TITLE 68 INDIANA GAMING COMMISSION

Proposed Rule

LSA Document #08-432

DIGEST

Amends 68 IAC 21-1-13, 68 IAC 21-2-1, and 68 IAC 21-2-6 and adds 68 IAC 21-1-19 and 68 IAC 21-3-4.1 concerning the conduct of charity gaming activities by qualified organizations, manufacturers, and distributors licensed by the Indiana Gaming Commission. Amends 68 IAC 21-2-5 regarding license denial. Amends 68 IAC 21-2-7 regarding activities that may be conducted under a license. Amends 68 IAC 21-3-2 regarding conducting an allowable event. Effective 30 days after filing with the Publisher.

IC 4-22-2.1-5 Statement Concerning Rules Affecting Small Businesses

SECTION 1. 68 IAC 21-1-13 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-32.2

Sec. 13. "Gross revenue" means gross receipts. The term does not include wagers made in a winner take all drawing.

SECTION 2. 68 IAC 21-1-19 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-32.2

Sec. 19. "Winner take all drawing" means a drawing, conducted under an annual PPT license, in which the qualified organization keeps no portion of the amounts wagered. The total amount awarded to the winner of a winner take all drawing may not exceed three hundred dollars ($300).

SECTION 3. 68 IAC 21-2-1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-32.2-2-24; IC 4-32.2-5-6

Sec. 1. (a) To obtain a license to conduct an allowable event, an organization must submit a written application on the form or forms prescribed by the commission. An application for a license to conduct an allowable event must be received not later than thirty (30) days before the date on which the allowable event is conducted.

(b) The application shall include the following information:

(c) If an organization that has been determined by the commission to be a qualified organization does not conduct an allowable event for a period of at least five (5) years, the organization must provide to the commission the information outlined in section 2 of this rule before conducting an allowable event.

SECTION 4. 68 IAC 21-2-5 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-32.2-2-24

Sec. 5. The commission may deny a license to an organization, manufacturer, distributor, or individual about whom the commission has reason to believe at least one (1) of the following:

SECTION 5. 68 IAC 21-2-6 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-32.2-6-3

Sec. 6. (a) All license fees must be paid at the time the application for licensure is submitted to the commission.

(b) The initial license fee and renewal fee for a:

(c) The initial fee on each separate license held by a qualified organization is fifty dollars ($50).

(d) If a period of at least five (5) years elapses between the dates on which a qualified organization lawfully conducts a particular allowable event, the license for conducting that particular allowable event for the first time following the five (5) year period shall be considered an initial license for purposes of IC 4-32.2-6-3 and this rule.

(e) The commission may assess a twenty-five dollar ($25) fee for amendments to licenses previously issued.

(f) If a qualified organization withdraws its application for an initial license or a license renewal, in writing, prior to issuance of the license or grant of the renewal, the commission shall refund the applicable license fee or renewal fee to the qualified organization, minus a fifty dollar ($50) processing charge.

(g) If a qualified organization rescinds a single event license prior to hosting the event or events for which a single event license had been procured, the commission shall refund the lesser of:

(h) If a qualified organization rescinds an annual event license prior to the effective date of the license, the commission shall refund the lesser of:

(e) (i) Receipts from sales of any goods, services, or other property sold in direct connection with or because of any gambling aspect of an allowable event must be included in gross receipts as a related activity for purposes of the qualified organization's renewal fee.

(f) (j) The commission may collect outstanding license fees resulting from underreported gaming income from an allowable event and related activities.

SECTION 6. 68 IAC 21-2-7 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-32.2-4-16; IC 4-32.2-5-6

Sec. 7. (a) A full-sized photocopy of the event license is required to be prominently displayed at the facility where the event is being held. The original license must be available for inspection upon request at all times. In addition to the photocopy, a legible sign of adequate dimension of at least eight and one-half (8 1/2) inches by eleven (11) inches must be prominently posted near each entrance and registration area at the event, in such a manner that it can be clearly read by all the players during an event, containing the following:

(b) Application for the following licenses may be made by a qualified organization:

SECTION 7. 68 IAC 21-3-2 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-32.2; IC 5-14-1.5; IC 35-45-5-1

Sec. 2. (a) Except for pull-tabs, punchboards, and tip boards obtained from the state lottery commission, all licensed supplies must originally be obtained from an entity that is licensed by the commission as a manufacturer or distributor.

(b) The purchase of Hoosier Lottery pull-tabs by the qualified organization is only permitted if the qualified organization is licensed by the state lottery commission to sell the items. The provisions of IC 4-32.2 do not apply to the purchase and sale of Hoosier Lottery pull-tabs by a qualified organization.

(c) Only one (1) organization can conduct an event on the same day at the same location.

(d) An allowable event must begin and end within a period of twenty-four (24) consecutive hours.

(e) The lease of a facility for an allowable event must be (1) in writing and:

(f) Except for a festival, an organization must not pay more than five hundred dollars ($500) per event in total for personal property that may be used by the organization to conduct the event. This includes the rental of tables, chairs, and related equipment owned and leased by the lessor who is leasing the facility to the qualified organization for an allowable event. The rental of tangible personal property cannot be based on the revenue generated by the event. For a festival event, the five hundred dollar ($500) limitation only applies to the rental of gambling-related equipment and supplies.

