CHAPTER 5. CONDUCT OF ALLOWABLE EVENTS
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. For each allowable event conducted under this article, aqualified organization shall designate an individual to serve as theoperator of the allowable event. An individual designated under thissection must be qualified to serve as an operator under this article.
As added by P.L.95-2008, SEC.8.
IC 4-32.2-5-2
Management and conduct of events
Sec. 2. A qualified organization may not contract or otherwiseenter into an agreement with an individual, a corporation, apartnership, a limited liability company, or other association toconduct an allowable event for the benefit of the organization. Aqualified organization shall use only operators and workers meetingthe requirements of this chapter to manage and conduct an allowableevent.
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 relatedactivities may be used only for the lawful purposes of the qualifiedorganization.
(b) To determine the net proceeds from an allowable event, aqualified organization shall subtract the following from the grossreceipts received from the allowable event:
(1) An amount equal to the total value of the prizes, includingdoor prizes, awarded at the allowable event.
(2) The sum of the purchase prices paid for licensed suppliesdispensed at the allowable event.
(3) An amount equal to the qualified organization's license feesattributable to the allowable event.
(4) An amount equal to the advertising expenses incurred by thequalified organization to promote the allowable event.
(5) An amount not to exceed two hundred dollars ($200) perday 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 anyevents licensed under this article is required to donate sixty percent(60%) of its gross charitable gaming receipts less prize payout to aqualified recipient that is not an affiliate, a parent, or a subsidiaryorganization of the qualified organization.
(b) For purposes of this section, a veterans' home is notconsidered to be an affiliate, a parent, or a subsidiary organization ofa 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 accuraterecords of all financial aspects of an allowable event under thisarticle. A qualified organization shall make accurate reports of allfinancial aspects of an allowable event to the commission within thetime established by the commission. The commission may prescribeforms for this purpose. For purposes of this section, a qualifiedorganization is not required to record the name, signature, driver'slicense number, or other identifying information of a prize winnerunless the qualified organization is required to withhold adjustedgross income tax from the prize winner under IC 6-3-4-8.2(d).
(b) The commission shall, by rule, require a qualified organizationto deposit funds received from an allowable event in a separate andsegregated account set up for that purpose. All expenses of thequalified organization with respect to an allowable event shall bepaid from the separate account.
(c) The commission may require a qualified organization tosubmit any records maintained under this section for an independentaudit by a certified public accountant selected by the commission. Aqualified organization must bear the cost of any audit required underthis section.
As added by P.L.91-2006, SEC.3. Amended by P.L.227-2007,SEC.31; P.L.60-2009, SEC.3.
IC 4-32.2-5-6
Event limit
Sec. 6. (a) Except as provided in IC 4-32.2-4-9 andIC 4-32.2-4-16.5, a qualified organization may not conduct more thanthree (3) allowable events during a calendar week and not more thanone (1) allowable event each day.
(b) Except as provided in IC 4-32.2-4-9, IC 4-32.2-4-12, andIC 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) additionalfestival 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.
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 revenuegenerated from the event.
(b) Subject to the additional restrictions on the use of a facility orlocation that are set forth in IC 4-32.2-4-7.5(i), a facility or locationmay not be rented for more than three (3) days during a calendarweek for an allowable event.
(c) If personal property is leased for an allowable event, the rentmay not be based in whole or in part on the revenue generated fromthe 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 conductan 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 hasbeen convicted of or entered a plea of nolo contendere to a felonycommitted in the preceding ten (10) years, regardless of theadjudication, unless the commission determines that:
(1) the person has been pardoned or the person's civil rightshave been restored; or
(2) after the conviction or entry of the plea, the person hasengaged in the kind of good citizenship that would reflect wellupon the integrity of the qualified organization and thecommission.
As added by P.L.91-2006, SEC.3.
IC 4-32.2-5-11
Prohibition on commission employees and relatives as operators orworkers
Sec. 11. An employee of the commission or a relative living in thesame household with the employee of the commission may not be anoperator or a worker.
As added by P.L.91-2006, SEC.3.
IC 4-32.2-5-12
Remuneration of operators, workers, and certain employees
Sec. 12. (a) Except as provided in subsection (b) or (c), anoperator or a worker who is not a full-time employee may not receiveremuneration for:
(1) conducting; or
(2) assisting in conducting;
an allowable event.
(b) A qualified organization that conducts an allowable eventmay:
(1) provide meals for the operators and workers during theallowable event; and
(2) provide recognition dinners and social events for theoperators and workers;
if the value of the meals and social events does not constitute asignificant inducement to participate in the conduct of the allowableevent.
(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 qualifiedorganization; and
(2) receive the remuneration ordinarily provided to theemployee 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.
IC 4-32.2-5-13
Operators limited to three organizations
Sec. 13. (a) An individual may not be an operator for more thanthree (3) qualified organizations during a calendar month.
