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INDIANA GAMING COMMISSION CHARITY GAMING DIVISION V.F.W. Spring Conference 2013 Director Diane Freeman Executive Director Ernest E. Yelton Slide 2 Slide 3 Slide 4 Qualified Raise money for your charitable purposes Using your volunteers (cant pay) 8 types of licenses Singles/Annuals Single---date, time, location specific Annual----3 days a week time and location specific How do we conduct 50/50s at our meetings-- ----Exempt Events Illegal Gaming 3-elements Slide 5 Types of Events Allowed Bingo Charity Game Night Raffle Annual PPT Door Prize Water Race Guessing Game Festival Exempt Events Slide 6 Senate Enrolled Act 340 & 315 Effective July 1, 2011 and July 1, 2012, respectively Slide 7 Statutory Changes SEA 340 Volunteer Ticket Agent s Acts as a third-party vendor for tickets (think retail merchant) New section on forms if using a VTA Bingo Workers Allows a worker at a bingo event whose duties are limited to selling bingo supplies or tickets to participate Worker must have completed all duties prior to the start of the first bingo game and may not be engaged as a worker at any other time during the bingo event. Credit Cards Allowed for purchases of food, beverages, merchandise, and retail goods and services offered at benefit auction. Use of credit cards to purchase of a chance to play any game of chance offered at an allowable event is prohibited Slide 8 Statutory Changes SEA 340 Related Activities Removes related activities from the calculation of total gross revenue. A qualified organization is no longer required to report revenue generated from related activities (e.g., dinner tickets, concessions, retail sales) as part of its total gross revenue. Festivals Increases the number of days a qualified organization may conduct a festival (5 days). Slide 9 Statutory Changes SEA 315 Qualification Status Change Decreases existence requirement from five (5) to three (3) years for organizations seeking qualification status. Annual Comprehensive License Permits national organizations and foundations to conduct raffles and door prizes under one umbrella license. Works well for conservation or other organizations who primarily conduct raffles at banquet dinners. Qualified Card Game Euchre, Texas Hold em poker, Omaha poker. New IC 4-32.2-2- 23.3. Slide 10 Statutory Changes SEA 315 Texas Hold em & Omaha Poker New IC 4-32.2-5-14.5 Patrons may take turns dealing, but are not permitted to play the hand they deal. The dealer shall submit the deck to be cut to the nearest player to the right of the dealer. IGC Interpretation: Person may either pass or cut. A blank card must be at the bottom of the deck. IGC Interpretation: Blank card means a non-playing card. An operator or worker shall deal the cards at the final table of the tournament. Proposed rule: A minimum of two operators for an event, maintaining a ratio of at least one operator per forty (40) players Slide 11 Administrative Rule Proposed Changes With passage of SEA 315 & 340, changes were needed to make the rule consistent with the new statute. A new administrative rule is in process of being adopted. Charity gaming emergency rule 13-129(E) is effective March 22, 2013. Slide 12 Administrative Rule Proposed Changes Clarifies the definitions of operators and workers. An operator is defined as any member of a qualified org that is responsible for performing functions directly associated with gaming activities, including, but not limited to: accounting for money received and disbursed at the gaming event; keeping records of the gaming event; announcing the letter/number combination at a bingo event; conducting qualified drawings (e.g. raffle, winner take all, or door prize); determining the winner in a guessing game or a water race; determining the flare and seal card winner; controlling the mixing and distributing of pull tabs; redeeming a pull tab, punchboard, or tip board valued more than $50; performing any task of a worker; and a remunerated bartender designated on a qualified organizations annual PPT or raffle license. Slide 13 Administrative Rule Proposed Changes A worker is defined as a member of a qualified organization who assists in conducting gaming activities, including, but not limited to the following: selling pull tabs, punchboards, and tip boards; selling bingo supplies; dealing cards at a card game other than euchre; selling tickets or chances to an allowable event; and redeeming pull tabs, punchboards, and tip boards valued $50 or less. Slide 14 Leases, subleases, and donation statements Must state that the lessor, sublessor, or donor understands that gaming activity will be conducted on the property. Banking account Separate and segregated charity gaming bank account must be a checking account. If an organization donates charity gaming revenue to an auxiliary or subsidiary organization, then that auxiliary or subsidiary organization must place the money into its own separate and segregated charity gaming checking account. If an organization uses the non-member participation exception and donates money to the non-members organization, the non- members organization must