Indiana Code 4-32.2-5

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.
As added by P.L.91-2006, SEC.3.

IC 4-32.2-5-1.5
Designation of operator
     Sec. 1.5. (a) 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:
        (1) must be qualified to serve as an operator under this article; and
        (2) in the case of a qualified organization holding an annual comprehensive charity gaming license issued under IC 4-32.2-4-20, must be a member of the Indiana affiliate conducting the particular event.
    (b) A qualified organization holding an annual comprehensive charity gaming license may do the following:
        (1) Designate an individual qualified under subsection (a)(2) to serve as the operator of raffle events and door prize events conducted by two (2) or more Indiana affiliates of the qualified organization.
        (2) Designate a full-time employee of the qualified organization as the operator of a raffle or door prize event conducted by an Indiana affiliate of the qualified organization if the employee is qualified under subsection (a)(2).
As added by P.L.95-2008, SEC.8. Amended by P.L.94-2012, SEC.12.

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.
As added by P.L.91-2006, SEC.3.

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.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.30.

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.
As added by P.L.91-2006, SEC.3.

IC 4-32.2-5-5
Financial records; deposit of funds; payment of expenses; audits
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. A qualified organization conducting raffle events and door prize events under an annual comprehensive charity gaming license issued under IC 4-32.2-4-20 shall comply with the reporting requirements of this subsection in the manner specified by subsection (d). 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. A qualified organization conducting raffle events and door prize events under an annual comprehensive charity gaming license shall deposit the funds received from each raffle or door prize event conducted by its

separate Indiana affiliates into a single account maintained by a financial institution physically located in Indiana. 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.
    (d) The following reports must be submitted to the commission with respect to the raffle events and door prize events conducted under an annual comprehensive charity gaming license:
        (1) An event summary report for each raffle or door prize event conducted under the license. Reports required under this subdivision may be submitted by the Indiana affiliate of the qualified organization.
        (2) One (1) annual license financial report.
        (3) One (1) annual license gross receipts report.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.31; P.L.60-2009, SEC.3; P.L.94-2012, SEC.13.

IC 4-32.2-5-6
Event limit
     Sec. 6. (a) Except as provided in section 29 of this chapter, 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 section 29 of this chapter, 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.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.32; P.L.95-2008, SEC.9; P.L.94-2012, SEC.14.

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.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.33; P.L.108-2009, SEC.9.

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.
As added by P.L.91-2006, SEC.3.

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.
As added by P.L.91-2006, SEC.3.

IC 4-32.2-5-11
Prohibition on commission employees and relatives as operators, workers, or volunteer ticket agents
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, a worker, or a volunteer ticket agent.
As added by P.L.91-2006, SEC.3. Amended by P.L.104-2011, SEC.5.

IC 4-32.2-5-12
Remuneration of operators, workers, volunteer ticket agents, and certain employees prohibited
     Sec. 12. (a) Except as provided in subsection (b) or (c), an operator, a worker, or a volunteer ticket agent 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.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.34; P.L.104-2011, SEC.6.

IC 4-32.2-5-13
Operators; limitations and requirements
     Sec. 13. (a) For purposes of this section, the Indiana affiliates of a qualified organization holding an annual comprehensive charity gaming license issued under IC 4-32.2-4-20 are not considered separate qualified organizations.
    (b) An individual may not be an operator for more than three (3) qualified organizations during a calendar month.
    (c) 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.
As added by P.L.91-2006, SEC.3. Amended by P.L.60-2009, SEC.4; P.L.94-2012, SEC.15.

IC 4-32.2-5-14
Participation of operators and workers prohibited; exceptions
     Sec. 14. (a) Except as provided by subsections (c) through (e), 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 qualified card game;
        (2) the patron deals the cards in the manner required in the ordinary course of the qualified card game; and
        (3) the qualified card game is played under the supervision of the qualified organization conducting the charity game night in accordance with section 14.5 of this chapter (in the case of a game of Texas hold'em poker or Omaha poker) and any rules adopted by the commission under IC 4-32.2-3-3.
A patron who deals the cards in a qualified card 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.
    (d) A worker at a bingo event:
        (1) whose duties are limited to:
            (A) selling bingo supplies;
            (B) selling tickets for a door prize drawing or raffle conducted at the bingo event; or
            (C) the duties described in both clauses (A) and (B);
        (2) who has completed all of the worker's duties before the start of the first bingo game of the bingo event; and
        (3) who is not engaged as a worker at any other time during the bingo event;
may participate as a player in any gaming activity offered at the bingo event following the completion of the worker's duties at the bingo event.
    (e) A worker at a raffle event conducted by a qualified organization holding an annual comprehensive charity gaming license issued under IC 4-32.2-4-20 may purchase a raffle ticket for a particular drawing at the raffle event unless:
        (1) the worker personally sold tickets for; or
        (2) the worker otherwise personally participated in the conduct of;
that particular drawing.
As added by P.L.91-2006, SEC.3. Amended by P.L.95-2008, SEC.10; P.L.60-2009, SEC.5; P.L.108-2009, SEC.10; P.L.104-2011, SEC.7; P.L.94-2012, SEC.16.

