Indiana Charitable Gaming: Indiana Bingo, Raffle, Door Prize and Charity Game Night Law
Indiana Charitable Gaming: Indiana Bingo, Raffle, Door Prize and Charity Game Night Law
Author:Karan EmeryReviewer:Frazer PughSep 01, 2014552.9K Shares8.2M Views
Current through Sep. 1, 2014 CHARITY GAMING
IC 4-32.2-1 Chapter 1. General Provisions
IC 4-32.2-1-1 Application of article
Sec. 1.
(a) This article applies only to a qualified organization.
(b) This article applies only to the following approved gambling events conducted as fundraising activities by qualified organizations:
(1) Bingo events, charity game nights, door prize events, raffle events, festivals, and other gaming events approved by the commission.
(2) The sale of pull tabs, punchboards, and tip boards:
(A) at bingo events, charity game nights, door prize events, raffle events, and festivals conducted by qualified organizations; or
(B) at any time on the premises owned or leased by a qualified organization and regularly used for the activities of the qualified organization.
This article does not apply to any other sale of pull tabs, punchboards, and tip boards.
(c) This article does not apply to a promotion offer subject to IC 24-8.
(d) This article does not apply to the following: (1) A type II gambling game authorized by IC 4-36. (2) A raffle or other gambling game authorized by IC 4-36-5-1(b).
IC 4-32.2-1-2 Purpose of article
Sec. 2.
Except as provided in IC 4-32.2-4-13(e), the purpose of this article is to permit a licensed qualified organization:
(1) to conduct allowable events; and
(2) to sell pull tabs, punchboards, and tip boards; as a fundraising activity for lawful purposes of the organization.
IC 4-32.2-1-3 Authorization requirement
Sec. 3.
A bingo event, charity game night, door prize drawing, raffle, festival event, or other charity gambling event licensed under IC 4-32.2-4-16 is not allowed in Indiana unless it is conducted by a qualified organization in accordance with this article.
IC 4-32.2-1-4 Local taxes prohibited
Sec. 4.
Local taxes, regardless of type, may not be imposed upon the operations of the commission under this article or upon the sale of bingo cards, bingo boards, bingo sheets, bingo pads, pull tabs, punchboards, or tip boards under this article.
IC 4-32.2-1-5 Local authority preempted
Sec. 5.
(a) Local governmental authority concerning the following is preempted by the state under this article and IC 4-30:
(1) All matters relating to the operation of bingo events, charity game nights, raffles, and door prize drawings.
(2) All matters relating to the possession, transportation, advertising, sale, manufacture, printing, storing, or distribution of pull tabs, punchboards, or tip boards.
(b) A county, municipality, or other political subdivision of the state may not enact an ordinance relating to the commission's operations authorized by this article.
IC 4-32.2-2 Chapter 2. Definitions
Sec. 1.
The definitions in this chapter apply throughout this article.
Sec. 2. "Allowable event " means:
(1) a bingo event;
(2) a charity game night;
(3) a raffle;
(4) a door prize drawing;
(5) a festival;
(6) a sale of pull tabs, punchboards, or tip boards; or
(7) any other gambling event approved by the commission under this article; conducted by a qualified organization in accordance with this article and rules adopted by the commission under this article.
Sec. 3. "Bingo" means a game conducted in the following manner:
(1) Each participant receives at least one (1) card, board, pad, or piece of paper marked off into twenty-five (25) squares that are arranged in five (5) vertical rows of five (5) squares each, with each row designated by a single letter, and each box containing a number, from one (1) to seventy-five (75), except the center box, which is always marked with the word "free".
(2) As the caller of the game announces a letter and number combination, each player covers the square corresponding to the announced number, letter, or combination of numbers and letters.
(3) The winner of each game is the player who is the first to properly cover a predetermined and announced pattern of squares upon the card used by the player.
Sec. 4. "Bingo event" means an event at which bingo is conducted by an organization that holds a bingo license or a special bingo license issued under this article.
Sec. 5. "Bona fide business organization" means a local organization that is not for pecuniary profit and is exempt from federal income taxation under Section 501(c)(6) of the Internal Revenue Code.
Sec. 6. "Bona fide civic organization" means a branch, lodge, or chapter of a national or state organization that is not for pecuniary profit or a local organization that is not for pecuniary profit and not affiliated with a state or national organization whose written constitution, charter, articles of incorporation, or bylaws provide the following:
(1) That the organization is organized primarily for civic, fraternal, or charitable purposes.
(2) That upon dissolution of the organization all remaining assets of the organization revert to nonprofit civic or charitable purposes.
Sec. 7. "Bona fide educational organization" means an organization that is not for pecuniary profit and that meets the following criteria:
(1) The organization's primary purpose is educational in nature.
(2) The organization's constitution, articles, charter, or bylaws contain a clause that provides that upon dissolution all remaining assets shall be used for nonprofit educational purposes.
(3) The organization is designed to develop the capabilities of individuals by instruction in a public or private:
(A) pre-elementary educational development program;
(B) elementary or secondary school; or (C) college or university.
Sec. 7.5. "Bona fide fraternal organization" means a type of bona fide civic organization that: (1) is a branch, lodge, or chapter of a national organization; and (2) exists for the common charitable purposes, brotherhood, and other interests of its members.
Sec. 8. (a) "Bona fide political organization" means a party committee, association, fund, or other organization, whether incorporated or not, organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function (as defined in Section 527 of the Internal Revenue Code).
(b) Except as provided in subsection (c), the term does not include a candidate's committee (as defined in IC 3-5-2-7).
(c) For purposes of IC 4-32.2-4-8 and IC 4-32.2-4-18, the term includes a candidate's committee (as defined in IC 3-5-2-7).
Sec. 9. "Bona fide religious organization" means an organization, a church, a body of communicants, or a group:
(1) organized primarily for religious purposes and not for pecuniary profit that provides to the commission written confirmation that the entity is operating under Section 501 of the Internal Revenue Code or under the Section 501 nonprofit status of the entity's parent organization; and
(2) whose constitution, charter, articles, or bylaws contain a clause that provides that upon dissolution all remaining assets shall be used for nonprofit religious purposes or shall revert to the parent organization for nonprofit religious purposes.
Sec. 10. "Bona fide senior citizens organization" means an organization that is not for pecuniary profit and that:
(1) consists of at least fifteen (15) members who are at least sixty (60) years of age;
(2) is organized by the organization's constitution, charter, articles, or bylaws for the mutual support and advancement of the causes of elderly or retired persons; and
(3) provides in the organization's constitution, charter, articles, or bylaws that upon dissolution all remaining assets of the organization shall be used for nonprofit purposes that will support or advance the causes of elderly or retired persons.
Sec. 11. "Bona fide veterans organization" means a local organization or a branch, lodge, or chapter of a state or national organization chartered by the Congress of the United States that is not for pecuniary profit and that:
(1) consists of individuals who are or were members of the armed forces of the United States;
(2) is organized for the mutual support and advancement of the organization's membership and patriotic causes; and
(3) provides in the organization's constitution, charter, articles, or bylaws that upon dissolution all remaining assets of the organization shall be used for nonprofit purposes that will support or advance patriotic causes.
Sec. 12. (a) "Charity game night " means an event at which wagers are placed upon the following permitted games of chance through the use of imitation money:
(1) A card game approved by the commission.
(2) A dice game approved by the commission.
(3) A roulette wheel approved by the commission.
(4) A spindle approved by the commission.
(b) The term does not include an event at which wagers are placed upon any of the following:
(1) Bookmaking.
(2) A slot machine.
(3) A one-ball machine or a variant of a one-ball machine.
(4) A pinball machine that awards anything other than an immediate and unrecorded right of replay.
(5) A policy or numbers game.
(6) A banking or percentage game played with cards or counters, including the acceptance of a fixed share of the stakes in a game.
Sec. 13. "Commission" means the Indiana gaming commission established by IC 4-33-3-1.
Sec. 14. "Department" means the department of state revenue.
Sec. 15. "Door prize" means a prize awarded to a person based solely upon the person's paid attendance at a charity fundraising event or the purchase of a ticket to attend a charity fundraising event.
Sec. 16. "Door prize drawing" means a drawing to award a door prize.
Sec. 17. "Door prize event" means an event at which at least one (1) door prize drawing is conducted by an organization that holds a door prize drawing license issued under this article.
Sec. 18. "Executive director" means the executive director of the Indiana gaming commission appointed under IC 4-33-3-18.