place the money into its own separate and segregated charity gaming checking account. Money deposited into a separate and segregated charity gaming bank account may not be transferred to another account. Administrative Rule Proposed Changes Slide 15 Bingo Organizations must follow the NAGRA bingo standards. Advertisements Advertisements in printed media (newspapers, magazines, internet websites, fliers, yard signs, billboards, and marquee advertisements) must contain the name and the current event license number of the organization conducting the event. Volunteer Ticket Agents A qualified organization using VTAs must maintain a ledger to record the date of the allowable event, name, address, and telephone number of each VTA along with the name of the retail establishment where the VTA sold tickets, and the sequential numbers of the tickets provided to the retail establishment. Tickets sold by a VTA are licensed supply and must be purchased from a licensed distributor. Slide 16 Administrative Rule Proposed Changes Non-cash prizes A qualified organization must use the fair market retail value of any non-cash prize awarded to a winner of an allowable event to determine the applicable prize payout for the event. Increase in processing time for all applications A qualification application 120 business days First time annual application 120 business days Single event application 45 business days Slide 17 Smoking Ban General rule: Smoking is prohibited in a public place. See generally, IC 7.1-5-12. Exemptions: Casinos, race tracks, OTBs; fraternal clubs are exempt under certain circumstances Fraternal clubs, among other requirements: Separate smoking area, properly ventilated, does not allow children under 18 to enter, must have voted to allow, provides food and alcohol to their members or guests, meets the definition of fraternal club as defined in IC 7.1-3-20-7. Alcohol & Tobacco Commission is primarily responsible for administering the statewide ban Statewide ban does not preclude a city, town, or local governmental unit from enacting a more restrictive ban Slide 18 INVESTIGATIONS Commission may conduct investigations to provide for the security and integrity of the operation of allowable events. Enter the premises where an allowable event is or has been conducted. Remove necessary equipment. Full access to all financial records. Inspect the premises. Slide 19 Investigations---Violations Failure to maintain accurate financial records. Operators not on license. No Tipping signs not posted. Participation in games by operators/workers. License (s) not posted. No separate/segregated charity gaming account. Transfer of money from charity gaming account. Contracting Illegal games: ie NASCAR BOARDS Gaming without a License---but we did not keep any money!!!!!! Slide 20 Investigations--violations contd Not using U.S. Currency Checks, Debit Cards, Cash Computer records not supported with original accounting documents (Event Summary Report) Bingo Caller not an operator Grandfathered equipment No profit on cumulative totals Slide 21 Investigations--violations contd Paying of Worker/Operators Multiple licenses all money into one account. Queen of Hearts (similar boards) Raffle boards Raffle vs. Bingo License. Amusement machines paying out Bar Bingo.Bartender Donations at gaming events Club Special last sale cards Slide 22 ALLOWABLE EXPENSES / USE OF PROCEEDS Indiana Code 4-32.2-5-3 (a) states that all net proceeds from an allowable event may be used only for the lawful purposes of the qualified organization. Below is a list of items for which charity gaming funds may be used. Expenses must be related to the purpose of the organization as outlined in the organizations constitution or by- laws. This list may not be all inclusive. Other expenses not listed below are to be approved by the Commission. Donations of money given to an individual or organization must be by check written directly from the organizations charity gaming account. Items (clothing, food, house wares) donated to an individual or organization must be purchased by check written directly from the charity gaming account. You must have a receipt to verify the expense and to whom the item(s) was donated. If you are reimbursing an individual, a receipt must be obtained from that individual and payment must be issued by check from the charity gaming account. Funds from the charity gaming account can not be transferred to other financial accounts. Slide 23 Donations of money or items issued to organizations or individuals Mortgage/Rent Payments Property tax Insurance on building where organization is located and/or where the organization conducts gaming Utilities Electric, Water, Gas, Telephone, Internet, does not include cable television Maintenance Inside and outside including, but not limited to, expenses such as snow and trash removal, lawn care, etc... Remodeling/Improvements (this does not include improvements specific to the Bar, Kitchen or Restaurant areas) Security systems and monitoring. 