CHAPTER 4. POWERS AND DUTIES OF INDIANA GAMING COMMISSION
IC 4-33-4
Chapter 4. Powers and Duties of Indiana Gaming Commission
IC 4-33-4-1
Administration, regulation, and enforcement of riverboat gambling
Sec. 1. (a) The commission has the following powers and dutiesfor the purpose of administering, regulating, and enforcing thesystem of riverboat gambling established under this article:
(1) All powers and duties specified in this article.
(2) All powers necessary and proper to fully and effectivelyexecute this article.
(3) Jurisdiction and supervision over the following:
(A) All riverboat gambling operations in Indiana.
(B) All persons on riverboats where gambling operations areconducted.
(4) Investigate and reinvestigate applicants and license holdersand determine the eligibility of applicants for licenses oroperating agent contracts.
(5) Select among competing applicants the applicants thatpromote the most economic development in a home dock areaand that best serve the interests of the citizens of Indiana.
(6) Take appropriate administrative enforcement or disciplinaryaction against a licensee or an operating agent.
(7) Investigate alleged violations of this article.
(8) Establish fees for licenses issued under this article.
(9) Adopt appropriate standards for the design, appearance,aesthetics, and construction for riverboats and facilities.
(10) Conduct hearings.
(11) Issue subpoenas for the attendance of witnesses andsubpoenas duces tecum for the production of books, records,and other relevant documents.
(12) Administer oaths and affirmations to the witnesses.
(13) Prescribe a form to be used by an operating agent or alicensee involved in the ownership or management of gamblingoperations as an application for employment by potentialemployees.
(14) Revoke, suspend, or renew licenses issued under thisarticle.
(15) Hire employees to gather information, conductinvestigations, and carry out other tasks under this article.
(16) Take any reasonable or appropriate action to enforce thisarticle.
(b) Applicants and license holders shall reimburse the commissionfor costs related to investigations and reinvestigations conductedunder subsection (a)(4).
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.20-1995,SEC.5; P.L.92-2003, SEC.10.
IC 4-33-4-2
Rules Sec. 2. The commission shall adopt rules under IC 4-22-2 for thefollowing purposes:
(1) Administering this article.
(2) Establishing the conditions under which riverboat gamblingin Indiana may be conducted.
(3) Providing for the prevention of practices detrimental to thepublic interest and providing for the best interests of riverboatgambling.
(4) Establishing rules concerning inspection of riverboats andthe review of the permits or licenses necessary to operate ariverboat.
(5) Imposing penalties for noncriminal violations of this article.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.1-1995,SEC.38; P.L.92-2003, SEC.11.
IC 4-33-4-3
Additional duties of the commission
Sec. 3. (a) The commission shall do the following:
(1) Adopt rules that the commission determines necessary toprotect or enhance the following:
(A) The credibility and integrity of gambling operationsauthorized by this article.
(B) The regulatory process provided in this article.
(2) Conduct all hearings concerning civil violations of thisarticle.
(3) Provide for the establishment and collection of license feesand taxes imposed under this article.
(4) Deposit the license fees and taxes in the state gaming fundestablished by IC 4-33-13.
(5) Levy and collect penalties for noncriminal violations of thisarticle.
(6) Deposit the penalties in the state gaming fund established byIC 4-33-13.
(7) Be present through the commission's gaming agents duringthe time gambling operations are conducted on a riverboat to dothe following:
(A) Certify the revenue received by a riverboat.
(B) Receive complaints from the public.
(C) Conduct other investigations into the conduct of thegambling games and the maintenance of the equipment thatthe commission considers necessary and proper.
(8) Adopt emergency rules under IC 4-22-2-37.1 if thecommission determines that:
(A) the need for a rule is so immediate and substantial thatrulemaking procedures under IC 4-22-2-13 throughIC 4-22-2-36 are inadequate to address the need; and
(B) an emergency rule is likely to address the need.
(9) Adopt rules to establish and implement a voluntaryexclusion program that meets the requirements of subsection(c). (10) Establish the requirements for a power of attorneysubmitted under IC 4-33-6-2(c), IC 4-33-6-22, IC 4-33-6.5-2(c),or IC 4-33-6.5-16.
(b) The commission shall begin rulemaking procedures underIC 4-22-2-13 through IC 4-22-2-36 to adopt an emergency ruleadopted under subsection (a)(8) not later than thirty (30) days afterthe adoption of the emergency rule under subsection (a)(8).
