The Relationship Between Gambling and Charity Events: A Growing Trend?
It’s always been a thing, but you might not have noticed—gambling for good. Gambling-themed charity events have always been around, but what started out as basic fundraisers have turned into some of the hottest tickets around! There are casino nights, poker tournaments, raffles, and more. And they aren’t solely about raising money (although that’s the main point); they’re a super fun social night out with friends, colleagues, luck, and it’s all for a good cause!
What exactly is driving the growing popularity of gambling for good, and why are charities going all-in on gambling events to fundraise? Keep reading to find out!
History of Gambling in Charity Events
Gambling for charity has been around a lot longer than most of us realize—it’s gone from small, close-knit gatherings to some of today’s most popular fundraising events!
Early Beginnings
It all began with smaller community-focused events like a bingo night at the local church or neighborhood raffles. The gatherings brought people together, put the “fun” in fundraising, and supported everything from community projects to school programs. Bingo pretty much became an obsession in the U.S. in the early 20th century, and the game helped churches and local organizations rally their communities and raise much-needed funds.
Evolution Over Time
As time went on, events like these grew, and by the 1980s, some states started to allow more structured gambling for charity purposes. In Illinois, poker was approved for charity use in 1984, which gave rise to groups like Rockford Charitable Games. Now, poker nights weren’t just a chance to play cards—they supported local causes and gave poker fans a way to do some good while enjoying the game!
Significant Milestones
The events gained in popularity, so they started attracting bigger names and even more money to charitable endeavors.
- In the UK, the launch of the National Lottery in 1994 marked a major moment, as a portion of lottery revenue went directly to charitable projects.
- In the U.S., the World Series of Poker (WSOP) began incorporating charity tournaments, which drew in celebrities and big donors who were eager to support a cause while also chasing a jackpot.
Charity gambling got even more popular because of the internet—platforms like Extra Life, which was launched in 2008, turned gaming marathons into a way to raise money for children’s hospitals across North America. By 2024, Extra Life has become a fundraising powerhouse, and that shows just how much impact a mix of games, technology, and a good cause can have!
How Gambling Events Work as Fundraisers
What makes gambling-themed charity events tick? How can you plan a good one, what games should you choose, and how do they bring in funds? And how can you make sure you stay on the right side of the law and the IRS?
Almost every gambling-themed charity event has a setup that fully engages guests. You’ll usually see poker tournaments, blackjack tables, roulette wheels, and maybe even slot machines—it all depends on the venue and the budget!
Poker tournaments are a huge hit at these types of events. Guests will pay an entry fee, which goes right to the charity, and then compete for prizes that add a little friendly competition to the night. Casino nights, on the other hand, work with a “fun money” model: guests will make a donation and get a set amount of chips to use at the tables. The setup lets everyone have fun without needing real cash to keep the games running, and at the end of the night, events will most likely award prizes based on chip totals.
Raffles are another popular feature, as they’re simple yet effective: guests buy tickets for a chance to win prizes, with all ticket sales supporting the cause. Plus, raffles don’t need much of a setup or a lot of expertise, so they’re an easy addition to an event. The games give a nice balance of structured activities and casual play, and guests have various ways to participate, even if they’re not experienced players.
The most important part of a gambling fundraiser lies in the variety of revenue streams it brings in. The events don’t only rely on one way to get donations; they’re pulling in funds from different angles, and that helps them maximize the money going to the cause! Here’s how they do it:
– Ticket Sales: Charging an entry fee helps cover the basics and gives it a feeling of exclusivity, which gets people invested in the event.
– Game Participation Fees: Tournaments usually have buy-ins, and casino games work with a chip-buying model. Both approaches give people a way to engage directly with the games, so they aren’t merely passive observers. It’s hands-on fun with a purpose.
– Sponsorships: Partnering with local businesses can really help push a fundraiser’s profits. Sponsors will usually contribute funds or donate prizes, and in return, they get brand exposure and the goodwill that comes from supporting a charitable event.
– Donations from Winners: Some events encourage winners to give a portion of their prize back to the charity. This gives winners a chance to enjoy their victory but stay true to the event’s purpose. For the charity, it’s a great way to stretch funds a little further.
As fun as gambling-based charity events can be, they do come with some legal and tax requirements, especially in the U.S.
– Licensing Requirements: Organizers typically need specific licenses to hold gambling activities, even for charity. The rules vary by state, so it’s important to understand all local laws beforehand. Some states are relatively flexible about charitable gambling, but others require extensive paperwork and permits.
– Tax Reporting: Charities need to report any significant winnings to the IRS. In the U.S., if a participant wins above a certain threshold, the charity will have to file a Form W-2G, and winners could have tax withholdings. Getting this right means avoiding any surprises for both the charity and the winner.
