Delaware Charitable Bingo & Raffle Law

28 Delaware Code, Sports and Amusements

CHAPTER 11. BINGO AND CHARITABLE GAMBLING

Subchapter I. Purpose, Scope, Definitions and Referendums

§ 1101. Purpose and scope.

This chapter shall provide for referendums on games and the regulation and control of games, provided that the district in which it is conducted votes in favor of such games. Games shall be conducted in Delaware only by those licensed under this chapter and subject to the limitations herein. (28 Del. C. 1953, § 1101; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 4.)

§ 1102. Definitions.

As used in this chapter:

(1) "Bingo " means a game of chance played for prizes with cards bearing numbers or other designations, 5 or more in 1 line, the holder covering numbers as objects similarly numbered are drawn from a receptacle and the game being won by the person who first covers a previously designated arrangement of numbers on such a card;

(2) "Board " means the Delaware Gaming Control Board;

(3) "Game or games" means bingo, instant bingo, and charitable gambling;(4) "Organization " means a veterans', religious or charitable organization, volunteer fire company or fraternal society as defined in article II, § 17A or 17B of the state Constitution;

(5) "Districts " means those districts mentioned in article II, § 17A or 17B of the state Constitution;

(6) "Charitable gambling " means any game or scheme operated by an organization which has been in existence 2 years or longer in which chance is the dominant factor in determining the allocation of a prize, excluding slot machines, roulette, craps or baccarat games;

(7) "Instant bingo " means any game of chance played with sealed or covered cards which must be opened in some fashion by the holder, such that the cards reveal instantly whether the holder has won a prize. This subdivision includes, but is not limited to, so-called "rip-offs", or "Nevada pull-tabs". (28 Del. C. 1953, § 1102; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, §§ 2, 3, 6; 65 Del. Laws, c. 180, § 1; 67 Del. Laws, c. 16, §§ 1, 2, 8.)

§ 1103. Referendums in general elections.

In the event that a majority of all the members elected to each house of the General Assembly by the qualified electors in any district mentioned in article II, § 17A or 17B of the state Constitution shall request in writing to the Speaker of the House of Representatives and to the President of the Senate, not less than 30 days preceding the next succeeding general election, that the question of license or no license of the playing of the game of bingo be submitted to a vote of the qualified electors of said district, the department of elections with jurisdiction over the district concerned shall cause to be printed on the ballots used in the next succeeding general election after said request the following question:
"Do you favor the licensing of the playing of the game of bingo within the limits of ................................................................
(insert the words, "City of Wilmington," "Sussex County," "Kent County" or "New Castle County outside of the City of Wilmington," as the case may be)?"
(28 Del. C. 1953, §§ 1110, 1111; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 6.)

§ 1104. Applicability of general election laws; conduct of referendum.

(a) Title 15, insofar as it is applicable shall apply to all referendums held under the provisions of this chapter. A voter may indicate his or her answer to the question submitted by voting in the affirmative or negative.

(b) Each department of elections shall take steps to insure that the equipment and supplies used at the general election are adjusted and modified to the extent necessary to permit the recording, tabulation and certification of the referendum vote.

(c) The department of elections of each county shall constitute a board of canvass for the purpose of canvassing the vote in any referendum held under this chapter.

(d) The provisions of Title 15 and the Constitution of this State relating to the certification and canvassing of the vote in general elections shall be followed insofar as those provisions are applicable.

(e) The Governor shall certify and proclaim the results of any such referendum at the time he certifies and proclaims the results of the general election pursuant to the provision of § 5710 of Title 15.

(f) The State Election Commissioner is empowered to prescribe such procedure and to make such rules and regulations, not inconsistent with this section or any other law of this State, as he may deem necessary to insure uniformity of method in the three counties in certifying and canvassing the vote in any referendum held under this chapter. (28 Del. C. 1953, § 1112; 51 Del. Laws, c. 65, § 1; 51 Del. Laws, c. 354.)

Subchapter II. Delaware Gaming Control Board

§ 1120. Composition; term of office; vacancies; compensation; organization.