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. Slide 24 Contracts for janitorial services, but not janitor salaries Monthly Tax Return for Wagers, Federal Form 730 Occupational Tax and Registration Return for Wagering, Federal Form 11-C Attorneys retained for the organizations creation or for charity gaming related issues CPAs/Accountants Specific to charity gaming related issues Charity gaming equipment, supplies and devices Charity gaming license fees Charity gaming specific printing, such as newspapers postings, advertisements or flyers Travel and lodging to and from charity gaming informational seminars Travel and lodging by specific members, if required by the organizations constitution or bylaws to attend such meetings Slide 25 Expenses Not Allowed Salaries / Benefits (i.e. insurance, 401k) Taxes employee federal, state or county withholding taxes, sales tax, etc Alcoholic Beverage Taxes Alcohol, Beer, Wine, etc. Slide 26 Event Summary Reports Bingo Event Summary Report Charity Game Night Event Summary Report Raffle Event Summary Report PPT Event Summary Report Door Prize Event Summary Report Festival Event Summary Report Water Race Event Summary Report Guessing Game Event Summary Report Exempt events Slide 27 Test Your Charity Gaming Knowledge Slide 28 1. To be an operator (other than a bartender on an Annual PPT or Annual Raffle license) on a charity gaming license, how long does an individual have to be a member? Slide 29 1 year. Slide 30 2a. To be a worker for a charity gaming event, how long does an individual have to be a member? Slide 31 30 Days. Slide 32 2b. Are there any exceptions to the membership requirement for a worker? Slide 33 Yes. A full time employee may serve as a worker. An individual who is a member of another qualified organization has been approved by the Charity Gaming Division (on Form CG-NPA) may also serve as a worker. Slide 34 3a. How old does a member have to be to serve as an operator or worker? Slide 35 Eighteen 18. Slide 36 3b. Name the only thing that someone under the age of 18 may do: Slide 37 The only thing that an individual under the age of eighteen (18) may do is sell raffle tickets for an organization that they are a member. Slide 38 4. How old does an individual have to be to participate as a patron in a charity gaming event? Slide 39 Eighteen 18. Slide 40 5a. What kind of license would my organization need if we wanted to play bingo, play cards, sell tips, have a diner and a silent auction at a charity function on December 10th at Primos Banquet Hall? Slide 41 A Festival License. Slide 42 5b. If we wanted to start advertising the function on July 1st, how soon should I submit my application? Slide 43 At least 45 business days prior to the time you want to start advertising. Slide 44 5c. What financial report will I need to complete at the conclusion of this event? Slide 45 A CG-9 Single Event Financial Report. Slide 46 6a. We just hired a bartender, what form do I need to complete to have him added to my annual raffle license? Slide 47 Form CG-AM, Amendment Request. Slide 48 6b. Is there a fee? Slide 49 To make a change to a license, a $25.00 processing fee will be charged. Adding operators, changing the date/day and/or time frames or changing the location of the event require a change to the license. If your organization is adding workers only, the fee will not be due. Slide 50 6c. When can this bartender start selling ppts or cash in the ppts and sell the raffle chances? Slide 51 As soon as you have received the amended license with the individuals name listed as an operator. Slide 52 7a. My organization has several committees. We have a bingo committee, a festival committee and a raffle committee. Is it ok to have 3 bank accounts? Slide 53 No. Each qualified organization may only have 1 separate and segregated charity gaming checking account. Slide 54 7b. When each committee applies for a license, who has to sign the applications? Slide 55 The Presiding Officer and Secretary of the organization will need to sign each application. We verify signatures of these individuals by using the information you provide on the CG-CO, Current Officer Form. Slide 56 8. Name the information required on an application for an operator and worker: Slide 57 Full legal name Home address Drivers license or State ID number Date of birth Daytime telephone number Date joined organization And an indication of whether the individual is a member, employee or bartender Slide 58 9. My organization has about 25 members and we meet at a local restaurant to conduct our monthly meetings. During these meetings, we want to conduct a 50/50. The most weve ever taken in is $40 and that prize amount was $20. Do we need a license? Slide 59 Probably not. We may determine that the events may be registered as non licensed exempt events. Slide 60 10. Can we use our charity gaming proceeds to: pay the light bill? pay to have the roof repaired? buy new bar stools? make a donation to another non profit in town? pay my hotel bill so I could attend this charity gaming seminar? buy a computer and pay the internet bill? pay the insurance premium portion of my employees? Slide 61 10. Can we use our charity gaming proceeds to: pay the light bill? yes pay to have the roof repaired? yes buy new bar stools? - no