(b) If an individual has previously served as an operator foranother qualified organization, the commission may requireadditional information concerning the proposed operator to satisfythe commission that the individual is a bona fide member of thequalified organization.
As added by P.L.91-2006, SEC.3. Amended by P.L.60-2009, SEC.4.
IC 4-32.2-5-14
Participation of operators and workers; dealing by patrons ineuchre; participation by workers at festival events
Sec. 14. (a) Except as provided by subsection (c), an operator ora worker may not directly or indirectly participate, other than in acapacity as an operator or a worker, in an allowable event that theoperator or worker is conducting.
(b) A patron at a charity game night may deal the cards in a cardgame if:
(1) the card game in which the patron deals the cards is a gameof 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 thequalified organization conducting the charity game night inaccordance with rules adopted by the commission underIC 4-32.2-3-3.
A patron who deals the cards in a euchre game conducted under thissubsection is not considered a worker or an operator for purposes ofthis article.
(c) A worker at a festival event may participate as a player in anygaming activity offered at the festival event except as follows:
(1) A worker may not participate in any game during the timein which the worker is conducting or helping to conduct thegame.
(2) A worker who conducts or helps to conduct a pull tab,punchboard, or tip board event during a festival event may notparticipate as a player in a pull tab, punchboard, or tip boardevent conducted on the same calendar day.
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.
IC 4-32.2-5-15
Operator membership requirement
Sec. 15. An operator must be a member in good standing of thequalified organization that is conducting the allowable event for atleast one (1) year at the time of the allowable event.
As added by P.L.91-2006, SEC.3.
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 andsubsection (b), a worker at an allowable event must be a member ingood standing of the qualified organization that is conducting theallowable event for at least thirty (30) days at the time of theallowable event.
(b) A qualified organization may allow an individual who is nota member of the qualified organization to participate in an allowableevent as a worker if the individual is a full-time employee of thequalified 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 formprescribed by the commission for approval of the participation of anonmember under this subsection. A qualified organization mayshare the proceeds of an allowable event with the qualifiedorganization in which a worker participating in the allowable eventunder this subsection is a member. The tasks that will be performedby an individual participating in an allowable event under thissubsection and the amounts shared with the individual's qualifiedorganization 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 anallowable event described in subsection (b) is not considered to beconducting 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.
IC 4-32.2-5-17
Bingo event prize limits
Sec. 17. (a) The prize for one (1) bingo game may not have avalue of more than one thousand dollars ($1,000).
(b) Except as provided in subsection (c), the total prizes permittedat one (1) bingo event may not have a value of more than sixthousand dollars ($6,000).
(c) The commission may, by express authorization, allow anyqualified organization to conduct two (2) bingo events each year atwhich the total prizes for the bingo event may not exceed tenthousand dollars ($10,000). Bingo events authorized under thissubsection may be conducted at a festival conducted underIC 4-32.2-4-12.
(d) The proceeds of the sale of pull tabs, punchboards, and tipboards 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 nothave 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 anotherallowable event may not have a value of more than five thousanddollars ($5,000). However, the commission may, by expressauthorization, allow a qualified organization to conduct one (1) raffleevent at another allowable event each year at which the total prizesfor the raffle event may not exceed twenty-five thousand dollars($25,000). The sale of pull tabs, punchboards, and tip boards is notincluded in the total prize limit at a raffle event.
(b) The value of all door prizes awarded at a raffle event may nothave 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 araffle 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, thecommission may, by express authorization, allow a qualifiedorganization to conduct one (1) door prize event each year at whichthe total prizes for the door prize event may not exceed twentythousand dollars ($20,000). The proceeds of the sale of pull tabs,punchboards, and tip boards are not included in the total prize limitat 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 hundredninety-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 followingpersons may not play or participate in any manner in an allowableevent:
(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 ticketsor 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 manufacturersand distributors
Sec. 22. An employee, officer, or owner of a manufacturer ordistributor is prohibited from participating in or affiliating in anyway with the charity gaming operations of a qualified organizationof 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 radiobroadcast media must announce, within the advertisement, the nameof the qualified organization conducting the allowable event and thatthe 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 forfederal income tax reporting
Sec. 24. (a) Except as provided in subsections (b) and (c), thefollowing apply to an allowable event:
(1) A charity gaming patron is not required to submit to aqualified organization the patron's name, signature, driver'slicense number, or other identifying information.
(2) A qualified organization is not required to obtain a patron'sname, signature, driver's license number, or other identifyinginformation.
(b) A prize of two hundred fifty dollars ($250) or more may notbe awarded to a winner of a pull tab, punchboard, or tip board gameunless:
(1) the winner provides the winner's printed name, signature,and date of birth to the qualified organization conducting thepull tab, punchboard, or tip board game; and
(2) the qualified organization verifies the identity of the prizewinner using any reasonable means the qualified organizationconsiders necessary.
