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238.540 Restrictions on location for charitable gaming -- Display of license -Conduct and management -- Prohibited donated prizes -- Advertising.
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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 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 department shall process this request and issue or deny a license
within ten (10) days.
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.
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
department, law enforcement officials, and other interested officials.
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 be responsible for the administration and conduct of the charitable
gaming activity. No person shall serve as chairperson for more than one (1)
charitable organization. The chairperson shall be readily identifiable as the
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. No person engaged in the
conduct and administration of charitable gaming shall receive any
compensation for services related to the charitable gaming activities, including
tipping. No net receipts derived from charitable gaming shall 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.
No licensed charitable organization shall contract with, or otherwise utilize the
services of, any management company, service company, or consultant in
managing or conducting any aspect of charitable gaming.
A licensed charitable organization shall not purchase or lease charitable
gaming supplies and equipment from any person not licensed as a distributor
in the Commonwealth of Kentucky.
A licensed charitable organization shall not accept any merchandise prizes
donated by any owner, officer, employee, or contractee of a licensed
manufacturer, distributor, charitable gaming facility, or any of their affiliates, or
any member of their immediate families.
Any advertisement 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 excess of the limitation of five
thousand dollars ($5,000) per twenty-four (24) hour period set forth in KRS
238.545(1).
Effective:July 15, 2010
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 ch. 165, sec. 2, effective July 14, 2000; and ch. 374, sec. 10,
effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 232, sec. 8, effective April
1, 1998. -- Amended 1996 Ky. Acts ch. 331, sec. 8, effective April 10, 1996. -Created 1994 Ky. Acts ch. 66, sec. 9, effective March 16, 1994.
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