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WELCOME
INDIANA GAMING COMMISSION
  CHARITY GAMING DIVISION
       2009 SEMINAR

  Director Diane Freeman
8:00A – 8:30A     SIGN IN
8:30A – 8:40A     WELCOME AND INTRODUCTION
8:40A – 9:00A     ILLEGAL GAMBLING
9:00A – 10:00A    ...
What is Illegal Gambling?
         The General Rule
               Three (3) Elements
1. Risk Money (property)
2. For Gain...
Legislative & Administrative Rule
            Changes




       House Enrolled Act 1286
       Senate Enrolled Act 414
  ...
Statutory Changes
1. Adds “Qualified Drawing” to the Annual PPT
   License.
2. Provides rules for the conduct of qualified...
Statutory Changes
5.   A festival worker may now participate as a player in
     any gaming activity at the festival provi...
Administrative Rule
          Proposed Changes
• With passage of both HEA 1286 and SEA
  414, changes were needed to make ...
Administrative Rule
             Proposed Changes
1.   Provides that an applicant’s license may be denied for
     failure...
Administrative Rule
              Proposed Changes
5. Makes the following provisions for euchre games:
   1. Patron must d...
Administrative Rule
             Proposed Changes
7. Sets a $25 amendment fee for amendments to licenses.
8. Provides that...
Administrative Rule
            Proposed Changes
10. A qualified organization may not conduct an
    allowable event at a ...
BREAK
PLEASE BE READY TO
BEGIN PROMPTLY AT
     10:15 AM
    THANK YOU
INVESTIGATIONS
• Commission may conduct investigations to
  provide for the security and integrity of the
  operation of a...
Investigations cont’d
•   Failure to maintain accurate financial records.
•   Operators not on license.
•   “No Tipping” s...
Investigations cont’d
• Not using U.S. Currency
• Checks
• Computer records not supported with
  original accounting docum...
Investigations Cont’d
• Paying of Worker/Operators
• Multiple licenses all money into one
  account.
Qualified Drawings
• Ticket < $5.00,
• $300 Max payout,
• Weekly 7 day interval,
• Monthly interval,
• No profit to org, a...
Qualified Drawings cont’d
• Not present to win: notify person by phone, hold
  prize minimum of 72 hours, person must
  pe...
ALLOWABLE EXPENSES/USE OF
•
       PROCEEDS
    Indiana Code 4-32.2-5-3 (a) states that all net proceeds from an allowable...
LUNCH
PLEASE BE READY TO
BEGIN PROMPTLY AT
      1:00 PM
      ENJOY
Town Hall Meeting Notes
• __________________________________
  __________________________________
  ______________________...
Town Hall Meeting Notes
• __________________________________
  __________________________________
  ______________________...
Indiana 2009 Gaming Seminar Presentation, ICEA
Indiana 2009 Gaming Seminar Presentation, ICEA
Indiana 2009 Gaming Seminar Presentation, ICEA
Indiana 2009 Gaming Seminar Presentation, ICEA
Indiana 2009 Gaming Seminar Presentation, ICEA
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Indiana 2009 Gaming Seminar Presentation, ICEA

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This is a copy of the notes used for the 2009 Indiana Gamin Commission's Not for Profit Gaming Seminar.

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Indiana 2009 Gaming Seminar Presentation, ICEA

  1. 1. WELCOME INDIANA GAMING COMMISSION CHARITY GAMING DIVISION 2009 SEMINAR Director Diane Freeman
  2. 2. 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
  3. 3. 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.
  4. 4. Legislative & Administrative Rule Changes House Enrolled Act 1286 Senate Enrolled Act 414 Effective July 1, 2009
  5. 5. Statutory Changes 1. Adds “Qualified Drawing” to the Annual PPT License. 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 considers necessary. 4. Operators may now operate at up to 3 organizations during a calendar month.
  6. 6. Statutory Changes 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 day. 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.
  7. 7. Administrative Rule Proposed Changes • 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 being adopted.
  8. 8. Administrative Rule Proposed Changes 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 event. 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.
  9. 9. Administrative Rule Proposed Changes 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 operator. 6. Organizations may apply for 6 single charity game night licenses per year.
  10. 10. Administrative Rule Proposed Changes 7. Sets a $25 amendment fee for amendments to licenses. 8. Provides that an organization may be awarded a refund of: 1. The license fee minus $50 if the organization withdraws its application before the license is issued. 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.
  11. 11. Administrative Rule Proposed Changes 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.
  12. 12. BREAK PLEASE BE READY TO BEGIN PROMPTLY AT 10:15 AM THANK YOU
  13. 13. 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.
  14. 14. Investigations cont’d • 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
  15. 15. Investigations cont’d • Not using U.S. Currency • Checks • Computer records not supported with original accounting documents (Nightly Summary Report) • Bingo Caller not an operator • Grandfathered equipment • No profit on cumulative totals
  16. 16. Investigations Cont’d • Paying of Worker/Operators • Multiple licenses all money into one account.
  17. 17. Qualified Drawings • Ticket < $5.00, • $300 Max payout, • Weekly 7 day interval, • Monthly interval, • No profit to org, all amounts wagered returned in prizes, • 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.
  18. 18. 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.
  19. 19. ALLOWABLE EXPENSES/USE OF • PROCEEDS 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. • Remodeling/Improvements • 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 • Salaries • Taxes – employee federal, state or county withholding taxes • Alcohol, Beer, Wine, etc
  20. 20. LUNCH PLEASE BE READY TO BEGIN PROMPTLY AT 1:00 PM ENJOY
  21. 21. Town Hall Meeting Notes • __________________________________ __________________________________ __________________________________ • __________________________________ __________________________________ __________________________________ • __________________________________ __________________________________ __________________________________
  22. 22. Town Hall Meeting Notes • __________________________________ __________________________________ __________________________________ • __________________________________ __________________________________ __________________________________ • __________________________________ __________________________________ __________________________________

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