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SENATE BILL NO. 170
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR BJORKMAN
Introduced: 4/11/25
Referred: Labor & Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to gaming; relating to bingo; relating to pull-tabs and electronic pull-1
tab systems; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 05.15.030(a) is amended to read: 4
(a) [AT THE TIME OF FILING AN APPLICATION FOR A PERMIT OR 5
LICENSE UNDER THIS CHAPTER, THE APPLICANT SHALL NOTIFY THE 6
CITY OR BOROUGH NEAREST TO THE LOCATION OF THE PROPOSED 7
ACTIVITY OF THE APPLICATION.] A local government unit may protest the 8
conduct of the activity in its jurisdiction by resolution stating the reasons for the 9
protest filed with the department; protests are limited to the lack of qualifications 10
prescribed by this chapter. This resolution is only a recommendation by the local 11
government that may be considered by the department in determining whether to issue 12
or refuse to issue a permit or license. 13
* Sec. 2. AS 05.15.030(c) is amended to read: 14 34-LS0213\I
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(c) If a permittee or licensee changes the location of an activity in the 1
jurisdiction for which a permit has been issued, the permittee shall notify the 2
department [AND THE LOCAL GOVERNMENT] within 10 days after moving to the 3
new location. 4
* Sec. 3. AS 05.15.070 is amended to read: 5
Sec. 05.15.070. Investigations; examination [EXAMINATION] of books 6
and records. The department may investigate licensed and unlicensed gaming 7
operations and administer civil penalties for violations of this chapter. The 8
department may examine or have examined the books and records of a permittee, an 9
operator, a registered vendor, or a person licensed to manufacture or to distribute pull-10
tab games or electronic pull-tab systems in the state. The department may issue 11
subpoenas for the attendance of witnesses and the production of books, records, and 12
other documents. 13
* Sec. 4. AS 05.15.083 is amended to read: 14
Sec. 05.15.083. Reports to department by operators. (a) An operator shall 15
file a report with the department by the last business day of the month following each 16
calendar quarter in which an activity was conducted. The report must include, for each 17
authorizing permittee on whose behalf an activity was conducted during the quarter, 18
[THE DATE AND LOCATION OF EACH ACTIVITY,] the type of activity 19
conducted, the amount of gross receipts, [THE AMOUNT OF AUTHORIZED 20
EXPENSES,] the value of prizes [AWARDED], the amount of net proceeds paid, and 21
other information the department may require [; A COMPLETED INTERNAL 22
REVENUE SERVICE FORM 941; AND A COPY OF THE OPERATOR'S 23
EMPLOYER CONTRIBUTIONS AND WAGE REPORTS SUBMITTED TO THE 24
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT FOR THE 25
QUARTER]. However, if the only activity conducted by an operator during the 26
calendar quarter is a raffle or lottery, then the operator is not required to file a report 27
under this subsection until the raffle or lottery is completed. 28
(b) An operator shall file an annual report with the department not [NO] later 29
than February 28 of the year following the year in which activities were conducted. 30
The report must include, for each authorizing permittee on whose behalf an activity 31 34-LS0213\I
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was conducted, the types of activities conducted, the total amount of gross receipts, 1
[THE TOTAL AMOUNT OF AUTHORIZED EXPENSES,] the total value of prizes 2
[AWARDED], and the total amount of net proceeds paid to each authorizing 3
permittee. [THE ANNUAL REPORT MUST ALSO INCLUDE A COMPLETED 4
INTERNAL REVENUE SERVICE FORM W-2 FOR EACH PERSON EMPLOYED 5
BY THE OPERATOR DURING THE PRECEDING YEAR.] 6
* Sec. 5. AS 05.15.087(a) is amended to read: 7
(a) An operator shall file a monthly report with each authorizing permittee for 8
which the operator has conducted an activity during the preceding month. The report 9
must include a [DAILY] summary of activity conducted under the permit issued to the 10
authorizing permittee and an accounting of gross receipts, prize payouts 11
[EXPENSES], and net proceeds for the month. A check or electronic funds transfer 12
in the amount of the net proceeds due to the authorizing permittee for the month must 13
accompany the report. The operator shall file the report by the 15th day after the end 14
of the month covered by the report. 15
* Sec. 6. AS 05.15.105(b) is amended to read: 16
(b) The department shall adopt regulations that provide that a disqualification 17
of a person under (a) of this section based on [UPON] a conviction of that person or a 18
person described in (c) of this section for a violation 19
(1) of a law of this state that is, or a law or ordinance of another 20
jurisdiction that would be if it was committed in this state, a class B felony other than 21
extortion, a class C felony, or an unclassified felony described outside of AS 11, and 22
that is not a crime of dishonesty or theft or a violation of gambling laws, terminates 10 23
years after the person's conviction; 24
(2) of a law or ordinance of this state or another jurisdiction that is a 25
crime involving theft or dishonesty or a violation of gambling laws, and that is not, or 26
would not be if it was committed in this state, an unclassified felony described in 27
AS 11, a class A felony, or extortion, terminates 10 years after the person's conviction, 28
