Sports and Entertainment^[3]

Arguments in favor[edit]

Texans for Prop 4 argued on their website:^[13]

“

Texas pro sports team foundations help tens of thousands of Texas children each year through outreach programs and by providing invaluable resources to Texas charities. From mentoring underprivileged youth to partnering with local nonprofits, sports foundations are a powerful force for good in Texas. Proposition 4 will help fund these efforts by letting charitable raffles take place at home games. For decades, Texas nonprofits have used raffles to raise money for charity; but this measure empowers the pro team foundations by giving them another way to get even more involved with their communities. Team foundations already give hundreds of thousands of dollars to local YMCAs, Boys and Girls Clubs, and Food Banks, and this measure would increase their impact. It directly benefits children and families in need right here in Texas, without using any taxpayer or public dollars.[8]

”

State Rep. Trent Ashby (R-57) said:^[14]

“

Many professional sports teams are involved in admirable causes, and raise money for sick children and others who need assistance. Prop 4 will allow teams to have their fans to donate to these worthy causes, and expands their ability to raise funds through a raffle. I believe with the passage of this proposition, Texans will have more opportunities to give to those in need and be able to work together with the other fans of their team to see the world changed for the better.[8]

”

The House Research Organization provided supporting and opposing arguments in the group's bill analysis. The following is an excerpt from the supporting statement:^[3]

“

HJR 73, along with its enabling legislation, HB 975 by Geren, would increase philanthropic donations by allowing charitable foundations of Texas professional sports teams to hold charitable raffles and use proceeds to pay for reasonable operating expenses. Expanding these popular raffles would allow teams to give back even more to the communities they represent. The two measures would work together to permit the charitable foundations of professional sports teams to hold charitable raffles for cash prizes at each of their team’s home games. Twenty-five states have laws that allow sports teams to hold charitable raffles. These states allow for a particular type of raffle called a 50/50 raffle, in which half of the proceeds go to charity and the other half is paid to the winner. Texas is one of only five states that has professional sports team franchises but does not allow 50/50 raffles, which are more popular than other raffles because they offer a cash prize. The more raffle tickets are sold, the more money is raised for charitable organizations, which benefits local communities and important causes. HJR 73 would make these types of charitable raffles possible by authorizing the Legislature to enact laws allowing them. HJR 73 would not authorize laws to create new forms of gambling. The proposed amendment merely would authorize the Legislature to craft laws governing how professional sports team charitable foundations may conduct raffles, including using raffle proceeds to pay for reasonable operating expenses.[8]

”

Karin Morris, executive director of the Texas Rangers Baseball Foundation, argued:^[15]

“

Texas is already a generous state. Our people are generous and our sports team foundations are generous. Proposition 4 just allows for folks to buy charitable raffle tickets at pro sporting events with half the proceeds going to our nonprofit foundations — directly into our communities and schools — and the other half going to the winner of the raffle. That’s all Prop 4 does. And that’s all we want it to do.[8]

”

State Rep. Charlie Geren said:^[16]

“

It benefits the charities of the professional sports teams in Texas. It’s a way to put more money back into the community.[8]

”

State Rep. Matt Krause (R-93), who serves the district home to the Texas Rangers and Dallas Cowboys, said::^[17]

“

I don’t think it’s an expansion of gambling. We’re just changing the frequency of what they are doing and the way it’s paid out. It’s not a wholesale or new form of gambling.[8]

”

Houston Astros President Reid Ryan supports the measure and said:^[17]

“

We want to give back to the community we serve.[8]

”

Opposition[edit]

Organizations[edit]

• Christian Life Commission of the Baptist Convention of Texas^[3]

Arguments against[edit]

Robert Kohler, a Christian Life Commission of the Baptist General Convention of Texas lobbyist, argued:^[17]

“

If this happens for the NFL and other sports leagues, will we see it next session when someone tries to do it for the racetracks and bingo halls?[8]

”

The House Research Organization provided supporting and opposing arguments in the group's bill analysis. The following is an excerpt from the opposing statement:^[3]

“

HJR 73 would increase the number of exceptions to a sensible constitutional prohibition against lotteries and gift enterprises. If approved by voters, the proposal would be the first time in 24 years that the Texas Constitution was amended for gambling purposes – and only the fourth time since the Constitution was adopted. With every amendment to the Constitution, people come up with new ways to push the limits of what is allowed under the laws it authorizes. Some gambling games and machines exist today because they are protected by technicalities in the law or because they simply are not being regulated. Opening the Constitution to even more interpretation and flexibility could allow the enactment of future legislation that was never intended by this proposal, such as electronic raffles at race tracks or bingo halls. This proposed amendment could open the door to forms of gambling more serious than charitable raffles.[8]

”

Rodger Weems, board chair of Stop Predatory Gambling Texas, stated:^[7]

“

We see other things coming down the road. The constitutional amendment opens the door.[8]

