2005 Nevada Revised Statutes - Chapter 462 — Lotteries

Title 41 - GAMING; HORSE RACING; SPORTING EVENTS

CHAPTER 462 - LOTTERIES

GENERAL PROVISIONS

NRS 462.015 Declarationof public policy.

NRS 462.025 Licensingand additional restrictions imposed by local governments.

NRS 462.035 Definitions.

NRS 462.045 Boarddefined.

NRS 462.055 Calendarquarter defined.

NRS 462.064 Charitablelottery defined.

NRS 462.075 Charitableor nonprofit activity defined.

NRS 462.085 Commissiondefined.

NRS 462.095 ExecutiveDirector defined.

NRS 462.105 Lotterydefined.

NRS 462.115 Netproceeds defined.

NRS 462.125 Qualifiedorganization defined.

CHARITABLE LOTTERIES

NRS 462.130 Administrationof chapter; regulations.

NRS 462.140 Conditionsfor operation of charitable lottery.

NRS 462.150 Registrationor approval of qualified organization: Conditions; revocation; period ofvalidity.

NRS 462.160 Registrationor approval of qualified organization: Application; fee; expenditure ofapplication fees.

NRS 462.170 Registrationor approval of qualified organization: Commission may require finding ofsuitability; costs of investigation; effect of failure to submit applicationfor finding; effect of finding of unsuitability.

NRS 462.180 Sale of ticket or chance for charitable lottery prohibited in certain areas; limitation onnumber of lotteries conducted by approved organization without specificauthorization.

NRS 462.190 Limitationson compensation for prizes and supplies and compensation of persons forservices; exceptions.

NRS 462.200 Limitationon expenditure of net proceeds of charitable lottery; annual financial reportrequired.

UNLAWFUL ACTS; PENALTIES

NRS 462.250 Penaltyfor unauthorized lottery.

NRS 462.260 Penaltyfor unauthorized sale or transfer of lottery ticket.

NRS 462.270 Applicabilityof NRS 462.280 and 462.290 regarding regular reporting ofinformation.

NRS 462.280 Penaltyfor assisting in unauthorized lottery.

NRS 462.290 Penaltyfor opening or maintaining office for sale of tickets for unauthorized lottery;penalty for intentional advertisement of such office.

NRS 462.300 Penaltyfor insuring or guaranteeing lottery tickets.

NRS 462.310 Proofof existence of lottery and issuance of ticket.

NRS 462.320 Penaltyfor leasing or allowing use of building or vessel for lottery in violation ofchapter.

NRS 462.330 Forfeituresof money and certain property.

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GENERAL PROVISIONS

NRS 462.015 Declarationof public policy. The Legislature herebyfinds, and declares to be the public policy of this state, that:

1. The operation of legitimate charitable lotteries bybona fide charitable and nonprofit organizations is beneficial to the generalwelfare of the residents of this state.

2. The benefits of charitable lotteries:

(a) Are dependent upon ensuring that those lotteriesare operated honestly and free from criminal and corruptive elements, and thatthe proceeds of those lotteries are expended to benefit the activities ofcharitable or nonprofit organizations.

(b) Can be ensured through the regulation of the typeof organizations authorized to operate those lotteries, the manner in whichthose lotteries are conducted and the manner in which the proceeds of thoselotteries are expended.

(Added to NRS by 1991, 2257)

NRS 462.025 Licensingand additional restrictions imposed by local governments. Nothing in this chapter affects the power of a localgovernment to require the licensing of or to impose additional restrictions onthe operation of a charitable lottery.

(Added to NRS by 1991, 2261)

NRS 462.035 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS462.045 to 462.125, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1991, 2257)

NRS 462.045 Boarddefined. Board means the State GamingControl Board.

(Added to NRS by 1991, 2257)

NRS 462.055 Calendarquarter defined. Calendar quarter means aperiod of 3 consecutive months commencing on the 1st day of January, April,July or October in any year.