make a donation to another non profit in town? yes pay my hotel bill so I could attend this charity gaming seminar? yes buy a computer and pay the internet bill? yes pay the insurance premium portion of my employees? - no Slide 62 11. Weve received an ESR-PPT with our new Annual PPT License. We have a program in our computer where we already enter most of this information. Do we have to complete this form too? Slide 63 As long as your program contains all the information requested on the ESR form, you may use your program, print the results and attach them to the ESR form. Slide 64 12a. We have stopped bingo and have no need for the bingo equipment. Believe it or not, we have the original bill of sale from the distributor dated July 18th 2005 for the bingo blower and we grandfathered the bingo display board. Can we donate this equipment to this other organization that has a bingo license? Slide 65 Yes. As long as the equipment can be verified as either being purchased from a licensed distributor or was properly grandfathered, the equipment may be donated. It can never be rented or sold. Slide 66 12b. Can we donate the bingo paper that we have left over? Slide 67 No. The law only allows reusable supplies to be donated. Slide 68 13. We have an annual bingo license where we play bingo on Mondays, Wednesdays and Fridays. Another organization wants to use our facility to play bingo on Saturdays. Can they play at our facility too? Slide 69 Maybe. If your organization does not lease the facility already, then the other organization may be able to play there. Remember, a facility may only be leased for three (3) days for charity gaming events. Slide 70 14. The air conditioner went out and we just got the bill from the Sams Heating and Air. The bill is $12,000 and we only have $10,000 in the building fund. Can we transfer $2,000 out of our charity gaming account to the building fund account to pay this bill? Slide 71 No. You may not transfer money out of the charity gaming account. However, you may write a check out of the charity gaming account to Sams to cover the difference. Slide 72 15a. Do we have to purchase a new raffle drum from a licensed distributor? Slide 73 No. Raffle drums are not considered a licensed supply that is required to be obtained from a licensed distributor. Slide 74 15b. Do we have to purchase our raffle tickets from a licensed distributor? Slide 75 Raffle tickets are not required to be purchased from a licensed distributor. HOWEVER, remember, if your organization is using VTAs (volunteer ticket agents) to help sell event tickets, then YES, the raffle tickets will be required to be obtained from a distributor. Slide 76 16. How many operators can we have on our license? Slide 77 You can have as many operators as you need to conduct your charity gaming event. Slide 78 17. Name the only two types of organizations that can apply for an Annual Charity Game Night License: Slide 79 Veterans organizations Fraternal organizations Slide 80 18. How many days a week may a qualified organization conduct a charity gaming activity? Slide 81 Three (3). Slide 82 19. Name the card games where the deal can be passed around the table: Slide 83 Qualified Card Games: Euchre, Texas Holdem, Omaha Poker Slide 84 20. Can we allow children to be in an area where bingo is being played? Slide 85 To allow children in an area where bingo is being played is up to each organization. If your organization chooses to allow children in the bingo area, they must not be allowed to handle any of the gaming supplies. They should not be using a dauber to color with and should not be playing with non winning pull tabs. Slide 86 21. The CG-9 form I received with my single event raffle license no longer has a line for me to report my concession income. Where do I put that figure now? Slide 87 Effective July 1, 2011, concession income, as well as any other non gaming income, is not reportable to charity gaming. Therefore, the CG-9 form does not require you to report income from these sources. And, income from these sources should not be deposited into your separate and segregated charity gaming account. Slide 88 22a. We want to increase our bingo payout for our bingo event from $6,000 to $10,000, what form must I use to get this increase? Slide 89 Form CG-SP. Or, if you know at the time you are applying for your license, there is an area for you to request the increase on the application. Slide 90 22b. Is there a form to increase a single bingo game prize from $1,000 to $1,500? Slide 91 No. The maximum amount for a single bingo game may never exceed $1,000. Slide 92 23. What are the 3 elements of gambling? Slide 93 Risk money (property) For gain (to win a prize) Contingent upon chance Slide 94 24. Can we allow someone to purchase a raffle ticket with a credit card? Slide 95 No. Credit cards may never be used to purchase a raffle ticket. Credit cards are not an acceptable form of payment from any patron for any type of gaming activity. Slide 96 25. Can my eleven year old daughter watch my bingo card while I run to the restroom? Slide 97 No. Remember, a child should never be handling any gaming supplies. Slide 98