Sec. 18.5. "Full-time employee" means an individual who:
(1) is and has been employed by a particular qualified organization for at least ninety (90) consecutive days as of the date of the qualified organization's allowable event; and
(2) works at least an average of thirty-two (32) hours per week or one thousand six hundred sixty-two (1,662) hours per year for the qualified organization in a capacity that is primarily unrelated to the qualified organization's charity gaming operations.
Sec. 18.7. "Key person" means any:
(1) officer;
(2) director;
(3) executive;
(4) employee;
(5) trustee;
(6) substantial owner;
(7) independent owner; or
(8) agent; of a business entity that has the power to exercise management or operating authority over the business entity or its affiliates.
Sec. 19. "Licensed supply" refers to any of the following:
(1) Bingo cards.
(2) Bingo boards.
(3) Bingo sheets.
(4) Bingo pads.
(5) Pull tabs.
(6) Punchboards.
(7) Tip boards.
(8) Any other supplies, devices, or equipment designed to be used in allowable events designated by rule of the commission.
Sec. 20. "Marketing sheet" means additional information published about a wagering game that describes winnings.
Sec. 20.5. "Member" means any of the following:
(1) An individual entitled to membership in a qualified organization under the bylaws, articles of incorporation, charter, or rules of the qualified organization.
(2) A member of the qualified organization's auxiliary.
(3) In the case of a qualified organization that is a public or nonpublic school (as defined in IC 20-18-2-12), any of the following:
(A) A parent of a child enrolled in the school.
(B) A member of the school's parent organization.
(C) A member of the school's alumni association.
(D) An employee of the school.
(E) An officer of the school.
(F) A student enrolled in the school.
(4) A member of a qualified organization's board of directors or board of trustees.
Sec. 21. "Operator" means an individual who is: (1) designated under IC 4-32.2-5-1.5 to serve as the operator for an allowable event; and (2) responsible for conducting an allowable event for a qualified organization under this article in accordance with Indiana law.
Sec. 21.5. "PPT license" refers to a license issued to a qualified organization under IC 4-32.2-4-16.5.
Sec. 22. "Pull tab" means either of the following:
(1) A game conducted in the following manner:
(A) A single folded or banded ticket or a two-ply card with perforated break-open tabs is bought by a player from a qualified organization.
(B) The face of each card is initially covered or otherwise hidden from view, concealing a number, letter, symbol, or set of letters or symbols.
(C) In each set of tickets or cards, a designated number of tickets or cards have been randomly designated in advance as winners.
(D) Winners, or potential winners if the game includes the use of a seal, are determined by revealing the faces of the tickets or cards. The player may be required to sign the player's name on numbered lines provided if a seal is used.
(E) The player with a winning pull tab ticket or numbered line receives the prize stated on the flare from the qualified organization. The prize must be fully and clearly described on the flare.
(2) Any game played in a similar fashion as a game described in subdivision (1) that is approved by the commission.
Sec. 23. "Punchboard" means a card or board that contains a grid or section that hides the random opportunity to win a prize based on the results of punching a single section to reveal a symbol or prize amount.
Sec. 23.5. "Qualified drawing" means a random drawing to award one (1) or more prizes that is conducted in the manner required by IC 4-32.2-5-26.
Sec. 24. (a) "Qualified organization" refers to any of the following: (1) A bona fide religious, educational, senior citizens, veterans, or civic organization operating in Indiana that: (A) operates without profit to the organization's members; (B) is exempt from taxation under Section 501 of the Internal Revenue Code; and (C) satisfies at least one (1) of the following requirements: (i) The organization has been continuously in existence in Indiana for at least five (5) years. (ii) The organization is affiliated with a parent organization that has been in existence in Indiana for at least five (5) years. (iii) The organization has reorganized and is continuing its mission under a new name on file with the Indiana secretary of state and with a new tax identification number after having satisfied the requirements set forth in either item (i) or (ii).
(2) A bona fide political organization operating in Indiana that produces exempt function income (as defined in Section 527 of the Internal Revenue Code).
(3) A state educational institution (as defined in IC21-7-13-32). (b) For purposes of IC4-32.2-4-3, a "qualified organization" includes the following: (1) A hospital licensed under IC16-21. (2) A health facility licensed under IC16-28. (3) A psychiatric facility licensed under IC12-25.
(4) An organization defined in subsection (a).
(c) For purposes of IC4-32.2-4-10, a "qualified organization" includes a bona fide business organization.
(d) Evidence that an organization satisfies subsection (a)(1)(C)(iii) includes: (1) evidence of the organization's continued use of a service mark or trademarked logo associated with the organization's former name; (2) evidence of the continuity of the organization's activities as shown in the federal income tax returns filed for the organization's five (5) most recent taxable years; (3) evidence of the continuity of the organization's activities as shown by the five (5) most recent annual external financial reviews of the organization prepared by a certified public accountant; or (4) any other information considered sufficient by the commission.
Sec. 25. "Qualified recipient" means:
(1) a hospital or medical center operated by the federal government;
(2) a hospital licensed under IC 16-21;
(3) a hospital subject to IC 16-22;
(4) a hospital subject to IC 16-23;
(5) a health facility licensed under IC 16-28;
(6) a psychiatric facility licensed under IC 12-25;
(7) an organization described in section 24(a) of this chapter;
(8) an activity or a program of a local law enforcement agency intended to reduce substance abuse;
(9) a charitable activity of a local law enforcement agency; or
(10) a veterans' home.
Sec. 26. "Raffle" means the selling of tickets or chances to win a prize awarded through a random drawing.
Sec. 27. "Raffle event" means an event at which at least one (1) raffle is conducted by an organization that holds a raffle license issued under this article.
Sec. 27.5. "Substantial owner" means:
(1) a person holding at least a five percent (5%) ownership interest; or
(2) an institutional investor holding at least a fifteen percent (15%) ownership interest; in a business entity.
Sec. 28. "Tip board" means a board, a placard, or other device that is marked off in a grid or columns, with each section containing a hidden number or numbers or other symbols that determine a winner.
Sec. 29. "Veterans' home" means any of the following:
(1) The Indiana Veterans' Home.
(2) The VFW National Home for Children.
(3) The Indiana Soldiers' and Sailors' Children's Home.
Sec. 30. "Worker" means an individual who helps or participates in any manner in conducting or assisting in conducting an allowable event under this article.
IC 4-32.2-3 Chapter 3. Powers and Duties of the Commission
IC 4-32.2-3-1 Supervision and administration of events
Sec. 1 .
(a) The commission shall supervise and administer allowable events conducted under this article.
(b) The commission may by resolution assign to the executive director any duty imposed upon the commission by this article.
(c) The executive director shall perform the duties assigned to the executive director by the commission. The executive director may exercise any power conferred upon the commission by this article that is consistent with the duties assigned to the executive director under subsection (b).
IC 4-32.2-3-2 Investigations and other proceedings
Sec. 2.
For purposes of conducting an investigation or a proceeding under this article, the commission may do the following:
(1) Administer oaths.
(2) Take depositions.
(3) Issue subpoenas.
(4) Compel the attendance of witnesses and the production of books, papers, documents, and other evidence.
IC 4-32.2-3-3 Rules
Sec. 3. (a) The commission shall adopt rules under IC 4-22-2 for the following purposes: (1) Administering this article. (2) Establishing the conditions under which charity gaming in Indiana may be conducted, including the manner in which a qualified organization may supervise a euchre game conducted under IC 4-32.2-5-14(b). (3) Providing for the prevention of practices detrimental to the public interest and providing for the best interests of charity gaming. (4) Establishing rules concerning inspection of qualified organizations and the review of the licenses necessary to conduct charity gaming. (5) Imposing penalties for noncriminal violations of this article. (6) Establishing standards for independent audits conducted under IC 4-32.2-5-5.
(b) The commission may adopt emergency rules under IC 4-22-2-37.1 if the commission determines that: (1) the need for a rule is so immediate and substantial that rulemaking procedures under IC 4-22-2-13 through IC 4-22-2-36 are inadequate to address the need; and (2) an emergency rule is likely to address the need.
