An Act To Clarify the Laws on Licensing for Charitable and Fraternal Organizations and Games of Chance (AFTER DEADLINE)
Maine Legislature, Session 123, LD 2236
Committee: Legal and Veterans Affairs
Sponsors: McCORMICK, BERRY, BROWNE, CLARK, COTTA, CROCKETT, HASKELL, PLUMMER
Amends: 17 MRSA §331, 17 MRSA §335, 17 MRSA §341

Legislative Document 
No. 2236 
H.P.1597 
House of Representatives, February 28, 2008 
An Act To Clarify the Laws on Licensing for Charitable and 
Fraternal Organizations and Games of Chance 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
Presented by Representati ve HANLEY of Gardiner. 
Cosponsored by Senator McCORMICK of Kennebec and 
!7J~ 
1I7.1J7u£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BERRY of Bowdoinham, BROWNE of Vassalboro, CLARK of Millinocket, 
COTTA of China, CROCKETT of Augusta, HASKELL of Portland, McLEOD of Lee, 
PLUMMER of Windham. 
PruHed un re<.:ydeJ p_lpt:f 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 17 MRSA §331, sub-§10 is enacted to read: 
10. Nonprofit organizations. Notwithstanding subsection 1, a license to hold, 
conduct or operate a game of chance is not required of a bona fide nonprofit charitable, 
educational, political, civic, recreational, fraternal, patriotic or religious organization or of 
a volunteer fire department or of a local or state affiliate of a national cribbage 
organization or of an auxiliary of any of these organizations as long as the organization or 
auxiliary either was founded in this State 2 years before holding, conducting or operating 
a game of chance or has been chartered or organized in this State for a period of not less 
than 2 consecutive years before holding, conducting or operating a game of chance. 
Sec. 2. 17 MRS A §332, as amended by PL 2005, c. 563, § 14, is further amended 
to read: 
§332. Issuance of license 
1. Organizations eligible; organizations exempt. Notwithstanding other provisions 
of law, the Chief of the State Police may issue a license to operate a game of chance to an 
agricultural society eligible for a stipend under Title 7, chapter 4, or to a. Except as 
provided in subsections 3 and 3-B and as otherwise provided in this chapter, a bona fide 
nonprofit charitable, educational, political, civic, recreational, fraternal, patriotic or 
religious organization, or to a volunteer fire department or a local or state affiliate of a 
national cribbage organization or to an auxiliary of any of these organizations, any of 
'Nhich must be may operate a game of chance without a license as long as the 
organization or auxiliary either was founded, in this State 2 years before holding, 
conducting or operating a game of chance or has been chartered or organized in this State 
for a period of not less than 2 consecutive years before applying for a license holding, 
conducting or operating a game of chance. 
2. Games conducted by members and bartenders of licensees or authorized 
organizations only. A game of chance licensed or otherwise authorized pursuant to this 
section shaH must be operated and conducted for the exclusive benefit of the licensee or 
authorized organization and sha!-l must be operated and conducted only by duly 
authorized members of the licensee or authorized organization or by persons employed by 
the licensee or authorized organization as bartenders, except that nonmembers employed 
by the licensee or authorized organization as bartenders may not operate or conduct any 
game of chance permitted under section 332, subsection 4, paragraph B. The 
requirements of this subsection sha!-l do not ~ 
mm1Y to any agricultural fair association 
licensed to operate a game of chance. 
3. Schemes prohibited. No license may be issued for the conduct or operation of, 
and an organization listed in subsection 1 may not conduct or operate without a license, 
any machine, slot machine, roulette, or any games commonly known as policy or 
numbers, except that a license may be issued for any electronic video machine. Any 
electronic video machine wfti.eft that constitutes a game of chance, as defined in section 
330, subsection 2, sha!-l must be fully governed by the laws contained in this chapter. 
3-A. Prohibited games. The following games are prohibited. 
A. 
No game may be allowed whleb that utilizes objects whleb that are constructed, 
designed or altered to be other than what they appear to be and to respond in a way 
other than that in which the average player would assume that they would respond, 
unless that construction, design or alteration is permitted in the rules governing that 
game and the construction, design or alteration meets the requirements of those rules. 
