KRS 238.540: Restrictions on location for charitable gaming -- Display of license --

Conduct and management -- Prohibited donated prizes -- Advertising --

Penalties -- Training.

(1) Charitable gaming shall be conducted by a licensed charit able organization at the

location, date, and time which shall be stated on the license. The licensee shall

request a change in the date, time, or location of a charitable gaming event by mail,

electronic mail, or facsimile transmission, and shall submit a lease and an original

signature of an officer. The office shall process this request and issue or deny a

license within ten (10) days.

(2) All premises or facilities on which or in which charitable gaming is conducted shall

meet all applicable federal, state, and local code requirements relating to life, safety,

and health.

(3) A license to conduct charitable gaming shall be prominently displayed on or in the

premises where charitable gaming is conducted, in a conspicuous location that is

readily accessible to gaming patrons as well as employees of the office, law

enforcement officials, and other interested officials.

(4) At least one (1) chairperson who is listed on the application for licensure shall be at

each charitable gaming activity conducted by the c haritable organization and shall

be responsible for the administration and conduct of the charitable gaming activity.

A person shall not serve as chairperson for more than one (1) charitable

organization. The chairperson shall be readily identifiable as th e chairperson and

shall be present on the premises continuously during the charitable gaming activity.

Charitable gaming shall be conducted and administered solely by officers,

members, and bona fide employees of the licensed charitable organization.

Volunteer personnel, who may or may not be members of the licensed charitable

organization, may be utilized if each volunteer is readily identifiable as a volunteer.

A person may serve as volunteer personnel for up to six (6) charitable gaming

events or sessions per week. A person engaged in the conduct and administration of

charitable gaming shall not receive any compensation for services related to the

charitable gaming activities, including tipping. Net receipts derived from charitable

gaming shall not inure to the private benefit or financial gain of any individual. Any

effort or attempt to disguise any other type of compensation or private inurement

shall be considered an unauthorized diversion of funds and shall be actionable

under KRS 238.995.

(5) A licensed charitable organization shall not contract with, or otherwise utilize the

services of, any management company, service company, or consultant in managing

or conducting any aspect of charitable gaming.

(6) A licensed charitable organization shall not pur chase or lease charitable gaming

supplies and equipment from any person not licensed as a distributor in the

Commonwealth of Kentucky.

(7) A licensed charitable organization shall not accept any merchandise prizes donated

by any owner, officer, employee, o r contractee of a licensed manufacturer,

distributor, charitable gaming facility, or any of their affiliates, or any member of

their immediate families.

(8) (a) Each organization's gaming supplies shall be maintained in a location separate

from another organization's gaming supplies.

(b) This location shall also be locked and access shall be controlled.

(c) Unless otherwise directed by the office, an organization's supplies and

equipment remain the property of the organization regardless of where they

are stored and must be accessible to the organization at all reasonable times

upon request.

(9) Any advertise ment of charitable gaming, regardless of the medium used, shall

contain the name of the charitable organization conducting the charitable gaming

and its license number. An advertisement for a bingo session or sessions shall not

advertise a bingo prize in e xcess of the limitation of five thousand dollars ($5,000)

per twenty-four (24) hour period set forth in KRS 238.545(1).

(10) A licensed charitable organization authorized to offer the play of electronic pulltab

devices shall restrict access to the area or areas where electronic pulltab devices are

located and ensure persons under the age of twenty -one (21) do not access those

areas or participate in the play of those activities.

(11) (a) If a licensed charitable organization is offering for play electronic pulltab

devices at premises that are restricted in their entirety to ages twenty -one (21)

and over, the charitable organization shall establish one (1) cordoned -off area

for all electronic pulltab devices that is readily visible to the chairperson for

monitoring the charitable gaming activity.

(b) If a licensed charitable organization is offering for play electronic pulltab

devices at premises where persons under the age of twenty -one (21) are

allowed and five (5) or more devices are present, the charitable organization

shall:

1. Establish one (1) cordoned-off area for all electronic pulltab devices that

is readily visible to the chairperson for monitoring the charitable gaming

activity;

2. Keep a chairperson, who is employed by the licensed charitable

organization, on staff full -time to monitor the entrance of the cordoned -

off area to persons twenty-one (21) and over; and

3. Allow patrons access only after identification is checked by the

chairperson to confirm the patron is twenty-one (21) years or older.

(c) If a licensed charitable organization is offering for play electronic pulltab

devices at premises where persons under the age of twenty -one (21) are

allowed and four (4) or fewer devices are present, the charitable organization

shall:

1. Establish one (1) cordoned-off area for all electronic pulltab devices that

is readily visible to the chairperson for monitoring the charitable gaming

activity;

2. Keep a chairperson on staff to monitor the entrance of the cordoned -off

area to persons over twenty-one (21) and over; and

3. Allow patrons access only after identification is checked by the

chairperson to confirm the patron is twenty-one (21) years or older.

(d) If a licensed charitable organization violates paragraph (a), (b), or (c) of this

subsection, the l icensed charitable organization or charitable gaming facility

shall be:

1. Fined for:

a. The first violation, one thousand dollars ($1,000); and

b. The second violation, two thousand five hundred dollars ($2,500);

and

2. For the third violation within a one (1) year period at the same premises,

prohibited from conducting charitable gaming at the premises.

(e) The corporation may promulgate administrative regulations in accordance

with KRS Chapter 13A that are reasonably necessary to ensure the safety and

well-being of minors and the security of the premises in its entirety.

(12) (a) Notwithstanding this section, a licensed charitable organization may provide

reasonable remuneration to a chairperson who is required to attend trainings

by the corporation or wh o is required to check identification to enter a

cordoned-off area for the time spent conducting those trainings or

identification checks.

(b) Prior to July 1, 2027, the corporation shall create an online version for the

training of chairpersons.