if the department determines that the 29
(A) person is of good character, honesty, and integrity; and 30
(B) person's involvement in charitable gaming is not against the 31 34-LS0213\I
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public interest. 1
* Sec. 7. AS 05.15.105 is amended by adding a new subsection to read: 2
(c) The department may not issue a license to a manufacturer or distributor if a 3
parent company, sister company, or subsidiary of the manufacturer or distributor has 4
been convicted of a violation of a law that would disqualify the parent company, sister 5
company, or subsidiary under (a) of this section. 6
* Sec. 8. AS 05.15.115(b) is amended to read: 7
(b) The contract between an authorizing permittee and an operator must 8
include the amount and form of compensation to be paid to the operator, the term of 9
the contract, the activities to be conducted by the operator on behalf of the permittee, 10
the location where the activities are to be conducted, the name and address of the 11
member in charge, and other provisions the department may require. A contract 12
between an authorizing permittee and an operator may allow the operator to 13
pool together permittees and divide the gaming income and payouts among 14
permittees on a percentage basis to be determined at the end of each month. 15
* Sec. 9. AS 05.15.115(d) is amended to read: 16
(d) An operator [A PERMITTEE] shall electronically submit [BY 17
CERTIFIED MAIL] to the department for approval a copy of each contract with a 18
permittee [AN OPERATOR] with whom the operator [PERMITTEE] contracts to 19
conduct activities subject to this chapter. The contract must meet the requirements of 20
this section. The department shall approve or disapprove the contract. If the contract is 21
disapproved, reasons for the disapproval shall be provided in writing to the operator 22
[PERMITTEE]. Activities may not be conducted under the contract before the 23
contract is approved. Subsequent amendments to an approved contract do not take 24
effect until the amendments are approved by the department. 25
* Sec. 10. AS 05.15.122 is amended by adding new subsections to read: 26
(e) An operator licensed under this section may conduct electronic pull-tab 27
activities on behalf of a municipality or a qualified organization only if the department 28
has issued a separate electronic pull-tab endorsement to the operator's license for 29
electronic pull-tab systems. The department may issue an electronic pull-tab 30
endorsement if 31 34-LS0213\I
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(1) the operator has filed all reports required under AS 05.15.087; 1
(2) the operator's license has not been revoked by the department in the 2
immediately preceding five years; and 3
(3) the operator has conducted pull-tab games for at least the preceding 4
three years. 5
(f) If an operator that is a natural person dies, the estate of the operator may 6
designate a temporary responsible party to conduct activities authorized by the 7
operator's license for 120 days after the death of the operator. 8
* Sec. 11. AS 05.15.122(e), enacted by sec. 10 of this Act, is amended to read: 9
(e) An operator licensed under this section may conduct electronic pull-tab 10
activities on behalf of a municipality or a qualified organization only if the department 11
has issued a separate electronic pull-tab endorsement to the operator's license for 12
electronic pull-tab systems. The department may issue an electronic pull-tab 13
endorsement if 14
(1) the operator has filed all reports required under AS 05.15.087; and 15
(2) the operator's license has not been revoked by the department in the 16
immediately preceding five years [; AND 17
(3) THE OPERATOR HAS CONDUCTED PULL-TAB GAMES 18
FOR AT LEAST THE PRECEDING THREE YEARS]. 19
* Sec. 12. AS 05.15.128(a) is amended to read: 20
(a) The department shall revoke 21
(1) the license of an operator who does not [(1) REPORT AN 22
ADJUSTED GROSS INCOME OF AT LEAST 15 PERCENT OF GROSS INCOME 23
ANNUALLY BASED ON THE TOTAL OPERATION OF THE OPERATOR; OR 24
(2)] pay to each authorizing permittee annually at least 30 percent of the adjusted 25
gross income [, AS DETERMINED UNDER (1) OF THIS SUBSECTION,] from a 26
pull-tab activity or at least 10 percent of the adjusted gross income [, AS 27
DETERMINED UNDER (1) OF THIS SUBSECTION,] from a gaming activity other 28
than pull-tabs [,] received from activities conducted on behalf of the authorizing 29
permittee; 30
(2) a multiple-beneficiary permit if payments under the multiple-31 34-LS0213\I
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beneficiary permit to the holders of the multiple-beneficiary permit do not 1
annually total at least 30 percent of the adjusted gross income from a pull-tab 2
activity or at least 10 percent of the adjusted gross income from a gaming activity 3
other than pull-tabs received from activities conducted on behalf of the 4
authorizing multiple-beneficiary permit. 5
* Sec. 13. AS 05.15.165(a) is amended to read: 6
(a) An operator shall pay net proceeds to the authorizing permittee by check 7
or electronic funds transfer. 8
* Sec. 14. AS 05.15.165(c) is amended to read: 9
(c) The operator shall post in a public place on the premises where the 10
activities are conducted the operator's license and a copy of the permit of each 11
authorizing permittee with whom the operator has a contract to conduct activities at 12