IC 4-32.2-3-4
Licensing of manufacturers and distributors
Sec. 4. (a) The commission has the sole authority to license entities under this article to sell, distribute, or manufacture a licensed supply. (b) The commission may not limit the number of qualified entities licensed under subsection (a). (c) The commission may deny a license to an applicant for a license to sell, manufacture, or distribute licensed supplies if the commission determines that at least one (1) of the following applies with respect to the applicant: (1) The applicant has: (A) violated a local ordinance, a state or federal statute, or an administrative rule or regulation and the violation would cause the commission to determine that the applicant, a key person, or a substantial owner of the applicant is not of good moral character or reputation; or (B) committed any other act that would negatively impact the integrity of charity gaming in Indiana. (2) The applicant has engaged in fraud, deceit, or misrepresentation. (3) The applicant has failed to provide information required by this article or a rule adopted under this article.
IC 4-32.2-3-5 Fees
Sec. 5.
The commission shall charge appropriate fees to the following:
(1) An applicant for a license to conduct an allowable event.
(2) An applicant seeking a license to distribute a licensed supply.
(3) An applicant seeking a license to manufacture a licensed supply.
IC 4-32.2-3-6 Ownership, sale, and lease of property
Sec. 6.
The commission may own, sell, and lease real and personal property necessary to carry out the commission's responsibilities under this article.
IC 4-32.2-3-7 Employees; employment restrictions
Sec. 7.
The commission may employ investigators and other staff necessary to carry out this article. However, the restrictions and limitations on the operators and workers set forth in IC 4-32.2-5-10 apply to staff employed under this article. The employees hired by the commission under this article may be the same as the commission's employees hired under IC 4-33.
IC 4-32.2-3-8 Void rules Sec. 8. A rule adopted under IC 4-22-2 that requires: (1) a charity gaming patron to submit; or (2) a qualified organization to obtain, record, or report; information that is inconsistent with IC 4-32.2-5-5(a), IC 4-32.2-5-24, or IC 4-32.2-10-5 is void.
IC 4-32.2-4 Chapter 4. Charity Gaming Licenses
IC 4-32.2-4-1 Authorized activities
Sec. 1.
A qualified organization may conduct the following activities in accordance with this article:
(1) A bingo event.
(2) A charity game night.
(3) A raffle event.
(4) A door prize event.
(5) A festival.
(6) The sale of pull tabs, punchboards, and tip boards.
(7) Any other gambling event approved by the commission.
IC 4-32.2-4-2 License requirement
Sec. 2 .
Except as provided in section 3 of this chapter, a qualified organization must obtain a license under this chapter to conduct an allowable event.
IC 4-32.2-4-2.5 Limitations on issuance
Sec . 2.5.
The commission may deny a license to an organization if the commission determines that at least one (1) of the following applies with respect to the organization:
(1) The organization has:
(A) violated a local ordinance, a state or federal statute, or an administrative rule or regulation and the violation would cause the commission to determine that the applicant, a key person, or a substantial owner of the applicant is not of good moral character or reputation; or
(B) committed any other act that would negatively affect the integrity of charity gaming in Indiana.
(2) The organization has engaged in fraud, deceit, or misrepresentation.
(3) The organization has failed to provide information required by this article or a rule adopted under this article.
(4) The organization has failed to provide sufficient information to enable the commission to determine that the organization is a qualified organization.
IC 4-32.2-4-3 Exceptions to license requirement; notice requirement; record keeping
Sec. 3.
(a) A qualified organization is not required to obtain a license from the commission if the value of all prizes awarded at the
bingo event, charity game night, raffle event, door prize event, festival event, or other event licensed under section 16 of this chapter, including prizes from pull tabs, punchboards, and tip boards, does not exceed one thousand dollars ($1,000) for a single event and not more than three thousand dollars ($3,000) during a calendar year.
(b) A qualified organization that plans to hold an allowable event described in subsection (a) more than one (1) time a year shall send an annual written notice to the commission informing the commission of the following:
(1) The estimated frequency of the planned allowable events.
(2) The location or locations where the qualified organization plans to hold the allowable events.
(3) The estimated value of all prizes awarded at each allowable event.
(c) The notice required under subsection (b) must be filed before the earlier of the following:
(1) March 1 of each year.
(2) One (1) week before the qualified organization holds the first allowable event of the year.
(d) A qualified organization that conducts an allowable event described in subsection (a) shall maintain accurate records of all financial transactions of the event. The commission may inspect records kept in compliance with this section.
IC 4-32.2-4-4 License applications
Sec. 4.
(a) Each organization applying for a bingo license, a special bingo license, a charity game night license, a raffle license, a door prize drawing license, a festival license, or a license to conduct any other gambling event approved by the commission must submit to the commission a written application on a form prescribed by the commission.
(b) Except as provided in subsection (c), the application must include the information that the commission requires, including the following:
(1) The name and address of the organization.
(2) The names and addresses of the officers of the organization.
(3) The type of event the organization proposes to conduct.
(4) The location where the organization will conduct the allowable event.
(5) The dates and times for the proposed allowable event.
(6) Sufficient facts relating to the organization or the organization's incorporation or founding to enable the commission to determine whether the organization is a qualified organization.
(7) The name of each proposed operator and sufficient facts relating to the proposed operator to enable the commission to determine whether the proposed operator is qualified to serve as an operator.
(8) A sworn statement signed by the presiding officer and secretary of the organization attesting to the eligibility of the organization for a license, including the nonprofit character of the organization.
(9) Any other information considered necessary by the commission.
(c) This subsection applies only to a qualified organization that conducts only one (1) allowable event in a calendar year. The commission may not require the inclusion in the qualified organization's application of the Social Security numbers of the workers who will participate in the qualified organization's proposed allowable event. A qualified organization that files an application described in this subsection must attach to the application a sworn statement signed by the presiding officer and secretary of the organization attesting that:
(1) the workers who will participate in the qualified organization's proposed allowable event are eligible to participate under this article; and
(2) the organization has not conducted any other allowable events in the calendar year.
IC 4-32.2-4-5 Issuance of license; hearings authorized; protest procedures; reissuance
Sec. 5.
(a) The commission may issue a bingo license to a qualified organization if:
(1) the provisions of this section are satisfied; and (2) the qualified organization:
(A) submits an application; and (B) pays a fee set by the commission under IC 4-32.2-6.
(b) The commission may hold a public hearing to obtain input on the proposed issuance of an annual bingo license to an applicant that has never held an annual bingo license under this article.
(c) The first time that a qualified organization applies for an annual bingo license, the qualified organization shall publish notice that the application has been filed by publication at least two (2) times, seven (7) days apart, as follows:
(1) In one (1) newspaper in the county where the qualified organization is located.
(2) In one (1) newspaper in the county where the allowable event will be conducted.
(d) The notification required by subsection (c) must contain the following:
(1) The name of the qualified organization and the fact that it has applied for an annual bingo license.
(2) The location where the bingo events will be held.
(3) The names of the operator and officers of the qualified organization.
(4) A statement that any person can protest the proposed issuance of the annual bingo license.
(5) A statement that the commission shall hold a public hearing if ten (10) written and signed protest letters are received by the commission.
(6) The address of the commission where correspondence concerning the application may be sent.
(e) If the commission receives at least ten (10) protest letters, the commission shall hold a public hearing in accordance with IC 5-14-1.5. The commission shall issue a license or deny the application not later than sixty (60) days after the date of the public hearing.
(f) A license issued under this section:
(1) may authorize the qualified organization to conduct bingo events on more than one (1) occasion during a period of one (1) year;
(2) must state the locations of the permitted bingo events;
(3) must state the expiration date of the license; and
(4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
(g) Notwithstanding subsection (f)(4), the commission may hold a public hearing for the reissuance of an annual bingo license if at least one (1) of the following conditions is met:
(1) An applicant has been cited for a violation of law or a rule of the commission.
(2) The commission receives at least ten (10) protest letters concerning the qualified organization's bingo operation.
(3) A public hearing is considered necessary by the commission.
IC 4-32.2-4-6 Special bingo license
Sec. 6.
The commission may issue a special bingo license to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6. The license must:
(1) authorize the qualified organization to conduct a bingo event at only one (1) time and location; and
(2) state the date, beginning and ending times, and location of the authorized bingo event.
IC 4-32.2-4-7 Charity game night license
Sec. 7.
The commission may issue a charity game night license to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6. The license must:
(1) authorize the qualified organization to conduct a charity game night at only one (1) time and location; and
(2) state the date, beginning and ending times, and location of the charity game night.
IC 4-32.2-4-7.5 Annual charity game night license
Sec. 7.5 .
(a) Subject to subsection (h), the commission may issue an annual charity game night license to a qualified organization if:
(1) the provisions of this section are satisfied; and (2) the qualified organization:
(A) submits an application; and
(B) pays a fee set by the commission under IC 4-32.2-6.
