1. WELCOME INDIANA GAMING COMMISSION CHARITY GAMING DIVISION2009 SEMINARDirector Diane Freeman

2. 8:00A 8:30A SIGN IN 8:30A 8:40A WELCOME AND INTRODUCTION 8:40A 9:00A ILLEGAL GAMBLING 9:00A 10:00ARECENT STATUTE AND RULE CHANGES 10:00A 10:15A*** BREAK TIME *** 10:15A 11:00A INVESTIGATIONS 11:00A 12:30P *** LUNCH TIME *** 12:30P 1:30PIRS REPRESENTATIVE 1:30P 3:30P TOWN HALL MEETING & QUESTION / ANSWER SESSION 3. What is Illegal Gambling?The General RuleThree (3) Elements 1. Risk Money (property) 2. For Gain (to win a prize) 3. Contingent Upon ChanceGambling means risking money or other propertyfor gain, contingent in whole or in part upon lot,chance, or the operation of a gambling device. 4. Legislative & Administrative Rule ChangesHouse Enrolled Act 1286Senate Enrolled Act 414Effective July 1, 2009 5. Statutory Changes 1. Adds Qualified Drawing to the Annual PPTLicense. 2. Provides rules for the conduct of qualifieddrawings and winner take all drawings. 3. Raises the amount from $50 to $250 for whenan organization must collect the name, DOB,and signature of a PPT winner. Theorganization must also verify the identity of thewinner using any means the organizationconsiders necessary. 4. Operators may now operate at up to 3organizations during a calendar month. 6. Statutory Changes 5. A festival worker may now participate as a player inany gaming activity at the festival provided that theworker does not participate in the game during thetime the worker is conducting the game. However, aPPT worker may not buy PPTs on the same calendarday. 6. Creates the bona fide fraternal organization andrestricts the Annual Charity Game Night License toveterans organizations and fraternal organizations. 7. Restricts the number of nights a charity game nightevent may be conducted at one facility to 3 calendardays per week. 8. An organization may only conduct charity game nightevents between 12:01 a.m. and 11:59 p.m. 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. Administrative RuleProposed Changes 1. Provides that an applicants license may be denied forfailure to pay federal, state, or local tax timely. 2. Provides that drawings done under an annual rafflelicense must be conducted at a facility owned orleased by the qualified organization conducting theevent. 3. Requires an organization conducting a raffle, a doorprize, a winner take all drawing, or a qualified drawingto conduct its own draws. 4. Organizations conducting winner take all drawings andqualified drawings must maintain a ledger that containsthe date of the drawing, the winners name, address,telephone number, and the amount of money won. 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 gamenight licenses per year. 10. Administrative RuleProposed 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. 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. BREAK PLEASE BE READY TO BEGIN PROMPTLY AT10:15 AM THANK YOU 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. Investigations contd 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. Investigations contd 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. Investigations Contd Paying of Worker/Operators Multiple licenses all money into one account. 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. Qualified Drawings contd 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. 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 organizations 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 CPAs/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 organizations 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 organizations constitution or bylaws Expenses Not Allowed Salaries Taxes employee federal, state or county withholding taxes Alcohol, Beer, Wine, etc 20. LUNCH PLEASE BE READY TO BEGIN PROMPTLY AT 1:00 PM ENJOY 21. Town Hall Meeting Notes __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ 22. Town Hall Meeting Notes __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________