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.
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!
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 have been approved and 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 sixty (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.