CHAPTER 5. TYPE II GAMBLING OPERATIONS
IC 4-36-5
Chapter 5. Type II Gambling Operations
IC 4-36-5-1
Retailers authorized to offer type II gambling games and qualifieddrawings; conduct of qualified drawings
Sec. 1. (a) A retailer may offer the sale of type II gambling gamesin accordance with this article.
(b) A retailer's endorsement also authorizes a retailer to conductqualified drawings on the premises of the retailer's tavern. Aqualified drawing must be conducted in the manner required by thissection.
(c) 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 retailer may not profit from conducting a qualifieddrawing.
(6) All amounts wagered on qualified drawings must bereturned to a retailer's patrons in the form of prizes.
(7) A retailer may not conduct a qualified drawing or any otherevent in which the winner of the prize is determined, in wholeor in part, by a sporting event.
(8) If no winning ticket is drawn in a qualified drawing, aretailer 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 toclaim a prize at the time of the qualified drawing, a retailer shallhold the prize for the winning patron in accordance with therules of the retailer.
(10) In order to comply with subdivision (9), a retailer shallobtain the name, address, and telephone number of each patronwho purchases a ticket for a qualified drawing.
(11) A retailer must conspicuously display the followinginformation concerning each qualified drawing conducted bythe retailer:
(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 retailer concerning the following:
(i) Qualified drawings in which no winning ticket isdrawn.
(ii) The period that the retailer will hold a prize for awinning patron who was not present to claim the prize atthe time of the qualified drawing.
(12) Notwithstanding any other provision of this chapter, aretailer must continue drawing tickets in a monthly drawinguntil the retailer draws a ticket purchased by a patron who ispresent to claim the prize.
(d) When the winning patron is not present at the time of thequalified drawing to claim a prize, the retailer shall award the prizein the following manner:
(1) The retailer shall immediately notify the winning patron bytelephone that the patron's name was drawn in a qualifieddrawing and that the patron has the time permitted by the rulesof the retailer, which must be at least seventy-two (72) hours, toclaim the prize.
(2) The winning patron must appear at the retailer's premiseswithin the time permitted by the rules of the retailer to claim theprize in person.
(3) The retailer shall verify the identity of the winning patronand award the prize.
(e) This subsection applies when the rules of a retailer require theretailer to carry over a prize when no winning ticket is drawn andwhen a winning patron fails to claim a prize in the manner requiredby subsection (d). The retailer shall carry the prize over to a laterqualified drawing as follows:
(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 (c)(2), aretailer may carry over a prize under subdivision (1) not morethan fourteen (14) times. On the fourteenth calendar day to
which a prize has been carried over, the retailer must continuedrawing tickets until the retailer draws a ticket purchased by apatron who is 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 (c)(2), aretailer may carry over a prize under subdivision (3) not morethan one (1) time. On the day that the retailer conducts a weeklydrawing for the carried over prize, the retailer must continuedrawing tickets until the retailer draws a ticket purchased by apatron who is present to claim the prize.
(f) The following apply to a retailer that carries over a prize undersubsection (e):
(1) A retailer may conduct the daily drawing regularlyscheduled for a calendar day occurring during the time that theretailer holds a prize for a winning patron who was not presentat the time of a qualified drawing.
(2) If an unclaimed prize from a daily drawing is carried over toa particular date, the retailer may not conduct the regular dailydrawing that would otherwise be permitted under this section onthat date.
(3) If an unclaimed prize from a weekly drawing is carried overto a particular date, the retailer may not conduct the regularweekly drawing that would otherwise be permitted under thissection on that date.
(4) Subject to the prize limits set forth in subsection (c)(2), aretailer may accept additional entries to a drawing for a carriedover prize.
As added by P.L.95-2008, SEC.13. Amended by P.L.108-2009,SEC.18.
IC 4-36-5-2
Gaming restricted to taverns
Sec. 2. (a) A type II gambling game may be sold under this articleonly on the premises of the retailer's tavern.
(b) Type II gambling games, raffles, and winner take all drawingsconducted under section 1(c) of this chapter may not be offered inany part of the retailer's licensed premises in which a minor may bepresent under IC 7.1-5-7-11(a)(16).
As added by P.L.95-2008, SEC.13. Amended by P.L.108-2009,SEC.19.
IC 4-36-5-3
Type II gambling games must be acquired from a licenseddistributor
Sec. 3. (a) A retailer that obtains a type II gambling game mustobtain the type II gambling game from a distributor licensed by thecommission under this article.
(b) Except as provided in subsection (c), a distributor must obtainat least twenty-five percent (25%) of the type II gambling games
purchased by the distributor from a manufacturer that is domiciledin Indiana.
(c) The commission may excuse a distributor from therequirement set forth in subsection (b) if the commission finds thatat least one (1) of the following conditions exists:
(1) No manufacturer domiciled in Indiana is licensed under thisarticle.
(2) No manufacturer domiciled in Indiana is in good standingwith the requirements of this article.
(3) All of the licensed manufacturers domiciled in Indiana alsohold distributor's licenses.
As added by P.L.95-2008, SEC.13.
IC 4-36-5-4
Financial record requirements
Sec. 4. (a) A retailer shall maintain accurate records of allfinancial aspects of the retailer's type II gambling operation. Aretailer shall make accurate reports of all financial aspects of the typeII gambling operation to the commission within the time establishedby the commission. The commission shall prescribe forms for thispurpose.
(b) As long as a retailer's receipts from the retailer's type IIgambling operation remain on the premises of the retailer's tavern,the receipts may not be commingled with the receipts of the retailer'salcoholic beverage sales, food sales, and other related nongamblingactivities.
As added by P.L.95-2008, SEC.13.
IC 4-36-5-5
Prize limits
Sec. 5. (a) The total prizes awarded for one (1) type II gamblinggame may not exceed five thousand dollars ($5,000).
(b) A single prize awarded for one (1) winning ticket in a type IIgambling game may not exceed five hundred ninety-nine dollars($599).
(c) The selling price for one (1) ticket for a type II gambling gamemay not exceed one dollar ($1). Tickets sold for less than one dollar($1) must be sold for a price specified in section 6(b) of this chapter.
As added by P.L.95-2008, SEC.13.
IC 4-36-5-6
Minimum payouts
Sec. 6. (a) Except as provided in subsection (b), a type IIgambling game must pay out at least seventy-five percent (75%) andnot more than one hundred percent (100%) of the amount wagered.
(b) This subsection applies only to a type II gambling game ticketthat is sold for less than one dollar ($1). A type II gambling gamesubject to this subsection must comply with the following minimumpayout percentages:
Purchase Price Minimum Payout Percentage $0.10 60%
$0.25 65%
Three (3) tickets for one dollar ($1) 65%
$0.50 70%
(c) A type II gambling game's payout percentage must be stated onthe ticket or on the accompanying flare.
As added by P.L.95-2008, SEC.13. Amended by P.L.108-2009,SEC.20.
IC 4-36-5-7
Individuals prohibited from playing type II gambling games
Sec. 7. The following persons may not play or participate in anymanner in a type II gambling game:
(1) An employee of the commission.
(2) A person less than twenty-one (21) years of age.
(3) The retailer offering the type II gambling game.
(4) A person employed by the retailer offering the type IIgambling game.
As added by P.L.95-2008, SEC.13.