The Department of Charitable Gaming (DCG) 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.
Clarification about Kentucky's new sales tax
Kentucky General Assembly made several changes to Kentucky tax law during its
2018 session. Several of our licensees have asked our Department how the
new state sales tax law affects charitable gaming, so we contacted the Kentucky
Department of Revenue for clarification concerning the new tax law.
2018 changes to the tax law now require that a 6 percent sales and use tax be
collected on admissions to events and
participation in amusement activities.
According to the Department of Revenue, this means that organizations who
conduct bingo will have to collect a 6 percent sales tax on charges for the
packs of bingo paper since these packs represent an admission to
play the game. Any similar games in which players must pay to participate
in a game, such as poker tournaments conducted under a charity fundraising
event license, will also be taxable. The sales tax will not apply to
pulltabs (paper or electronic) or raffle tickets.
will be updating our forms to ensure that our licensees accurately report the
amount spent in sales tax, but it will take time. We will not be
requiring this information until we develop a proper form. Please keep an eye
on our website and Facebook for updates. When we do get a proper form, we will
send that out to all licensees.
Kentucky Department of Revenue regulates and enforces Kentucky tax law.
If you have additional questions, please visit their website or phone 502-564-5170.
Additional resources from the Kentucky Department of Revenue:
Information Concerning Sales and Excise Taxes
Registering for a Sales and Use Tax Account
Facility and Event Admission Fees FAQ
We are on Facebook!
The Department of Charitable Gaming now has a Facebook page! It will consist of announcements, live interactive training sessions and other information of interest to our licensees. Please click on the link to the right and "like" our page to stay up to date!
Check out our newest video about FaceBook Live Training!
Pursuant to KRS 238.570, as of Oct. 1, 2017, the fee on charitable gaming gross receipts will be .00957. The fee will be applied beginning with all 2017 4th Quarter Financial Reports and 2017 Annual Financial Reports.
Oct. 30, 2017 Notice to Distributors
Distributors are reminded to list on their quarterly reports all invoices that they originate and issue to licensed organizations for the sale or lease of charitable gaming supplies. The Department has received reports that are incomplete and have failed to list some of these transactions. Any sale or lease that is not invoiced by you should not be listed on the quarterly report. Failure to submit a complete and accurate report could result in a violation being issued.
Taxability of Charitable Gaming Supplies:
Kentucky Department of Revenue's response related to taxability of charitable gaming supplies by tax-exempt entities -- Charitable Gaming Supplies
General Notice Regarding Banners and Posters:
KRS 238.530(10)(f), prohibits a licensed manufacturer or distributor, or its affiliate or member of its immediate family from providing advertising or marketing services in any manner to a licensed charitable organization. A licensed charitable gaming facility is similarly prohibited as well. KRS 238.555(3)(f).
We interpret these statutes to mean that neither a distributor, manufacturer nor
facility may provide to a licensed charitable organization, either by sale or free
distribution, a sign or banner advertising an organization’s charitable gaming. Signs
and banners provided by a distributor, manufacturer or facility may not be placed
outside the premises where gaming is occurring, nor placed inside a facility or
gaming hall in such a position that it can be viewed by persons outside the premises.
The organization may create or provide its own banner or poster which may be placed outside the hall, and such banner or poster may contain a manufacturer’s or
distributor’s name or logo, but neither the manufacturer, distributor not facility may
provide it. Banners and posters placed inside the hall promoting a game to be played,
and which are viewable only by persons in the hall are not considered advertising or marketing and neither the manufacturer, distributor nor facility is prohibited from
providing such a sign.
Notice to Organizations regarding Electronic Pulltabs:
The regulations governing the use of electronic pulltabs are now in effect. The Department will now begin accepting lab certifications either certifying or failing to certify each manufacturer's product. Once the Department receives these certifications we have 60 days to either approve or deny the systems and the games.
What this means for you: A manufacturer's electronic pulltab system and games cannot be used in the conduct of charitable gaming until that system and those games have been approved by the Department. We anticipate the first systems to be approved and enter the market around the first of February. Now that the regulations are approved and in effect, you MAY enter into a contract with a distributor to provide these products, however, please keep in mind that no manufacturers product will be approved for use until, at the earliest, the beginning of February. Therefore, there is no guarantee that any contract you enter into with a manufacturer or distributor will be for a product that is ultimately approved for use in the Commonwealth. If you have any questions regarding the status of approvals or electronic pulltabs in general, please feel free to contact Cannon Armstrong or Doug Hardin. 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.