(Added to NRS by 1991, 2257)

NRS 462.064 Charitablelottery defined. Charitable lottery means alottery operated by a bona fide charitable or nonprofit organization pursuantto the provisions of this chapter.

(Added to NRS by 1991, 2258)

NRS 462.075 Charitableor nonprofit activity defined. Charitable ornonprofit activity means an activity in support of the arts, amateurathletics, peace officers or health or social services, or conducted for anybenevolent, civic, educational, eleemosynary, fraternal, humanitarian,patriotic, political or religious purpose, including the operation of aqualified organization.

(Added to NRS by 1991, 2258)

NRS 462.085 Commissiondefined. Commission means the Nevada GamingCommission.

(Added to NRS by 1991, 2258)

NRS 462.095 ExecutiveDirector defined. Executive Director meansthe Chairman and Executive Director of the State Gaming Control Board.

(Added to NRS by 1991, 2258)

NRS 462.105 Lotterydefined.

1. Except as otherwise provided in subsection 2,lottery means any scheme for the disposal or distribution of property, bychance, among persons who have paid or promised to pay any valuableconsideration for the chance of obtaining that property, or a portion of it, orfor any share or interest in that property upon any agreement, understanding orexpectation that it is to be distributed or disposed of by lot or chance,whether called a lottery, raffle or gift enterprise, or by whatever name it maybe known.

2. Lottery does not include a promotional schemeconducted by a licensed gaming establishment in direct association with alicensed gaming activity, contest or tournament.

3. For the purpose of this section, a person has notpaid or promised to pay any valuable consideration by virtue of his having:

(a) Engaged in or promised to engage in a transactionin which he receives fair value for his payment;

(b) Accepted or promised to accept any products orservices on a trial basis; or

(c) Been or promised to have been present at aparticular time and place,

as the solebasis for his having received a chance to obtain property pursuant to anoccasional and ancillary promotion conducted by an organization whose primarypurpose is not the operation of such a promotion.

[1911 C&P 229; RL 6494; NCL 10176](NRS A1991, 925, 2261)(Substituted in revision for NRS 462.010)

NRS 462.115 Netproceeds defined. Net proceeds means thetotal amount of money collected from the sale of tickets or chances for acharitable lottery, less the total amount of money expended for prizes,supplies, advertising, promotion, printing, administration and other directexpenses necessary to operate a charitable lottery.

(Added to NRS by 1991, 2258)

NRS 462.125 Qualifiedorganization defined. Qualifiedorganization means a bona fide charitable, civic, educational, fraternal,patriotic, political, religious or veterans organization that is not operatedfor profit.

(Added to NRS by 1991, 2258)

CHARITABLE LOTTERIES

NRS 462.130 Administrationof chapter; regulations.

1. The Board and Commission shall administer theprovisions of this chapter for the protection of the public and in the publicinterest in accordance with the policy of this state.

2. The Commission, upon the recommendation of theBoard:

(a) May adopt such regulations as it deems desirable toenforce the provisions of this chapter; and

(b) Shall adopt regulations providing a procedure toappeal the denial of the approval of the Executive Director pursuant to NRS 462.150,

pursuant tothe procedure set forth in NRS 463.145.

(Added to NRS by 1991, 2258)

NRS 462.140 Conditionsfor operation of charitable lottery. Aqualified organization may operate a charitable lottery if:

1. The organization is approved by the ExecutiveDirector and the total value of all the prizes offered in charitable lotteriesoperated by the organization during the same calendar year does not exceed$500,000;

2. The organization registers with the ExecutiveDirector and the total value of all the prizes offered in charitable lotteriesoperated by the organization during the same calendar year does not exceed$25,000; or

3. The total value of the prizes offered in thecharitable lottery does not exceed $2,500 and:

(a) The organization operates no more than twocharitable lotteries per calendar year; or

(b) The tickets or chances for the charitable lotteryare sold only to members of the organization, and to guests of those memberswhile attending a special event sponsored by the organization, and the totalvalue of all the prizes offered in charitable lotteries operated by theorganization during the same calendar year does not exceed $15,000.