(b) The commission may hold a public hearing to obtain input on the proposed issuance of an annual charity game night license to an applicant that has never held an annual charity game night license under this article.
(c) The first time that a qualified organization applies for an annual charity game night license, the qualified organization shall publish notice that the application has been filed by publication at least two (2) times, seven (7) days apart, as follows:
(1) In one (1) newspaper in the county where the qualified organization is located.
(2) In one (1) newspaper in the county where the allowable events will be conducted.
(d) The notification required by subsection (c) must contain the following:
(1) The name of the qualified organization and the fact that it has applied for an annual charity game night license.
(2) The location where the charity game night events will be held.
(3) The names of the operator and officers of the qualified organization.
(4) A statement that any person can protest the proposed issuance of the annual charity game night license.
(5) A statement that the commission shall hold a public hearing if ten (10) written and signed protest letters are received by the commission.
(6) The address of the commission where correspondence concerning the application may be sent.
(e) If the commission receives at least ten (10) protest letters, the commission shall hold a public hearing in accordance with IC 5-14-1.5. The commission shall issue a license or deny the application not later than sixty (60) days after the date of the public hearing.
(f) A license issued under this section:
(1) may authorize the qualified organization to conduct charity game night events on more than one (1) occasion during a period of one (1) year;
(2) must state the locations of the permitted charity game night events;
(3) must state the expiration date of the license; and
(4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
(g) Notwithstanding subsection (f)(4), the commission may hold a public hearing for the reissuance of an annual charity game night license if at least one (1) of the following conditions is met:
(1) An applicant has been cited for a violation of law or a rule of the commission.
(2) The commission receives at least ten (10) protest letters concerning the qualified organization's charity game night operation.
(3) A public hearing is considered necessary by the commission.
(h) Notwithstanding IC 4-32.2-2-24, this section applies only to:
(1) a bona fide civic organization; or
(2) a bona fide veterans organization; that has been continuously in existence in Indiana for ten (10) years. A qualified organization that is not described in this subsection may not apply for an annual charity game night license under this section.
(i) A facility or location may not be used for purposes of conducting an annual charity game night event on more than three (3) calendar days per calendar week regardless of the number of qualified organizations conducting an annual charity game night event at the facility or location.
IC 4-32.2-4-8 Raffle license
Sec. 8.
The commission may issue a raffle license to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6. The license must:
(1) authorize the qualified organization to conduct a raffle event at only one (1) time and location; and
(2) state the date, beginning and ending times, and location of the raffle event.
IC 4-32.2-4-9 Annual raffle license
Sec. 9.
(a) The commission may issue an annual raffle license to a qualified organization if:
(1) the provisions of this section are satisfied; and
(2) the qualified organization:
(A) submits an application; and
(B) pays a fee set by the commission under IC 4-32.2-6.
(b) The application for an annual raffle prize license must contain the following:
(1) The name of the qualified organization.
(2) The location where the raffle events will be held.
(3) The names of the operator and officers of the qualified organization.
(c) A license issued under this section:
(1) may authorize the qualified organization to conduct raffle events on more than one (1) occasion during a period of one (1) year;
(2) must state the locations of the permitted raffle events;
(3) must state the expiration date of the license; and
(4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
(d) A license issued under this section is not required for raffles permitted under section 13 of this chapter at events held under a bingo license, a special bingo license, a charity game night license, a door prize license, or an annual door prize license.
IC 4-32.2-4-10 Door prize license
Sec. 10.
The commission may issue a door prize license to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6. The license must:
(1) authorize the qualified organization to conduct a door prize event at only one (1) time and location; and
(2) state the date, beginning and ending times, and location of the door prize event.
IC 4-32.2-4-11 Annual door prize license
Sec. 11.
(a) The commission may issue an annual door prize license to a qualified organization if:
(1) the provisions of this section are satisfied; and
(2) the qualified organization:
(A) submits an application; and
(B) pays a fee set by the commission under IC 4-32.2-6.
(b) The application for an annual door prize license must contain the following:
(1) The name of the qualified organization.
(2) The location where the door prize events will be held.
(3) The names of the operator and officers of the qualified organization.
(c) A license issued under this section:
(1) may authorize the qualified organization to conduct door prize events on more than one (1) occasion during a period of one (1) year;
(2) must state the locations of the permitted door prize events;
(3) must state the expiration date of the license; and
(4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
IC 4-32.2-4-12 Festival license
Sec. 12.
(a) The commission may issue a festival license to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6. The license must authorize the qualified organization to conduct bingo events, charity game nights, raffle events, gambling events licensed under section 16 of this chapter, and door prize events and to sell pull tabs, punchboards, and tip boards. The license must state the location and the dates, not exceeding four (4) consecutive days, on which these activities may be conducted.
(b) Except as provided in IC 4-32.2-5-6(c), a qualified organization may not conduct more than one (1) festival each year.
(c) The raffle event authorized by a festival license is not subject to the prize limits set forth in this chapter. Bingo events, charity game nights, and door prize events conducted at a festival are subject to the prize limits set forth in this chapter.
IC 4-32.2-4-13 Additional activities authorized
Sec. 13.
(a) A bingo license or special bingo license may also authorize a qualified organization to conduct raffle events and door prize drawings and sell pull tabs, punchboards, and tip boards at the bingo event.
(b) A charity game night license may also authorize a qualified organization to:
(1) conduct raffle events and door prize drawings; and
(2) sell pull tabs, punchboards, and tip boards; at the charity game night.
(c) A raffle license or an annual raffle license may also authorize a qualified organization to conduct door prize drawings and sell pull tabs, punchboards, and tip boards at the raffle event.
(d) A door prize license or an annual door prize license may also authorize a qualified organization to conduct a raffle event and to sell pull tabs, punchboards, and tip boards at the door prize event.
(e) A PPT license may also authorize a qualified organization to conduct on the premises described in section 16.5(b) of this chapter winner take all drawings and other qualified drawings in the manner required by IC 4-32.2-5-26.
IC 4-32.2-4-14 Multiple licenses
Sec. 14.
A qualified organization may hold more than one (1) license at a time.
IC 4-32.2-4-15 Prohibition on limiting the number of organizations licensed
Sec. 15.
The commission may not limit the number of qualified organizations licensed under this article.
IC 4-32.2-4-16 Other events authorized; conditions
Sec. 16.
(a) This section applies to a gambling event that is described in neither:
(1) section 1(1) through 1(6) of this chapter; nor
(2) IC 4-32.2-2-12(b).
(b) The commission may issue a single event license or an annual event license to conduct a gambling event approved by the commission to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6.
(c) A single event license must:
(1) authorize the qualified organization to conduct the gambling event at only one (1) time and location; and
(2) state the date, beginning and ending times, and location of the gambling event.
(d) An annual event license:
(1) must authorize the qualified organization to conduct the events on more than one (1) occasion during a period of one (1) year;
(2) must state the locations of the permitted events;
(3) must state the expiration date of the license; and
(4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
(e) The commission may impose any condition upon a qualified organization that is issued a license to conduct a gambling event under this section.
IC 4-32.2-4-16.5 Annual PPT license
Sec. 16.5.
(a) The commission may issue an annual PPT license to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6.
(b) A license issued under this section authorizes a qualified organization to sell pull tabs, punchboards, and tip boards at any time on the premises owned or leased by the qualified organization and regularly used for the activities of the qualified organization.
(c) A license issued under this section is not required for the sale of pull tabs, punchboards, and tip boards at another allowable event as permitted under section 13 of this chapter.
(d) The application for an annual PPT license must contain the following:
(1) The name of the qualified organization.
(2) The location where the qualified organization will sell pull tabs, punchboards, and tip boards.
(3) The names of the operator and the officers of the qualified organization.
IC 4-32.2-4-17 Worker Social Security numbers
Sec. 17.
A qualified organization described in section 4(c) of this chapter may not require an individual who wishes to participate in the qualified organization's allowable event as a worker to submit the individual's Social Security number to the qualified organization.
IC 4-32.2-4-18 Candidates' committees authorized to obtain raffle licenses and conduct door prize drawings at raffle events
Sec. 18 .
(a) With respect to any action authorized by this section, a candidate's committee (as defined in IC 3-5-2-7) is considered a bona fide political organization.
(b) A candidate's committee may apply for a license under section 8 of this chapter to conduct a raffle event. A candidate's committee may also conduct a door prize drawing at the raffle event but is prohibited from conducting any other kind of allowable event.
