Gambling Law US
Idaho Charitable Gaming
Idaho Bingos and Raffles
Gambling Related Websites
Current through Oct. 1, 2016
STATE GOVERNMENT AND STATE AFFAIRS CHAPTER 77 BINGO AND RAFFLES
67-7701. PURPOSE AND POLICY.
It is hereby declared that all bingo games and raffles in Idaho must be strictly controlled and administered, and it is in the public interest for the state to provide for the administration of charitable bingo games and raffles to protect the public from fraudulently conducted bingo games and raffles, to assure that charitable groups and institutions realize the profits from these games, to prohibit professionals conducting bingo games or raffles for fees or a percentage of the profit and to provide that all expenditures by a charitable organization in conducting bingo games and raffles are in the best interest of raising moneys for charitable purposes.
67-7702. DEFINITIONS. As used in this chapter:
67-7703. BINGO-RAFFLE ADVISORY BOARD ESTABLISHED. There is established the bingo-raffle advisory board, which is responsible for making recommendations for the improvement of bingo and raffle operations and regulation to the state lottery commission, the governor and the legislature, including recommendations for administrative rules.
67-7704. BINGO-RAFFLE ADVISORY BOARD -- MEMBERS -- APPOINTMENT -- QUALIFICATIONS. The bingo-raffle advisory board shall consist of six (6) members appointed by the governor and confirmed by the senate. Members shall be selected and appointed because of their ability and disposition to serve the state's interest and for knowledge of bingo and raffle operations. Members appointed by the governor shall serve at the pleasure of the governor, and shall be residents over twenty-five (25) years of age who have experience in administrating, conducting or regulating bingo or raffle operations. There shall be one (1) member from each of the following six (6) districts initially established as follows:
The terms of appointed members of the bingo-raffle advisory board shall be three (3) years
At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. A vacancy of the board shall be filled in the same manner as regular appointments are made, and the term shall be for the unexpired portion of the regular term. No member of the board shall have a direct or indirect pecuniary interest in any contract or agreement entered into by the board. No more than three (3) members of the board shall belong to the same political party.
67-7705. QUORUM -- MEETINGS -- MINUTES -- COMPENSATION. A majority of the qualified membership of the bingo-raffle advisory board is a quorum. The advisory board may not act unless at least four (4) members agree. The advisory board shall meet at least three (3) times per year, and may meet more often as it deems necessary. Written notice of the time and place of each meeting shall be given to each board member. The advisory board shall select or elect one (1) of its members to be chairman, one (1) of its members to be vice-chairman and one (1) of its members to be secretary. The secretary of the advisory board shall promptly send the lottery commission a certified copy of the minutes of each meeting of the advisory board. The minutes shall include a copy of the current recommendations of the board, including recommended administrative rules. Members of the bingo-raffle advisory board shall receive compensation as provided in section 59-509(b), Idaho Code. Members are entitled to reimbursement for reasonable travel expenses incurred in the performance of their duties as a member, as provided by law.
67-7706. BINGO-RAFFLE ADVISORY BOARD -- POWERS -- DUTIES.
The bingo-raffle advisory board shall review the operation and regulation of bingo games and raffle events in Idaho, and shall make recommendations to the state lottery commission regarding, but not limited to, the following issues:
The bingo-raffle advisory board shall, at least twice a year, report to the state lottery commission addressing the operations and activities of the advisory board and the major issues facing bingo operators in the state. The lottery security division shall provide a final annual report to the governor, the lottery commission, the president pro tempore of the senate and the speaker of the house of representatives of the Idaho legislature.
67-7707. BINGO BY CHARITABLE OR NONPROFIT ORGANIZATIONS.
(1) It is lawful for a charitable or nonprofit organization to conduct bingo sessions or games in accordance with the provisions of this chapter and the rules of the state lottery commission. Any charitable or nonprofit organization, any member of a charitable or nonprofit organization, or any person that conducts a bingo session or game in violation of any provision of this chapter or the rules of the state lottery commission may be assessed a civil penalty not in excess of ten thousand dollars ($ 10,000) per violation . Additionally, any person knowingly conducting a bingo session or game in violation of the provisions of this chapter or the rules of the state lottery commission may be charged under the gambling laws contained in chapter 38, title 18, Idaho Code. Violations will be prosecuted by the county prosecuting attorney.(2) No person under the age of eighteen (18) years may play bingo in games where a cash prize is offered or where the prize exceeds twenty-five dollars ($ 25.00) in value for merchandise
67-7708. LIMIT ON SESSIONS AND BINGO PRIZES.
