Pro teams push California to offer high-stakes raffles

Published Aug. 29, 2015 11:00 a.m. ET

foxsports

SACRAMENTO, Calif. (AP) California's major league sports clubs and a leading raffle vendor are lobbying state lawmakers for the exclusive right to conduct charitable gambling at sporting events.

These raffles that pay out half the proceeds as prize money are gaining popularity across the nation. But California law caps charity prizes. Currently, up to 10 percent of proceeds can go to winners while 90 percent goes to charity.

The proposal has divided nonprofits and some are calling foul. Critics say it would establish an unfair exemption favoring franchise owners over smaller charities like food banks, PTAs and churches.

Democratic Sen. Isadore Hall of Compton said 50-50 raffles are a tremendous success in 29 states and across Canada.

Pointstreak Sports Technologies Inc. has spent more than $100,000 to break into California's lucrative market.