(c) Rules adopted under subsection (a)(9) must provide thefollowing:
(1) Except as provided by rule of the commission, a person whoparticipates in the voluntary exclusion program agrees to refrainfrom entering a riverboat or other facility under the jurisdictionof the commission.
(2) That the name of a person participating in the program willbe included on a list of persons excluded from all facilitiesunder the jurisdiction of the commission.
(3) Except as provided by rule of the commission, a person whoparticipates in the voluntary exclusion program may not petitionthe commission for readmittance to a facility under thejurisdiction of the commission.
(4) That the list of patrons entering the voluntary exclusionprogram and the personal information of the participants areconfidential and may only be disseminated by the commissionto the owner or operator of a facility under the jurisdiction ofthe commission for purposes of enforcement and to otherentities, upon request by the participant and agreement by thecommission.
(5) That an owner of a facility under the jurisdiction of thecommission shall make all reasonable attempts as determinedby the commission to cease all direct marketing efforts to aperson participating in the program.
(6) That an owner of a facility under the jurisdiction of thecommission may not cash the check of a person participating inthe program or extend credit to the person in any manner.However, the voluntary exclusion program does not preclude anowner from seeking the payment of a debt accrued by a personbefore entering the program.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.1-1995,SEC.39; P.L.27-1997, SEC.2; P.L.273-1999, SEC.40; P.L.14-2000,SEC.13; P.L.92-2003, SEC.12; P.L.143-2003, SEC.1; P.L.37-2004,SEC.1; P.L.170-2005, SEC.3; P.L.142-2009, SEC.4.
IC 4-33-4-3.5
Employment of gaming agents
Sec. 3.5. The commission shall employ gaming agents to performthe duties imposed by this chapter. The licensed owners andoperating agents shall, in the manner prescribed by the rules of thecommission, reimburse the commission for:
(1) the training expenses incurred to train gaming agents;
(2) the salaries and other expenses of staff required to support
the gaming agents; and
(3) the salaries and other expenses of the gaming agentsrequired to be present during the time gambling operations areconducted on a riverboat.
As added by P.L.53-1995, SEC.1. Amended by P.L.92-2003, SEC.13;P.L.170-2005, SEC.4.
IC 4-33-4-3.6
Repealed
(Repealed by P.L.92-2003, SEC.63.)
IC 4-33-4-4
Entering premises of licensee
Sec. 4. The commission may enter an office, a riverboat, a facility,or other premises of an operating agent or a person holding anowner's, or supplier's license where evidence of the compliance ornoncompliance with this article is likely to be found.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.14.
IC 4-33-4-5
Licensing standards
Sec. 5. The commission shall adopt standards for the licensing ofthe following:
(1) Persons regulated under this article.
(2) Electronic or mechanical gambling games.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-4-6
Records of licensee
Sec. 6. The commission shall require that the records, includingfinancial statements, of an operating agent or a person holding anowner's, or supplier's license must be maintained in the mannerprescribed by the commission.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.15.
IC 4-33-4-7
Ejection or exclusion from facilities
Sec. 7. (a) The commission may eject or exclude or authorize theejection or exclusion of a person from riverboat gambling facilitiesif:
(1) the person's name is on the list of persons voluntarilyexcluding themselves from all riverboats in a programestablished under the rules of the commission;
(2) the person violates this article; or
(3) the commission determines that the person's conduct orreputation is such that the person's presence within the riverboatgambling facilities may:
(A) call into question the honesty and integrity of the
gambling operations; or
(B) interfere with the orderly conduct of the gamblingoperations.
(b) A person, other than a person participating in a voluntaryexclusion program, may petition the commission for a hearing on theperson's ejection or exclusion under this section.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.143-2003,SEC.2.
IC 4-33-4-8
Violations of article; fraudulent acts
Sec. 8. If a licensee, an operating agent, or an employee of alicensee or an operating agent violates this article or engages in afraudulent act, the commission may do any combination of thefollowing:
(1) Suspend, revoke, or restrict the license of the licensee, orsuspend, revoke, or restrict the gambling operations of anoperating agent.
(2) Require the removal of a licensee or an employee of alicensee.
(3) Impose a civil penalty of not more than five thousand dollars($5,000) against an individual who has been issued anoccupational license for each violation of this article.
(4) Impose a civil penalty of not more than the greater of:
(A) ten thousand dollars ($10,000); or
(B) an amount equal to the licensee's or operating agent'sdaily gross receipts for the day of the violation;
against an owner or operating agent for each violation of thisarticle.