The number of sessions or games of bingo conducted or sponsored by a charitable or nonprofit organization shall be limited to three (3) sessions per week and such sessions shall not exceed a period of eight (8) hours per day.
The maximum prize that may be offered or paid for any one (1) game of bingo, and the maximum aggregate amount of prizes that may be offered or paid for any one (1) session of bingo, shall be set by rule of the state lottery commission.
67-7709. ACCOUNTING AND USE OF BINGO PROCEEDS.
67-7710. RAFFLES -- DUCK RACES
(1) It is lawful for any charitable or nonprofit organization to conduct raffles in accordance with the provisions of this chapter. Any charitable or nonprofit organization or any person that conducts a raffle in violation of any provision of this chapter may be assessed a civil penalty not in excess of ten thousand dollars ($ 10,000) per violation . Additionally, any person knowingly conducting a raffle in violation of any provision of this chapter or rule of the state lottery commission may be charged under the gambling laws of the state contained in chapter 38, title 18, Idaho Code , and may be assessed a civil penalty by the lottery not in excess of ten thousand dollars ($ 10,000) per violation . It shall not constitute a violation of state law to advertise a charitable raffle conducted pursuant to this section. It is lawful to participate in a charitable raffle conducted pursuant to this chapter. A charitable raffle conducted lawfully pursuant to this chapter is not gambling for purposes of chapter 38, title 18, Idaho Code.
(2) Raffles drawings must be held in Idaho and shall be limited to twelve (12) per charitable or nonprofit organization per year, provided that this limitation shall not apply to public or private elementary schools, secondary schools or higher education institutions located in this state. The maximum aggregate value of cash prize(s) that may be offered or paid for any one (1) raffle, which is not a duck race is one thousand dollars ($ 1,000) and if merchandise is used as a prize and it is not redeemable for cash, there shall be no limit on the maximum amount of value for the merchandise. For duck races, there shall be no limit on the maximum amount of the value of a cash prize if the cash prize is underwritten by insurance. If a duck race offers a cash prize that is not underwritten by insurance, the maximum aggregate value of the cash prize (s) is one thousand dollars ($ 1,000). here shall be no limit on the maximum of value for merchandise used as a prize in a duck race if the merchandise is not redeemable for cash.
(3) As used in this subsection, "net proceeds of a charitable raffle" means the gross receipts less the cost of prizes awarded. "Net proceeds of a duck race" shall mean gross receipts, less the cost of prizes awarded and the rental cost of the ducks used in the race. No less than eighty percent (80%) of the net proceeds of a raffle shall be used by the charitable or nonprofit organization for charitable, religious, educational, civic or other charitable purposes.
(4) Any licensed charitable or nonprofit organization conducting raffles pursuant to this chapter shall prepare a statement at the close of its license year and shall file such statement with the state lottery. The statement shall be prepared on a form prescribed by the lottery commission and shall include, at a minimum, the following information:
(5) Every charitable or nonprofit organization whose annual gross revenues exceed two hundred thousand dollars ($ 200,000) from the operation of raffle events shall provide the state lottery with a copy of an annual audit of the raffle events. The audit shall be performed by an independent certified public accountant and who is licensed in the state of Idaho and who meets the peer review requirements set forth by the Idaho state board of accountancy. The audit shall be submitted to the Idaho state lottery within ninety (90) days after the end of the license year.
67-7711. LICENSING PROCEDURE.
(1) Any charitable or nonprofit organization not exempt pursuant to section 67-7713, Idaho Code, desiring to operate bingo sessions or games or charitable raffles shall make application for a license to the state lottery. The state lottery shall review the license application and shall approve or deny the issuing of a license within fifteen (15) calendar days of receipt of the license application. The state lottery may deny the application if it determines that the applicant has not met requirements for an application imposed in this chapter and rules promulgated pursuant to this chapter or upon any ground for which an application for renewal of a license could be denied or for which an existing licensee's license could be revoked or suspended. Whenever an application is denied, it shall be returned to the applicant by the state lottery with specific reasons for the denial. When a license application is approved by the state lottery, the state lottery shall issue a license to the applicant. No person or charitable or nonprofit organization, except those exempt pursuant to section 67-7713, Idaho Code, shall operate or conduct a bingo session or game or charitable raffle until it has received a license from the state lottery. The license shall expire one (1) year after the date it was issued.