(Added to NRS by 1991, 2258; A 1997, 294)

NRS 462.150 Registrationor approval of qualified organization: Conditions; revocation; period ofvalidity.

1. The Executive Director shall:

(a) Register a qualified organization that complieswith the requirements of NRS 462.160.

(b) Approve a qualified organization if:

(1) The organization complies with therequirements of NRS 462.160; and

(2) The Executive Director determines that theapproval of the organization would not be contrary to the public interest.

(c) Provide a qualified organization, within 30 daysafter its submission of an application pursuant to NRS 462.160, with written notification ofthe basis for any refusal by the Executive Director to register or approve thequalified organization pursuant to this section.

2. The registration or approval of a qualifiedorganization is a revocable privilege. No person has any right to be registeredor approved by the Executive Director or acquires any vested right upon beingregistered or approved by the Executive Director.

3. Unless earlier revoked, the registration orapproval of a qualified organization is valid for the calendar year and expireson December 31.

(Added to NRS by 1991, 2258)

NRS 462.160 Registrationor approval of qualified organization: Application; fee; expenditure ofapplication fees.

1. To register with or request the approval of theExecutive Director, a qualified organization must submit to him:

(a) A written application containing:

(1) The name, address and nature of theorganization.

(2) Proof that the organization is a qualifiedorganization.

(3) The names of the officers or principals ofthe organization, and of any person responsible for the management,administration or supervision of the organizations charitable lotteries andany activities related to those lotteries.

(4) A description of all the prizes to beoffered in charitable lotteries operated by the organization during thecalendar year to which the application pertains and, if the approval of theExecutive Director is required, a summary of the anticipated expenses ofconducting those lotteries, including copies of any proposed agreements betweenthe organization and any suppliers of material for the operation of thoselotteries.

(5) A description of the intended use of the netproceeds of charitable lotteries operated by the organization during thecalendar year to which the application pertains.

(6) The designation of a primary county in whichcharitable lotteries will be conducted by the organization during the calendaryear to which the application pertains.

(7) Any other information the Executive Directordeems appropriate.

(b) A nonrefundable fee of:

(1) For registration, $5; or

(2) For a request for approval, $25.

2. A qualified organization shall submit suchadditional information as necessary to correct or complete any informationsubmitted pursuant to this section that becomes inaccurate or incomplete. Theapproval of a qualified organization is suspended during the period that any ofthe information is inaccurate or incomplete. The Executive Director mayreinstate the approval of the organization only after all information has beencorrected and completed.

3. The money collected pursuant to this section mustbe expended to administer and enforce the provisions of this chapter.

(Added to NRS by 1991, 2259)

NRS 462.170 Registrationor approval of qualified organization: Commission may require finding of suitability;costs of investigation; effect of failure to submit application for finding;effect of finding of unsuitability.

1. The Commission may, upon recommendation of theBoard, require:

(a) A qualified organization that registers with orrequests the approval of the Executive Director to file an application pursuantto chapter 463 of NRS for a finding ofsuitability to operate a charitable lottery in this state.

(b) Any person who is employed by, a member of orotherwise associated with such an organization to file an application pursuantto chapter 463 of NRS for a finding ofsuitability to be associated with the operation of a charitable lottery in thisstate.

2. The Board may conduct an investigation of thequalified organization or associated person and submit recommendations to theCommission. The qualified organization or associated person must deposit withthe Board a sum of money which the Board determines will be adequate to pay theanticipated costs of the investigation and shall upon the completion of theinvestigation pay to the Board any additional money necessary to reimburse theBoard for the actual cost of the investigation. The Board shall refund anyoverpayments.

