KRS § 238.555 — KY Code / Title XIX / Chapter 238 / Section 238.555
238.555 Charitable gaming facility license -- Lease agreements for use of facility -- Quarterly reports -- Number of events that may be held -- Display of license and charitable organization's name
Status: in_force

238.555 Charitable gaming facility license -- Lease agreements for use of facility --

Quarterly reports -- Number of events that may be held -- Display of license

and charitable organization's name.

(1) (a) No person or organization shall operate a charitable gaming facility unless the

person or organization is licensed under the provisions of this chapter, except

that facilities that are utilized by two (2) or fewer charitable organizations for

the purpose of conducting charitable gaming, and facilities that only host

charity fundraising events, shall be exempt from licensure.

(b) The office shall charge a license fee not to exceed two thousand five hundred

dollars ($2,500). Specific license fees to be charged shall be:

1. Prescribed in a graduated scale promulgated by administrative

regulation; and

2. Based on the number of sessions which the facility holds per week or

other applicable factors or combination of factors.

(c) Charitable gaming may be conducted in a charitable gaming facility only by a

licensed charitable organization in accordance with the provisions of this

chapter.

(2) In the application process, an applicant for a charitable gaming facility license shall

submit the following information:

(a) The address of the facility;

(b) A description of the facility to include square footage of the gaming area,

capacity levels, and available parking;

(c) The names, addresses, dates of birth, and Social Security numbers of all

individuals employed by or contracted with the applicant to manage the

facility or provide other authorized services;

(d) The name, address, date of birth, and Social Security number of any

individual who has a ten percent (10%) or greater financial interest in the

facility;

(e) A copy of the lease agreement used by the applicant; and

(f) Any other information the office deems appropriate.

(3) No owner, officer, employee, or contractee of a licensed charitable gaming facility

or an affiliate, or any member of the immediate family of any officer, employee, or

contractee of a licensed charitable gaming facility or an affiliate shall, concerning a

lessee:

(a) Manage or otherwise be involved in the conduct of charitable gaming;

(b) Provide bookkeeping or other accounting services related to the conduct of

charitable gaming;

(c) Handle any moneys generated in the conduct of charitable gaming;

(d) Advise a licensed charitable organization on the expenditure of net receipts;

(e) Provide transportation services in any manner to patrons of a charitable

gaming activity;

(f) Provide advertisement or marketing services in any manner to a licensed

charitable organization;

(g) Provide, coordinate, or solicit the services of personnel or volunteers in any

manner;

(h) Influence or require a licensed charitable organization to use a certain

distributor or any particular gaming supplies; or

(i) Donate or give any prize to be awarded in the conduct of charitable gaming.

(4) A licensed charitable gaming facility shall execute a lease agreement with each

licensed charitable organization that desires to conduct charitable gaming at the

facility. The amount of rent, goods, and services charged shall be reasonable and

shall be based on prevailing market values in the general locality for the goods and

services to be provided. The amount charged to rent a charitable gaming facility,

whether the facility is licensed or unlicensed, shall not be based in whole or in part

on a percentage of gross receipts, net proceeds derived from the conduct of

charitable gaming, or by reference to the number of people in attendance. A

licensed charitable gaming facility shall file a copy of each signed lease agreement

with the office.

(5) The number of bingo sessions conducted at a charitable gaming facility shall be

limited to the following:

(a) No more than eighteen (18) sessions per week if the charitable gaming facility

is located in one (1) of the following:

1. A city containing a population equal to or greater than twenty thousand

(20,000) based upon the most recent federal decennial census;

2. An urban-county government;

3. A consolidated local government;

4. A charter county government; or

5. A county containing a city of the first class or a city containing a

population equal to or greater than twenty thousand (20,000) based upon

the most recent federal decennial census; or

(b) No more than eight (8) sessions per week if the charitable gaming facility is

located in a city other than those listed in paragraph (a) of this subsection, or

in a county that does not contain a city that is listed in paragraph (a) of this

subsection.

(6) A licensed charitable gaming facility shall report at least quarterly to the office and

shall provide any information concerning its operation that the office may require.

(7) A charity fundraising event at which special limited charitable games are played

may be conducted at a licensed charitable gaming facility, but no licensed

charitable gaming facility shall be permitted to hold more than one (1) such event

per week or more than seven (7) per year.

(8) A licensed charitable gaming facility shall conspicuously display a sign bearing the

name and the license number of the charitable organization that is conducting

charitable gaming activities in the facility.

(9) The license to operate the charitable gaming facility shall be prominently displayed

on or in the premises where charitable gaming activity is being conducted, in a

conspicuous location that is readily accessible to gaming patrons as well as

employees of the office, law enforcement officials, and other interested officials.