The Department of Charitable Gaming provides a regulatory framework allowing charitable gaming to thrive as a viable fundraising mechanism. The department helps to ensure the productivity of charitable gaming through appropriate regulation, oversight and education. Our agency is privileged to partner with charities to accomplish these goals and looks forward to continuing that partnership. The department continues to seek new ways to assist charities in gaming, while policing the industry to ensure that charities do not fall prey to those seeking to use charitable gaming as a means to make money for themselves.
As we look to the future, the department will continue to strive to ensure that charitable gaming is an activity in which more charities participate to make money for their causes, and to make the industry safer for those charities already gaming. As always, the department serves as a resource for charities and has training available. Also, the office is working to make its website more informative and educational for charities. With your help, charitable gaming has a bright future.
Sept. 30, 2015
TO: All licensees
RE: Raffle Boards - April 10, 2015 Notice
On April 10, 2015, the Department of Charitable Gaming notified all licensees that, effective Oct. 1, 2015, all “raffle boards” used in the conduct of charitable gaming would be considered “charitable gaming supplies and equipment” that must be purchased by licensed charitable organizations and exempt organizations from a distributor that is licensed by the Department.
One example of a “raffle board” is the board containing rows of numbered cards used in the conduct of the “Queen of Hearts” raffle. There are other iterations of the game as well, customarily utilizing playing cards and slots or spaces where the winner of a drawing pulls a playing card from the slot or space to determine if he or she has drawn the “Queen of Hearts,” or other prior-designated winning card, thereby winning a prize. Some raffle boards have been produced by distributors and some homemade by charitable organizations, leading to confusion and inconsistency over how they would be regulated and what standards would apply to them.
For reasons described in the Department’s Apr. 10th notice, “raffle boards” were determined to be “charitable gaming supplies and equipment” and therefore subject to all of the statutes and regulations determining how these products are to be distributed and used in charitable gaming. The purpose of establishing the Oct. 1st deadline was to avoid disruption to ongoing gaming activities by allowing organizations using these non-compliant boards an opportunity to finish play and award prizes consistent with the expectations of those individuals purchasing tickets. After the deadline, only those raffle boards produced by a licensed manufacturer and obtained by a charitable organization from a licensed distributor shall be legal for use in Kentucky. Any others were not to be used after the deadline.
In the intervening months since April, the Department has determined that there are charitable organizations attempting to finish the play of non-compliant raffle boards and award prizes to winners, but in some cases it is doubtful that the boards can be finished by Oct. 1. Therefore, the Department’s notice and directive of April 10, 2015, is amended as follows:
1. Any licensed or exempt charitable organization utilizing a non-compliant raffle board where the raffle prize has not been awarded by Oct. 1, 2015, may continue to play that raffle board until and including Dec. 31, 2015.
2. Any prize to be awarded to the winner of a non-compliant raffle board shall be paid by Dec. 31, 2015.
3. No drawing shall be held and no prize awarded in association with a non-compliant raffle board after Dec. 31, 2015.
4. The Dec. 31, 2015 deadline shall apply only to non-compliant raffle boards that are in play with a prize yet to be awarded as of Oct. 1, 2015. A licensed or exempt charitable organization shall not begin play on any new non-compliant raffle board after Oct. 1, 2015.
5. For the purposes of this notice and directive, a “non-compliant raffle board” means a raffle board played by a licensed or exempt charitable organization at any time between April 10, 2015 and Dec. 31, 2015 that was not produced by a Kentucky-licensed manufacturer and not obtained by the organization from a Kentucky-licensed distributor.
6. This notice and directive shall not apply to any raffle board that was produced by a Kentucky-licensed manufacturer and obtained by a licensed or exempt charitable organization from a Kentucky-licensed distributor. An organization using a raffle board described in this numbered paragraph shall produce proof of the board’s origin if requested to do so by the Department.
If you have any questions or concerns regarding the above notice and directive, please do not hesitate to contact my office.
Scott Jones, Commissioner
Notice to Organizations regarding Electronic Pulltabs and contact by Manufacturers and Distributors: The regulations governing the use of electronic pulltabs are still under review. Electronic pulltabs cannot be used in the conduct of charitable gaming until those regulations are officially approved. After the regulations are approved, electronic pulltab devices and games must be certified by a testing laboratory and then the department must approve those devices and games. Please be advised that while you may be contacted by manufacturers and distributors of electronic pulltab devices, you cannot enter into a contract with a distributor or manufacturer to provide these products until the regulations are finalized, the product has been certified by the testing laboratory, and the department has approved the product. The department will notify you once the regulations are final. The certification and approval process will take a minimum of sixty (60) days following the date of the regulation approval. If you have any questions regarding the status of regulations or approvals, please feel free to contact Scott Jones or Noelle Bailey. As a reminder, manufacturers cannot also be licensed distributors and cannot directly provide, or contract to provide, any charitable gaming supplies or equipment, including electronic pulltab devices, to your organization.
Fee increase goes into effect Oct. 1, 2015.
Pursuant to KRS 238.570, as of Oct. 1, 2015, the fee on charitable gaming gross receipts will be .00962. The fee will be applied beginning with all 2015 4th Quarter Financial Reports and 2015 Annual Financial Reports.
Phone: (502) 573- 5528 Toll Free: (800) 729- 5672
Fax: (502) 573-6625