Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 238.510, 238.540, 238.550
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 prohibits tips or other gratuities for volunteers working at
charitable gaming events and prohibits employees of the Department of
Charitable Gaming from playing any charitable games, removing any potential
conflict of interest or appearance of impropriety.
Section 1. Tipping Prohibited.
(1) The charitable organization conducting
gaming shall take one (1) or more of the following measures to inform the
public that, pursuant to KRS 238.540(4), its volunteers are unable to accept
tips or other forms of gratuities:
(a) Post
signs in a conspicuous location that volunteers are not permitted to accept
tips;
(b) State prominently on the
charitable gaming session program that volunteers are not permitted to accept
tips; or
(c) Announce during the
charitable gaming session that volunteers are not permitted to accept
tips.
(2) Except as
provided in subsection (3) of this section, a charitable organization shall not
pay remuneration or expenses other than those authorized in KRS 238.550(4),
award, or otherwise provide any sort of benefits, to, for, or on behalf of any
person engaged as a volunteer in the conduct of charitable gaming.
(3) A charitable organization may provide
volunteer workers the following:
(a) Food or
drink of incidental value not to exceed fifteen (15) dollars per day to be
consumed on the premises where charitable gaming occurs;
(b) Any article of clothing worn by the
volunteers on the premises where charitable gaming occurs that identifies the
volunteer worker as a volunteer; and
(c) Any noncash item not to exceed
twenty-five (25) dollars in fair market value given to volunteers upon
achievement of predetermined goals in the conduct of a raffle.
(4) All allowable expenditures
made by charitable organizations for volunteers shall be reported on the
charitable organization's financial reports.
Section 2. Rebuttable Presumption of
Compensation.
(1) There is a rebuttable
presumption of compensation if a person volunteers at more than four (4)
charitable gaming sessions a week excluding charity fundraising events as
defined in 820 KAR 1:055.
(2) There
is a rebuttable presumption of compensation if a person volunteers at more than
four (4) special limited charitable fundraising events per year.
Section 3. Department Employees
Prohibited From Playing Charitable Games.
(1)
No Department of Charitable Gaming employee, during his term of employment,
shall play any charitable game authorized in KRS Chapter 238 unless the
employee's participation in the game is authorized in advance by the
Commissioner as a necessary function of the employee's job duties.
Section 4. Officers, Agents, or
Employees of Manufacturers and Distributors.
(1) No distributor, distributor's agent, or
distributor's employee may play or participate in any charitable gaming in the
Commonwealth of Kentucky involving products sold or leased by the distributor
while such person is employed by a licensed distributor.
(2) No manufacturer, manufacturer's agent, or
manufacturer's employee may play or participate in any charitable gaming in the
Commonwealth of Kentucky involving products made, sold, or leased by the
manufacturer while such person is employed by a licensed
manufacturer.
(3) Servicing of
electronic gaming devices shall not be considered conduct or participation in
charitable gaming.
STATUTORY AUTHORITY: KRS 238.515
