Tennessee voters could read and re-read Amendment 4 on the ballot and still be clueless of its practical effect. No one has raised any money to either make sure the measure passes or fails. So there’s been no education effort, not even yard signs. While the other amendments hit hot buttons like abortion, judicial elections and income taxes, Amendment 4 – simply put – allows veteran groups to do what most non-profits already can – hold a raffle.
Your typical 501(c)(3) non-profit in Tennessee can only hold one raffle a year. And to do so, they have to apply with the state, get specific approval from the legislature and strictly follow their plan, down to having the drawing at specific date and time. The General Assembly approved 145 events for 2014. A total of $8.3 million was raised by official raffles and cakewalks last year.
The Tennessee Trucking Association just held a drawing where 1,000 tickets were sold for $50 each. President Dave Huneryager says despite the regulation and oversight, it’s still relatively easy money.
“If you think about it, we’re going to raise $50,000. We’re going to give $20,000 of that away, at the same time it’s certainly worthwhile,” he says. “It just has to be done the right way.”
Charitable gaming rules were last overhauled when the state created a lottery for college scholarships in 2002. That also took a constitutional amendment which dictated who could hold a lottery and who could hold raffles and cakewalks. Groups like VFW and AmVets were left out entirely. They are 501(c)(19)s under the U.S. tax code.
Rep. John Ragan of Oak Ridge told legislators this year the omission was just an accident, which is why the state needed another constitutional amendment.
“This is doing nothing more than allowing c19s, which we inadvertently excluded,” Ragan said.
No Accident
But it was hardly an “oops,” says Memphis Congressman Steve Cohen. As a state senator, he pushed for the lottery in an era that followed a massive corruption scandal. It involved veterans groups and gaming parlors.
Cohen says barring veterans groups from any kind of gambling was done to get the necessary votes.
“There were a lot of people that were reticent to having an amendment at all,” Cohen says. “We had to do everything we could to get the 22 votes, and we passed it with just 22 votes in the Senate, which was the bare minimum.”
The bingo scandal and FBI sting of the mid-80s are a distant memory. The only resistance now comes from a small anti-gambling faction led by Sen. Mike Bell of Riceville.
“I have nothing but admiration, love and respect for our veterans,” Bell said during a hearing. “But I have a fundamental problem with the state being involved in gambling.”
If Amendment 4 fails, moral objections likely won’t be why. Frankly, few people know what it is. And on the ballot, there’s no mention of “veterans,” only the obscure tax code reference.
Norman Nuismer, the head of American Legion in Middle Tennessee says “we’re trying” to educate voters. But veterans groups like his are strapped for cash. They’ve struggled to recruit younger, dues-paying veterans, so there’s not much money for Amendment 4 publicity. The lack of funds is precisely why Nuismer says veterans groups need more fundraising options. His post would like to fund Little League teams.
“We looked at some of the initial figures on that, like $52,000,” Nuismer says. “Well, where are we going to get fifty-two thousand bucks?”
Hopefully, Nuismer says, by selling raffle tickets.
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