(5) Impose a civil penalty of not more than twenty-fivethousand dollars ($25,000) against a person who has beenissued a supplier's license for each violation of this article.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.16; P.L.143-2003, SEC.3.
IC 4-33-4-9
Cashless wagering system
Sec. 9. The commission shall require an owner or operating agentconducting gambling games to use a cashless wagering system inwhich a player's money is converted to tokens, electronic cards, orchips that may be used only for wagering on the riverboat.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.17.
IC 4-33-4-10
Cruises; regulation of routes and stops
Sec. 10. If a riverboat cruises, the commission shall authorize theroute of the riverboat and the stops, if any, that the riverboat maymake while on a cruise.
As added by P.L.277-1993(ss), SEC.124. Amended by
P.L.192-2002(ss), SEC.10.
IC 4-33-4-11
Insurance
Sec. 11. The commission shall establish the minimum amount ofinsurance that must be maintained by:
(1) an operating agent; or
(2) owner and supplier licensees.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.18.
IC 4-33-4-12
Alcoholic beverages
Sec. 12. Except as provided by IC 7.1-3-17.5, IC 7.1 and the rulesadopted by the alcohol and tobacco commission apply to:
(1) an operating agent; and
(2) a person holding an owner's license.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.15-1994,SEC.2; P.L.204-2001, SEC.8; P.L.92-2003, SEC.19.
IC 4-33-4-13
Navigable waterways; determination
Sec. 13. (a) This section does not apply to a riverboat located ina historic hotel district.
(b) After consulting with the United States Army Corps ofEngineers, the commission may do the following:
(1) Determine the waterways that are navigable waterways forpurposes of this article.
(2) Determine the navigable waterways that are suitable for theoperation of riverboats under this article.
(c) In determining the navigable waterways on which riverboatsmay operate, the commission shall do the following:
(1) Obtain any required approvals from the United States ArmyCorps of Engineers for the operation of riverboats on thosewaterways.
(2) Consider the economic benefit that riverboat gamblingprovides to Indiana.
(3) Seek to ensure that all regions of Indiana share in theeconomic benefits of riverboat gambling.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.1-1995,SEC.40; P.L.92-2003, SEC.20.
IC 4-33-4-14
Navigable waterways; extreme circumstances
Sec. 14. The commission may adopt emergency orders underIC 4-21.5-4 concerning navigability of waterways for extremeweather conditions or other extreme circumstances.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-4-15
Annual duties of gaming commission
Sec. 15. The commission shall annually do the following:
(1) Review the patterns of wagering and wins and losses bypersons on riverboat gambling operations under this article.
(2) Make recommendations to the governor and the generalassembly concerning whether limits on wagering losses shouldbe imposed.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.21.
IC 4-33-4-16
Investigative procedures; complaints
Sec. 16. (a) The commission shall review and make adetermination on a complaint by an operating agent or a person whohas been issued an owner's license concerning an investigativeprocedure that the licensee alleges is unnecessarily disruptive ofgambling operations.
(b) A licensee or an operating agent filing a complaint under thissection must prove all of the following by clear and convincingevidence:
(1) The investigative procedure had no reasonable lawenforcement purpose.
(2) The investigative procedure was so disruptive as tounreasonably inhibit gambling operations.
(c) For purposes of this section, the need to inspect andinvestigate a licensee or an operating agent shall be presumed at alltimes.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.92-2003,SEC.22.
IC 4-33-4-17
Licenses; application; denial; suspensions; revocation; restrictionor refusal to renew; hearings
Sec. 17. (a) The commission shall decide promptly and inreasonable order all license applications.
(b) Notwithstanding any provision of this article, no owner'slicense may be granted for any riverboat that is not to be docked inthe city described under IC 4-33-6-1(a)(1) until the earlier of:
(1) the issuance of an owner's license for a riverboat that is tobe docked in the city described under IC 4-33-6-1(a)(1); or
(2) September 1, 1994.
(c) A party aggrieved by an action of the commission denying,suspending, revoking, restricting, or refusing the renewal of a licensemay request a hearing before the commission. A request for a hearingmust be made to the commission in writing not more than ten (10)days after service of notice of the action of the commission.
(d) The commission shall serve notice of the commission's actionsto a party by personal delivery or by certified mail. Notice served bycertified mail is considered complete on the business day following
the date of the mailing.
(e) The commission shall conduct all requested hearings promptlyand in reasonable order.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.1-1994,SEC.13; P.L.92-2003, SEC.23.