Repealed by 63 Del. Laws, c. 144, § 1.

§ 1121. Expenses and personnel.

Repealed by 71 Del. Laws, c. 138, § 4, eff. July 3, 1997.

§ 1122. Duties; rules and regulations; forms.

(a) The Board shall:

(1) Supervise the administration of this chapter, and

(2) Adopt, amend and repeal rules and regulations governing the issuance and amendment of licenses to conduct the games under such licenses and schedules of rentals which may be paid for the leasing of equipment for use in connection with the games. The rules and regulations shall have the force of law. Such licenses shall be issued to qualified licensees only. The Board shall also take measures to assure that games shall be fairly and properly conducted for the purposes and in the manner prescribed in the state Constitution and in this chapter. The Board shall prevent the game from being conducted for commercial purposes or private profit other than as authorized in the state Constitution and in this chapter. In order to provide uniformity in the administration of this chapter the Board shall prescribe forms of application for licenses, amendment of licenses, reports of the conduct of games and other matters incident to the administration of this chapter.

(b) A copy of the rules and regulations adopted by the Board shall be available at a reasonable cost. (28 Del. C. 1953, § 1122; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, §§ 4, 5.)

§ 1123. Continuous study of operation of this chapter and similar laws.

(a) The Board shall conduct a continuous study and investigation of the operation of this chapter for the purpose of making recommendations to the General Assembly for amendments.

(b) The Board shall make a continuous study and investigation also of the operation and administration of similar laws which may be in effect in other states of the United States and of any literature on the subject which from time to time may be published or be available. (28 Del. C. 1953, § 1123; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 5.)

§ 1124. Reports and recommendations by Board.

The Board shall report to the Governor and the General Assembly biennially with its recommendations, if any, and at such other times as it may deem advisable. (28 Del. C. 1953, § 1124; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 5.)

Subchapter III. Licensing

§ 1130. Power to license.

(a) The Board may license an organization as defined in article II, Sec. 17A or Sec. 17B of the state Constitution to conduct the games, provided the organization is located in and seeks to conduct the game in a district which has approved the licensing of games by referendum.

(b) The Board may designate to the Director of the Division of Professional Regulation the authority to issue permits and licenses administratively using specified criteria agreed upon by the Board and the Director.

§ 1131. Application; eligibility.

(a) Each applicant for a license shall file with the Board a written application in the form prescribed in its rules and regulations, duly executed and verified, in which shall be stated the name and address of the applicant together with sufficient facts relating to its organization to enable the Board to determine whether or not it is a bona fide organization eligible to conduct games within the meaning of article II, § 17A or 17B of the state Constitution. The applicant shall supply such other facts as the Board may require.

(b) In each application there shall be designated the active member or members of the organization under whom the games are to be conducted. To the application shall be appended a statement by the applicant and by its member or members, so designated to read as follows: "If a license is granted the undersigned will be responsible for the conduct of such game in accordance with the terms of this chapter, the license and the rules and regulations governing the conduct of such games."

(c) Proof of exemption from federal income tax under § 170 of the Internal Revenue Code of the United States ›26 U.S.C. § 170| shall be prima facie evidence that the applicant is an eligible organization within the meaning of article II, § 17A or 17B of the state Constitution, but the Board may require any additional information from the applicant which may be pertinent to the question of its eligibility. (28 Del. C. 1953, § 1131; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, §§ 4-6.)

§ 1132. Conditions for Granting Permits or Lice3nses

(a) The Board or its designee shall make a review of the qualifications of each applicant and the merits of each application.