(c) The following are subject to this chapter and IC 4-32.2-6:
(1) A candidate's committee that applies for a license under section 8 of this chapter.
(2) A raffle event or door prize drawing conducted by a candidate's committee.
(d) The members of a candidate's committee may conduct an event under this section without meeting the requirements of this article concerning the membership of a qualified organization. A candidate's committee licensed under this section must remain in good standing with the election division or the county election board having jurisdiction over the committee.
IC 4-32.2-5 Chapter 5. Conduct of Allowable Events
IC 4-32.2-5-1 Criminal gambling statutes inapplicable to allowable events
Sec. 1 .IC 35-45-5 does not apply to a person who conducts, participates in, or receives a prize in an allowable event.
IC 4-32.2-5-1.5 Designation of operator Sec. 1.5. For each allowable event conducted under this article, a qualified organization shall designate an individual to serve as the operator of the allowable event. An individual designated under this section must be qualified to serve as an operator under this article.
IC 4-32.2-5-2 Management and conduct of events
Sec. 2.
A qualified organization may not contract or otherwise enter into an agreement with an individual, a corporation, a partnership, a limited liability company, or other association to conduct an allowable event for the benefit of the organization. A qualified organization shall use only operators and workers meeting the requirements of this chapter to manage and conduct an allowable event.
IC 4-32.2-5-3 Use and determination of net proceeds
Sec. 3.
(a) All net proceeds from an allowable event and related activities may be used only for the lawful purposes of the qualified organization.
(b) To determine the net proceeds from an allowable event, a qualified organization shall subtract the following from the gross receipts received from the allowable event:
(1) An amount equal to the total value of the prizes, including door prizes, awarded at the allowable event.
(2) The sum of the purchase prices paid for licensed supplies dispensed at the allowable event.
(3) An amount equal to the qualified organization's license fees attributable to the allowable event.
(4) An amount equal to the advertising expenses incurred by the qualified organization to promote the allowable event.
(5) An amount not to exceed two hundred dollars ($200) per day for rent paid for facilities leased for an allowable event.
IC 4-32.2-5-4 Donation of gross charity gaming receipts
Sec. 4.
(a) A qualified organization that receives ninety percent (90%) or more of the organization's total gross receipts from any events licensed under this article is required to donate sixty percent (60%) of its gross charitable gaming receipts less prize payout to a qualified recipient that is not an affiliate, a parent, or a subsidiary organization of the qualified organization.
(b) For purposes of this section, a veterans' home is not considered to be an affiliate, a parent, or a subsidiary organization of a qualified organization that is a bona fide veterans organization.
IC 4-32.2-5-5 Financial records; deposit of funds; payment of expenses; audits
Sec. 5.
Sec. 5. (a) A qualified organization shall maintain accurate records of all financial aspects of an allowable event under this article. A qualified organization shall make accurate reports of all financial aspects of an allowable event to the commission within the time established by the commission. The commission may prescribe forms for this purpose. For purposes of this section, a qualified organization is not required to record the name, signature, driver's license number, or other identifying information of a prize winner unless the qualified organization is required to withhold adjusted gross income tax from the prize winner under IC 6-3-4-8.2(d).
(b) The commission shall, by rule, require a qualified organization to deposit funds received from an allowable event in a separate and segregated account set up for that purpose. All expenses of the qualified organization with respect to an allowable event shall be paid from the separate account.
(c) The commission may require a qualified organization to submit any records maintained under this section for an independent audit by a certified public accountant selected by the commission. A qualified organization must bear the cost of any audit required under this section.
IC 4-32.2-5-6 Event limit
Sec. 6.
(a) Except as provided in IC 4-32.2-4-9 and IC 4-32.2-4-16.5, a qualified organization may not conduct more than three (3) allowable events during a calendar week and not more than one (1) allowable event each day.
(b) Except as provided in IC 4-32.2-4-9, IC 4-32.2-4-12, and IC 4-32.2-4-16.5, allowable events may not be held on more than two (2) consecutive days.
(c) A qualified organization may conduct one (1) additional festival event during each six (6) months of a calendar year.
IC 4-32.2-5-7 Repealed (Repealed by P.L.227-2007, SEC.70.)
IC 4-32.2-5-8 Leasing facilities and personal property
Sec. 8.
(a) If a facility or location is leased for an allowable event, the rent may not be based in whole or in part on the revenue generated from the event.
(b) Subject to the additional restrictions on the use of a facility or location that are set forth in IC 4-32.2-4-7.5(i), a facility or location may not be rented for more than three (3) days during a calendar week for an allowable event.
(c) If personal property is leased for an allowable event, the rent may not be based in whole or in part on the revenue generated from the event.
IC 4-32.2-5-9 Restriction on events at same location
Sec. 9.
Not more than one (1) qualified organization may conduct an allowable event on the same day at the same location.
IC 4-32.2-5-10 Prohibition on felons as operators and workers; exceptions
Sec. 10.
An operator or a worker may not be a person who has been convicted of or entered a plea of nolo contendere to a felony committed in the preceding ten (10) years, regardless of the adjudication, unless the commission determines that:
(1) the person has been pardoned or the person's civil rights have been restored; or
(2) after the conviction or entry of the plea, the person has engaged in the kind of good citizenship that would reflect well upon the integrity of the qualified organization and the commission.
IC 4-32.2-5-11 Prohibition on commission employees and relatives as operators or workers
Sec. 11.
An employee of the commission or a relative living in the same household with the employee of the commission may not be an operator or a worker.
IC 4-32.2-5-12 Remuneration of operators, workers, and certain employees
Sec. 12.
(a) Except as provided in subsection (b) or (c), an operator or a worker who is not a full-time employee may not receive remuneration for:
(1) conducting; or
(2) assisting in conducting; an allowable event.
(b) A qualified organization that conducts an allowable event may:
(1) provide meals for the operators and workers during the allowable event; and
(2) provide recognition dinners and social events for the operators and workers;
if the value of the meals and social events does not constitute a significant inducement to participate in the conduct of the allowable event.
(c) In the case of a qualified organization holding a PPT license, any employee of the qualified organization may:
(1) participate in the sale and redemption of pull tabs, punchboards, and tip boards on the premises of the qualified organization; and
(2) receive the remuneration ordinarily provided to the employee in the course of the employee's employment.
IC 4-32.2-5-13 Operators limited to three organizations
Sec. 13.
(a) An individual may not be an operator for more than three (3) qualified organizations during a calendar month.
(b) If an individual has previously served as an operator for another qualified organization, the commission may require additional information concerning the proposed operator to satisfy the commission that the individual is a bona fide member of the qualified organization.
IC 4-32.2-5-14 Participation of operators and workers; dealing by patrons in eucher; participation by workers at festival events
Sec. 14.
(a) Except as provided by subsection (c), an operator or a worker may not directly or indirectly participate, other than in a capacity as an operator or a worker, in an allowable event that the operator or worker is conducting.
(b) A patron at a charity game night may deal the cards in a card game if: (1) the card game in which the patron deals the cards is a game of euchre; (2) the patron deals the cards in the manner required in the ordinary course of the game of euchre; and (3) the euchre game is played under the supervision of the qualified organization conducting the charity game night in accordance with rules adopted by the commission under IC 4-32.2-3-3.
A patron who deals the cards in a euchre game conducted under this subsection is not considered a worker or an operator for purposes of this article.
(c) A worker at a festival event may participate as a player in any gaming activity offered at the festival event except as follows: (1) A worker may not participate in any game during the time in which the worker is conducting or helping to conduct the game. (2) A worker who conducts or helps to conduct a pull tab, punchboard, or tip board event during a festival event may not participate as a player in a pull tab, punchboard, or tip board event conducted on the same calendar day.
IC 4-32.2-5-15 Operator membership requirement
Sec. 15.
An operator must be a member in good standing of the qualified organization that is conducting the allowable event for at least one (1) year at the time of the allowable event.
IC 4-32.2-5-16 Worker membership requirement; exception; shared revenues
Sec. 16.
(a) Except as provided in section 12(c) of this chapter and subsection (b), a worker at an allowable event must be a member in good standing of the qualified organization that is conducting the allowable event for at least thirty (30) days at the time of the allowable event.