(c) If a qualified organization is required to report a patron'sgambling winnings to the Internal Revenue Service for federalincome tax purposes, the winning patron shall provide the qualifiedorganization with the information necessary to comply with allapplicable 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 qualifiedorganization shall obtain licensed supplies from an entity licensed bythe 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 qualifiedorganization 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 mannerrequired by this section.
(b) A qualified drawing is subject to the following rules andlimitations:
(1) The purchase price for a chance to win a prize in a qualifieddrawing may not exceed five dollars ($5).
(2) The total value of all prizes that may be won in a particularqualified 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 withthe following limitations:
(A) Not more than one (1) daily drawing may be conductedeach day.
(B) Not more than one (1) weekly drawing may beconducted each week.
(C) Not more than one (1) monthly drawing may beconducted each month.
(D) Weekly drawings must be held on regular seven (7) dayintervals posted in the information required by subdivision(11).
(E) Monthly drawings must be held on regular monthlyintervals posted in the information required by subdivision(11).
A weekly or monthly drawing may be conducted on the sameday that a daily drawing is conducted.
(4) Except as otherwise provided in this section, a patron mustbe present to claim a prize awarded in a qualified drawing.
(5) A qualified organization may not profit from conducting aqualified drawing.
(6) All amounts wagered on qualified drawings must bereturned to a qualified organization's patrons in the form ofprizes.
(7) A qualified organization may not conduct a qualifieddrawing or any other event in which the winner of the prize isdetermined, in whole or in part, by a sporting event.
(8) If no winning ticket is drawn in a qualified drawing, aqualified organization may:
(A) carry the prize over to a later drawing in accordancewith this section; or
(B) continue drawing tickets until a winner is drawn.
(9) If a patron who purchased a winning ticket is not present toclaim a prize at the time of the qualified drawing, a qualifiedorganization shall hold the prize for the winning patron inaccordance with the rules of the qualified organization.
(10) In order to comply with subdivision (9), a qualifiedorganization shall obtain the name, address, and telephonenumber of each patron who purchases a ticket for a qualifieddrawing.
(11) A qualified organization must conspicuously display thefollowing information concerning each qualified drawingconducted 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 thedrawing.
(D) The manner in which a prize may be claimed. (E) The rules of the qualified organization concerning thefollowing:
(i) Qualified drawings in which no winning ticket isdrawn.
(ii) The period that the qualified organization will hold aprize for a winning patron who was not present to claimthe prize at the time of the qualified drawing.
(12) Notwithstanding any other provision of this chapter, aqualified organization must continue drawing tickets in amonthly drawing until the qualified organization draws a ticketpurchased by a patron who is present to claim the prize.
(c) When the winning patron is not present at the time of thequalified drawing to claim a prize, the qualified organization shallaward the prize in the following manner:
(1) The qualified organization shall immediately notify thewinning patron by telephone that the patron's name was drawnin a qualified drawing and that the patron has the time permittedby the rules of the qualified organization, which must be at leastseventy-two (72) hours, to claim the prize.
(2) The winning patron must appear at the premises of thequalified organization within the time permitted by the rules ofthe qualified organization to claim the prize in person.
(3) The qualified organization shall verify the identity of thewinning patron and award the prize.
(d) This subsection applies when the rules of a qualifiedorganization require the qualified organization to carry over a prizewhen no winning ticket is drawn and when a winning patron fails toclaim a prize in the manner required by subsection (c). The qualifiedorganization shall carry the prize over to a later qualified drawing asfollows:
(1) An unclaimed prize from a daily drawing must be carriedover to the next daily drawing.
(2) Subject to the prize limits set forth in subsection (b)(2), aqualified organization may carry over a prize under subdivision(1) not more than fourteen (14) times. On the fourteenthcalendar day to which a prize has been carried over, thequalified organization must continue drawing tickets until thequalified organization draws a ticket purchased by a patron whois present to claim the prize.
(3) An unclaimed prize from a weekly drawing must be carriedover to the next weekly drawing.
(4) Subject to the prize limits set forth in subsection (b)(2), aqualified organization may carry over a prize under subdivision(3) not more than one (1) time. On the day that the qualifiedorganization conducts a weekly drawing for the carried overprize, the qualified organization must continue drawing ticketsuntil the qualified organization draws a ticket purchased by apatron who is present to claim the prize.
(e) The following apply to a qualified organization that carriesover a prize under subsection (d): (1) A qualified organization may conduct the daily drawingregularly scheduled for a calendar day occurring during the timethat the qualified organization holds a prize for a winningpatron who was not present at the time of a qualified drawing.
(2) If an unclaimed prize from a daily drawing is carried over toa particular date, the qualified organization may not conduct theregular daily drawing that would otherwise be permitted underthis section on that date.
(3) If an unclaimed prize from a weekly drawing is carried overto a particular date, the qualified organization may not conductthe regular weekly drawing that would otherwise be permittedunder this section on that date.
(4) Subject to the prize limits set forth in subsection (b)(2), aqualified organization may accept additional entries to adrawing for a carried over prize.
As added by P.L.108-2009, SEC.11.