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AN ACT relating to charitable gaming. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 238.540 (Effective July 1, 2025) is amended to read as follows: 3
(1) Charitable gaming shall be conducted by a licensed charitable organization at the 4
location, date, and time which shall be stated on the license. The licensee shall 5
request a change in the date, time, or location of a charitable gaming event by mail, 6
electronic mail, or facsimile transmission, and shall submit a lease and an original 7
signature of an officer. The office shall process this request and issue or deny a 8
license within ten (10) days. 9
(2) All premises or facilities on which or in which charitable gaming is conducted shall 10
meet all applicable federal, state, and local code requirements relating to life, safety, 11
and health. 12
(3) A license to conduct charitable gaming shall be prominently displayed on or in the 13
premises where charitable gaming is conducted, in a conspicuous location that is 14
readily accessible to gaming patrons as well as employees of the office, law 15
enforcement officials, and other interested officials. 16
(4) At least one (1) chairperson who is listed on the application for licensure shall be at 17
each charitable gaming activity conducted by the charitable organization and shall 18
be responsible for the administration and conduct of the charitable gaming activity. 19
A[No] person shall not serve as chairperson for more than one (1) charitable 20
organization. The chairperson shall be readily identifiable as the chairperson and 21
shall be present on the premises continuously during the charitable gaming activity. 22
Charitable gaming shall be conducted and administered solely by officers, 23
members, and bona fide employees of the licensed charitable organization. 24
Volunteer personnel, who may or may not be members of the licensed charitable 25
organization, may be utilized if each volunteer is readily identifiable as a volunteer. 26
A person may serve as volunteer personnel for up to six (6) charitable gaming 27 UNOFFICIAL COPY 25 RS BR 1869
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events or sessions per week. A[No] person engaged in the conduct and 1
administration of charitable gaming shall not receive any compensation for services 2
related to the charitable gaming activities, including tipping.[ No] Net receipts 3
derived from charitable gaming shall not inure to the private benefit or financial 4
gain of any individual. Any effort or attempt to disguise any other type of 5
compensation or private inurement shall be considered an unauthorized diversion of 6
funds and shall be actionable under KRS 238.995. 7
(5) A[No] licensed charitable organization shall not contract with, or otherwise utilize 8
the services of, any management company, service company, or consultant in 9
managing or conducting any aspect of charitable gaming. 10
(6) A licensed charitable organization shall not purchase or lease charitable gaming 11
supplies and equipment from any person not licensed as a distributor in the 12
Commonwealth of Kentucky. 13
(7) A licensed charitable organization shall not accept any merchandise prizes donated 14
by any owner, officer, employee, or contractee of a licensed manufacturer, 15
distributor, charitable gaming facility, or any of their affiliates, or any member of 16
their immediate families. 17
(8) (a) Each organization's gaming supplies shall be maintained in a location separate 18
from another organization's gaming supplies. 19
(b) This location shall also be locked and access shall be controlled. 20
(c) Unless otherwise directed by the office, an organization's supplies and 21
equipment remain the property of the organization regardless of where they 22
are stored and must be accessible to the organization at all reasonable times 23
upon request. 24
(9) Any advertisement of charitable gaming, regardless of the medium used, shall 25
contain the name of the charitable organization conducting the charitable gaming 26
and its license number. An advertisement for a bingo session or sessions shall not 27 UNOFFICIAL COPY 25 RS BR 1869
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advertise a bingo prize in excess of the limitation of five thousand dollars ($5,000) 1
per twenty-four (24) hour period set forth in KRS 238.545(1). 2
Section 2. KRS 238.545 (Effective July 1, 2025) is amended to read as follows: 3
(1) A licensed charitable organization shall be limited by the following: 4
(a) In the conduct of bingo, to one (1) session per day, three (3)[two (2)] sessions 5
per week, for a period not to exceed five (5) consecutive hours in any day and 6
not to exceed fifteen (15)[ten (10)] total hours per week: 7
1. A[No] licensed charitable organization shall not conduct bingo at more 8
than one (1) location during the same twenty-four (24) hour period; 9
2. A[No] licensed charitable organization shall not award prizes for bingo 10
that exceed five thousand dollars ($5,000) in fair market value per 11
twenty-four (24) hour period, including the value of door prizes; and 12
3. A[No] person under the age of eighteen (18) shall not be permitted to 13
purchase bingo supplies or play bingo unless he or she is playing for 14
noncash prizes and is accompanied by a parent or legal guardian and 15
only if the value of any noncash prize awarded does not exceed ten 16
dollars ($10); 17
(b) 1. A licensed charitable organization may provide card-minding devices 18
for use by players of bingo games. 19
2. If a licensed charitable organization offers card-minding devices for use 20
by players, the devices shall be capable of being used in conjunction 21
with bingo cards or paper sheets at all times. 22
3. The office shall have broad authority to define and regulate the use of 23
card-minding devices and the corporation shall promulgate an 24
administrative regulation concerning use and control of them; 25
(c) Charity game tickets shall be sold only at the address of the location 26
designated on the license to conduct charitable gaming; 27 UNOFFICIAL COPY 25 RS BR 1869
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(d) Charity game tickets may be sold, with prior approval of the office: 1
1. At any authorized special charity fundraising event conducted by a 2
licensed charitable organization at any off-site location; or 3
