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238.540 Restrictions on location for charitable gaming -- Display of license --
Conduct and management -- Prohibited donated prizes -- Advertising.
(1) Except as provided in KRS 238.535(8)(d), charitable gaming shall be conducted by
a licensed charitable organization at the location, date, and time which shall be <br>stated on the license. The licensee shall request a change in the date, time, or <br>location of a charitable gaming event by mail, electronic mail, or facsimile <br>transmission, and shall submit a lease and an original signature of an officer. The <br>department shall process this request and issue or deny a license within ten (10) <br>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, <br>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 <br>readily accessible to gaming patrons as well as employees of the department, law <br>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 charitable organization and shall <br>be responsible for the administration and conduct of the charitable gaming activity. <br>No person shall serve as chairperson for more than one (1) charitable organization. <br>The chairperson shall be readily identifiable as the chairperson and shall be present <br>on the premises continuously during the charitable gaming activity. Charitable <br>gaming shall be conducted and administered solely by officers, members, and bona <br>fide employees of the licensed charitable organization. Volunteer personnel, who <br>may or may not be members of the licensed charitable organization, may be utilized <br>if each volunteer is readily identifiable as a volunteer. No person engaged in the <br>conduct and administration of charitable gaming shall receive any compensation for <br>services related to the charitable gaming activities, including tipping. No net <br>receipts derived from charitable gaming shall inure to the private benefit or <br>financial gain of any individual. Any effort or attempt to disguise any other type of <br>compensation or private inurement shall be considered an unauthorized diversion of <br>funds and shall be actionable under KRS 238.995.
(5) No licensed charitable organization shall contract with, or otherwise utilize the
services of, any management company, service company, or consultant in managing <br>or conducting any aspect of charitable gaming.
(6) A licensed charitable organization shall not purchase or lease charitable gaming
supplies and equipment from any person not licensed as a distributor in the <br>Commonwealth of Kentucky.
(7) A licensed charitable organization shall not accept any merchandise prizes donated
by any owner, officer, employee, or contractee of a licensed manufacturer, <br>distributor, charitable gaming facility, or any of their affiliates, or any member of <br>their immediate families.
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(8) Any advertisement of charitable gaming, regardless of the medium used, shall
contain the name of the charitable organization conducting the charitable gaming <br>and its license number. An advertisement for a bingo session or sessions shall not <br>advertise a bingo prize in excess of the limitation of five thousand dollars ($5,000) <br>per twenty-four (24) hour period set forth in KRS 238.545(1).
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 542, effective July 15, 2010. -- Amended
2007 Ky. Acts ch. 120, sec. 8, effective June 26, 2007. -- Amended 2000 Ky. Acts <br>ch. 165, sec. 2, effective July 14, 2000; and ch. 374, sec. 10, effective July 14, 2000. <br>-- Amended 1998 Ky. Acts ch. 232, sec. 8, effective April 1, 1998. -- Amended 1996 <br>Ky. Acts ch. 331, sec. 8, effective April 10, 1996. -- Created 1994 Ky. Acts ch. 66, <br>sec. 9, effective March 16, 1994.
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