B. 
No game may be allowed in which the operator either partially or entirely 
controls the outcome of the game by ffis the operator's manner of operating or 
conducting the games game. 
C. 
No game may be allowed in which the outcome depends upon the word of the 
operator against the word of the player. 
D. 
No game of skill may be allowed wlHffi that includes any mechanical or 
physical device wlHffi that directly or indirectly impedes, impairs or thwarts the skill 
of the player. 
3-B. Licenses for electronic video machines. The following provisions apply to 
licenses for electronic video machines. 
A. 
The Chief of the State Police may issue a game of chance license to operate an 
electronic video machine to any society or organization listed in subsection I, 'Nhich 
that has been founded, chartered or organized in this State at least 2 years prior to its 
application for a license. 
B. 
An electronic video machine licensed under this section s.fla.l-l may only be 
operated for the exclusive benefit of the licensee, except that up to 50% of the gross 
proceeds from the operation of the machine may be paid to the distributor as a rental 
fee and for service and repair of the machine. Notwithstanding other provisions of 
this chapter, a licensee may rent an electronic video machine from a distributor. 
C. 
No more than 5 electronic video machines may be operated on the licensee's 
premises. A separate games of chance license is required for the operation of each 
electronic video machine. 
D. 
A licensee may operate an electronic video machine only on the licensee's 
premises. 
E. 
Two or more licensees may not share the use of any premises for the operation 
of electronic video machines. 
F. 
Ne A distributor or employee of the distributor may not be a member of the 
licensee. 
4. 
Location. A license, issued pursuant to this section, sflal.I. must specify the 
location where the organization may operate the licensed game of chance. 
An 
organization listed in subsection 1 may operate a game of chance on the premises of that 
organization or on premises on which the game of chance is operated under the 
supervision of that organization. Ne A licensee or organization listed in subsection I 
may not operate games of chance in more than one location at the same time. 
I 
A. 
An agricultural society or a bona fide nonprofit organization may operate a game 
of chance on the grounds of an agricultural society and during the annual fair of the 
agricultural society. 
B. 
No other licensee or organization listed in subsection 1 may operate a game of 
chance on premises to which the general public has access. In any room where a 
licensed or otherwise authorized game of chance is being conducted, there must be at 
least one member of the licensee or organization listed in subsection 1 present in that 
room for every 2 nonmembers who are present. That member must have been a 
member of the licensee or organization listed in subsection 1 for at least one year. A 
member of the licensee or organization listed in subsection 1, either directly or 
II 
through another member or guest, may not stake or risk something of value in the 
licensee's or organization's game of chance unless the member has been a member, as 
defined in section 330, subsection 3-B, of the licensee or organization listed in 
subsection 1 for at least 14 days not including the day of admission into membership. 
A bona fide nonprofit organization may operate a licensed game of chance to which 
the general public has access once every 3 months for a period not to exceed 3 
consecutive days. The licensed game of chance may be operated at any location 
described in the license and may be conducted only by members of the licensee. 
5. Multiple licenses. An organization eligible to obtain a license to operate a game 
of chance may be issued licenses to operate more than one game of chance. Each license 
issued shall be ~ valid for the operation of no more than one game of chance, the nature 
of which sflaU must be specified on the license. 
6. Charitable organizations; livestock raffling. A license is required before a 
charitable organization may raffle livestock for fund-raising purposes under Title 7, 
section 3972, subsection 4. The Commissioner of Agriculture, Food and Rural Resources 
or the commissioner's designee shall make forms available for charitable organizations to 
apply for licenses for one or 3-year periods. If the commissioner or the commissioner's 
designee is satisfied that the charitable organization has not violated or will not violate 
the restrictions of Title 7, section 3972, a license sflaU must be issued. 