IC 4-32.2-5-14.5
Rules for dealing cards in Texas hold'em poker and Omaha poker
     Sec. 14.5. The following rules apply when a patron at a charity game night deals the cards in a game of Texas hold'em poker or Omaha poker under section 14(b) of this chapter:
        (1) Patrons may take turns dealing, but a patron may not play in a hand for which the patron deals the cards.
        (2) The dealer shall submit the deck of cards to be cut to the nearest player to the right of the dealer.
        (3) A blank card must be at the bottom of the deck of cards.
        (4) The operator or a worker shall deal the cards at the final table of a tournament.
As added by P.L.94-2012, SEC.17.

IC 4-32.2-5-15
Operator membership requirement
Sec. 15. Except as provided in section 15.5 of this chapter, 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.

As added by P.L.91-2006, SEC.3. Amended by P.L.94-2012, SEC.18.

IC 4-32.2-5-16
Worker membership requirement; exception; shared revenues
     Sec. 16. (a) Except as provided in:
        (1) section 12(c) of this chapter;
        (2) section 15.5 of this chapter; and
        (3) 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.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.35; P.L.60-2009, SEC.6; P.L.94-2012, SEC.20.

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).
As added by P.L.91-2006, SEC.3.

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.
As added by P.L.91-2006, SEC.3.

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.
As added by P.L.91-2006, SEC.3.

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).
As added by P.L.91-2006, SEC.3.

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:
        (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.
As added by P.L.91-2006, SEC.3.

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.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007, SEC.36.

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.
As added by P.L.91-2006, SEC.3.

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.
As added by P.L.60-2009, SEC.7.

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.
As added by P.L.60-2009, SEC.8.

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

ticket agent.
As added by P.L.104-2011, SEC.8.

IC 4-32.2-5-28
Acceptance of credit cards
     Sec. 28. (a) Subject to subsection (b), a qualified organization may accept credit cards at an allowable event for the purchase of:
        (1) food and beverages;
        (2) merchandise; and
        (3) retail goods and services offered at a benefit auction.
    (b) A qualified organization may not accept credit cards or extend credit to a player for the purchase of a:
        (1) chance to play any game of chance offered at an allowable event; or
        (2) licensed supply.
As added by P.L.104-2011, SEC.9.

(3) Except as provided by section 31 of this chapter, the Indiana affiliates of the qualified organization may not hold another license issued under IC 4-32.2-4-8, IC 4-32.2-4-9, IC 4-32.2-4-10, or IC 4-32.2-4-11 while the qualified organization holds the annual comprehensive charity gaming license.
As added by P.L.94-2012, SEC.21.

IC 4-32.2-5-31
Election to participate in charity gaming independently of a parent bona fide national organization's annual comprehensive charity gaming license
     Sec. 31. (a) This section applies only to an organization that is an Indiana affiliate of a bona fide national organization.
    (b) An organization may elect not to participate in charity gaming under an annual comprehensive charity gaming license obtained by the organization's parent bona fide national organization under IC 4-32.2-4-20. The organization shall provide notice of the election to the commission on a form prescribed by the commission.
    (c) An election under this section disqualifies the organization from conducting a raffle event or door prize event under the parent

organization's annual comprehensive charity gaming license for the term of the license.
    (d) An organization making an election under this section may participate in charity gaming if qualified and licensed under this article in its own right. Except as provided in subsection (e), an organization making an election under this section:
        (1) is considered a separate qualified organization from its parent bona fide national organization; and
        (2) is not considered an Indiana affiliate of the parent bona fide national organization.
    (e) For purposes of determining under IC 4-32.2-6-2(b) or IC 4-32.2-6-3(d) and IC 4-32.2-6-3.5, the amount of the fee for the issuance or renewal of an annual comprehensive charity gaming license, an organization making an election under this section is considered an Indiana affiliate of the parent bona fide national organization.
As added by P.L.94-2012, SEC.23.