Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 238.505, 238.515, 238.535, 238.545,
238.547
NECESSITY, FUNCTION, AND CONFORMITY: The Department of
Charitable Gaming is authorized by KRS 238.515 to establish and enforce
reasonable standards for the conduct of charitable gaming. This administrative
regulation establishes standards, fees, and procedures for the conduct of
charity fundraising events and special limited charity fundraising
events.
Section 1. Charitable
Fundraising Event Licensing and Standards.
(1)
At least thirty (30) days prior to the scheduled date for a charity fundraising
event, a licensed charitable organization shall submit a complete and accurate
application on Form CG-Schedule A, Charity Fund-raising Event or Special
Limited Charity Fundraising Event License Application.
(2) Each application for licensure under this
administrative regulation shall be accompanied by:
(a) A twenty-five (25) dollar fee;
and
(b) A copy of the executed
lease for the charitable gaming facility, if applicable.
(3) The department shall issue a license if
the applicant:
(a) Possesses a regular
charitable gaming license; and
(b)
Has met the requirements for licensure established in KRS 238.505.
(4) The event shall not be
advertised nor preregistrations taken until a license is issued.
(5) Once a license is issued, players may
preregister for the event prior to the day of the event only if payment is
received by the charitable organization.
(6) Charity game tickets shall not be an
approved game of chance at a charity fundraising event held by an exempt
charitable organization.
Section
2. Special Limited Games Played at a Charity Fundraising Event.
The department shall grant approval to play special limited games at a charity
fundraising event if the information contained in the application shows that
the event meets the requirements of KRS 238.545.
Section 3. Volunteers.
(1) All individuals involved in the conduct
of a charity fundraising event or a special limited charity fundraising event
shall be trained in the proper conduct of the game and the control of
funds.
(2) The chairperson shall:
(a) Be in charge of the charity fundraising
event or special limited charity fundraising event;
(b) Supervise and direct all volunteers;
and
(c) Be responsible for assuring
the proper receipt and recording of gaming funds.
Section 4. Equipment Used for
Events.
(1) Poker tables, blackjack tables,
prize wheels, and chips, scrip, or imitation money shall not be considered
charitable gaming supplies or equipment and may be purchased from ordinary
sources of supply. The licensed charitable organization shall not pay for poker
tables, blackjack tables, prize wheels or chips, scrip, or imitation money from
the charitable gaming account.
(2)
Roulette wheels and craps tables shall be considered charitable gaming supplies
and shall be obtained from a licensed distributor. The licensed charitable
organization shall pay for roulette wheels and craps tables from the charitable
gaming account.
(3) If special
limited charity games are played, the licensed charitable organization shall
provide the department with a copy of the executed contract for the use of
those supplies no later than thirty (30) days following the event. This
contract shall specify exactly the items provided, at what cost, and from
whom.
Section 5.
Expenses.
(1) The licensed charitable
organization shall pay the gaming expenses for the charity fundraising event or
special limited charity fundraising event from the gaming account. All other
expenses shall be paid from the general account.
(2) If an expense is both a gaming expense
and a general expense, the expense shall be prorated pursuant to the amount of
gross receipts obtained from gaming and nongaming events. The full amount shall
be paid from the general account and the amount attributable to gaming shall be
reimbursed from the gaming account to the general account.
(3) Food, beverages, and other items provided
to participants without additional payment at an event where only gaming
activity takes place shall be considered a promotional expense, if all
participants are equally eligible.
Section 6. Special Limited Charity
Fundraising Event Licensing and Standards.
(1)
A licensed charitable organization shall submit a complete, accurate, and
documented application on Form CG-Schedule A, Charity Fundraising Event or
Special Limited Charity Fundraising Event License Application, for a special
limited charity fundraising event, at least thirty (30) days prior to the
scheduled date for the event.
(2) A
fee of twenty-five (25) dollars shall accompany each application for licensure
under this administrative regulation.
(3) When the application is filed, the
licensed charitable organization shall provide the department with a copy of
the executed lease for a licensed gaming facility, if applicable.
(4) The department shall issue a license, if
the applicant possesses a regular charitable gaming license and has met the
requirements for licensure established in KRS 238.505.
(5) The event shall not be advertised nor
preregistrations taken until a license is issued.
(6) Once a license is issued, players may
preregister for the event prior to the day of the event only if payment is
received by the licensed charitable organization.
(7) A central bank shall be maintained in
accordance with KRS 238.547.
(8)
For all games that require a central bank to be used:
(a) The amount of money received for selling
chips, scrip, or imitation money shall be the gross receipts;
(b) All chips, scrip, or imitation money
redeemed shall be the payouts; and
(c) All money remaining shall be the adjusted
gross receipts.
(9)
Games requiring a predetermined amount of chips, scrip, or imitation money
shall be pre-counted. Accurate records shall be kept of all chips, scrip, or
imitation money sales, whether the sale is an initial entry fee or a later
purchase of chips, scrip, or imitation money.
(10) If the special limited charity games are
played as a tournament, then:
(a) A record of
attendance shall be kept for the special limited charity games; and
(b) The cost to enter, the cost of the buy
backs, the cost of the add ons, the rules of the game, the manner for raising
blinds or closing tables, and the prizes shall be listed on the gaming session
program. The prizes may be listed as a percentage of the receipts.
Section 7.
Incorporation by Reference. The following items are incorporated by reference:
(1) Form CG-Schedule A, "Charity Fundraising
Event or Special Limited Charity Fundraising Event License Application (2019)
", is incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Department of
Charitable Gaming, Public Protection Cabinet, 500 Mero Street 2NW24, Frankfort,
Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY: KRS 238.515
238.545