(b) A qualified organization may allow an individual who is not a member of the qualified organization to participate in an allowable event as a worker if the individual is a full-time employee of the qualified organization that is conducting the allowable event; or if: (1) the individual is a member of another qualified organization; and (2) the individual's participation is approved by the commission. A qualified organization may apply to the commission on a form prescribed by the commission for approval of the participation of a nonmember under this subsection. A qualified organization may share the proceeds of an allowable event with the qualified organization in which a worker participating in the allowable event under this subsection is a member. The tasks that will be performed by an individual participating in an allowable event under this subsection and the amounts shared with the individual's qualified organization must be described in the application and approved by the commission.
(c) For purposes of: (1) the licensing requirements of this article; and (2) section 9 of this chapter; a qualified organization that receives a share of the proceeds of an allowable event described in subsection (b) is not considered to be conducting an allowable event.
IC 4-32.2-5-17 Bingo event prize limits
Sec. 17.
(a) The prize for one (1) bingo game may not have a value of more than one thousand dollars ($1,000).
(b) Except as provided in subsection (c), the total prizes permitted at one (1) bingo event may not have a value of more than six thousand dollars ($6,000).
(c) The commission may, by express authorization, allow any qualified organization to conduct two (2) bingo events each year at which the total prizes for the bingo event may not exceed ten thousand dollars ($10,000). Bingo events authorized under this subsection may be conducted at a festival conducted under IC 4-32.2-4-12.
(d) The proceeds of the sale of pull tabs, punchboards, and tip boards are not included in the total prize limit at a bingo event.
(e) The value of all door prizes awarded at a bingo event may not have a value of more than one thousand five hundred dollars ($1,500).
IC 4-32.2-5-18 Raffle event prize limits
Sec. 18.
(a) The total prizes for a raffle event conducted at another allowable event may not have a value of more than five thousand dollars ($5,000). However, the commission may, by express authorization, allow a qualified organization to conduct one (1) raffle event at another allowable event each year at which the total prizes for the raffle event may not exceed twenty-five thousand dollars ($25,000). The sale of pull tabs, punchboards, and tip boards is not included in the total prize limit at a raffle event.
(b) The value of all door prizes awarded at a raffle event may not have a value of more than one thousand five hundred dollars ($1,500).
(c) The prize limits set forth in subsection (a) do not apply to a raffle event that is not conducted at another allowable event.
IC 4-32.2-5-19 Door prize event prize limits
Sec. 19 .
The total prizes for a door prize event may not have a value of more than five thousand dollars ($5,000). However, the commission may, by express authorization, allow a qualified organization to conduct one (1) door prize event each year at which the total prizes for the door prize event may not exceed twenty thousand dollars ($20,000). The proceeds of the sale of pull tabs, punchboards, and tip boards are not included in the total prize limit at a door prize event.
IC 4-32.2-5-20 Pull tab, punchboard, and tip board prize limits; selling prices
Sec. 20.
(a) The total prizes awarded for one (1) pull tab, punchboard, or tip board game may not exceed five thousand dollars ($5,000).
(b) A single prize awarded for one (1) winning ticket in a pull tab, punchboard, or tip board game may not exceed five hundred ninety-nine dollars ($599).
(c) The selling price for one (1) ticket for a pull tab, punchboard, or tip board game may not exceed one dollar ($1).
IC 4-32.2-5-21 Prohibited participants
Sec. 21.
(a) Except as provided in subsection (b), the following persons may not play or participate in any manner in an allowable event:
v(1) A member or an employee of the commission.
(2) A person less than eighteen (18) years of age.
(b) A person less than eighteen (18) years of age may sell tickets or chances for a raffle.
IC 4-32.2-5-22 Restrictions on employees, officers, and owners of manufacturers and distributors
Sec. 22.
An employee, officer, or owner of a manufacturer or distributor is prohibited from participating in or affiliating in any way with the charity gaming operations of a qualified organization of which the employee, officer, or owner is a member.
IC 4-32.2-5-23 Radio advertising
Sec. 23.
An advertisement for an allowable event in radio broadcast media must announce, within the advertisement, the name of the qualified organization conducting the allowable event and that the qualified organization's license number is on file.
IC 4-32.2-5-24 Patron information; information required to award pull tab, punchboard, or tip board prizes of $250 or more; information for federal income tax reporting Sec. 24. (a) Except as provided in subsections (b) and (c), the following apply to an allowable event: (1) A charity gaming patron is not required to submit to a qualified organization the patron's name, signature, driver's license number, or other identifying information. (2) A qualified organization is not required to obtain a patron's name, signature, driver's license number, or other identifying information.
(b) A prize of two hundred fifty dollars ($250) or more may not be awarded to a winner of a pull tab, punchboard, or tip board game unless: (1) the winner provides the winner's printed name, signature, and date of birth to the qualified organization conducting the pull tab, punchboard, or tip board game; and (2) the qualified organization verifies the identity of the prize winner using any reasonable means the qualified organization considers necessary.
(c) If a qualified organization is required to report a patron's gambling winnings to the Internal Revenue Service for federal income tax purposes, the winning patron shall provide the qualified organization with the information necessary. to comply with all applicable state and federal tax laws.
IC 4-32.2-5-25 Obtaining supplies Sec. 25. (a) Except as provided in subsection (b), a qualified organization shall obtain licensed supplies from an entity licensed by the commission as a manufacturer or distributor.
(b) Subsection (a) does not apply to a reusable licensed supply: (1) constructed, purchased, or otherwise obtained by a qualified organization before January 1, 2009; or (2) borrowed at any time from another qualified organization.
IC 4-32.2-5-26 Conduct of qualified drawings Sec. 26. (a) A qualified drawing must be conducted in the manner required by this section.
(b) A qualified drawing is subject to the following rules and limitations: (1) The purchase price for a chance to win a prize in a qualified drawing may not exceed five dollars ($5). (2) The total value of all prizes that may be won in a particular qualified drawing may not exceed three hundred dollars ($300) for any of the following: (A) A daily drawing. (B) A weekly drawing. (C) A monthly drawing. (3) A qualified drawing must be conducted in accordance with the following limitations: (A) Not more than one (1) daily drawing may be conducted each day. (B) Not more than one (1) weekly drawing may be conducted each week. (C) Not more than one (1) monthly drawing may be conducted each month. (D) Weekly drawings must be held on regular seven (7) day intervals posted in the information required by subdivision (11). (E) Monthly drawings must be held on regular monthly intervals posted in the information required by subdivision (11). A weekly or monthly drawing may be conducted on the same day that a daily drawing is conducted. (4) Except as otherwise provided in this section, a patron must be present to claim a prize awarded in a qualified drawing. (5) A qualified organization may not profit from conducting a qualified drawing. (6) All amounts wagered on qualified drawings must be returned to a qualified organization's patrons in the form of prizes. (7) A qualified organization may not conduct a qualified drawing or any other event in which the winner of the prize is determined, in whole or in part, by a sporting event. (8) If no winning ticket is drawn in a qualified drawing, a qualified organization may: (A) carry the prize over to a later drawing in accordance with this section; or (B) continue drawing tickets until a winner is drawn. (9) If a patron who purchased a winning ticket is not present to claim a prize at the time of the qualified drawing, a qualified organization shall hold the prize for the winning patron in accordance with the rules of the qualified organization. (10) In order to comply with subdivision (9), a qualified organization shall obtain the name, address, and telephone number of each patron who purchases a ticket for a qualified drawing. (11) A qualified organization must conspicuously display the following information concerning each qualified drawing conducted by the qualified organization: (A) The price of a ticket. (B) The time of the drawing. (C) The description and value of the prizes awarded in the drawing. (D) The manner in which a prize may be claimed. (E) The rules of the qualified organization concerning the following: (i) Qualified drawings in which no winning ticket is drawn. (ii) The period that the qualified organization will hold a prize for a winning patron who was not present to claim the prize at the time of the qualified drawing. (12) Notwithstanding any other provision of this chapter, a qualified organization must continue drawing tickets in a monthly drawing until the qualified organization draws a ticket purchased by a patron who is present to claim the prize.
(c) When the winning patron is not present at the time of the qualified drawing to claim a prize, the qualified organization shall award the prize in the following manner: (1) The qualified organization shall immediately notify the winning patron by telephone that the patron's name was drawn in a qualified drawing and that the patron has the time permitted by the rules of the qualified organization, which must be at least seventy-two (72) hours, to claim the prize. (2) The winning patron must appear at the premises of the qualified organization within the time permitted by the rules of the qualified organization to claim the prize in person. (3) The qualified organization shall verify the identity of the winning patron and award the prize.