(g) A qualified organization may advertise an allowable event. An advertisement in printed media must contain the name and license number, in bold print, of the organization conducting the event. An advertisement in broadcast media must announce, at the end of the advertisement:

(h) An organization cannot sell a pull-tab, punchboard, or tip board ticket for more than one dollar ($1). Pull-tabs cannot be sold in this state unless a flare accompanies the deal.

(i) An organization may not permit a person less than eighteen (18) years of age to play or participate in an allowable event. However, a person less than eighteen (18) years of age may play or participate in nongambling activities associated with an allowable event. A qualified organization is prohibited from allowing an individual less than eighteen (18) years of age to serve food or drinks to participants in the area where the gaming is occurring.

(j) A sign printed with a font size legible from a distance of at least ten (10) feet must be prominently posted near each entrance and registration area throughout the event stating that the operators and workers are not allowed to accept tips.

(k) An organization may employ not more than three (3) nonmember Indiana law enforcement officers or private detectives properly licensed in Indiana to perform security services during an allowable event. An organization may not use more than three (3) security personnel unless the organization has prior written approval of the executive director or the executive director's designee.

(l) Neither the operator nor a worker is permitted to participate in the allowable event that is being held. An operator is prohibited from being an operator for more than one (1) qualified organization in a calendar month. A manufacturer, distributor, or an officer or employee of a manufacturer or distributor is prohibited from being an operator or worker at any allowable event.

(m) To obtain express authorization for an exemption from a normal prize limit where permissible in IC 4-32.2, a qualified organization must submit a written application on a form prescribed by the commission stating the date, time, and location of the event at least forty-five (45) days before the date of the event. The authorization to exceed the normal prize limits must be prominently displayed at the time and location of the event.

(n) An organization may dispose of any unused bingo supplies, punchboards, pull-tabs, tip boards, and any other licensed supplies specified by the commission by shredding, burning, or otherwise destroying them. The organization must notify the commission that such items are to be destroyed thirty (30) days in advance of the destruction and must provide the following information:

(o) If an organization has lost any licensed supplies through theft, fire, flood, or other disaster, the organization must notify the commission in writing of such the loss and provide the following information within ten (10) days of discovering the loss:

(p) A serial number consisting of at least five (5) alpha characters or numeric characters, or both, must be printed on each concealed face bingo card manufactured and sold.

(q) Seal and flare card winners must provide:

(r) A charitable organization may not conduct an allowable event on or through the Internet.

(s) An organization may:

(t) Publication of notice required by IC 4-32.2-4-5(c) and IC 4-32.2-4-7.5(c) shall be made not later than fifteen (15) days after the applicant has received a prelicense review letter issued by the commission.

(u) A qualified organization holding a license issued under IC 4-32.2-4-5 and IC 4-32.2-4-7.5 shall publish notice as required by IC 4-32.2-4-5(c) and IC 4-32.2-4-7.5(c) if the location at which the organization conducts gaming pursuant to these licenses changes. Notification must meet the requirements of IC 4-32.2-4-5(d) and IC 4-32.2-4-7.5(d). In the event the commission receives at least ten (10) written and signed protest letters, the commission may hold a hearing in accordance with IC 5-14-1.5.

(u) (v) Protest letters referenced in IC 4-32.2-4-5(e) and IC 4-32.2-4-7.5(e) opposing the issuance of an initial annual bingo or annual charity game night license, respectively, must be received by the commission not later than fifteen (15) days after the last publication required by IC 4-32.2-4-5(c) and IC 4-32.2-4-7.5(c), respectively.

(w) The total prizes awarded for a winner take all drawing may not exceed three hundred dollars ($300) for each drawing. All prizes awarded for a winner take all drawing must be U.S. currency.

(x) A qualified organization conducting a winner take all drawing must maintain a ledger in which the qualified organization records:

(y) A qualified organization conducting a raffle, door prize, or winner take all drawing must conduct its own winning draws.

(z) A qualified organization is prohibited from conducting any allowable event at a bar or tavern, or at a facility connected to a bar or tavern, that is not owned by a qualified organization.

(aa) Except as outlined in IC 4-32.2-5-14, a person dealing a card game must be either a worker or an operator.

SECTION 8. 68 IAC 21-3-4.1 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-32.2-4-7; IC 4-32.2-4-7.5

Sec. 4.1. (a) A patron participating in a euchre game conducted under a charity game night license issued under IC 4-32.2-4-7 or IC 4-32.2-4-7.5 must deal every time he or she has the opportunity to do so in the regular course of the game of euchre.

(b) No patron participating in a euchre game conducted under a charity game night license issued under IC 4-32.2-4-7 or IC 4-32.2-4-7.5 may receive prizes other than those awarded to the winners of the game.

(c) A qualified organization conducting a euchre game under a charity game night license issued under IC 4-32.2-4-7 or IC 4-32.2-4-7.5 must have one (1) operator for each six (6) tables of four (4) players. Determination of prize payouts, resolution of disputes, and responsibility for all buy-ins and cash outs of chips must be done by an operator.

Notice of Public Hearing

DIN: 20081105-IR-068080432PRA

Composed: May 03,2024 2:26:26AM EDT

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