LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6681 NOTE PREPARED: Dec 19, 2024
BILL NUMBER: SB 209 BILL AMENDED:
SUBJECT: Electronic Pull Tabs in Charity Gaming.
FIRST AUTHOR: Sen. Walker K BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: The bill allows for the use of electronic pull tab games, electronic pull tab
devices, and electronic pull tab systems in charity gaming. It provides for a maximum number of electronic
pull tab devices that may be present, for purposes of charity gaming, in a facility or location.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Indiana Gaming Commission (IGC): The provisions in the bill could
increase the administrative workload for the IGC. However, any additional cost to the IGC due to this bill
would be paid with revenue from the charity gaming excise tax and the charity gaming license fee.
Explanation of State Revenues: To the extent that the bill leads to an increase in charity gaming activity,
it would increase revenue from charity gaming license fees transferred to the Lottery Surplus Fund. Since
the provision is effective July 1, 2025, any impact on the charity gaming license fee, which is based on prior
year adjusted gross income, would begin in FY 2027. The Lottery Surplus Fund is a reverting fund.
The bill could also impact the charity gaming excise tax paid by the licensed distributors or manufacturers
of pull tabs. The impact is estimated to be positive in the initial years due to purchases of electronic pull tabs
by the qualified organizations. Some of the increase will be offset by a decrease in the sales of paper pull
tabs. The excise tax is deposited in the Charity Gaming Enforcement Fund. Revenues remaining in the fund
after certain administrative expenditure is distributed quarterly to the Lottery Surplus Fund.
Additional Information- The bill defines an "electronic pull tab system” as an electronic pull tab device, an
electronic pull tab game, or any computer or device, including all related hardware and software, used to
facilitate the play of an electronic pull tab game. It allows the IGC to approve electronic pull tab games at
charity gaming organizations. The provisions in the bill would impact charitable gaming patrons by allowing
another method of playing pull tabs through the electronic pull tab. This could increase the number and the
size of transactions and, as a result, potentially increase patrons’ spending on games. If the bill leads to an
increase in charity gaming activity, it could increase revenue from charity gaming license fees. The bill limits
the number of electronic pull tab devices permitted at any facility or location based on the occupancy limits
SB 209 1 of the establishment.
Charity Gaming License Fees: Allowing additional types of gaming options could result in additional charity
gaming license fee revenue. The initial license fee is $50. However, annual renewal fees range from $50 to
$41,000 depending on the adjusted gross revenue earned by an organization from charity gaming during the
prior year. Adjusted gross revenue is the total gross revenue minus deductions for the cost of prizes, licensed
supplies, license fees, advertising expenses, and up to $200 per day for facility rent.
In FY 2024, the charity gaming license fee generated about $4.7 M. The fee revenue is distributed to the
Charity Gaming Enforcement Fund. After (1) the costs of charity gaming administration are subtracted and
(2) distributions are made to the License Control Division and the Gaming Control Division, revenue
remaining in the fund is distributed quarterly to the Lottery Surplus Fund. Since the Lottery Surplus Fund
is a reverting fund, it could lead to the state General Fund receiving additional reversions to the extent that
the General Assembly’s annual appropriations from the Lottery Surplus Fund are lower than the revenue
annually deposited in the fund.
Charity Gaming Excise Tax: An excise tax equal to 10% of the price of pull tabs, punchboards, and tip
boards sold to qualified organizations is deposited in the Charity Gaming Enforcement Fund. The revenue
remaining after (1) the costs of charity gaming administration are subtracted and (2) distributions are made
to the License Control Division and the Gaming Control Division, is distributed quarterly to the Lottery
Surplus Fund. About $2.2 M in Charity Gaming Excise Tax was paid in FY 2024.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Gaming Commission.
Local Agencies Affected:
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2024, https://iga.in.gov/publications/handbook/Handbook2024.pdf
Fiscal Analyst: Randhir Jha, 317-232-9556.
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