– Unrelated Business Income Tax (UBIT): Charities in the U.S. need to watch out for this tax, which can apply if the event doesn’t directly relate to their core mission. However, events run by volunteers or those fitting other specific criteria can be exempt from UBIT, so understanding the nuances here can help keep the event tax-efficient.
– State Regulations: Each state has its own rules around charitable gambling. Some states allow a range of activities, while others have strict limits on what’s permitted, especially when money changes hands. It’s super important for organizers to be aware of the regulations to keep everything above board.
If you are planning a gambling fundraiser, you can work with a legal advisor or a professional with experience in charity events who can help you keep things on the up and up in the tax and legal departments!
The Appeal of Gambling for Charity
There is obviously a special appeal for gambling events for charity—they mix fun with a real purpose, and that makes for an atmosphere where the attendees feel like a part of something exciting that gives back to a worthy cause!
Social and Entertainment Value
People love events that are a combo of social connection and entertainment, and gambling nights hit the bullseye in both categories. Casino tables, raffles, and poker tournaments bring an interactive element so that the gatherings feel more like a night out with friends than a stiff and upper-crust formal fundraiser. It’s a setting where people can socialize, enjoy games, and kick back—all while knowing their participation makes a difference. It attracts guests who will skip a traditional black tie gala but are all in for a fun night that supports a good cause!
Unique Donor Engagement
Interactive events bring in donors in a way that more formal fundraisers can’t always match.
Why? Well, an informal gambling night feels way more approachable and inclusive; it encourages people to get involved—even if they’re not normally big donors.
There’s something so inviting about a night where people can play games, win prizes, and hang out with others without that fundraising pressure accompanying hoity-toity events. The format breaks the ice, and that can result in way more relaxed and open-handed contributions—there’s no sense of obligation.
Increased Media Coverage and Sponsorships
Want attention? Throw a gambling-themed event! Sponsors know the appeal of having their brand associated with an engaging, well-attended event that’s more than just a fundraiser. Media outlets, for the most part, will view these events as worth covering, too, since they offer something different from the more standard charity functions. Extra exposure doesn’t just boost attendance—it also helps spread awareness for the cause itself, and that benefits the charity well past the night of the event.
Impact of Gambling on Charity Fundraising Success
Gambling events have proven to be really effective fundraisers—they bring in high returns, encourage long-term support, and attract a lot of attention to the causes that they support. Below is a look at the impact of gambling-based fundraisers through data, loyalty-building, and some successful examples!
Higher Fundraising Averages
Research has shown that charity events with gambling elements frequently achieve strong fundraising results. With ticket sales, game buy-ins, and sponsorship opportunities, it’s possible for these events to generate more funds than most traditional fundraisers. Events with poker, blackjack, and similar games tend to outperform traditional galas because of their interactive nature—it’s so much more fun than standing around in formal attire drinking champagne!
Casino nights and poker tournaments that are hosted by groups like the American Cancer Society and the Red Cross consistently attract larger crowds and encourage generous giving. Guests love the engaging setting and the chance to give in a relaxed environment. With an immersive experience, charities usually see increased average donation amounts, especially when guests are inspired to donate back their winnings or buy extra chips.
Recurring Events and Donor Loyalty
Gambling events bring in dedicated supporters who come back year after year, and that establishes a loyal donor base. Annual casino nights or poker tournaments foster a sense of tradition among the attendees, many of whom will bring friends or family, building a community around the event. The recurring engagement strengthens the relationship between the charity and its supporters, making it easier to reach their fundraising goals each year.
An example is the Poker for Puppies event hosted by animal shelters across the U.S. Participants return annually, not only for the poker but for the social connections (and puppies!) and a common mission of supporting animal welfare. The loyalty developed through these events turns attendees into lifelong supporters who look forward to each new installment, so there is a high likelihood of giving back in other ways, like volunteering or donating outside of event times.
Case Studies
High-profile charity gambling events serve as powerful examples of the success these fundraisers can bring.
- The Ante Up for Africa poker tournament, held annually in Las Vegas, has raised millions to support humanitarian work in Africa. Founded by Don Cheadle and Annie Duke, the event combines celebrity appeal with serious fundraising, and it attracts major poker players and fans from across the country.
- In Canada, the Heart and Stroke Foundation’s Red Ball Gala, which features casino tables, auctions, and live music, has become a celebrated annual event in Toronto. The gala attracts hundreds of attendees, from business leaders to local influencers, each year, with all proceeds supporting heart disease and stroke research.
- Another example is the All-In for Kids Poker Tournament organized by the Children’s Hospital of Philadelphia. This yearly event brings in local business leaders and celebrity players, generating substantial funds to support children’s healthcare initiatives. Combining high-stakes poker with charitable giving is a huge fundraiser and a gathering that strengthens the community around the cause.