the location. A sign posted on the premises that directs individuals to an 13
operator's Internet website or landing page satisfies the requirements of this 14
subsection if the posted sign states that the information required by this 15
subsection is contained on the Internet website or landing page and the Internet 16
website or landing page contains the required information. 17
* Sec. 15. AS 05.15.170(a) is amended to read: 18
(a) The department may suspend, for a period of up to one year, or revoke a 19
permit, license, or vendor registration, after giving notice to and an opportunity to be 20
heard by the permittee or licensee, if the permittee, licensee, or vendor 21
(1) violates or fails to comply with a requirement of this chapter or of a 22
regulation adopted under this chapter; 23
(2) breaches a contractual agreement with a permittee, licensee, or 24
registered vendor; 25
(3) becomes disqualified to participate in charitable gaming as 26
provided in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or 27
vendor that is not a natural person is considered convicted if an owner or manager of 28
the permittee or an owner or manager of a parent company, sister company, or 29
subsidiary of the [,] licensee [,] or vendor is convicted; 30
(4) knowingly submits false information to the department or, in the 31 34-LS0213\I
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case of a registered vendor, to a permittee when the vendor knows that the false 1
information will be submitted to the department as part of an application for 2
registration; or 3
(5) gives or acts on [UPON] any inside information on the status of the 4
prizes awarded or to be awarded in a pull-tab game. 5
* Sec. 16. AS 05.15.170 is amended by adding new subsections to read: 6
(c) When a permit, license, or vendor registration is suspended or revoked, the 7
department shall notify an operator that conducts an activity on behalf of or a 8
distributor that supplies the permittee, vendor, or licensee that the permit has been 9
suspended or revoked. The notification must be in the form of electronic mail and a 10
message transmitted through a website created for the purpose of allowing citizens to 11
interact with multiple state services through a single username and password. 12
(d) When a license of a distributor is suspended or revoked, the department 13
shall notify a manufacturer that supplies the distributor that the distributor has had the 14
license suspended or revoked. The notification must be in the form of electronic mail 15
and a message transmitted through an Internet website created for the purpose of 16
allowing citizens to interact with multiple state services through a single username and 17
password. 18
* Sec. 17. AS 05.15.180(b) is amended to read: 19
(b) With the exception of raffles, lotteries, bingo games, pull-tab games, 20
electronic pull-tabs, freeze-up classics, race classics, rain classics, goose classics, 21
mercury classics, deep freeze classics, dog mushers' contests, snow classics, snow 22
machine classics, canned salmon classics, salmon classics, animal classics, crane 23
classics, cabbage classics, Calcutta pools, big bull moose derbies, and king salmon 24
classics, a permit may not be issued for an activity under this chapter unless it existed 25
in the state in substantially the same form and was conducted in substantially the same 26
manner before January 1, 1959. A permit may not be issued for a snow machine 27
classic under this chapter unless it has been in existence for at least five years before 28
the permit is issued. A permit may not be issued for an animal classic under this 29
chapter unless it was in existence before November 1, 2002. 30
* Sec. 18. AS 05.15.180(d) is amended to read: 31 34-LS0213\I
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(d) The total value of door prizes offered or awarded under authority of a 1
permit issued to a municipality or qualified organization under this chapter or under 2
authority of a multiple-beneficiary permit may not exceed $50,000 [$20,000] a month 3
or $600,000 [$240,000] a year. 4
* Sec. 19. AS 05.15.180(e) is amended to read: 5
(e) The department shall adopt regulations that set prize amounts for 6
bingo games. The regulations must allow an operator of a bingo game to award a 7
top prize of at least $2,500 but not more than $10,000 in one bingo session a 8
month and award a top prize of at least $1,000 but not more than $2,500 in all 9
other bingo sessions. The total value of all door prizes offered or awarded at a single 10
facility or bingo hall or parlor by an operator on behalf of authorizing permittees may 11
not exceed $50,000 [$20,000] a month or $600,000 [$240,000] a year. An operator of 12
a bingo game may offer progressive bingo. A progressive bingo game does not 13
count toward the prize limitations in this subsection. In a progressive bingo 14
game, 15
(1) a portion of the gross receipts is carried over to another game if 16
no player declares a valid bingo for a progressive prize or prizes based on a 17
predetermined and posted win determination; 18
(2) the portion of the prize that is not carried over is awarded to 19
the first player or players who declare a valid bingo as additional numbers are 20
called; and 21
(3) the entire prize pool for that game is awarded to the winner or 22
winners if a valid bingo is declared. 23
* Sec. 20. AS 05.15.180(f) is amended to read: 24
(f) A person under the age of 18 [19] years may not play a bingo game. 25
* Sec. 21. AS 05.15.180(g) is amended to read: 26
