Bill Text: IN SB0161 | 2010 | Regular Session | Amended

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Bill Title: Type II gaming.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2010-02-02 - First reading: referred to Committee on Public Policy [SB0161 Detail]

Download: Indiana-2010-SB0161-Amended.html

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January 15, 2010

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SENATE BILL No. 161

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DIGEST OF SB 161 (Updated January 13, 2010 3:27 pm - DI 110)

Citations Affected: IC 4-36.

Synopsis: Type II gaming. Allows type II gaming retailers to profit from qualified drawings. Includes sales of the tickets in the retailer's gross receipts. Requires the rules of the game to specify whether the retailer will retain the profits or return the total amount wagered in the form of prizes. Requires retailers to report the amounts retained.

Effective: July 1, 2010.

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Alting, Deig

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    January 5, 2010, read first time and referred to Committee on Commerce, Public Policy & Interstate Cooperation.
    January 14, 2010, reported favorably _ Do Pass.

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January 15, 2010

Second Regular Session 116th General Assembly (2010)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.

SENATE BILL No. 161

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    A BILL FOR AN ACT to amend the Indiana Code concerning gaming.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-36-2-9; (10)SB0161.1.1. -->     SECTION 1. IC 4-36-2-9, AS AMENDED BY P.L.108-2009, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 9. (a) "Gross receipts" means the total amount of money exchanged for the purchase of:
         (1) pull tabs;
         (2) punchboards; and
         (3) tip boards; and
         (4) raffle tickets purchased in a qualified drawing in which the retailer retains the profits of the qualified drawing;
by the patrons of a type II gaming patrons. operation.
     (b) The term does not include any amount wagered on winner take all and other qualified drawings conducted by a retailer under IC 4-36-5-1(c) in which the total amount wagered is returned to the retailer's patrons in the form of prizes.

SOURCE: IC 4-36-2-13.5; (10)SB0161.1.2. -->     SECTION 2. IC 4-36-2-13.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 13.5. "Profits" means the difference between:

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        (1) the total amount of money exchanged for the purchase of a raffle ticket in a qualified drawing; minus
        (2) the total value of the prizes awarded in the qualified drawing.

SOURCE: IC 4-36-5-1; (10)SB0161.1.3. -->     SECTION 3. IC 4-36-5-1, AS AMENDED BY P.L.108-2009, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) A retailer may offer the sale of type II gambling games in accordance with this article.
    (b) A retailer's endorsement also authorizes a retailer to conduct qualified drawings on the premises of the retailer's tavern. A qualified drawing must be conducted in the manner required by this section.
    (c) A qualified drawing is subject to the following rules and limitations:
        (1) The purchase price for a chance to win a prize in a qualified drawing may not exceed five dollars ($5).
        (2) The total value of all prizes that may be won in a particular qualified drawing may not exceed three hundred dollars ($300) for any of the following:
            (A) A daily drawing.
            (B) A weekly drawing.
            (C) A monthly drawing.
        (3) A qualified drawing must be conducted in accordance with the following limitations:
            (A) Not more than one (1) daily drawing may be conducted each day.
            (B) Not more than one (1) weekly drawing may be conducted each week.
            (C) Not more than one (1) monthly drawing may be conducted each month.
            (D) Weekly drawings must be held on regular seven (7) day intervals posted in the information required by subdivision (11). (10).
            (E) Monthly drawings must be held on regular monthly intervals posted in the information required by subdivision (11). (10).
        A weekly or monthly drawing may be conducted on the same day that a daily drawing is conducted.
        (4) Except as otherwise provided in this section, a patron must be present to claim a prize awarded in a qualified drawing.
        (5) A retailer may not profit from conducting a qualified drawing.
        (6) All amounts wagered on qualified drawings must be returned to a retailer's patrons in the form of prizes.