2. By a licensed charitable organization possessing a special limited 4
charitable gaming license at any off-site location; and 5
(e) An automated charity game ticket dispenser may be utilized by a licensed 6
charitable organization, with the prior approval of the office, only at the 7
address of the location designated on the license to conduct charitable gaming. 8
The corporation shall promulgate administrative regulations regulating the use 9
and control of approved automated charity game ticket dispensers. 10
(2) (a) A[No] prize for an individual charity game ticket shall not exceed five 11
hundred ninety-nine dollars ($599) in value, not including the value of 12
cumulative or carryover prizes awarded in seal card games. 13
(b) Cumulative or carryover prizes in seal card games shall not exceed two 14
thousand four hundred dollars ($2,400). 15
(c) Information concerning rules of the particular game and prizes that are to be 16
awarded in excess of fifty dollars ($50) in each separate package or series of 17
packages with the same serial number and all rules governing the handling of 18
cumulative or carryover prizes in seal card games shall be posted prominently 19
in an area where charity game tickets are sold. A legible poster that lists prizes 20
to be awarded, and on which prizes actually awarded are posted at the 21
completion of the sale of each separate package shall satisfy this requirement. 22
(d) Any unclaimed money or prize shall return to the charitable organization. 23
(e) A[No] paper charity game ticket shall not be sold in the Commonwealth of 24
Kentucky that does not conform to the standards for opacity, randomization, 25
minimum information, winner protection, color, and cutting established by the 26
office. 27 UNOFFICIAL COPY 25 RS BR 1869
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(f) An[No] electronic pulltab device representation of a charity game ticket shall 1
not be sold in the Commonwealth of Kentucky that does not conform to the 2
construction standards set forth in an administrative regulation promulgated 3
by the corporation. Electronic pulltab devices shall only be used for charitable 4
gaming. 5
(g) A[No] person under the age of eighteen (18) shall not be permitted to 6
purchase, or open in any manner, a charity game ticket. 7
(3) (a) Tickets for a raffle shall be sold separately, and each ticket shall constitute a 8
separate and equal chance to win. 9
(b) All raffle tickets shall be sold for the price stated on the ticket, and a[no] 10
person shall not be required to purchase more than one (1) ticket or to pay for 11
anything other than a ticket to enter a raffle. 12
(c) Raffle tickets and tickets for charity fundraising raffle games approved by the 13
office which are offered exclusively at charity fundraising events and special 14
limited charity fundraising events are not required to be sold separately and 15
may be sold at discounted package rates. 16
(d) Raffle tickets shall have a unique identifier on each ticket. 17
(e) Winners shall be drawn at random at a date, time, and place announced in 18
advance or printed on the ticket. 19
(f) All prizes for a raffle shall be identified in advance of the drawing and all 20
prizes identified shall be awarded. 21
(4) With respect to charity fundraising events, a licensed charitable organization shall 22
be limited as follows: 23
(a) A[No] licensed charitable organization shall not conduct a charity fundraising 24
event or a special limited charity fundraising event unless they have a license 25
for the respective event issued by the office; 26
(b) A[No] special license shall not be required for any wheel game, such as a 27 UNOFFICIAL COPY 25 RS BR 1869
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cake wheel, that awards only noncash prizes the value of which does not 1
exceed one hundred dollars ($100); 2
(c) The office may grant approval for a licensed charitable organization to play 3
bingo games at a charity fundraising event. Cash prizes for bingo games 4
played during a charity fundraising event may not exceed five thousand 5
dollars ($5,000) for the entire event. A[No] person under the age of eighteen 6
(18) shall not be permitted to play bingo at a charity fundraising event unless 7
accompanied by a parent or legal guardian; 8
(d) The office may grant approval for a licensed charitable organization to play 9
special limited charitable games at a charity fundraising event authorized 10
under this section. The office shall not grant approval for the playing of 11
special limited charitable games under the provisions of a charity fundraising 12
event license unless the proposed event meets the definition of a charity 13
fundraising event held for community, social, or entertainment purposes apart 14
from charitable gaming in accordance with KRS 238.505(8); 15
(e) Except for state, county, city fairs, and special limited charity fundraising 16
events, a charity fundraising event license issued under this section shall not 17
exceed seventy-two (72) consecutive hours. A licensed charitable 18
organization shall not be eligible for more than eight (8) total charity 19
fundraising event licenses per year, including two (2) special limited charity 20
fundraising event licenses. A[No] person under eighteen (18) years of age 21
shall not be allowed to play or conduct any special limited charitable game. 22
The office shall have broad authority to regulate the conduct of special limited 23
charity fundraising events in accordance with the provisions of KRS 238.547; 24
and 25
(f) Charity fundraising events may be held: 26
1. On or in the premises of a licensed charitable organization; 27 UNOFFICIAL COPY 25 RS BR 1869
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2. In a licensed charitable gaming facility, subject to restrictions contained 1
in KRS 238.555(7); or 2
3. At an unlicensed facility which shall be subject to the requirements 3
stipulated in KRS 238.555(3), and subject to the restrictions contained in 4
KRS 238.547(2). 5
(5) Presentation of false, fraudulent, or altered identification by a minor shall be an 6
affirmative defense in any disciplinary action or prosecution that may result from a 7
violation of age restrictions contained in this section, if the appearance and 8
character of the minor were such that his or her age could not be reasonably 9
ascertained by other means. 10
Section 3. This Act takes effect July 1, 2025. 11