Sec. 3. 17 MRS A §334, as amended by PL 2001, c. 538, §3, is further amended to 
read: 
§334. Evidence 
The Chief of the State Police may require such evidence as the chief may determine 
necessary to satisfy the chief that an applicant or organization licensed or otherwise 
authorized to conduct games of chance conforms to the restrictions and other provisions 
of this chapter. Charters, organizational papers, bylaws or other such written orders of 
founding that outline or otherwise explain the purpose for which such organization was 
founded, must, upon request, be forwarded to the Chief of the State Police. The Chief of 
the State Police may require of any licensee or of any person operating, conducting or 
assisting in the operation of a licensed game of chance evidence as the chief may 
determine necessary to satisfy the chief that the person is a duly authorized member of 
the licensee, or organization that conducts a game of chance or a person employed by the 
licensee or organization that conducts a game of chance as a bartender, as required by 
section 332, subsection 2. Upon request, this evidence must be forwarded to the Chief of 
the State Police. The Chief of the State Police may require such evidence as the chief 
may determine necessary regarding the conduct of games of chance by a licensee or 
organization to determine compliance with this chapter. 
Sec. 4. 17 MRSA §335, sub-§2-A, as enacted by PL 1993, c. 45, §7, is amended 
to read: 
2-A. 
Exceptions. 
Notwithstanding subsection 1, a licensee or organization 
authorized to conduct a game of chance may payor use the proceeds of a game of chance 
to: 
lOA. Defray the expenses or part of the expenses that further the purpose for which 
the organization is formed, except that the proceeds may not be: 
(1) Used to purchase alcohol or to defray the cost of activities where alcohol is 
served; or 
(2) Paid directly to organization members except as specifically allowed in this 
section; and 
B. 
Defray the expenses or part of the expenses of a member, auxiliary member, 
officer or employee of the organization for a serious illness, injury or casualty loss if 
the licensee or organization authorized to conduct a game of chance makes an 
application pursuant to this section and the application is approved by the licensing 
division within the Bureau of State Police. 
(1) An application must be made in the form and contain the information the 
licensing division requires. 
(a) In the case of serious illness or injury, the licensing division may require 
certification by a licensed physician in support of the application. 
(b) 
In the case of a casualty loss, the licensing division may require 
statements or reports from a law enforcement agency, rescue or other 
emergency services personnel or an insurance agency to support the 
application. 
(c) The licensing division may deny an application if it appears that the 
person who would receive the proceeds has adequate means of financial 
support, 
including, 
but not limited to, 
insurance or workers' 
compensation benefits. 
Sec. 5. 17 MRS A §335, sub-§4, as enacted by PL 1997, c. 684, §5, is amended to 
read: 
4. Posting. An organization licensed or otherwise authorized to conduct a game of 
chance pursuant to section 332 shall post in a conspicuous place in the room or hall where 
the game of chance is conducted a sign that states: the net revenue earned from the 
operation of the game in dollars and cents; the amount of charitable donations from that 
net revenue in dollars and cents; what percentage in dollars and cents of the net revenue 
that amount represents in donations to nonprofit activities; and what percentage of the net 
revenue was distributed from licensed or otherwise authorized games for the previous 
calendar year and the current calendar year. 
Sec. 6. 17 MRS A §336, as amended by PL 2001, c. 672, §§9 to 12, is further 
amended to read: 
§336. Records; licenses 
1. Records required. Each licensee and organization authorized to conduct a game 
of chance shall keep a record of all financial transactions involving games of chance 
operated under each license granted to the licensee and games of chance operated by such 
an organization. The treasurer of the licensee or organization authorized to conduct a 
game of chance or another officer designated by the treasurer is responsible for 
maintaining those records. The records must include an exact account of all revenue 
from the games, an itemization of all expenses, including, but not limited to, the cost of 
prizes, printing, licenses and administration, and the disposition of all proceeds, 
including, but not limited to, all gifts, grants and payments to any person, firm, 
corporation, association or organization for any purpose whatsoever. 
All financial 
records involving games of chance must be separate and distinguishable from other 
records of the organization. Revenue from more than one game of chance may be entered 
into one account. 
I-B. 
Records required for licensee or organization employing tokens. 
If a 
licensee or organization authorized to conduct a game of chance employs tokens to 
account for revenue from games of chance and if the licensee or organization authorized 
to conduct a game of chance maintains direct control over the sale and redemption of the 
tokens and keeps accurate records of all tokens used, then the chief may by rule alter or 
reduce the record-keeping requirements of subsection I to the extent that a licensee's or 
organization's use of tokens renders those records unnecessary for adequate control of the 
licensee's or organization'S games. 