(g) A municipality or a qualified organization may award a maximum of 27
$2,000,000 in prizes each year in activities authorized under this chapter [; 28
HOWEVER, IF A MUNICIPALITY OR A QUALIFIED ORGANIZATION 29
CONTRACTS WITH AN OPERATOR TO CONDUCT ON ITS BEHALF 30
ACTIVITIES AUTHORIZED UNDER THIS CHAPTER, THE MUNICIPALITY OR 31 34-LS0213\I
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QUALIFIED ORGANIZATION MAY AWARD A MAXIMUM OF $500,000 IN 1
PRIZES EACH YEAR]. A municipality or a qualified organization that conducts a 2
contest of skill and awards more than $1,000,000 in prizes to the participants in that 3
contest of skill may exclude $1,000,000 in prizes awarded to those participants from 4
the $2,000,000 maximum allowed in this subsection. The holders of a multiple-5
beneficiary permit under AS 05.15.100(d) may award a maximum in prizes each year 6
of $2,000,000 times the number of holders of the permit for activities authorized under 7
this chapter. In this subsection, "activities authorized under this chapter" means all 8
activities subject to this chapter other than bingo and electronic pull-tabs. 9
* Sec. 22. AS 05.15.180 is amended by adding new subsections to read: 10
(i) A municipality or a qualified organization may award a maximum of 11
$4,000,000 in prizes for electronic pull-tab games each year. The holders of a 12
multiple-beneficiary permit issued under AS 05.15.100(d) may award a maximum in 13
prizes each year of $4,000,000 times the number of holders of the permit for activities 14
authorized under this chapter for electronic pull-tab games. 15
(j) Beginning in 2030, the department may by regulation increase the 16
monetary amounts in (g) and (i) of this section by up to 10 percent, rounded up to the 17
nearest $10,000, once every five years. 18
* Sec. 23. AS 05.15.181(d) is amended to read: 19
(d) A pull-tab manufacturer may distribute pull-tabs only to a licensed pull-tab 20
distributor [UNLESS THE PULL-TAB MANUFACTURER IS ALSO A LICENSE D 21
PULL-TAB DISTRIBUTOR]. 22
* Sec. 24. AS 05.15.181 is amended by adding new subsections to read: 23
(f) A pull-tab manufacturer may not modify or pay another person to modify a 24
building to accommodate the installation of a gaming system, perform or pay another 25
person to perform electrical work necessary to install a gaming system, or provide a 26
utility connection for a gaming system. 27
(g) A pull-tab manufacturer, an owner or employee of a manufacturer, an 28
immediate family member of an owner or employee of a manufacturer, or a parent 29
company, sister company, or subsidiary of a manufacturer 30
(1) may not, within a calendar year, provide gifts, gratuities, 31 34-LS0213\I
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premiums, or other things of value to a vendor, operator, permittee, or qualified 1
organization with a total value of more than $250; 2
(2) may not accept gifts, gratuities, premiums, or other things of value 3
from a vendor, operator, permittee, or qualified organization or an owner, employee, 4
or immediate family member of an owner or employee of a vendor, operator, 5
permittee, or qualified organization with a total value of more than $250 per calendar 6
year. 7
(h) A pull-tab manufacturer may distribute to a distributor in this state an 8
electronic pull-tab system for use in the state only if the department has issued a 9
separate electronic pull-tab endorsement to the manufacturer's license. A pull-tab 10
manufacturer licensed in the state who manufactures electronic pull-tab systems for 11
use in the state shall submit, at the manufacturer's expense, the electronic pull-tab 12
system to an independent gaming testing laboratory approved by the department for 13
testing and certification before distribution. In this subsection, "manufacture" includes 14
the development, creation, and programming of any electronic device, hardware, 15
software, or computer systems used in the operation of a pull-tab or electronic pull-tab 16
system; "manufacture" does not include the development, creation, and programming 17
of standard hardware or software components. 18
(i) A pull-tab manufacturer may not distribute pull-tabs to a distributor if one 19
of the following persons holds an ownership interest in the distributor: 20
(1) the manufacturer; 21
(2) an owner or employee of the manufacturer; 22
(3) a family member related within two degrees of consanguinity to an 23
owner or employee of the manufacturer; 24
(4) a parent company, sister company, or subsidiary of the 25
manufacturer. 26
(j) A pull-tab manufacturer may refuse to sell gaming equipment or paper 27
pull-tabs to a licensed distributor that has been licensed and had gross annual sales in 28
the state exceeding $500,000 for at least three years only if 29
(1) the distributor seeks to buy a specific paper pull-tab game being 30
sold exclusively to one distributor during the first five years of production as permitted
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under (m) of this section; 1
(2) the manufacturer does not sell gaming equipment to any 2
distributors in the state; 3
(3) sale of the gaming equipment or paper pull-tabs is prohibited by 4
law or regulation; 5
(4) the distributor is delinquent on a payment owed to the 6
manufacturer or has a history of delinquent payments; or 7
(5) the distributor is owned, in whole or in part, by 8
(A) a manufacturer; 9
(B) the parent company, sister company, subsidiary, or 10
shareholder of a manufacturer; 11