(b) The Board or its designee may issue a permit or license only after it determines that:
(1) The applicant is duly qualified to conduct games under the state Constitution and of this chapter and the rules and regulations governing the conduct of games; and (2) The persons who intend to conduct the games are persons of good moral character and have never been convicted of crimes or crimes involving moral turpitude; and a bona fide active member shall be on the premises during the conduct of the event; and (3) Such games are to be conducted in accordance with the provisions of the state Constitution and this chapter and in accordance with the rules and regulations governing the conduct of games; and (4) The proceeds are to be disposed of as provided in the state Constitution and by this chapter; and (5) No unreasonable salary, compensation or reward whatever will be paid or given to any member under whom the game is conducted; and (6) In charitable gambling other than bingo, there shall be no limit on the amount a person may bet and no limit on the amount a person may win, except that no person may lose more than $150 in a single day. In bingo, no prize will be offered or given in excess of the sum of $250 in any single game and the aggregate of all prizes offered or given in all of such games conducted on a single occasion shall not exceed the sum or value of $1250. For purposes of this paragraph, the value of any promotional giveaways, which value shall be no more than $500 per annum to be distributed at an organizational anniversary date and no more than 3 holiday dates per year, shall not be counted towards the dollar amounts described herein; (7) Notwithstanding paragraph (b)(6) of this section, a licensed operator of a bingo event may offer inducements, including but not limited to cookie-jar bingo games that do not exceed the amount set by the Board per game per night, free refreshments and free transportation of players to and from bingo events, to attract bingo players to the bingo event; provided, that the total fair market value of inducements is limited to 15% of the total amount of all other prizes offered or given during the bingo event. Any amounts in any cookie-jar bingo games shall not be included in these limitations or in any prize money limitations.
(8) The value of prizes offered shall be prescribed by the rules and regulations of the Board.

ß 1133. License fees; exceptions.
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§ 1133. License fees; exceptions.

a) There shall be a permit or license fee of $15 for each occasion upon which bingo or charitable gambling are to be conducted under such permit or license.

(b) The Board or its designee may issue a permit or license without fee to any bona fide organization eligible to conduct games within the meaning of article II, ß 17A or ß 17B of the state Constitution, provided such organization conducts games for recreational purposes, does not intend to make a profit, does not make a profit, does not charge a fee for participation and offers no prize in excess of $5.00 for any single game

(c) [Repealed.] 

§ 1134. Duration of license.

(a) No license shall be effective for a period of more than 1 year from the date it was issued.

(b) No license shall be effective after the organization to which it was granted has become ineligible to conduct the game under any provision of article II, § 17A or 17B of the state Constitution.

(c) No license shall be effective after the voters in any district designated in article II, § 17A or 17B of the state Constitution have decided against games in a referendum held pursuant to that section and §§ 1103 and 1104 of this title. (28 Del. C. 1953, § 1134; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, §§ 4, 6.)

§ 1135. Refusal to license; hearing.

No properly submitted application for a license shall be refused by the Board or its designee until a hearing is held after proper notice to the applicant. At any such hearing the applicant shall be entitled to be heard upon the qualifications of the applicant and the merits of the application. The burden of proof shall be on the applicant.

§ 1136. Amendments to licenses.

Any permit or license issued under this chapter may be amended by the Board or its designee if the subject matter of the proposed amendment could lawfully and properly have been included in the original license upon application and payment of an additional license fee.
]

§ 1137. License form and provisions; display.

(a) Each permit shall be in the form prescribed in the rules and regulations of the Board and shall contain:
(1) The name and address of the permit holder; (2) The number of times and the hours during which such games are to be conducted; (3) The prize or prizes to be offered or given and the maximum wagering limit or limits; (4) Any other information which may be required by the rules and regulations.
(b) Each permit or license shall be conspicuously displayed at the place where the game is to be conducted for the duration of the event.

§ 1138. Supervision.

(a) The Board shall exercise control and supervision over all games to the end that the games are fairly conducted in accordance with the provisions of the permit or license, the rules and regulations of the Board, the provisions of the state Constitution and of this chapter.

(b) After investigation reveals that a licensee or permittee has committed a violation of this chapter or of the rules of the Delaware Gaming Control Board which the Board believes does not warrant formal action, the Board may endeavor to obtain compliance by a written letter of concern. Such letter shall be provided to the licensee or permittee, shall specify the violation and propose a time for correction of the violation. It may also provide an opportunity for a public hearing at which the Board shall hear and consider any submission relevant to the violation, corrective action, or the time frame for correcting the violation. Receipt of 3 letters of concern within a 1-year period by the same licensee or permittee shall constitute a violation warranting formal action.
(c) The Board, its officers and agents shall have the right of entry at all times into any place where any such game is being conducted or where it is intended that any such game shall be conducted or where any equipment being used or intended to be used in the conduct thereof is found, for the purpose of inspecting the same.

