Would it be legal for a non-profit organization to hold this type of event in Texas?

Really depends on what they’ll do with the proceeds of the whole event.

Also, is it “actual” gambling for money? Doesn’t sound like it since there are prizes.

Thank you for your answer, TaoSan!
Can you please help me more by showing the applicable law saying what they could do with the money that would be legal, and what wouldn’t?

ooompf, that would at the secretary of state’s website. at sos.tx.gov

let me do some research.

This would be the “entry point”

http://www.sos.state.tx.us/corp/nonprofitfaqs.shtml

Okay “sorry for the triple post”

Obviously, it would be speculation thinking about what they can and can’t do unless their filing status is known. In order to determine if they are limited in their activities, one has to know if they have filed for tax exempt status.

Another link for research would be this:

http://www.sos.state.tx.us/corp/nonprofit_org.shtml

The organization is tax-exempt.

You’d probably want to consult a local lawyer to be absolutely sure, but the difference between gambling (which is illegal) and game tournaments (which are legal) is that gamblers take home their winnings in the form of cash, while game tournament winners take home prizes based on how well they do.

If you’re charging a flat admission fee and awarding prizes to the people who finish the tournament with the best scores, it doesn’t really matter whether the game is poker or Monopoly or triple Yahtzee.

Thank you for your answer, cwilbur!

I’m a proponent of being informed, as opposed to ignorant, and I’d really like to read the applicable state law for myself, I just don’t know where I would find it. I actually, am of the opinion that knowing what the law actually says is better than just asking someone who should know. Just because they should does not mean they necessarily do.

So could you help me by helping me find the Texas codes that refer to game tournaments versus gambling?

I think I answered my own question. It appears, from this article in the Texas Bar Journal that it’s most likely illegal, regardless of the tax status of the organization, but the type of awards received could be relevant.

If the non profit accepts any kind of federal, state, or local government funding then the event can not be held as you describe it.

basp, the organization does not, but if you read the article, I think you’ll see that government funding is actually not relevant here…

La chica
I didn’t see an article in the question a be I was basing my answer only on the original question.
I apologize for not reading the whole thread.

So… The non profit does not receive ANY government funding??

@basp, You and I may have been typing at the same time, and you didn’t see my last answer before yours was posted.

no, none.

Oh…simotaneous posting… LOL

Sorry I wasn’t more help.