(C) a parent, child, or sibling of an officer or manager of a 12
competing manufacturer. 13
(k) Subsection (j) does not apply to application software and computer 14
programs and equipment used by a licensed pull-tab manufacturer in the production, 15
playing, and reporting of approved electronic pull-tab games. 16
(l) A pull-tab manufacturer shall provide the same price points and quantity 17
requirements for paper pull-tabs to each distributor. 18
(m) A pull-tab manufacturer may make available a paper pull-tab game 19
exclusively to one distributor during the first five years of production of the game. 20
After five years of production, the manufacturer shall make the game available to all 21
distributors. However, the manufacturer may continue to make a paper pull-tab game 22
exclusively available to one distributor after five years of production if the distributor 23
sells the game only to a single licensee. A paper pull-tab game is exclusive to one 24
distributor only if the game contains significantly unique graphics. Minor changes 25
made to an existing pull-tab game do not create an exclusive game. 26
(n) A pull-tab manufacturer shall submit to the department a copy of each 27
contract with a distributor within seven days after signing. 28
(o) A pull-tab manufacturer may not obtain, use, share, or sell point-of-sale 29
data from paper tickets or bingo. 30
(p) The department may not issue a pull-tab manufacturer's license to a person 31 34-LS0213\I
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who is otherwise prohibited from involvement under AS 05.15.105. 1
(q) A pull-tab manufacturer may not connect the price or availability of a 2
paper pull-tab game to an electronic pull-tab or the price or availability of an 3
electronic pull-tab to a paper pull-tab game. 4
* Sec. 25. AS 05.15.183(a) is amended to read: 5
(a) A person may not distribute pull-tab games or electronic pull-tab systems 6
unless the person has received a pull-tab distributor's license issued by the department. 7
The department may not issue a pull-tab distributor's license to a person licensed 8
as an operator or who otherwise participates in the conduct of an activity 9
authorized under this chapter on behalf of a municipality, qualified organization, 10
manufacturer, or parent company, sister company, or subsidiary of a 11
manufacturer. 12
* Sec. 26. AS 05.15.183(c) is amended to read: 13
(c) Pull-tabs or electronic pull-tab systems may be distributed only from a 14
location in the state. A person may not distribute pull-tabs or electronic pull-tab 15
systems directly to another person in the state from a location outside of this state. 16
* Sec. 27. AS 05.15.183(e) is amended to read: 17
(e) A distributor may deliver an electronic pull-tab series to a computer 18
server at a vendor's location on behalf of a permittee authorized to conduct pull-19
tab sales at the vendor's location. A distributor may not 20
(1) take an order for the purchase of a pull-tab series from a vendor; 21
(2) sell a pull-tab series to a vendor; or 22
(3) deliver a pull-tab series to a vendor, except an electronic pull-tab 23
series as expressly authorized in this subsection. 24
* Sec. 28. AS 05.15.183 is amended by adding new subsections to read: 25
(f) A licensed distributor may distribute an electronic pull-tab system in the 26
state only if the department has issued a separate electronic pull-tab endorsement to 27
the distributor's license. 28
(g) The department may not issue a pull-tab distributor's license to a person 29
who is otherwise prohibited from involvement under AS 05.15.105. 30
(h) A distributor may not 31 34-LS0213\I
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(1) provide to a municipality or qualified organization, or an employee 1
or agent of a municipality or qualified organization, compensation, a gift, gratuity, 2
premium, or other thing of value in an amount greater than $25 annually for each 3
organization; 4
(2) modify or pay another person to modify a building to accommodate 5
the installation of a gaming system, perform or pay another person to perform 6
electrical work necessary to install a gaming system, or provide a utility connection 7
for a gaming system; 8
(3) provide to an owner or lessor of a gaming premises compensation, 9
a gift, gratuity, premium, or other thing of value; 10
(4) participate in a gaming activity at a gaming premises that uses 11
gaming equipment purchased or leased from that distributor; 12
(5) alter or modify any gaming equipment, except to add a sticker 13
indicating the last ticket sold for a pull-tab game; 14
(6) obtain or use point-of-sale information for a paper pull-tab game or 15
bingo; 16
(7) connect the price or availability of a paper pull-tab game to an 17
electronic pull-tab or the price or availability of an electronic pull-tab to a paper pull-18
tab game; 19
(8) be an owner, shareholder, or subsidiary of a manufacturer, or a 20
corporation that owns a manufacturer, licensed under AS 05.15.181; 21
(9) distribute a pull-tab game to a permittee or licensee that is owned 22
or managed by a person that is related within two degrees of consanguinity to an 23
individual that owns or is employed by the distributor. 24
(i) A distributor may only distribute electronic pull-tabs that meet the 25
requirements of AS 05.15.186. 26
(j) A distributor may provide marketing, promotional, or point-of-sale items or 27
materials for the promotion of lawful gaming to a municipality or qualified 28
