{"data":{"id":"us-ky/krs-238.540","jurisdiction":"us-ky","citation":"KRS 238.540","heading":"Restrictions on location for charitable gaming -- Display of license --","body":"Conduct and management -- Prohibited donated prizes -- Advertising --\nPenalties -- Training.\n(1) Charitable gaming shall be conducted by a licensed charit able organization at the\nlocation, date, and time which shall be stated on the license. The licensee shall\nrequest a change in the date, time, or location of a charitable gaming event by mail,\nelectronic mail, or facsimile transmission, and shall submit a lease and an original\nsignature of an officer. The office shall process this request and issue or deny a\nlicense within ten (10) days.\n(2) All premises or facilities on which or in which charitable gaming is conducted shall\nmeet all applicable federal, state, and local code requirements relating to life, safety,\nand health.\n(3) A license to conduct charitable gaming shall be prominently displayed on or in the\npremises where charitable gaming is conducted, in a conspicuous location that is\nreadily accessible  to gaming patrons as well as employees of the office, law\nenforcement officials, and other interested officials.\n(4) At least one (1) chairperson who is listed on the application for licensure shall be at\neach charitable gaming activity conducted by the c haritable organization and shall\nbe responsible for the administration and conduct of the charitable gaming activity.\nA person shall not serve as chairperson for more than one (1) charitable\norganization. The chairperson shall be readily identifiable as th e chairperson and\nshall be present on the premises continuously during the charitable gaming activity.\nCharitable gaming shall be conducted and administered solely by officers,\nmembers, and bona fide employees of the licensed charitable organization.\nVolunteer personnel, who may or may not be members of the licensed charitable\norganization, may be utilized if each volunteer is readily identifiable as a volunteer.\nA person may serve as volunteer personnel for up to six (6) charitable gaming\nevents or sessions per week. A person engaged in the conduct and administration of\ncharitable gaming shall not receive any compensation for services related to the\ncharitable gaming activities, including tipping. Net receipts derived from charitable\ngaming shall not inure to the private benefit or financial gain of any individual. Any\neffort or attempt to disguise any other type of compensation or private inurement\nshall be considered an unauthorized diversion of funds and shall be actionable\nunder KRS 238.995.\n(5) A licensed charitable organization shall not contract with, or otherwise utilize the\nservices of, any management company, service company, or consultant in managing\nor conducting any aspect of charitable gaming.\n(6) A licensed charitable organization shall not pur chase or lease charitable gaming\nsupplies and equipment from any person not licensed as a distributor in the\nCommonwealth of Kentucky.\n(7) A licensed charitable organization shall not accept any merchandise prizes donated\nby any owner, officer, employee, o r contractee of a licensed manufacturer,\ndistributor, charitable gaming facility, or any of their affiliates, or any member of\ntheir immediate families.\n(8) (a) Each organization's gaming supplies shall be maintained in a location separate\nfrom another organization's gaming supplies.\n(b) This location shall also be locked and access shall be controlled.\n(c) Unless otherwise directed by the office, an organization's supplies and\nequipment remain the property of the organization regardless of where they\nare stored and must be accessible to the organization at all reasonable times\nupon request.\n(9) Any advertise ment of charitable gaming, regardless of the medium used, shall\ncontain the name of the charitable organization conducting the charitable gaming\nand its license number. An advertisement for a bingo session or sessions shall not\nadvertise a bingo prize in e xcess of the limitation of five thousand dollars ($5,000)\nper twenty-four (24) hour period set forth in KRS 238.545(1).\n(10) A licensed charitable organization authorized to offer the play of electronic pulltab\ndevices shall restrict access to the area or areas where electronic pulltab devices are\nlocated and ensure persons under the age of twenty -one (21) do not access those\nareas or participate in the play of those activities.\n(11) (a) If a licensed charitable organization is offering for play electronic pulltab\ndevices at premises that are restricted in their entirety to ages twenty -one (21)\nand over, the charitable organization shall establish one (1) cordoned -off area\nfor all electronic pulltab devices that is readily visible to the chairperson for\nmonitoring the charitable gaming activity.\n(b) If a licensed charitable organization is offering for play electronic pulltab\ndevices at premises where persons under the age of twenty -one (21) are\nallowed and five (5) or more devices are present, the charitable  organization\nshall:\n1. Establish one (1) cordoned-off area for all electronic pulltab devices that\nis readily visible to the chairperson for monitoring the charitable gaming\nactivity;\n2. Keep a chairperson, who is employed by the licensed charitable\norganization, on staff full -time to monitor the entrance of the cordoned -\noff area to persons twenty-one (21) and over; and\n3. Allow patrons access only after identification is checked by the\nchairperson to confirm the patron is twenty-one (21) years or older.\n(c) If a licensed charitable organization is offering for play electronic pulltab\ndevices at premises where persons under the age of twenty -one (21) are\nallowed and four (4) or fewer devices are present, the charitable organization\nshall:\n1. Establish one (1) cordoned-off area for all electronic pulltab devices that\nis readily visible to the chairperson for monitoring the charitable gaming\nactivity;\n2. Keep a chairperson on staff to monitor the entrance of the cordoned -off\narea to persons over twenty-one (21) and over; and\n3. Allow patrons access only after identification is checked by the\nchairperson to confirm the patron is twenty-one (21) years or older.\n(d) If a licensed charitable organization violates paragraph (a), (b), or (c) of this\nsubsection, the l icensed charitable organization or charitable gaming facility\nshall be:\n1. Fined for:\na. The first violation, one thousand dollars ($1,000); and\nb. The second violation, two thousand five hundred dollars ($2,500);\nand\n2. For the third violation within a one (1) year period at the same premises,\nprohibited from conducting charitable gaming at the premises.\n(e) The corporation may promulgate administrative regulations in accordance\nwith KRS Chapter 13A that are reasonably necessary to ensure the safety and\nwell-being of minors and the security of the premises in its entirety.\n(12) (a) Notwithstanding this section, a licensed charitable organization may provide\nreasonable remuneration to a chairperson who is required to attend trainings\nby the corporation or wh o is required to check identification to enter a\ncordoned-off area for the time spent conducting those trainings or\nidentification checks.\n(b) Prior to July 1, 2027, the corporation shall create an online version for the\ntraining of chairpersons.","path":["KRS Chapter 238"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58118","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:51Z","sha256":"0fcb778bb649ae24c8121d11eab567ac31f46b3fca135316bd9c7f9dc2e4c0f9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-238.538","next":"us-ky/krs-238.545"},"notice":"GroundRules: Original legal text. Not legal advice."}