§ 1139. Limitations and regulations under license.

 

(a) Bingo and charitable games conducted shall not commence prior to 1:30 p.m. The operation of a game shall be limited to 6 consecutive hours, except as permitted by regulation. Instant bingo is permitted during any event sponsored by the entity that is licensed to conduct it, regardless of the day or time. No bingo or charitable gambling may take place after 1:00 a.m.
(b) No person under the age of 18 years shall be permitted in the area where the game is played.
(c) The number of games which an applicant may conduct in any 1 calendar month shall be set by the rules and regulations of the Board, provided that no bingo permit holder or licensee issued a permit or license prior to July 14, 1998, shall conduct more than 10 bingo events in any calendar month and no bingo permit holder or licensee issued a permit or license after July 14, 1998, shall conduct more than 1 bingo event per week. For purposes of this subsection, a bingo permit holder or licensee prior to July 14, 1998, whose permit or license lapses for 6 months or more due to nonrenewal or suspension or any other reason shall, upon issuance thereafter, be considered a permit holder or licensee after July 14, 1998.
(d) No games shall be conducted in any room or area where alcoholic beverages are sold or served during the progress of the game.
(e) No item of expense shall be incurred or paid in connection with the conduct of the game except such as are bona fide items of a reasonable amount for merchandise furnished or services rendered which are reasonably necessary for the conduct of the game.
(f)(1) A permitted or licensed sponsoring organization may charge an admission fee to a game event in any room or area in which a game is to be conducted. The admission fee shall entitle the game player:
a. To a card enabling the player to participate without additional charge in all regular games to be played under license at the event; or b. To free refreshments. The permitted or licensed sponsoring organization may charge an additional fee to a game player for a single opportunity to participate in a special game to be played under license at the event.
(2) Unless a bingo permit holder or licensee has been issued a permit or license prior to July 14, 1998, only 1 licensed organization may hold bingo games in a licensed organization's building during any given week.
(g) Any permitted or licensed game sponsoring organization or organizations shall have discretionary authority to promulgate rules and regulations on the eligibility of persons permitted to participate in the game or games; provided, however, they have been approved by the Board, and further provided, that if approved by the Board, such rules and regulations shall be conspicuously displayed at the main entrance where all patrons can observe same.
(h) The Board may make reasonable rules and regulations with respect to the size of bets and prizes with respect to the conduct of games other than bingo.
(i) Sponsoring organizations shall be allowed to use third party vendors to supply equipment and workers for charitable gambling events permitted under this chapter. Sponsoring organizations shall contract with the third-party vendors on terms agreed to by the parties. However, no third-party vendor shall receive compensation based on a percentage of funds received by the sponsoring organization as a result of the event.
(j) No person under the age of 18 may participate in a bingo game. Notwithstanding subsection (b) of this section, persons between the ages of 16 through 18 may conduct or assist in conducting the bingo game and persons over the age of 14 may serve as waiters and waitresses in the handling of food and drinks at an event where a licensee or permittee conducts bingo.

§ 1140. Reports after games; records; examinations; applicability.

(a) Within 30 days after the conclusion of any game, the organization which conducted the game and its member or members who were in charge shall furnish to the Board a duly sworn statement showing:
(1) The gross receipts derived from each game; (2) Each item of expense incurred or paid; (3) The name and address of each person to whom each such item has been, or is to be paid, with a description of the merchandise purchased or the services rendered therefor; (4) The net profit derived for each such game; (5) The general uses to which such net profit has been or is to be applied; and (6) A list of prizes offered and given, with the respective values thereof.
(b) Each licensee shall maintain the records to substantiate the particulars of the reports.
(c) The Board may examine or cause to be examined the records of any organization to which any license is issued so far as they may relate to any transactions connected with games and examine any manager, officer, director, agent or employee thereof under oath in relation to the conduct of any games.
(d) [Repealed.