- And then there’s the annual Celebrity Poker Tournament, which has become a favorite among Hollywood stars. The event raises hundreds of thousands of dollars and brings in celebrities and high rollers who generate publicity and attract more attendees. The star power gets massive media coverage, and that means more donations!
In smaller communities, events like Local Casino Nights have also proven to be super successful. Community organizations in cities like Chicago and Miami host casino nights that incorporate poker tables, blackjack, and live auctions. The events are hosted in partnership with local businesses, creating a fun environment that pulls in substantial funds through both participation and sponsorship. Charities involved usually report a strong turnout from both new guests and longtime supporters, with all proceeds benefiting local causes!
Potential Challenges and Criticisms
Gambling-themed charity events are obviously popular, but they come with a few challenges—and criticisms. Charities have to think the following through carefully; there are some ethical debates, regulatory hoops, and, of course, the public perception aspect!
Ethical Considerations
For some people, the idea of using gambling to raise money for a good cause feels a little contradictory. Yes, gambling events rake in significant funds, but they also come with a stigma. Critics argue that hosting casino nights or poker tournaments sends the wrong message, especially if the charity’s mission seems to be at odds with gambling. Organizations promoting healthy lifestyles or financial literacy, for instance, could risk appearing that they are inconsistent by encouraging gambling—even if it’s just for a single night.
There’s also concern about the broader impact of normalizing gambling, even in a charitable context. Some worry it may encourage unhealthy behaviors or cause gambling problems down the road. In fact, a study by the Canada West Foundation found that 63% of charities who avoid gambling events cite ethical concerns as a main reason for doing so. Even though gambling-themed fundraisers are lucrative, there’s always a fine line to walk between raising funds and staying true to the organization’s values.
Regulatory Hurdles
Organizing a gambling event isn’t as easy as just renting a space, some poker tables, and inviting people to play. In the U.S., nonprofit gambling events are subject to strict regulations that vary from state to state, and charities have to adhere to multiple legal requirements to operate within the law, like the following:
- Licensing: In most states, charities have to secure a gambling license before they can host events that have poker, blackjack, or other casino games. The process involves paperwork, fees, and specific compliance steps that could take weeks or months to get done. Depending on the state, organizations might even need different licenses for different types of games.
- Age Restrictions: It’s a must for charities to follow the legal age restrictions for gambling. An event has to make sure that only those of legal age are able to participate in casino-style games. Failing to enforce this can result in penalties and reputational damage, especially for charities whose work involves younger audiences. Volunteers and staff need to be ready to check IDs and monitor the crowd, and this takes more logistical planning.
- Tax Implications: Nonprofits also have to negotiate the tax side of gambling events. Income from gaming activities may be subject to unrelated business income tax (UBIT) if it’s not directly related to the organization’s exempt purpose. However, some exceptions exist—like for bingo, which often has a different tax status than other gambling activities. Charities need to understand the distinctions in order to steer clear of unexpected tax bills and to verify they they’re following IRS guidelines.
- State-Specific Laws: In addition to the general rules, each state has its own gambling laws, and some are more flexible than others. A state like Nevada, with its already-established gaming industry, will have different requirements for charity events than a state where gambling is more restricted. Nonprofits have to tailor their events to fit local regulations, which may involve additional costs or limitations on the types of games they are able to offer attendees.
Impact on Perception of the Charity
Public perception is another big hurdle that charities have to consider! Because gambling events are usually high-energy and attract a sizable crowd, they may not be a natural fit for every cause.
Some organizations get criticism that a casino night or poker tournament doesn’t match up with their mission or values, particularly if their work is related to youth, addiction recovery, or poverty alleviation.
A youth-focused nonprofit will worry about sending mixed messages if they host a casino night fundraiser. Even if there are age restrictions and a clear mission statement, the optics of promoting gambling could cause tension with supporters or parents. The organization is then in danger of alienating a segment of its audience who view gambling as an activity that shouldn’t be associated with young people, even in an indirect way.
Some charities manage this challenge by carefully framing the event—they’ll focus on the social or community aspect instead of the gaming itself or include language highlighting the entertainment and charity elements. Others will choose to pivot to events that feel more aligned with their core mission to avoid any possible backlash.
The Growing Popularity of Online Gambling Events for Charity
Since the COVID-19 pandemic, online gambling events have become a popular way for charities to raise funds! Let’s take a look at how the shift to virtual fundraisers came about, the benefits it has, and the challenges that could come with it.
