HELENA — Dozens of charities, school foundations and conservation groups urged the House Business and Labor Committee on Jan. 31 to allow nonprofit organizations, public school districts and colleges to accept credit‑card payments for raffle tickets under House Bill 141.

Rep. Ed Buttrey, sponsor of the bill, said the change is narrow and limited to ‘‘nonprofit, college, university, or school district’’ raffles for charitable purposes. ‘‘If you don’t want to use your credit card, you can use cash or check,’’ Buttrey told the committee, adding that point‑of‑sale systems commonly used by retail outlets cannot always distinguish debit from credit and volunteers and small outlets need a practical solution.

Supporters included Special Olympics Montana, the Rocky Mountain Elk Foundation, the Billings Catholic Schools Foundation, Cancer Support Community Montana and several conservation and civic organizations. Special Olympics CEO Rhonda McCarty said the group’s signature raffle raised nearly $700,000 in 2024 but saw a 21% drop in sales after a mid‑season enforcement complaint in 2018; she said businesses are reluctant to act as ticket outlets if accepting credit cards could expose them to enforcement risk.

Nonprofits argued the prohibition on the use of credit cards for raffles creates unnecessary barriers for donors and small volunteer sellers. The Montana Nonprofit Association and other witnesses said modern payment platforms make card acceptance affordable and that allowing credit cards would broaden business participation and improve recordkeeping for organizations that rely on raffles.

Opponents included the Gaming Industry Association, the Montana Coin Machine Operators Association and the Montana Tavern Association. They urged lawmakers to retain a bright line prohibiting ‘‘credit gambling’’ because credit‑based purchases can exacerbate gambling harms and because broadening the exception could lead to other forms of credit‑enabled wagering. The tavern association and other opponents warned of a slippery slope to lottery or fraternal‑organization gaming.

Committee members asked about who would bear payment‑processing fees, whether the bill could expand beyond the targeted nonprofits and how the Department of Justice regulates raffles. Nonprofit witnesses said organizations typically absorb processing costs and DOJ raffle guidelines require that proceeds be used for charitable purposes and not for administrative overhead.

The Montana Council on Problem Gambling offered neutral informational testimony urging awareness of gambling harms and support services. No committee action was taken on HB 141 during the hearing.

Why it matters: Nonprofits said the restriction on credit‑card payments is anachronistic and reduces revenue and business participation, while opponents said enabling credit gambling in any form increases risks of problem gambling and complicates enforcement boundaries.

Next steps: Sponsors said they would work with DOJ staff and committee members on precise statutory language and disclosure requirements if the bill moves forward.