(d) This subsection applies when the rules of a qualified organization require the qualified organization to carry over a prize when no winning ticket is drawn and when a winning patron fails to claim a prize in the manner required by subsection (c). The qualified organization shall carry the prize over to a later qualified drawing as follows: (1) An unclaimed prize from a daily drawing must be carried over to the next daily drawing. (2) Subject to the prize limits set forth in subsection (b)(2), a qualified organization may carry over a prize under subdivision (1) not more than fourteen (14) times. On the fourteenth calendar day to which a prize has been carried over, the qualified organization must continue drawing tickets until the qualified organization draws a ticket purchased by a patron who is present to claim the prize. (3) An unclaimed prize from a weekly drawing must be carried over to the next weekly drawing. (4) Subject to the prize limits set forth in subsection (b)(2), a qualified organization may carry over a prize under subdivision (3) not more than one (1) time. On the day that the qualified organization conducts a weekly drawing for the carried over prize, the qualified organization must continue drawing tickets until the qualified organization draws a ticket purchased by a patron who is present to claim the prize.
(e) The following apply to a qualified organization that carries over a prize under subsection (d): (1) A qualified organization may conduct the daily drawing regularly scheduled for a calendar day occurring during the time that the qualified organization holds a prize for a winning patron who was not present at the time of a qualified drawing. (2) If an unclaimed prize from a daily drawing is carried over to a particular date, the qualified organization may not conduct the regular daily drawing that would otherwise be permitted under this section on that date. (3) If an unclaimed prize from a weekly drawing is carried over to a particular date, the qualified organization may not conduct the regular weekly drawing that would otherwise be permitted under this section on that date. (4) Subject to the prize limits set forth in subsection (b)(2), a qualified organization may accept additional entries to a drawing for a carried over prize.
IC 4-32.2-6-0.5 "Gross revenue" Sec. 0.5. As used in this chapter, "gross revenue" does not include any amount wagered on winner take all and other qualified drawings conducted by a qualified organization under IC 4-32.2-5-26. IC 4-32.2-6 Chapter 6. License Fees
IC 4-32.2-6-1 License fees required
Sec. 1 .
The commission shall charge a license fee to an applicant under this article.
IC 4-32.2-6-2 Initial license fee schedule; first year license fee limit Sec. 2.
The commission shall establish an initial license fee schedule. However, the license fee that is charged to a qualified organization in the first year that the qualified organization applies for a license may not exceed fifty dollars ($50).
IC 4-32.2-6-3 License renewal fee schedule
Sec. 3.
(a) In the case of a qualified organization that is not subject to subsection (b), the qualified organization's adjusted gross revenue is an amount equal to the difference between:
(1) the qualified organization's total gross revenue from allowable events and related activities in the preceding year; minus (2) the sum of any amounts deducted under IC 4-32.2-5-3(b)(5) in the preceding year.
(b) This subsection applies only to a qualified organization that held a license under IC 4-32.2-4-6, IC 4-32.2-4-7, IC 4-32.2-4-8, IC 4-32.2-4-10, or IC 4-32.2-4-12. The qualified organization's adjusted gross revenue is an amount equal to the difference between:
(1) the qualified organization's total gross revenue from the preceding event and related activities; minus
(2) any amount deducted under IC 4-32.2-5-3(b)(5) for the preceding event.
(c) The license fee that is charged to a qualified organization that renews the license must be based on the adjusted gross revenue of the qualified organization from allowable events and related activities in the preceding year, or, if the qualified organization held a license under IC 4-32.2-4-6, IC 4-32.2-4-7, IC 4-32.2-4-8, IC 4-32.2-4-10, or IC 4-32.2-4-12, the fee must be based on the adjusted gross revenue of the qualified organization from the preceding event and related activities, according to the following schedule:
Class Adjusted Gross Revenues Fee
At Least But Less Than
A $ 0 $ 15,000 $ 50
B $ 15,000 $ 25,000 $ 100
C $ 25,000 $ 50,000 $ 300
D $ 50,000 $ 75,000 $ 400
E $ 75,000 $ 100,000 $ 700
F $ 100,000 $ 150,000 $ 1,000
G $ 150,000 $ 200,000 $ 1,500
H $ 200,000 $ 250,000 $ 1,800
I $ 250,000 $ 300,000 $ 2,500
J $ 300,000 $ 400,000 $ 3,250
K $ 400,000 $ 500,000 $ 5,000
L $ 500,000 $ 750,000 $ 6,750
M $ 750,000 $ 1,000,000 $ 9,000
N $ 1,000,000 $ 1,250,000 $ 11,000
O $ 1,250,000 $ 1,500,000 $ 13,000
P $ 1,500,000 $ 1,750,000 $ 15,000
Q $ 1,750,000 $ 2,000,000 $ 17,000
R $ 2,000,000 $ 2,250,000 $ 19,000
S $ 2,250,000 $ 2,500,000 $ 21,000
T $ 2,500,000 $ 3,000,000 $ 24,000
U $ 3,000,000 $ 26,000
IC 4-32.2-6-4 Manufacturers' and distributors' license renewal fee schedule
Sec. 4.
The commission shall establish a license fee schedule for the renewal of licenses for manufacturers and distributors.
IC 4-32.2-6-5 Deposit of license fees
Sec. 5.
The commission shall deposit license fees collected under this chapter in the charity gaming enforcement fund established by IC 4-32.2-7-3.
IC 4-32.2-7 Chapter 7. Charity Gaming Enforcement Fund
IC 4-32.2-7-1 "Surplus revenue"
Sec. 1 .
As used in this chapter, "surplus revenue" means the amount of money in the charity gaming enforcement fund that is not required to meet the costs of administration and the cash flow needs of the commission under this article, IC 4-33-19, and IC 4-33-20.
IC 4-32.2-7-2 "Fund"
Sec. 2.
As used in this chapter, "fund" means the charity gaming enforcement fund established by section 3 of this chapter.
IC 4-32.2-7-3 Charity gaming enforcement fund established
Sec. 3.
The charity gaming enforcement fund is established. The commission shall administer the fund.
IC 4-32.2-7-4 Fees, penalties, and taxes deposited in charity gaming enforcement fund Sec. 4. The fund consists of the following:
(1) License fees collected under IC 4-32.2-6.
(2) Civil penalties collected under IC 4-32.2-8.
(3) Charity gaming card excise taxes received under IC 4-32.2-10.
IC 4-32.2-7-5 Investment of fund
Sec. 5.
Money in the fund does not revert to the state general fund at the end of a state fiscal year. The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
IC 4-32.2-7-6 Annual appropriation
Sec. 6.
There is appropriated annually to the commission from the fund an amount sufficient to cover the costs incurred by the commission for the purposes specified in this article, IC 4-33-19, and IC 4-33-20.
IC 4-32.2-7-7 Transfers to build Indiana fund
Sec. 7.
Before the last business day of January, April, July, and October, the commission shall, upon approval of the budget agency, transfer the surplus revenue to the treasurer of state for deposit in the build Indiana fund.
IC 4-32.2-8 Chapter 8. Penalties
IC 4-32.2-8-1 Grounds for penalties
Sec. 1.
(a) The commission may suspend or revoke the license of or levy a civil penalty against a qualified organization, a manufacturer, a distributor, or an individual under this article for any of the following:
(1) Violation of:
(A) a provision of this article, IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4, or a rule of the commission; or
(B) any other local ordinance, state or federal statute, or administrative rule or regulation that would cause the commission to determine that the person is not of good moral character or reputation.
(2) Failure to accurately account for a licensed supply.
(3) Failure to accurately account for sales proceeds from an event or activity licensed or permitted under this article.
(4) Commission of a fraud, deceit, or misrepresentation.
(5) Conduct prejudicial to public confidence in the commission.
(b) If a violation is of a continuing nature, the commission may impose a civil penalty upon a licensee or an individual for each day the violation continues.
(c) For purposes of subsection (a), a finding that a person has violated IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4 must be supported by a preponderance of the evidence.
IC 4-32.2-8-2 Civil penalty amounts
Sec. 2.
A civil penalty imposed by the commission upon a qualified organization or an individual under section 1 of this chapter may not exceed the following amounts:
(1) One thousand dollars ($1,000) for the first violation.
(2) Two thousand five hundred dollars ($2,500) for the second violation.
(3) Five thousand dollars ($5,000) for each additional violation.
IC 4-32.2-8-3 Additional enforcement actions authorized
Sec. 3.
In addition to imposing a penalty described in section 1 of this chapter, the commission may do all or any of the following:
(1) Lengthen a period of suspension of the license.