2. Disposition of funds reports. Within 10 business days after the last day of any 
period during which a licensed game of chance is conducted with other than an annual 
license or within 10 business days after the end of each calendar month during which a 
licensed game of chance is conducted with an annual license, the licensee shall file with 
the Chief of the State Police a disposition of funds fonn prescribed and furnished by the 
Chief of the State Police, detailing for the period the total receipts and expenditures of the 
game and the disposition of funds. 
Every statement must be made under oath by an 
officer of the licensee or by the member in charge of the conduct of the game. 
2-A. 
Disposition of funds reports from licensee using tokens. 
If tokens are 
employed to account for revenue from licensed games of chance, then the licensee shall 
report the number of tokens sold, the number redeemed and the disposition of funds from 
the proceeds of sale in addition to such other information as the chief may require under 
subsection 2. 
3. 
Records maintained for 3 years. 
Every licensee wfl.i€.lt or organization 
authorized to conduct a game of chance that has conducted a game of chance shall 
maintain and keep for a period of 3 years reports as may be necessary to substantiate the 
records and reports required by this section or by the rules and regulations adopted under 
this chapter. 
4. Location. All records lNhich shall that must be maintained by a licensee or 
organization authorized to conduct a game of chance pursuant to this section and pursuant 
to the rules and regulations adopted under this chapter sfial.l must be kept and maintained 
on the premises where the game of chance has been conducted or at the primary business 
office of the licensee or organization authorized to conduct a game of chance, which 
office sfial.l must be designated by the licensee in the license application. 
All these 
records sfial.l must be open to inspection by the Chief of the State Police or hls the chiefs 
representative and 00 ~ licensee sfial.l or organization authorized to conduct a game of 
chance may not refuse the Chief of the State Police or hls the chiefs representative the 
right to inspect or audit the records. Refusal to permit inspection or audit of the records 
sfial.l does not constitute a crime under this chapter but sfial.l does constitute grounds for 
revocation of license. 
Sec. 7. 17 MRSA §341, sub-§I, as amended by PL 1999, c. 716, §9, is further 
amended to read: 
1. Limits. A licensed or otherwise authorized game of chance is limited as to the 
amount to be gambled for anyone chance to $1, except that an organization may operate 
and conduct a game of cards and charge no more than $1 daily entry fee for participation 
in a game of cards, as long as no money or valuable thing other than $1 daily entry fee is 
gambled in connection with a game of cards. 
Sec. 8. 17 MRSA §341, sub-§2, as enacted by PL 1981, c. 130, is amended to 
read: 
2. 
Exceptions. If the licensee or organization authorized to conduct a game of 
chance operates games of chance less than 3 days per calendar year and contributes 100% 
of the gross income from those games of chance to charity, then those games of chance 
shall be are limited as to the amount wh-ivfl that may be gambled to: 
A. 
$1 daily entry fee; 
B. 
50¢ per game; or 
C. 
25¢ per card received. 
Prior to play of the game, the licensee or organization authorized to conduct a game of 
chance shall determine which of the limits in paragraph paragraphs A, B ef and C is to be 
used and shall post the limit. 
Sec. 9. 17 MRS A §345, as amended by PL 1997, c. 728, §8, is further amended to 
read: 
§345. Access to premises 
Any person, firm, corporation, association or organization making application to the 
Chief of the State Police to conduct or operate a game of chance or any 5tt€ft person, firm, 
corporation, association or organization authorized under this chapter to operate or 
conduct a game of chance, shall permit inspection of any equipment, prizes, records or 
items and materials used or to be used in the conduct or operation of a game of chance by 
the Chief of the State Police or the chiefs authorized representative. 
Any firm, corporation, association or organization licensed to operate a game of 
chance or that operates a game of chance shaH permit at any time the Department of 
Public Safety or the city or town fire inspectors of the municipality in which the licensed 
or otherwise authorized game is being conducted to enter and inspect the licensed 
premises on which the game is being conducted. 
SUMMARY 
This bill aHows nonprofit organizations to conduct games of chance without a 
license.