3. The Commission may revoke the registration orapproval of a qualified organization if:

(a) An application for a finding of suitability is notsubmitted to the Board, together with the deposit required by subsection 2,within 30 days after the qualified organization receives written notice that itis required pursuant to paragraph (a) of subsection 1 to file an applicationfor a finding of suitability.

(b) The qualified organization is found unsuitable tooperate a charitable lottery in this state.

(c) An application for a finding of suitability is notsubmitted to the Board, together with the deposit required by subsection 2, orthe association of the person with the organization is not terminated, within30 days after the qualified organization receives written notice that anassociated person is required pursuant to paragraph (b) of subsection 1 to filean application for a finding of suitability.

(d) The associated person is found unsuitable to beassociated with the operation of a charitable lottery in this state and thequalified organization does not terminate its association with that personwithin 30 days after receiving written notice of the finding of unsuitability.

(Added to NRS by 1991, 2260)

NRS 462.180 Saleof ticket or chance for charitable lottery prohibited in certain areas;limitation on number of lotteries conducted by approved organization withoutspecific authorization. A qualifiedorganization shall not:

1. Sell any ticket or chance for a charitable lotteryoutside of:

(a) The primary county in which the charitable lotteryis being conducted; and

(b) Any counties that border on the primary county.

2. If the organization has been approved by theExecutive Director, conduct more than one charitable lottery in any calendarquarter without the specific authorization of the Executive Director.

(Added to NRS by 1991, 2260)

NRS 462.190 Limitationson compensation for prizes and supplies and compensation of persons forservices; exceptions. A qualified organizationshall not:

1. Compensate any person for the provision of prizesand supplies used in the operation of a charitable lottery, except to pay thefair market value of the prizes and supplies necessary for the operation of thecharitable lottery.

2. Provide:

(a) Any compensation to a person who is not a regularemployee of the organization; and

(b) Any additional compensation to a person who is aregular employee of the organization,

for hisservices in organizing or operating a charitable lottery or assisting in theorganization or operation of a charitable lottery. This subsection does notprohibit a qualified organization from compensating a person for the fairmarket value of services that are ancillary to the organization or operation ofa charitable lottery.

(Added to NRS by 1991, 2260)

NRS 462.200 Limitationon expenditure of net proceeds of charitable lottery; annual financial reportrequired.

1. A qualified organization shall expend the netproceeds of a charitable lottery only for the benefit of charitable ornonprofit activities in this state.

2. A qualified organization approved by the ExecutiveDirector shall, after the completion of a charitable lottery and no later thanthe end of the same calendar year, submit to the Executive Director a financialreport on the charitable lottery. The financial report must include a statementof:

(a) The expenses incurred in the operation of thecharitable lottery; and

(b) The amount and use of the net proceeds of thecharitable lottery.

(Added to NRS by 1991, 2261)

UNLAWFUL ACTS; PENALTIES

NRS 462.250 Penaltyfor unauthorized lottery. A person whocontrives, prepares, sets up, proposes or draws any lottery, except asauthorized pursuant to this chapter, is guilty of a misdemeanor.

[1911 C&P 230: RL 6495; NCL 10177](NRS A1991, 2261)(Substituted in revision for NRS 462.020)

NRS 462.260 Penaltyfor unauthorized sale or transfer of lottery ticket. Aperson who sells, gives or in any manner whatever furnishes or transfers to orfor any other person any ticket, chance, share or interest, or any paper,certificate or instrument purporting or understood to be or to represent anyticket, chance, share or interest in or depending upon the event of anylottery, except as authorized pursuant to this chapter, is guilty of amisdemeanor.

[1911 C&P 231; RL 6496; NCL 10178](NRS A1991, 2262)(Substituted in revision for NRS 462.030)

NRS 462.270 Applicabilityof NRS462.280 and 462.290 regarding regular reporting ofinformation. The provisions of NRS 462.280 and 462.290 do not apply to the regularreporting of information to the public by a newspaper, periodical or pressassociation, or a radio or television station.