IC 4-33-4-18
Background investigations
Sec. 18. (a) The state police department may assist thecommission in conducting background investigations of applicants.The commission may forward all fingerprints required to besubmitted by license applicants under IC 4-33 to the Federal Bureauof Investigation or any other agency for the purpose of screeningapplicants. The commission shall reimburse the state policedepartment for the costs incurred by the state police department as aresult of the assistance. The commission shall make the paymentfrom fees collected from applicants.
(b) The commission through its gaming agents shall conductbackground investigations of applicants. Costs incurred conductingthe investigations must be paid from fees collected from applicants.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.261-2003,SEC.4; P.L.170-2005, SEC.5.
IC 4-33-4-19
Revocation of licenses
Sec. 19. The commission shall revoke the license of a licenseewho operates a riverboat upon Patoka Lake if that licensee violatesany of the following:
(1) IC 14-26-2-7.
(2) IC 14-26-2-23.
(3) IC 14-28-1.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.1-1995,SEC.41; P.L.152-2006, SEC.1.
IC 4-33-4-20
Void licenses
Sec. 20. If the United States Army Corps of Engineers rescinds anapproval required under section 13 of this chapter, a license issuedunder this article is void and the holder of the license may notconduct or continue gambling operations under this article.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-4-21
Licenses; transfer, sale, purchase, or voting trust; rules ofprocedure; prohibitions
Sec. 21. (a) A licensed owner or any other person must apply forand receive the commission's approval before:
(1) an owner's license is:
(A) transferred;
(B) sold; or (C) purchased; or
(2) a voting trust agreement or other similar agreement isestablished with respect to the owner's license.
(b) Subject to section 24 of this chapter, the commission shalladopt rules governing the procedure a licensed owner or other personmust follow to take an action under subsection (a). The rules mustspecify that a person who obtains an ownership interest in a licensemust meet the criteria of this article and any rules adopted by thecommission. A licensed owner may transfer an owner's license onlyin accordance with this article and rules adopted by the commission.
(c) A licensed owner or any other person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
an owner's license.
(d) A transfer fee is imposed on a licensed owner who purchasesor otherwise acquires a controlling interest, as determined under therules of the commission, in a second owner's license. The fee is equalto two million dollars ($2,000,000). The commission shall collectand deposit a fee imposed under this subsection in the state generalfund.
As added by P.L.20-1995, SEC.7. Amended by P.L.224-2003,SEC.42; P.L.182-2009(ss), SEC.59.
IC 4-33-4-21.2
Display and maintenance of toll free telephone number
Sec. 21.2. (a) The Indiana gaming commission shall require alicensed owner or an operating agent to conspicuously display thenumber of the toll free telephone line described in IC 4-33-12-6 inthe following locations:
(1) On each admission ticket to a riverboat if tickets are issued.
(2) On a poster or placard that is on display in a public area ofeach riverboat where gambling games are conducted.
(b) The toll free telephone line described in IC 4-33-12-6 must be:
(1) maintained by the division of mental health and addictionunder IC 12-23-1-6; and
(2) funded by the addiction services fund established byIC 12-23-2-2.
(c) The commission may adopt rules under IC 4-22-2 necessary tocarry out this section.
As added by P.L.54-1995, SEC.1. Amended by P.L.215-2001, SEC.5;P.L.192-2002(ss), SEC.11; P.L.92-2003, SEC.24.
IC 4-33-4-22
Rules concerning hours of operation
Sec. 22. (a) The commission may not adopt a rule or resolutionlimiting the ordinary business hours in which a licensed owner thathas implemented flexible scheduling under IC 4-33-6-21 mayconduct gambling operations.
(b) This section may not be construed to limit the commission's
power to:
(1) enforce this article under IC 4-33-4-1(a)(6),IC 4-33-4-1(a)(7), or IC 4-33-4-8; or
(2) respond to an emergency, as determined by the commission.
As added by P.L.224-2003, SEC.43. Amended by P.L.97-2004,SEC.14.
IC 4-33-4-23
Licensed owners annual reports; incentive payments
Sec. 23. (a) An operating agent or a person holding an owner'slicense must report annually to the commission the following:
(1) The total dollar amounts and recipients of incentivepayments made.
(2) Any other items related to the payments described insubdivision (1) that the commission may require.
(b) The commission shall prescribe, with respect to the reportrequired by subsection (a):
(1) the format of the report;
(2) the deadline by which the report must be filed; and
(3) the manner in which the report must be maintained andfiled.
As added by P.L.199-2005, SEC.1.
