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The term “authorized organization” when used in the context of gaming law means organizations carrying on gaming activities for the purpose of charity. These organizations are conducted after obtaining a license from the concerned agencies under the state. Charitable gaming may only be conducted by a licensed organization. An authorized organization’s gross profits from gambling minus prizes can be used only for lawful purposes, mainly charity and organization’s expenditures like paying gambling taxes. Organizations may conduct gambling only on premises they own or lease. An organization is responsible for all gambling conducted in its name. Every organization must have a person who is responsible for overseeing all the organization’s gambling activities. An organization must keep its gambling accounts separate from all its other accounts.
The following is an example of state statute (New York) defining the term.
Pursuant to NY CLS Gen Mun § 186 (4), “authorized organization” shall mean and include any bona fide religious or charitable organization or bona fide educational, fraternal or service organization or bona fide organization of veterans or volunteer firemen, which by its charter, certificate of incorporation, constitution, or act of the legislature, shall have among its dominant purposes one or more of the lawful purposes as defined in this article, provided that each shall operate without profit to its members, and provided that each such organization has engaged in serving one or more of the lawful purposes as defined in this article for a period of three years immediately prior to applying for a license under this article.
No organization shall be deemed an authorized organization which is formed primarily for the purpose of conducting games of chance and which does not devote at least seventy-five percent of its activities to other than conducting games of chance. No political party shall be deemed an authorized organization”.