organization, operator, or multiple-beneficiary permittee for use at a premises where 29
gaming is conducted by holders of a license or permit under this chapter. The total 30
value of marketing, promotional, or point-of-sale items or materials that a distributor 31 34-LS0213\I
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provides to a municipality or qualified organization, operator, or multiple-beneficiary 1
permittee may not exceed $250 a year. 2
(k) A distributor shall submit to the department a copy of each contract with a 3
permittee, multiple-beneficiary permittee, vendor, or operator within seven days after 4
signing the contract. 5
(l) The department shall provide a serialized stamp to a distributor. The 6
distributor shall register all gaming tablets with the department and shall affix the 7
serialized stamp to the tablet. 8
(m) A contract between a distributor and a permittee must allow either party to 9
terminate the contract with 30 days' notice. 10
* Sec. 29. AS 05.15.185 is amended to read: 11
Sec. 05.15.185. Distribution of pull-tab games. Each series of pull-tabs 12
distributed in the state must have a serial number and be sealed or encrypted in a 13
manner [AND HAVE A SERIAL NUMBER LABEL ISSUED BY THE 14
NATIONAL ASSOCIATION OF FUNDRAISING TICKET MANUFACTURERS 15
OR OTHER SERIAL NUMBER LABEL] approved by the department and may be 16
distributed only to 17
(1) a municipality or a qualified organization that has obtained a 18
permit issued under this chapter; 19
(2) an operator; [ON BEHALF OF AN AUTHORIZING 20
PERMITTEE; OR] 21
(3) a distributor licensed under this chapter; or 22
(4) a vendor by a distributor as authorized under AS 05.15.183(e). 23
* Sec. 30. AS 05.15.185 is amended by adding new subsections to read: 24
(b) An electronic pull-tab series distributed in the state must 25
(1) have a predetermined and finite number of winning and 26
nonwinning tickets; 27
(2) have a predetermined prize amount and structure; 28
(3) have a unique serial number that is not regenerated. 29
(c) An electronic pull-tab series distributed in the state may not 30
(1) exceed 15,000 tickets; 31 34-LS0213\I
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(2) require additional consideration for an extended play feature 1
included in the game. 2
(d) An invoice for a paper pull-tab game distributed in the state must specify 3
the cost for each ticket for the pull-tab game. 4
* Sec. 31. AS 05.15 is amended by adding a new section to read: 5
Sec. 05.15.186. Electronic pull-tabs. (a) An electronic pull-tab system used to 6
sell an electronic pull-tab series in the state 7
(1) may accept United States currency in paper form; 8
(2) may accept credits or credit vouchers purchased with United States 9
currency in paper form, a debit card transaction, electronically transferred funds, or 10
other electronic payment mechanisms; 11
(3) may not accept credit card transactions; 12
(4) must clearly display the result and any prize awarded following the 13
play of an electronic pull-tab game on the electronic pull-tab device and reveal the 14
numbers or series of the pull-tab on the device; 15
(5) may use an autoclose system to close a game when all winning 16
tickets over a predetermined value are gone from the game; an autoclose feature must 17
be disclosed on the electronic game flare card with a statement identifying when the 18
game will be closed; and 19
(6) must be a tablet device with a screen not larger than 13 inches in 20
width or height; the tablet may not be connected to an external monitor or input 21
device. 22
(b) An electronic pull-tab system used to sell an electronic pull-tab series in 23
the state may not 24
(1) display on the device spinning reels that mimic a slot machine; or 25
(2) dispense anything of value. 26
(c) A device used to play electronic pull-tabs must be incorporated into an 27
electronic pull-tab system and may not be used for personal communication. 28
Connections between all components and access points of the electronic pull-tab 29
system must use secure communication protocols designed to prevent unauthorized 30
access or tampering, employing advanced encryption standard specifications adopted 31 34-LS0213\I
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by the National Institute of Standards and Technology, or in accordance with IEEE 1
802.11 standards contained in the Wi-Fi Protected Access II authentication protocols 2
or other nationally recognized security protocols as prescribed by the department. 3
(d) A pull-tab manufacturer shall maintain and keep current operating system 4
software agreements. An operating system agreement must be made available to the 5
department. 6
(e) The ideal payout for electronic pull-tabs may not exceed 85 percent. 7
(f) The total price, including fees, a distributor charges a permittee or licensee 8
for an electronic pull-tab system may not exceed 35 percent of the gross receipts less 9
the prize payouts of the electronic pull-tab system. 10
(g) A distributor may not connect the price or availability of a paper pull-tab 11
game to an electronic pull-tab. 12
* Sec. 32. AS 05.15.187(d) is amended to read: 13
(d) A paper pull-tab series may not be withdrawn from sale until all pull-tabs 14
in the series are sold, except that a pull-tab series may be withdrawn from sale if a 15
manufacturing defect exists in the series and the department is notified of the defect 16
and of the withdrawal from sale within a period established by regulation by the 17
department. 18
* Sec. 33. AS 05.15.187(e) is amended to read: 19