(2) Each application and renewal application shall contain the following information:
(3) The operation of bingo sessions or games or charitable raffles shall be the direct responsibility of, and controlled by, the governing body of the organization and the members of the governing body shall be held responsible for the conduct of the bingo sessions or games or raffles. No directors or officers of an organization or persons related to them either by marriage or blood within the second degree shall receive any compensation derived from the proceeds of a bingo session or raffle regulated under the provisions of this chapter. An organization shall not contract with any person for the purpose of conducting a bingo session or providing bingo services or conducting a raffle on the organization's behalf, provided that this prohibition does not prevent a bingo organization from hiring employees and paying wages as provided in section 67-7709(1)(d)(ii), Idaho Code. However, if the state lottery commission has entered into an agreement or contract with another state for the operation or promotion of joint bingo sessions, the charitable or nonprofit organization may participate in that contract or agreement.
(4) Different chapters of an organization may apply for and share one (1) license to conduct raffles so long as the information required in subsection (2) of this section is provided to the lottery prior to the issuance of the license.
(5) The organization may apply for the license to coincide with the organization's fiscal year.
67-7712. LICENSE FEES -- SUSPENSION OR REVOCATION.
67-7713. LICENSURE REQUIREMENTS. A charitable or nonprofit organization conducting a bingo game shall be required to obtain a license if the gross annual bingo sales are ten thousand dollars ($ 10, 000) or more. A charitable or nonprofit organization conducting a raffle shall be required to obtain a license if the maximum aggregate value of merchandise exceeds five thousand dollars ($ 5,000).
67-7714. RULES AND FORMS. The state lottery commission is authorized to promulgate rules consistent with this act in compliance with chapter 52, title 67, Idaho Code, to implement the provisions of this act and shall prescribe standardized forms for implementation of this act.
67-7715. VENDORS -- LICENSING -- FEES.
(1) No person or entity shall manufacture, sell, distribute, furnish or supply to any person or entity any gaming device, equipment or material, in this state or for use in this state, without first obtaining a vendor's license from the state lottery commission. Vendor licenses shall not be issued by the state lottery except respecting devices, equipment or material designed and permitted to be used in connection with activities authorized under this chapter. Provided however, that this licensing requirement shall apply only insofar as the state lottery commission has adopted rules implementing it as to particular categories of gaming devices and related material and equipment.
(2) Any person or entity that manufactures, sells, distributes, furnishes or supplies any gaming device, equipment or material, in this state or for use in this state shall make application for a vendor license to the state lottery. The state lottery shall review the license application and shall approve or deny the issuing of a license within fifteen (15) calendar days of receipt of the license application. The state lottery may deny the application if it determines that the applicant has not met the requirements imposed in this chapter and rules promulgated pursuant to this act chapter. Whenever an application is denied, it shall be returned to the applicant by the state lottery with specific reasons for the denial. When the license application is approved by the state lottery, the state lottery shall issue a license to the applicant.
(3) Each application and renewal application shall contain the following information:
(a) The name, address, date of birth, driver's license number and social security number of the applicant and if the applicant is a corporation, proprietorship, association, partnership or other similar legal entity, the name, home address, date of birth, driver's license number and social security number of each of the officers of the corporation and their spouses, as well as the name and address of the directors and their spouses, or other persons similarly situated.
(b) The locations or persons with which the applicant will provide any gaming device, equipment or material in this state or for use in this state.
(4) Each applicant shall pay annually to the state lottery a nonrefundable license fee of five hundred dollars ($ 500) which shall be due upon submission of the application.
(5) Each licensed vendor shall maintain records of all sales to organizations in Idaho for a period of five (5) years. Such records shall be provided to the lottery upon request.
(6) Any license issued pursuant to this section shall be suspended or revoked by the state lottery and the licensee may be assessed a civil penalty by the state lottery up to ten thousand dollars ($ 10,000) per violation if it is found that the licensee or any person connected with the licensee has violated any provision of this chapter, particularly those in section 67-7712, Idaho Code, or any rule of the lottery commission.
67-7716. ELECTRONIC BINGO DEVICE AND SITE SYSTEMS -- APPROVAL REQUIRED.
(1) Electronic bingo devices and site system software shall be sold, rented, leased or otherwise provided in this state only by a licensed manufacturer.
