8:00A – 8:30A SIGN IN
8:30A – 8:40A WELCOME AND INTRODUCTION
8:40A – 9:00A ILLEGAL GAMBLING
9:00A – 10:00A RECENT STATUTE AND RULE CHANGES
10:00A – 10:15A *** BREAK TIME ***
10:15A – 11:00A INVESTIGATIONS
11:00A – 12:30P *** LUNCH TIME ***
12:30P – 1:30P IRS REPRESENTATIVE
1:30P – 3:30P TOWN HALL MEETING & QUESTION / ANSWER SESSION
What is Illegal Gambling?
The General Rule
Three (3) Elements
1. Risk Money (property)
2. For Gain (to win a prize)
3. Contingent Upon Chance
“Gambling” means risking money or other property
for gain, contingent in whole or in part upon lot,
chance, or the operation of a gambling device.
Legislative & Administrative Rule
House Enrolled Act 1286
Senate Enrolled Act 414
Effective July 1, 2009
1. Adds “Qualified Drawing” to the Annual PPT
2. Provides rules for the conduct of qualified
drawings and winner take all drawings.
3. Raises the amount from $50 to $250 for when
an organization must collect the name, DOB,
and signature of a PPT winner. The
organization must also verify the identity of the
winner using any means the organization
4. Operators may now operate at up to 3
organizations during a calendar month.
5. A festival worker may now participate as a player in
any gaming activity at the festival provided that the
worker does not participate in the game during the
time the worker is conducting the game. However, a
PPT worker may not buy PPT’s on the same calendar
6. Creates the bona fide fraternal organization and
restricts the Annual Charity Game Night License to
veterans organizations and fraternal organizations.
7. Restricts the number of nights a charity game night
event may be conducted at one facility to 3 calendar
days per week.
8. An organization may only conduct charity game night
events between 12:01 a.m. and 11:59 p.m.
• With passage of both HEA 1286 and SEA
414, changes were needed to make rules
consistent with the new statute.
• Charity gaming emergency rule effective
July 1, 2009.
• New administrative rule in process of
1. Provides that an applicant’s license may be denied for
failure to pay federal, state, or local tax timely.
2. Provides that drawings done under an annual raffle
license must be conducted at a facility owned or
leased by the qualified organization conducting the
3. Requires an organization conducting a raffle, a door
prize, a winner take all drawing, or a qualified drawing
to conduct its own draws.
4. Organizations conducting winner take all drawings and
qualified drawings must maintain a ledger that contains
the date of the drawing, the winner’s name, address,
telephone number, and the amount of money won.
5. Makes the following provisions for euchre games:
1. Patron must deal every time he or she has the opportunity to
do so in the regular course of the game.
2. No patron may receive prizes other than those awarded to
winners of the game.
3. Each organization must have 1 operator each for every six
tables of 4 players.
4. Determination of prize payouts, resolution of disputes, and
responsibility for all buy-ins and cash-outs must be done by an
6. Organizations may apply for 6 single charity game
night licenses per year.
7. Sets a $25 amendment fee for amendments to licenses.
8. Provides that an organization may be awarded a refund
1. The license fee minus $50 if the organization
withdraws its application before the license is
2. The greater of $50 or 50% of the license fee if the
organization surrenders its license after the license
is issued but before the effective date.
3. $0 if the organization surrenders its license after the
effective date of the license.
9. An organization must deposit all proceeds from an
allowable event into its separate and segregated bank
account within 5 business days of the event.
10. A qualified organization may not conduct an
allowable event at a bar or tavern, or a facility
connected to a bar or tavern, which is not owned
by a qualified organization.
11. Provides that a person dealing the cards must be
an operator or a worker (except in euchre).
12. Requires an organization changing locations of its
annual charity game night or annual bingo night
event to post new notice in the newspaper.
13. The Calendar Raffle License will be removed. All
calendar events may now be conducted under a
license that allows for raffles.
PLEASE BE READY TO
BEGIN PROMPTLY AT
• 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.
• 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.
• Illegal games: ie NASCAR BOARDS
• Gaming without a License
• Not using U.S. Currency
• Computer records not supported with
original accounting documents (Nightly
• Bingo Caller not an operator
• Grandfathered equipment
• No profit on cumulative totals
• Paying of Worker/Operators
• Multiple licenses all money into one
• Ticket < $5.00,
• $300 Max payout,
• Weekly 7 day interval,
• Monthly interval,
• No profit to org, all amounts wagered returned in
• No sporting events,
• If need not be present to win, need name, address,
phone number of everyone who has a ticket.
Conspicuously display: price, time, description of
prizes, how to claim a prize, rules explaining how
long organization will hold prize,
• Consider winner take all drawings where winner
must be present.
Qualified Drawings cont’d
• Not present to win: notify person by phone, hold
prize minimum of 72 hours, person must
personally claim prize at the premises, verify
identity of winner, keep records of all drawings,
place in ledger, unclaimed prizes must be
carried over, daily drawings cannot be carried
over more than 14 days, 14th day draw until
winner, weekly drawings may be carried over 1
time, draw until winner, monthly drawings no
carry over, carry over drawings replace drawing
on that day, week. If pot is less than $300 you
may continue to sell tickets until $300.
ALLOWABLE EXPENSES/USE OF
Indiana Code 4-32.2-5-3 (a) states that all net proceeds from an allowable event and related activities 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. This list
may not be all inclusive. Expenses must be related to the purpose of the organization as outlined in the organization’s
constitution or bylaws. Other expenses not listed below are to be approved by the Commission.
• Mortgage Payments
• Property Taxes
• Monthly Tax return for Wagers, Federal Form 730
• Occupational Tax and Registration return for Wagering, Federal Form 11-C
• Utilities – Electric, Water, Gas, internet, does not include cable television
• Maintenance – Inside and outside – including, but not limited to, items such as snow removal, trash
removal, lawn care, etc.
• CPA’s/Accountants – specific gaming related issues
• Donations of money (by check from charity gaming account) or items to Individuals or Organizations
• Insurance on Building where organization is located and/or where organization conducts gaming
• Contracts for janitorial services, but not janitor salaries
• Printing – Gaming specific, such as newspapers or flyers
• Attorneys retained for the organization’s creation or for gaming related issues
• Gaming equipment, supplies and devices
• Security systems and monitoring
• Charity gaming license fees
• Travel and lodging to and from charity gaming informational seminars
• Travel and lodging by specific members if required by the organization’s constitution or bylaws
• Expenses Not Allowed
• Taxes – employee federal, state or county withholding taxes
• Alcohol, Beer, Wine, etc
PLEASE BE READY TO
BEGIN PROMPTLY AT
Town Hall Meeting Notes
Town Hall Meeting Notes