(e) Pull-tabs may not be sold to or accessed by a person under the age of 18 20
[21] years. A person under the age of 18 [21] years may not purchase or redeem a 21
pull-tab. 22
* Sec. 34. AS 05.15.187(f) is amended to read: 23
(f) Each permittee that had gross receipts exceeding $100,000 during the 24
preceding year from activities conducted under this chapter or that is required to report 25
under AS 05.15.080(a) shall maintain records as required by this subsection. A 26
permittee [,] that conducts a paper pull-tab game shall maintain records for two years 27
of each prize of $100 [$50] or more, the first day and last day that each series was 28
distributed, the serial number of each series, and the distributor from whom each series 29
was purchased. A permittee that conducts an electronic pull-tab game shall 30
maintain records for two years of each prize that is more than $500 and greater 31 34-LS0213\I
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than 500 times the ticket price [IN THIS SECTION "PERMITTEE" INCLUDES 1
MUNICIPALITIES AND QUALIFIED ORGANIZATIONS THAT JOINTLY HOLD 2
A MULTIPLE-BENEFICIARY PERMIT]. 3
* Sec. 35. AS 05.15.187(i) is amended to read: 4
(i) A permittee, operator, or registered vendor may not turn over a prize of 5
$100 [$50] or more to a person with a paper pull-tab card entitling the person to that 6
prize unless the person signs a receipt for the prize and returns the receipt to the 7
permittee, operator, or vendor. The receipt must be in a form approved by the 8
department. 9
* Sec. 36. AS 05.15.187 is amended by adding new subsections to read: 10
(j) An operator or permittee shall designate a person who is responsible for 11
overseeing pull-tabs or an electronic pull-tab system. 12
(k) The department may limit the number of tablets a permittee, licensee, or 13
vendor has in play at a location to one tablet for every six persons permitted to occupy 14
the premises. 15
(l) An owner or employee of an establishment that sells paper pull-tabs may 16
not play paper pull-tabs at the establishment. 17
(m) A person who has access to an electronic pull-tab deck status report at a 18
location may not play electronic pull-tabs at that location. 19
(n) An operator or permittee may maintain a vending machine that sells paper 20
pull-tabs directly to customers in an establishment that is accessible only by persons 21
21 years of age or older. 22
(o) An operator, permittee, or qualified organization may not accept gifts from 23
a pull-tab manufacturer, an owner or employee of a manufacturer, an immediate 24
family member of an owner or employee of a manufacturer, or a parent company, 25
sister company, or subsidiary of a manufacturer with a total value of more than $250 26
per calendar year. 27
* Sec. 37. AS 05.15.188(g) is amended to read: 28
(g) A person, other than a permittee's member in charge or alternate 29
member in charge [MEMBER-IN-CHARGE], may not directly supply a paper pull-30
tab series to a registered vendor for sale by that vendor on behalf of the permittee. 31 34-LS0213\I
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* Sec. 38. AS 05.15.188(h) is amended to read: 1
(h) If a permittee contracts with a vendor under (a) of this section for paper 2
pull-tabs, the contract must provide that the permittee shall receive not [NO] less than 3
70 percent of the ideal net. 4
* Sec. 39. AS 05.15.188(i) is amended to read: 5
(i) An amount equal to the ideal net less the compensation owed to the vendor 6
shall be paid by the vendor to the member in charge or alternate member in charge 7
[MEMBER-IN-CHARGE] upon delivery of a paper pull-tab series to the vendor for 8
sale. The amount required to be paid by the vendor shall be paid by check or 9
electronic funds transfer and [THE CHECK MAY NOT BE DRAWN IN A 10
MANNER THAT] the payee must be [IS NOT] identified. 11
* Sec. 40. AS 05.15.188 is amended by adding new subsections to read: 12
(l) If a permittee contracts with a vendor under (a) of this section for electronic 13
pull-tabs, the contract must provide that the vendor will retain not more than 30 14
percent of the gross receipts less the prize payouts. 15
(m) A vendor location may sell only paper pull-tabs and electronic pull-tabs 16
accessed on a portable tablet device. 17
(n) A vendor shall report to the department the amount of adjusted gross 18
income disbursed to permittees each month. The vendor's portion may not be more 19
than 30 percent of the adjusted gross income for paper pull-tabs nor more than 25 20
percent for electronic pull-tabs. A distributor may submit the report to the department 21
for a vendor. 22
(o) Not later than the fifth day of each month, a distributor shall make 23
available a report detailing, for the previous month, the total income from electronic 24
pull-tabs, the prizes distributed, and a calculation of the adjusted gross income for 25
each vendor location. 26
(p) A cash shortage is the responsibility of the vendor and may not be 27
deducted from the adjusted gross income. 28
(q) A vendor shall pay the permittee by check or electronic funds transfer and 29
identify the payee not later than Thursday of each week for the previous week's sales. 30
If a vendor fails to make a payment on time, the distributor shall disable the vendor's 31 34-LS0213\I
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electronic pull-tab games until payment is made. If a vendor's payment is 60 or more 1
days past due, the Alcoholic Beverage Control Board may suspend the vendor's 2