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        (7) (6) A retailer may not conduct a qualified drawing or any other event in which the winner of the prize is determined, in whole or in part, by a sporting event.
        (8) (7) If no winning ticket is drawn in a qualified drawing, a retailer may:
            (A) carry the prize over to a later drawing in accordance with this section; or
            (B) continue drawing tickets until a winner is drawn.
        (9) (8) If a patron who purchased a winning ticket is not present to claim a prize at the time of the qualified drawing, a retailer shall hold the prize for the winning patron in accordance with the rules of the retailer.
        (10) (9) In order to comply with subdivision (9), (8), a retailer shall obtain the name, address, and telephone number of each patron who purchases a ticket for a qualified drawing.
        (11) (10) A retailer must conspicuously display the following information concerning each qualified drawing conducted by the retailer:
            (A) The price of a ticket.
            (B) The time of the drawing.
            (C) The description and value of the prizes awarded in the drawing.
            (D) The manner in which a prize may be claimed.
            (E) The rules of the retailer concerning the following:
                (i) Qualified drawings in which no winning ticket is drawn.
                (ii) The period that the retailer will hold a prize for a winning patron who was not present to claim the prize at the time of the qualified drawing.
             (F) Whether:
                (i) the retailer will retain the profits realized from conducting the qualified drawing; or
                (ii) the amount wagered on the drawing will be returned to the retailer's patrons in the form of prizes.
        (12) (11) Notwithstanding any other provision of this chapter, a retailer must continue drawing tickets in a monthly drawing until the retailer draws a ticket purchased by a patron who is present to claim the prize.
    (d) When the winning patron is not present at the time of the qualified drawing to claim a prize, the retailer shall award the prize in the following manner:
        (1) The retailer shall immediately notify the winning patron by telephone that the patron's name was drawn in a qualified drawing

and that the patron has the time permitted by the rules of the retailer, which must be at least seventy-two (72) hours, to claim the prize.
        (2) The winning patron must appear at the retailer's premises within the time permitted by the rules of the retailer to claim the prize in person.
        (3) The retailer shall verify the identity of the winning patron and award the prize.
    (e) This subsection applies when the rules of a retailer require the retailer to carry over a prize when no winning ticket is drawn and when a winning patron fails to claim a prize in the manner required by subsection (d). The retailer shall carry the prize over to a later qualified drawing as follows:
        (1) An unclaimed prize from a daily drawing must be carried over to the next daily drawing.
        (2) Subject to the prize limits set forth in subsection (c)(2), a retailer may carry over a prize under subdivision (1) not more than fourteen (14) times. On the fourteenth calendar day to which a prize has been carried over, the retailer must continue drawing tickets until the retailer draws a ticket purchased by a patron who is present to claim the prize.
        (3) An unclaimed prize from a weekly drawing must be carried over to the next weekly drawing.
        (4) Subject to the prize limits set forth in subsection (c)(2), a retailer may carry over a prize under subdivision (3) not more than one (1) time. On the day that the retailer conducts a weekly drawing for the carried over prize, the retailer must continue drawing tickets until the retailer draws a ticket purchased by a patron who is present to claim the prize.
    (f) The following apply to a retailer that carries over a prize under subsection (e):
        (1) A retailer may conduct the daily drawing regularly scheduled for a calendar day occurring during the time that the retailer holds a prize for a winning patron who was not present at the time of a qualified drawing.
        (2) If an unclaimed prize from a daily drawing is carried over to a particular date, the retailer may not conduct the regular daily drawing that would otherwise be permitted under this section on that date.
        (3) If an unclaimed prize from a weekly drawing is carried over to a particular date, the retailer may not conduct the regular weekly drawing that would otherwise be permitted under this

section on that date.
        (4) Subject to the prize limits set forth in subsection (c)(2), a retailer may accept additional entries to a drawing for a carried over prize.

SOURCE: IC 4-36-5-4; (10)SB0161.1.4. -->     SECTION 4. IC 4-36-5-4, AS ADDED BY P.L.95-2008, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 4. (a) A retailer shall maintain accurate records of all financial aspects of the retailer's type II gambling operation. A retailer shall make accurate reports of all financial aspects of the type II gambling operation to the commission within the time established by the commission. The commission shall prescribe forms for this purpose. The forms prescribed under this subsection must enable a retailer to report the amount of qualified drawing profits retained by the retailer during the reporting period.
    (b) As long as a retailer's receipts from the retailer's type II gambling operation remain on the premises of the retailer's tavern, the receipts may not be commingled with the receipts of the retailer's alcoholic beverage sales, food sales, and other related nongambling activities.