Shutting Down Charitable Sweeps: New Florida Law Has Potential Effect On Cause Marketers

Last week, Florida Governor Rick Scott signed into law FL HB 155, a bill that makes significant changes to the Florida Game Promotion Statute with regard to nonprofits and could have a significant effect on certain charitable promotions.  The bill, entitled “Prohibition of Electronic Gaming Devices,” was intended to clarify Florida’s prohibition on electronic gambling and slot machines and make it clear that the exception to prohibited lotteries for charitable drawings does not provide an exemption from other gaming prohibitions.  The way in which the language of the amendments to the existing statute was drafted, however, could be interpreted to prohibit gaming promotions in a cause-related marketing campaign (a type of marketing campaign where it is advertised that the purchase of a good or service will benefit a charitable cause).