Shift to Virtual Fundraisers
The COVID-19 pandemic forced most organizations to rethink their fundraising strategies. Because traditional in-person events were no longer feasible, a lot of charities began to explore virtual alternatives. Online poker tournaments, raffles, and casino-style games emerged as solid options that could be held safely from a distance. Events like the American Cancer Society’s annual poker night transitioned to online, which meant sustained support and keeping donors engaged even during the pandemic lockdowns.
Advantages of Online Events
The growth of online gambling events has brought with it new advantages that conventional in-person events can’t always compete with, like the following:
- Accessibility: Virtual events break down geographical barriers—people are able to join from anywhere. The expanded reach brings in more donations and connects charities with a bigger donor base
- Cost-Effectiveness: Hosting events online cuts out the need for expenses like venue rentals, catering, and other in-person logistics. With lower costs, charities can direct a larger portion of the funds raised to their programs.
- Convenience: Being able to join from home means that more people can attend, which, in turn, makes the event accessible to a much broader audience. The comfort factor boosts turnout!
Challenges of Virtual Gambling Events
Obviously, online events come with certain advantages, but they also have a few challenges that charities have to consider, like the following:
- Security: Protecting participants’ personal and financial information online is a must. Charities have to secure platforms and should educate all participants on online safety best practices.
- Payment Processing: Reliable payment processing is really important for transactions—charities have to choose secure, user-friendly payment platforms to facilitate easy and safe donations.
- Engagement: It can be really hard to replicate the fun atmosphere of an in-person event virtually. But, using live hosts, interactive features, and networking options does help to bring a more social, engaging feel to the online format.
- Regulatory Compliance: Gambling laws for virtual events vary wildly, so charities have to negotiate them carefully. Consult with legal experts to make sure you’re in compliance with regional laws and to secure the necessary licenses.
Future Trends in Gambling-Themed Charity Events
What does the future look like for gambling-themed charity events? For starters, they’ll find new ways to keep people engaged, and they’ll use cutting-edge technology to do it! And there could be hybrid event formats that will make it easier for anyone to get involved!
Integration of Technology
Technology will undoubtedly be a conduit for new kinds of possibilities for gambling fundraisers:
- Live-Streaming Events: Some charities are now streaming their events, which lets supporters tune in and join from anywhere. This is a way to reach more people and keep things interactive, even for those who aren’t there in person.
- Virtual Reality (VR) Casino Experiences: You might be able to pop on a VR headset and “walk” right into a VR casino environment. Virtual reality makes this a reality, and it brings the casino to you. The setup has an immersive feel that appeals to tech-savvy supporters who want to experience something fun while also contributing to a good cause.
- Mobile Participation: Smartphones are a mainstay, and more and more charities are setting up mobile-friendly platforms. Supporters are able to join in, make donations, and play games directly from their phones, and that makes participation easier than ever.
More Cause-Specific Events
Charities are tailoring events to speak directly to their mission and supporters’ interests by utilizing the following tactics:
- Themed Events: Organizations are getting super creative with themes that reflect their work, like eco-conscious casino nights for environmental groups or medical-themed events for health research. Adding a specific theme to a gambling night means supporters will feel a stronger connection to a cause.
- Engagement with Targeted Audiences: Knowing what makes their audience tick helps charities make it a memorable experience. By concentrating on what speaks to l their supporters, they’re able to have events that draw people in and encourage them to give generously.
Potential for Hybrid Events
With both in-person and online elements, hybrid events could be a boon for gambling-themed fundraisers:
- Expanded Participation: Hybrid setups mean people can take part no matter where they are, which will mean higher attendance and, in turn, more funds raised. Those who can’t make it in person can still join in on the fun.
- Flexibility for All Attendees: Hybrid events cater to a host of preferences—it blends the traditional event feel with the convenience of joining from home, and the approach means that the event is accessible to even more supporters.
- Enhanced Interaction: Adding interactive online components, like live chats or virtual networking, always makes the event engaging for everyone, no matter if they’re there in person or virtually!
Conclusion: Gambling for Good
If you love to try your luck and want to do it while giving back to a good cause, gambling-themed charity events are the perfect way to multitask!
Here’s a quick wrap-up on why gambling-themed charity events are so popular:
- Gambling-themed charity events are growing in popularity because they combine two of the best things: fun and giving back to a cause you care about.
- Events like poker nights, raffles, and casino nights give charities the opportunity to reach more people and increase their fundraising via multiple ways to donate.
- With both in-person and online options, gambling fundraisers make it easier than ever for supporters to join in—it doesn’t matter where they are.
As more and more charities are exploring different fundraising methods, we expect gambling events will only become more popular as a great tool for both raising funds and building community!
If you’re feeling inspired, you can always support local or national gambling-themed charity events! Just pick a cause, any cause! Or, if you’re feeling really inspired, you could host your own casino night! It’s a great way to get everyone together and support a cause you’re passionate about.