IC 4-33-4-24
Prohibition of fee for proposed transfer of ownership
Sec. 24. The commission may not do the following:
(1) Impose by rule a fee that is not authorized by this article onany party to a proposed transfer of an ownership interest in ariverboat owner's license or an operating permit.
(2) Make the commission's approval of a proposed transfer ofan ownership interest in a riverboat owner's license or anoperating permit contingent upon the payment of any amountthat is not authorized by this article.
As added by P.L.182-2009(ss), SEC.60.
IC 4-33-4-24.2
Model power of attorney
Sec. 24.2. The executive director shall establish a model power ofattorney setting forth the terms and conditions under which a trusteemay conduct gambling operations on a riverboat under IC 4-33-21.The executive director may provide a copy of the model power ofattorney to any interested party.
As added by P.L.142-2009, SEC.5.
IC 4-33-4-25
Appointment of temporary trustee
Sec. 25. (a) The commission may appoint a person to serve as atemporary trustee for a particular riverboat if the commission makesthe following findings:
(1) That circumstances requiring a trustee to assume control of
the riverboat are likely to occur.
(2) That the commission has not approved a power of attorneyidentifying any other person to serve as the trustee for theriverboat.
(3) That there is not enough time to consider and approve apower of attorney with respect to the riverboat before thecircumstances found likely to occur under subdivision (1) willoccur.
(b) A person appointed under this section must be qualified toperform any duty described in this section or IC 4-33-21.
(c) A trustee appointed by the commission under this section shallserve until any of the following occurs:
(1) The commission adopts a resolution under IC 4-33-21-3authorizing a trustee appointed by an approved power ofattorney to conduct gambling operations under IC 4-33-21 onthe riverboat.
(2) The commission revokes the trustee's authority to conductgambling operations under IC 4-33-21-12.
(3) A new licensed owner or operating agent assumes control ofthe riverboat.
(d) A trustee appointed by the commission under this section shallexercise the trustee's powers in accordance with:
(1) the model power of attorney established by the executivedirector under section 24.2 of this chapter; and
(2) IC 4-33-21.
As added by P.L.142-2009, SEC.6.
IC 4-33-4-26
Civil penalties for violations concerning a power of attorney
Sec. 26. The commission may impose a civil penalty upon aperson who:
(1) fails to submit a power of attorney before a deadlineimposed by this article;
(2) fails to take any corrective action required by thecommission with respect to a power of attorney submitted underIC 4-33-6-2(c), IC 4-33-6-22, IC 4-33-6.5-2(c), orIC 4-33-6.5-16; or
(3) violates any provision of this article concerning thesubmission of a power of attorney identifying the person whowould serve as a trustee under the power of attorney.
As added by P.L.142-2009, SEC.7.
IC 4-33-4-27
Withholding delinquent child support from winnings; fee; notice;priority of order over other claims
Sec. 27. (a) The bureau shall provide information to a licensedowner, an operating agent, or a trustee concerning persons who aredelinquent in child support.
(b) If a licensed owner, an operating agent, or a trustee is requiredto file Form W-2G or a substantially equivalent form with the United
States Internal Revenue Service for a person who is delinquent inchild support, before payment of cash winnings to the person, thelicensed owner, operating agent, or trustee:
(1) may deduct and retain an administrative fee in the amountof the lesser of:
(A) three percent (3%) of the amount of delinquent childsupport withheld under subdivision (2)(A); or
(B) one hundred dollars ($100); and
(2) shall:
(A) withhold the amount of delinquent child support owedfrom the cash winnings;
(B) transmit to the bureau:
(i) the amount withheld for delinquent child support; and
(ii) identifying information, including the full name,address, and Social Security number of the obligor and thechild support case identifier, the date and amount of thepayment, and the name and location of the licensed owner,operating agent, or trustee; and
(C) issue the obligor a receipt in a form prescribed by thebureau with the total amount withheld for delinquent childsupport and the administrative fee.
(c) The bureau shall notify the obligor at the address provided bythe licensed owner, operating agent, or trustee that the bureau intendsto offset the obligor's delinquent child support with the cashwinnings.
(d) The bureau shall hold the amount withheld from cashwinnings of an obligor for ten (10) business days before applying theamount as payment to the obligor's delinquent child support.
(e) The delinquent child support required to be withheld underthis section and an administrative fee described under subsection(b)(1) have priority over any secured or unsecured claim on cashwinnings except claims for federal or state taxes that are required tobe withheld under federal or state law.
As added by P.L.80-2010, SEC.1.