”

Media editorials[edit]

Support[edit]

The Dallasnews.com editorial board wrote:^[18]

“

Churches have bingo nights. Volunteer fire departments raffle off all sorts of goodies. The state of Texas has this little thing called the lottery. Our state’s gambling rules — at least in the name of a good cause — already contain exceptions. We see no reason not to add another that could bring in a lot of money for charitable groups that need it. Many, if not all, professional sports teams in Texas have charitable foundations. As the law stands, those foundations cannot hold raffles to support their work. Proposition 4 would change that, and we recommend voters support it. Imagine how much money the Dallas Cowboys’ foundation could bring in by raffling off a night in a luxury box or a chance to meet Tony Romo. Constitutional prohibitions to gambling have been amended regularly to assist charitable causes. This is just another minor amendment that will have little impact on the vast majority of Texans, but for those it stands to help, that impact could be great indeed.[8]

”

The Amarillo Globe-News editorial board wrote:^[19]

“

Charity begins at home — so the saying goes. In Texas, it appears it must be written into the state constitution that professional sports teams can do their part for charity. If this is what it takes — a constitutional amendment permitting charitable foundations related to pro sports teams to hold charitable raffles — so be it. ... Interestingly, in the case of this amendment, no comments were made in opposition to the amendment in the Legislature. It seems highly unlikely that allowing pro sports teams to hold charitable raffles (with the attached stipulations) will have any impact on gambling — one way or the other. Most constitutional amendments in Texas are approved by voters — in resounding fashion. HJR 73 deserves similar voter support.[8]

”

The Star Telegram editorial board stated:^[20]

“

Supporters say the raffles would give foundations a way to raise another $250,000 to $1 million a year for charitable causes. In 24 years, the Rangers’ foundation has given $14 million for youth programs. Some opponents originally feared the raffles would expand legal gambling. But Texas already allows raffles and bingo for charity, and the amendment only allows the foundations to give a cash prize and hold more than the current two raffles per year. Yes, the foundations are a goodwill gesture that help private sports team owners promote community relations. But the charities also do plenty of good work, and the community is better off with sports teams and athletes raising more money for local causes. If team owners also sustain their current levels of personal charity support, the raffles will be a great gain for the community. But if owners depend on raffle proceeds to sustain foundations and neglect their own personal responsibility to give back to the communities that support the teams, Texans will regret the amendment. That has not been the case in other states, where charities have raised up to $50,000 in a single game.[8]

”

Path to the ballot[edit]

See also: Amending the Texas Constitution

The amendment was filed by Rep. Charlie Geren (R-99) as House Joint Resolution 73 on January 27, 2015.^[6] He did so at the request of the Texas Rangers.^[7]

A two-thirds vote in both chambers of the Texas State Legislature was required to refer this amendment to the ballot. Texas is one of 16 states that require a two-thirds supermajority vote in both chambers. On April 16, 2015, the Texas House of Representatives approved HJR 73, with 137 representatives voting "yea" and nine voting "nay." The Texas Senate approved the measure on May 6, 2015, with 27 senators voting "yea" and four voting "nay." HJR 73 was enrolled the following day, May 7. It was filed with the Texas Secretary of State on May 12, 2015.^[6]

"No" votes[edit]

Between the Texas House of Representatives and Texas Senate, 13 legislators voted against referring the amendment to the ballot. These legislators were:^[6]

State profile[edit]

Demographic data for Texas
	Texas	U.S.
Total population:	27,429,639	316,515,021
Land area (sq mi):	261,232	3,531,905
Race and ethnicity**
White:	74.9%	73.6%
Black/African American:	11.9%	12.6%
Asian:	4.2%	5.1%
Native American:	0.5%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	2.5%	3%
Hispanic/Latino:	38.4%	17.1%
Education
High school graduation rate:	81.9%	86.7%
College graduation rate:	27.6%	29.8%
Income
Median household income:	$53,207	$53,889
Persons below poverty level:	19.9%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Texas. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern[edit]

See also: Presidential voting trends in Texas

Texas voted Republican in all six presidential elections between 2000 and 2020.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, one is located in Texas, accounting for 0.5 percent of the total pivot counties.^[21]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Texas had one Retained Pivot County, 0.55 percent of all Retained Pivot Counties.

More Texas coverage on Ballotpedia

• Elections in Texas
• United States congressional delegations from Texas
• Public policy in Texas
• Endorsers in Texas
• Texas fact checks
• More...

See also[edit]

• Texas 2015 ballot measures
• 2015 ballot measures
• Texas Legislature

External links[edit]

• House Joint Resolution 73
• Texas Secretary of State - What's On the Ballot 2015
• Texas Legislative Council 2015 Analyses of Proposed Constitutional Amendments
• Texas House of Representatives House Research Organization Focus Report - Amendments Proposed for November 2015 Ballot

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