license or permit under AS 04.11.370(c). 3
(r) A contract between an authorizing permittee and a vendor may allow the 4
vendor to pool together permittees and divide the gaming income and payouts among 5
permittees on a percentage basis. 6
(s) The department may not register as a vendor a person who is otherwise 7
prohibited from involvement under AS 05.15.105. 8
(t) A vendor may not accept gifts from a pull-tab manufacturer, an owner or 9
employee of a manufacturer, an immediate family member of an owner or employee 10
of a manufacturer, or a parent company, sister company, or subsidiary of a 11
manufacturer with a total value of more than $250 per calendar year. 12
* Sec. 41. AS 05.15.640(a) is amended to read: 13
(a) A person may not use broadcasting to [PROMOTE OR] conduct a 14
charitable gaming activity under this chapter [EXCEPT THAT A PERSON MAY 15
USE 16
(1) BROADCASTING TO PROMOTE A FISH DERBY, A DOG 17
MUSHERS' CONTEST, A TYPE OF CLASSIC DEFINED IN AS 05.15.690, OR A 18
RAFFLE AND LOTTERY; OR 19
(2) THE INTERNET OR AN INTERNET COMMUNICATION TO 20
PROMOTE A CHARITABLE GAMING ACTIVITY UNDER THIS CHAPTER]. 21
* Sec. 42. AS 05.15.640(c) is amended to read: 22
(c) Notwithstanding (a) of this section, a permittee, an operator, or the holder 23
of a multiple-beneficiary permit may use the Internet or an Internet communication to 24
conduct a charitable gaming activity for a raffle or lottery, dog mushers' contest, 25
derby, or type of classic defined in AS 05.15.690. The permittee, an operator, or the 26
holder of a multiple-beneficiary permit may draw winning tickets online or by other 27
electronic or digital means. In this subsection, 28
(1) "Internet" means the combination of computer systems or 29
networks that make up the international network for interactive communications 30
services, including remote logins, file transfer, electronic mail, and newsgroups; 31 34-LS0213\I
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(2) "Internet communication" means an announcement or 1
advertisement disseminated through the Internet. 2
* Sec. 43. AS 05.15.690(1) is amended to read: 3
(1) "adjusted gross income" means gross income less prizes awarded, 4
tax collected under AS 05.15.184, and state, federal, and municipal taxes paid or 5
owed on the income; 6
* Sec. 44. AS 05.15.690(33) is amended to read: 7
(33) "net proceeds" means the gross receipts from an authorized 8
activity less the fee described in AS 05.15.020(b), [THE] expenses [AUTHORIZED 9
BY AS 05.15.160], and the prizes awarded at the activity; 10
* Sec. 45. AS 05.15.690(39) is amended to read: 11
(39) "pull-tab or pull-tab game" means a game of chance where a 12
card, or electronic representation of a card, the face of which is covered to conceal 13
a number, symbol, or set of symbols, is purchased by the participant and where a prize 14
is awarded for a card, or electronic representation of a card, containing certain 15
numbers or symbols designated in advance and at random; 16
* Sec. 46. AS 05.15.690(40) is amended to read: 17
(40) "qualified organization" means a bona fide civic or service 18
organization or a bona fide religious, charitable, fraternal, veterans, labor, political, or 19
educational organization, school-based extracurricular or co-curricular booster 20
club, police or fire department and company, dog mushers' association, outboard 21
motor association, or fishing derby or nonprofit trade association in the state, that 22
operates without profits to its members and that has been in existence continually for a 23
period of three years immediately before applying for the license or permit; the 24
organization may be a firm, corporation, company, association, or partnership; in this 25
paragraph, "fishing derby association" means a civic, service, or charitable 26
organization in the state, not for pecuniary profit, whose primary purpose is to 27
promote interest in fishing for recreational purposes, but does not include an 28
organization formed or operated for gaming or gambling purposes; 29
* Sec. 47. AS 05.15.690(46) is amended to read: 30
(46) "series" means a unit of pull-tabs with the same serial number or 31 34-LS0213\I
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a unit of electronic pull-tabs that have a unique serial number; 1
* Sec. 48. AS 05.15.690 is amended by adding new paragraphs to read: 2
(51) "distributor" includes a distributor salesperson, or representative, 3
agent, affiliate, or other employee of a distributor; 4
(52) "electronic pull-tab system" means individual electronic pull-tabs, 5
portable tablet pull-tab devices, and related hardware and software used to play or 6
facilitate the play of an electronic pull-tab series; 7
(53) "immediate family member" has the meaning given in 8
AS 39.52.960; 9
(54) "manufacturer" includes a manufacturer salesperson or a 10
representative, agent, affiliate, or other employee of a manufacturer. 11
* Sec. 49. AS 05.15.060(b), 05.15.115(c), 05.15.150(b), 05.15.160, 05.15.165(b), 12
05.15.640(b), 05.15.640(g)(2), and 05.15.640(g)(3) are repealed. 13
* Sec. 50. The uncodified law of the State of Alaska is amended by adding a new section to 14
read: 15
APPLICABILITY. AS 05.15.183(m), enacted by sec. 28 of this Act, applies to a 16
contract entered into, renewed, or amended on or after the effective date of sec. 28 of this Act. 17
* Sec. 51. Section 11 of this Act takes effect January 1, 2031. 18
* Sec. 52. Except as provided in sec. 51 of this Act, this Act takes effect January 1, 2026. 19