(Added to NRS by 1991, 2261)

NRS 462.280 Penaltyfor assisting in unauthorized lottery. Aperson who intentionally aids or assists, either by printing, writing,advertising, publishing or otherwise, in setting up, managing or drawing anylottery in violation of this chapter, or in selling or disposing of any ticket,chance or share therein, is guilty of a misdemeanor.

[1911 C&P 232; RL 6497; NCL 10179](NRS A1991, 2262)(Substituted in revision for NRS 462.040)

NRS 462.290 Penaltyfor opening or maintaining office for sale of tickets for unauthorized lottery;penalty for intentional advertisement of such office. Everyperson who opens, sets up or keeps by himself or by any other person any officeor other place for the sale of or for registering the number of any ticket inany lottery in violation of this chapter, or who by printing, writing or othermeans intentionally advertises or publishes the setting up, opening or using ofany such office, is guilty of a misdemeanor.

[1911 C&P 233; RL 6498; NCL 10180](NRS A1991, 2262)(Substituted in revision for NRS 462.050)

NRS 462.300 Penaltyfor insuring or guaranteeing lottery tickets. Everyperson who insures or receives any consideration for insuring for or againstthe drawing of any ticket in any lottery whatever, whether drawn or to be drawnwithin this state or not, or who receives any valuable consideration upon anyagreement to repay any sum or deliver the same, or any other property, if anylottery ticket or number of any ticket in any lottery shall prove fortunate orunfortunate, or shall be drawn or not be drawn at any particular time or in anyparticular order, or who promises or agrees to pay any sum of money, or todeliver any goods, things in action or property, or to forbear to do anythingfor the benefit of any person, with or without consideration, upon any event orcontingency dependent upon the drawing of any ticket in any lottery, or whopublishes any notice or proposal of any of the purposes aforesaid, is guilty ofa misdemeanor.

[1911 C&P 234; RL 6499; NCL 10181](Substituted in revision for NRS 462.060)

NRS 462.310 Proofof existence of lottery and issuance of ticket. Upona trial for violation of any of the provisions of this chapter, it is notnecessary to prove the existence of any lottery in which any lottery ticket purportsto have been issued, nor to prove the actual signing of any such ticket orshare, or pretended ticket or share of any pretended lottery, nor that anylottery ticket, share or interest was signed or issued by the authority of anymanager, or of any person assuming to have authority as manager; but in allcases proof of the sale, furnishing, bartering or procuring of any ticket,share or interest therein, or of any instrument purporting to be a ticket, orpart or share of any such ticket, constitutes evidence that such share orinterest was signed and issued according to the purport thereof.

(Added to NRS by 1967, 1472; A 1991,2262)(Substituted in revision for NRS 462.065)

NRS 462.320 Penaltyfor leasing or allowing use of building or vessel for lottery in violation ofchapter. A person who lets or permits to beused any building or vessel, or any portion thereof, knowing that it is to beused for setting up, managing or drawing any lottery in violation of thischapter, or for the purpose of selling or disposing of lottery tickets inviolation of this chapter, is guilty of a misdemeanor.

[1911 C&P 236; RL 6501; NCL 10183](NRS A1991, 2262)(Substituted in revision for NRS 462.070)

NRS 462.330 Forfeituresof money and certain property.

1. All money and property offered for sale ordistribution in violation of any of the provisions of this chapter areforfeited to the State, and may be recovered by information filed or by anaction brought by the Attorney General or by any district attorney, in the nameof the State.

2. Upon the filing of the information or complaint,the clerk of the court, or if the suit is in a Justice Court, the justice, mustissue an attachment against the property mentioned in the complaint orinformation, which attachment has the same force and effect against suchproperty and is issued in the same manner as attachments from the districtcourts in civil cases.

[1911 C&P 235; RL 6500; NCL 10182](NRS A1991, 2262)(Substituted in revision for NRS 462.080)