LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6681 NOTE PREPARED: Mar 25, 2025
BILL NUMBER: SB 209 BILL AMENDED: Mar 25, 2025
SUBJECT: Electronic Pull Tabs in Charity Gaming.
FIRST AUTHOR: Sen. Walker K BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Rep. Manning
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill allows for the use of electronic pull tab games, electronic pull
tab devices, and electronic pull tab systems in charity gaming by certain organizations. It provides for a
maximum number of electronic pull tab devices that may be present, for purposes of charity gaming, in a
permitted 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: (Revised) The bill allows the use of electronic pull tabs in a charitable
gaming organization that is recognized as a veteran’s organization or a fraternal organization and has
operated in Indiana for a minimum of five years. It provides that the qualified organizations may only operate
electronic pull tabs at a single fixed location as defined in the bill. The use of electronic pull tab will lead
to a significant increase in charity gaming activity. 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.
Allowing electronic pull tabs in certain charity gaming establishments could reduce other gaming activities.
However, since the bill provides for restrictions related to the type of electronic pull tab games, it is more
SB 209 1 likely to impact other charitable gaming activity. The bill also limits the number of electronic pull tab devices
permitted at any facility or location based on the occupancy limits of the establishment. Any impact is
indeterminable.
Additional Information- 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.
SB 209 2