Subchapter IV. Enforcement

§ 1150. Immunity from arrest for violation of gambling laws; exceptions.

No person:

(1) Lawfully conducting or participating in the conduct of; or

(2) Possessing, selling or in any manner disposing of, any shares, tickets or rights to participate in; or

(3) Permitting the conduct upon any premises owned by him or it, of any game conducted or under license issued pursuant to this chapter,

shall be liable to prosecution or conviction for violation of any of the provisions of the Delaware Code not contained in this chapter pertaining to gambling, but this immunity shall not extend to any person knowingly conducting or participating in any unlicensed game or in any game under any license obtained by any false pretense or statement made in any application for such license or otherwise, or possessing, selling or disposing of shares, tickets or rights to participate in, or permitting the conduct upon any premises owned by him or it, of any game conducted under any license known to him or it to have been obtained by any false or fraudulent pretense or statement. (28 Del. C. 1953, § 1150; 51 Del. Laws, c. 65, § 1.)

§ 1151. Investigations and hearings; witnesses; books and documents.

The Board shall conduct investigations as to violations of this chapter. The Board may compel the attendance of witnesses and the production of books and documents relating to transactions connected with the conducting of games by the issuance of subpoenas signed by the Chairman or an employee of the Board designated by the Chairman, which may be served by any person 21 years of age or over. (28 Del. C. 1953, § 1151; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, §§ 4, 5.)

§ 1152. Privilege against self-incrimination.

No person shall be excused from testifying or producing any book or document in any investigation or hearing when ordered so to do by the Board upon the ground that the testimony or documentary evidence required of him may tend to incriminate him or subject him to penalty or forfeiture but no person shall be prosecuted, punished or subjected to any penalty or forfeiture on account of any matter concerning which he shall, under oath, have testified or produced documentary evidence except that he shall not be exempt from prosecution or punishment under §§ 1221-1235 of Title 11 for any perjury or false statement. (28 Del. C. 1953, § 1152; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 5.)

§ 1153. Contempt; application to Superior Court; order.

(a) If a person subpoenaed to attend any investigation or hearing fails to obey without reasonable cause, or if a person in attendance in any such investigation or hearing refuses, without lawful cause, to be examined or to answer a legal or pertinent question or to exhibit any book, account, record or other document when ordered so to do by the Board, it may apply to the Superior Court for an order directing such person to show cause why he should not comply with such subpoena or such order.

(b) Upon return of the rule, the Court shall examine such person under oath, and if the Court shall determine, after giving such person an opportunity to be heard, that he refused without legal excuse to comply with a subpoena or order of the Board, the Court may order such person to comply therewith. Any failure to obey the order may be punished as a contempt of the Superior Court. (28 Del. C. 1953, § 1153; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 5.)

§ 1154. Suspension or revocation of license.

The Board may suspend or revoke licenses, after hearing, for violations of this chapter or for violation of the rules and regulations adopted by the Board. At any hearing to suspend or revoke an otherwise valid license the Board shall have the burden of proving any violation or any other fact which might disqualify an organization holding a license. The Board may impose a fine upon a licensee for violations of the law or regulations of not more than $1,000 per violation. The Board may impose a fine upon a third-party vendor for violating or participating in a violation of the law or regulations of not more than $5,000 per violation. In addition the Board may upon finding a violation of the law or regulations, temporarily or permanently enjoin a third-party vendor from contracting with or participating with an organization in regard to charitable gambling.

§ 1155. Institution of prosecutions.

The Board shall recommend to the Attorney General in writing that criminal prosecution be instituted for violations of this chapter. The Attorney General is responsible for the prompt institution of such proceeding, but if the Attorney General decides not to institute proceedings, he shall inform the Board in writing of his decision. (28 Del. C. 1953, § 1155; 51 Del. Laws, c. 65, § 1; 64 Del. Laws, c. 100, § 5.)

§ 1156. Penalties.

Repealed by 63 Del. Laws, c. 390, § 8, eff. July 21, 1982.