Licensed manufacturers shall sell, rent, lease or otherwise provide such equipment only to a licensed distributor. A copy of any contractual agreement between a licensed manufacturer and a licensed distributor relative to the marketing of the manufacturer's equipment in this state, shall be provided to the commission.
(2) No electronic bingo device or site system software may be sold, rented, leased or otherwise provided to any person in this state for use in a bingo game conducted pursuant to this chapter unless and until such device and system software have been approved by the commission. Approval of the device or site system software will be based upon conformance with the requirements contained in this chapter and rules established by the commission for the testing and review of these types of devices and systems.
(3) A licensed manufacturer seeking approval of an electronic bingo device or site system software may be required to submit a prototype of the device or system software for testing and review, at the expense of the manufacturer, as required by the commission. Once approved, any hardware or software modifications must be preapproved by the commission. A licensed manufacturer shall be responsible for the actual costs of testing and examining bingo card monitoring devices, host systems and site system hardware.
67-7717. MANUFACTURING AND DISTRIBUTING REQUIREMENTS.
(1) No electronic bingo device shall be able to monitor more than fifty-four (54) bingo faces per game. The licensed manufacturer or distributor must restrict the device to store no more than fifty-four (54) faces per bingo game in its electronic database. After July 1, 2005, the maximum amount of electronic bingo cards played per game may be set by rule of the commission.
(2) Each electronic bingo device that requires a site system to download electronic bingo cards to the device, shall have a unique and permanent identification number hardcoded into the device's software. The identification number shall be communicated from the device to the site system whenever the device is connected to the site system, and printed on all transaction logs including the player's receipt. Manual input of a device identification number into the site system or on any transaction log or receipt is prohibited.
(3) Each electronic bingo device shall be programmed to automatically erase all electronic bingo cards and/or bingo card face numbers stored in the device: (a) upon turning off the device after the last bingo game of the session has been played, or (b) by some secondary timing method established by the manufacturer and approved by the commission.
(4) No electronic bingo device shall be designed to allow bingo players the ability to design their own bingo cards by choosing, rearranging or placing numbers on a card.
(5) A site system shall not be able to engage in any type of sale, void or reload transaction unless an electronic bingo device is connected to and communicating with the site system.
(6) A site system shall be restricted to load no more than fifty-four (54) electronic bingo faces per bingo game into any one (1) electronic bingo device, and the site system must be interfaced with a printer which is capable of printing upon request, a continuous hard copy transaction log and a printout for the player showing the device identification number, and all of the bingo cards and their face numbers loaded into the device. A receipting function for electronic bingo cards must be self-contained within the site system and must record and print out on a copy which is given to the player, the device identification number, the date, number of electronic bingo cards purchased or loaded, and the total amount charged for the electronic bingo cards.
(7) A site system shall be able to provide the winning game patterns required for the entire bingo session on a hardcopy printout. The printout must be available upon demand at the bingo session.
(8) If the commission detects or discovers any malfunction or problem with an electronic bingo device or site system that could affect the security or integrity of the bingo game, the electronic bingo devices, or the site system, the commission may direct the manufacturer, distributor or licensed organization to cease providing or using the electronic bingo devices or site system, as applicable. The commission may require the manufacturer to correct the problem or recall the devices or system immediately upon notification by the commission to the manufacturer. Failure to take the corrective action requested may result in confiscation or seizure of the devices and/or site system.
(9) If a manufacturer, distributor or licensed organization detects or discovers any malfunction or problem with the electronic bingo devices or site system which could affect the security or integrity of the bingo game, bingo card monitoring devices, or site system, the manufacturer, distributor or licensed organization, as applicable, shall discontinue use of the devices or site system and notify the commission by telephone by the next working day of such action and the nature of the problem detected. The commission may request further explanation in writing if deemed necessary.
67-7718. LICENSED DISTRIBUTOR REQUIREMENTS AND DUTIES.
(1) A licensed distributor shall purchase, rent, lease or otherwise obtain electronic bingo devices and site system software only from a manufacturer licensed by the commission. A licensed distributor shall sell, rent, lease or otherwise provide, only electronic bingo devices and site system software that have been approved by the commission.
(2) A licensed distributor shall sell, rent, lease or otherwise provide electronic bingo devices and site system software in this state only to an organization holding a charitable gaming bingo license.