(2) Prohibit an operator or an individual who has been found to be in violation of this article from associating with charity gaming conducted by a qualified organization.
(3) Impose an additional civil penalty of not more than one hundred dollars ($100) for each day the civil penalty goes unpaid.
IC 4-32.2-8-4 Criminal penalties
Sec. 4.
(a) Except as provided in subsection (b), a person or an organization that recklessly, knowingly, or intentionally violates a provision of this article commits a Class B misdemeanor.
(b) An individual, a corporation, a partnership, a limited liability company, or other association that recklessly, knowingly, or intentionally enters into a contract or other agreement with a qualified organization in violation of IC 4-32.2-5-2 commits a Class D felony.
IC 4-32.2-8-5 Deposit of civil penalties
Sec. 5.
The commission shall deposit civil penalties collected under this chapter in the charity gaming enforcement fund established by IC 4-32.2-7-3.
01/10/2008 02:53:35 PM EST IC 4-32.2-9 Chapter 9. Security
IC 4-32.2-9-1 Responsibility for security; necessary police powers
Sec. 1.
(a) The commission is responsible for security matters under this article. The commission may employ investigators and other individuals necessary to carry out this chapter.
(b) An employee of the commission engaged in the enforcement of this article is vested with the necessary police powers to enforce this article. The police powers granted by this subsection are limited to the enforcement of this article.
(c) An employee described in subsection (b) may not:
(1) issue a summons for an infraction or a misdemeanor violation of any law other than this article;
(2) act as an officer for the arrest of offenders for the violation of an Indiana law other than this article; or
(3) exercise any other police power with respect to the enforcement of any state or local law other than this article.
IC 4-32.2-9-2 Authorized security powers
Sec. 2.
An employee of the commission may do any of the following:
(1) Investigate an alleged violation of this article.
(2) Arrest an alleged violator of this article.
(3) Enter upon the following premises for the performance of the employee's lawful duties:
(A) A location where a bingo event, charity game night, festival event, raffle, door prize drawing, or other charity gambling event licensed under IC 4-32.2-4-16 is being conducted.
(B) A location where pull tabs, tip boards, or punchboards are being purchased, sold, manufactured, printed, or stored.
(4) Take necessary equipment from the premises for further investigation.
(5) Obtain full access to all financial records of the entity upon request.
(6) If there is a reason to believe that a violation has occurred, search and inspect the premises where the violation is alleged to have occurred or is occurring. A search under this subdivision may not be conducted unless a warrant has first been obtained by the executive director. A contract entered into by the executive director may not include a provision allowing for warrantless searches. A warrant may be obtained in the county where the search will be conducted or in Marion County.
(7) Seize or take possession of:
(A) papers;(B) records; (C) tickets; (D) currency; or (E) other items; related to an alleged violation.
IC 4-32.2-9-3 Investigations
Sec. 3.
(a) The commission shall conduct investigations necessary to ensure the security and integrity of the operation of games of chance under this article. The commission may conduct investigations of the following:
(1) Licensed qualified organizations.
(2) Applicants for licenses issued under this article.
(3) Entities that sell, manufacture, or distribute licensed supplies.
(4) Employees of the commission under this article.
(5) Applicants for contracts or employment with the commission under this article.
(6) Individuals engaged in conducting allowable events.
(b) The commission may require persons subject to an investigation under subsection (a) to provide information, including fingerprints, that is:
(1) required by the commission to carry out the investigation; or
(2) otherwise needed to facilitate access to state and criminal history information.
IC 4-32.2-9-4 State police and other agency assistance
Sec. 4.
(a) The state police department shall, at the request of the executive director, provide the following:
(1) Assistance in obtaining criminal history information relevant to investigations required for honest, secure, exemplary operations under this article.
(2) Any other assistance requested by the executive director and agreed to by the superintendent of the state police department.
(b) Any other state agency, including the alcohol and tobacco commission and the Indiana professional licensing agency, shall upon request provide the executive director with information relevant to an investigation conducted under this article.
IC 4-32.2-9-5 Retention of marketing sheets
Sec. 5.
A marketing sheet published in connection with a wagering game must be maintained for the lesser of:
(1) six (6) years after the year in which the marketing sheet was published; or
(2) the end of an audit in which the marketing sheet and similar records are audited.
IC 4-32.2-9-6 Destroyed, discontinued, or unusable licensed supplies Sec. 6.
(a) This section applies only to products sold in Indiana.
(b) If a licensed manufacturer or distributor destroys, discontinues, or otherwise renders unusable a licensed supply, the manufacturer or distributor shall provide the commission with a written list of the items destroyed, discontinued, or rendered otherwise unusable.
(c) The list required under subsection (b) must contain the following information concerning the items destroyed, discontinued, or rendered otherwise unusable:
(1) The quantity.
(2) A description.
(3) The serial numbers.
(4) The date the items were destroyed, discontinued, or rendered otherwise unusable.
(d) Notwithstanding subsection (b), this section does not apply to a product considered defective by the manufacturer or distributor.
IC 4-32.2-9-7 Requests for records; production deadline
Sec. 7.
Records of a manufacturer or distributor must be produced upon request by the commission within seventy-two (72) hours or by another mutually agreed upon time if production of the requested documents within seventy-two (72) hours is impractical or burdensome.
IC 4-32.2-9-8 Quarterly reports
Sec. 8.
A manufacturer or distributor of a licensed supply to be used in charity gaming in Indiana must file a quarterly report listing the manufacturer's or distributor's sales of the licensed supply.
IC 4-32.2-9-9 Confidentiality
Sec. 9.
Information obtained by the commission during the course of an investigation conducted under this chapter is confidential.
(b) A driver's license number or other identifying information of an operator or worker that is submitted to the commission on an application for a license under this article is confidential.
IC 4-32.2-10 Chapter 10. Gaming Card Excise Tax
IC 4-32.2-10-1 Gaming card excise tax imposed
Sec. 1.
An excise tax is imposed on the distribution of pull tabs, punchboards, and tip boards in the amount of ten percent (10%) of the price paid by the qualified organization that purchases the pull tabs, punchboards, and tip boards.
IC 4-32.2-10-2 Liability for tax
Sec. 2.
A licensed entity distributing pull tabs, punchboards, or tip boards under this article is liable for the tax. The tax is imposed at the time the licensed entity:
(1) brings or causes the pull tabs, punchboards, or tip boards to be brought into Indiana for distribution;
(2) distributes pull tabs, punchboards, or tip boards in Indiana; or
(3) transports pull tabs, punchboards, or tip boards to qualified organizations in Indiana for resale by those qualified organizations.
IC 4-32.2-10-3 Accounting procedures
Sec. 3.
The department shall establish procedures by which each licensed entity must account for the following:
(1) The tax collected under this chapter by the licensed entity.
(2) The pull tabs, punchboards, and tip boards sold by the licensed entity.
(3) The funds received for sales of pull tabs, punchboards, and tip boards by the licensed entity.
IC 4-32.2-10-4 Form of payment
Sec. 4.
A payment by a licensed entity to the department may not be in cash. All payments must be in the form of a check, a draft, an electronic funds transfer, or another financial instrument authorized by the commissioner. The department may require licensed entities to establish separate electronic funds transfer accounts for the purpose of making payments to the department.
IC 4-32.2-10-5 Remittance of taxes; reports
Sec. 5.
All taxes imposed on a licensed entity under this chapter shall be remitted to the department at the times and as directed by the department. The department is responsible for all administrative functions related to the receipt of funds. The department may require each licensed entity to file with the department reports of the licensed entity's receipts and transactions in the sale of pull tabs, punchboards, and tip boards. The department shall prescribe the form of the reports and the information to be contained in the reports. For purposes of this section, a qualified organization is not required to report the name, signature, or driver's license number of a prize winner unless the qualified organization is required to withhold adjusted gross income tax from the prize winner under IC 6-3-4-8.2(d).
IC 4-32.2-10-6 Audits
Sec. 6. The department may at any time perform an audit of the books and records of a licensed entity to ensure compliance with this chapter.
IC 4-32.2-10-7 Application of penalty provisions
Sec. 7.
IC 4-32.2-8 applies to licensed entities.
IC 4-32.2-10-8 Taxes transferred for deposit in the charity gaming enforcement fund
Sec. 8.
The department shall transfer all taxes collected under this chapter to the commission for deposit in the charity gaming enforcement fund established by IC 4-32.2-7-3.
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