(3) Before the initial use by the licensed organization, the licensed distributor must notify the commission in writing of the sale, rental, lease, provision, and/or installation of any electronic bingo devices or site system software. Such notification shall include:
(a) The complete name and address of the licensed organization and its license number;
(b) The type of equipment, including serial numbers, sold, rented, leased, provided or installed;
(c) The expected start-up date for use of the equipment by the licensed organization; and
(d) A copy of any agreement between the licensed distributor and the organization for the use of the equipment.
(4) The licensed distributor shall serve as the initial contact for the licensed organization with respect to requests for installation, service, maintenance, or repair of electronic bingo devices and site systems, and for the ordering of electronic bingo cards, if applicable. The distributor may, as needed, enlist the aid of the licensed manufacturer in providing service, repair or maintenance of the devices or site system. A licensed manufacturer may, with commission approval, authorize or subcontract with a person or company to service, maintain or repair bingo card monitoring devices and/or site systems; however, the ultimate liability for such service, maintenance or repair shall be solely that of the licensed manufacturer.
(5) The licensed distributor shall invoice the licensed organization and collect any and all payments for the sale, rental, lease or other use of the electronic bingo cards, bingo card monitoring devices and site systems. The distributor may, at its discretion, allow the licensed manufacturer to generate the invoice; however, all payments by the licensed organization must be remitted directly to the distributor. The licensed distributor must ensure that its name, complete address, and telephone number appear on the invoice as well as the name, complete address and license number of the licensed organization.
(6) Electronic bingo devices may be transported by a licensed distributor from one (1) location to another for use by more than one (1) licensed organization provided the distributor notifies the commission of the rotation schedule of the devices. However, each licensed organization utilizing a site system must have its own site system, which cannot be moved from its bingo location or be used by another organization without prior approval from the commission.
67-7719. LICENSED ORGANIZATIONS -- USE OF ELECTRONIC BINGO DEVICES.
(1) A licensed organization shall purchase, rent, lease or otherwise obtain electronic bingo devices and site system software only from an Idaho licensed distributor. A licensed organization may obtain terminals and/or printers to be used in conjunction with site system software obtained from a licensed distributor, from any source.
(2) The use of a player-owned electronic bingo device at a bingo session is prohibited.
(3) Electronic bingo devices shall be rented, leased or otherwise provided to bingo players only by the licensed organization conducting the bingo session, and only at the time and place of the bingo session. A bingo player using an electronic bingo device must be physically present on the premises, during the time of the bingo session, in order to be eligible to play bingo or win any bingo prize.
(4) Regardless of the number of electronic bingo devices made available for play, at least one (1) device shall be reserved by the licensed organization as a backup device, in the event a device in play malfunctions.
(5) Electronic bingo devices shall be made available to players on a first-come, first-served basis. No device may be reserved for any player, except a device may be reserved for any player with a disability that would restrict his or her ability to mark cards and such disability is consistent with definitions set forth in the Americans with disabilities act.
(6) No bingo player shall be allowed to utilize more than one (1) bingo card monitoring device at any time during a bingo occasion.
(7) An electronic bingo device cannot be used to monitor hard bingo cards or shutter cards.
(8) A licensed organization shall not permit a bingo player to choose or reject individual electronic bingo cards loaded into an electronic bingo device.
(9) At the licensed organization's discretion, a bingo player may, in addition to the maximum fifty-four (54) bingo cards per game which he or she purchases to monitor with an electronic bingo device, purchase additional disposable paper bingo cards to play using a manual daubing or marking method.
(10) An electronic bingo device shall be downloaded with electronic bingo cards by the licensed organization:
(a) Only upon payment by the player;
(b) Only on the premises of the licensed organization's bingo session; and
(c) Only during the time of the bingo session.
(11) A licensed organization may, at its discretion, charge a separate fee to players for the use of an electronic bingo device. The fee charged must be separately stated on the cash register and bingo player's receipt and shall be included in the bingo cash receipts.
(12) The sale of all bingo cards used in conjunction with an electronic bingo device must be receipted by either cash register or site system. Additional disposable paper bingo card sales must be separately receipted and, in addition, the cash register and player's receipt must identify and show the sale of disposable paper bingo cards separately from that of electronic bingo cards.
Idaho charitable bingo and raffle rules and regulations are available here.
|Chuck Humphrey is available to help answer questions and analyze and structure transactions.
Copyright © 2003-2017 Chuck Humphrey, gambling-law-us.com. All Rights Reserved worldwide.
May not be copied, stored or redistributed without prior written permission.