An Act To Clarify the Laws on Licensing for Charitable and Fraternal Organizations.and Games of Chance
Maine Legislature, Session 124, LD 1081
Committee: Legal and Veterans Affairs
Sponsors: TARDY, TRAHAN, BEAULIEU, DAVIS, FITTS, HANLEY, NASS, SHAW
Amends: 17 MRSA §332, 17 MRSA §334, 17 MRSA §335, 17 MRSA §341, 17 MRSA §345

Legislative Document 
No.IOSI 
H.P.748 
House of Representatives, March 17,2009 
An Act To Clarify the Laws on Licensing for Charitable and 
Fraternal Organizations.and Games of Chance 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
Presented by Representative TARDY of Newport. 
Cosponsored by Senator TRAHAN of Lincoln and 
I7/Jv~ 111· mac~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BEAULIEU of Auburn, CLARK. of Millinocket, DAVIS of Sangerville, 
FITTS of Pittsfield, HANLEY of Gardiner, McLEOD of Lee, NASS of Acton, SHAW of 
Standish. 
Printed on recycled pilper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 17 MRS A §331, sub-§1, as amended by PL 1975, c. 740, §5, is further 
amended to read: 
1. License required. We A person, finn, corporation, association or organization 
shall may not hold, conduct or operate a game of chance within the State unless a license 
therefor is obtained from the Chief of the State Police, eF4he except that organizations 
may conduct or operate games of chance without a license when the total amount of 
money collected in entry fees, chances or wagers for anyone event is less than $10,000 
and the organization has collected not more than $15,000 in e.ntry fees, chances or wagers 
in a calendar year. A game of chance that constitutes "social gambling" as that tenn is 
defined by Title 17-A, section 952, subsection 8 does not require a license or notification 
under this subsection. An organization wanting to conduCt a game of chance that dOes 
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not require a license and is within the lirriits described in this subsection shall notify the 
Chief of the State Police no less than 5 business days prior to conducting the game of 
chance and provide the name and tax identification number of the organization 
conducting the game and the time, date and location of the event and shall submit a $30 
registration fee. 
Sec. 2. 17 MRS A §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 at least 2 years before holding, conducting or 
operating a game of chance or has been chartered or organized in this State fora period of 
not less than 2 consecutive years before holding, conducting or operating a game of 
chance. 
Sec. 3. 17 MRSA §332, as amended by PL 2005, c. 563, § 14, is further amended 
to read: 
§332. Issuance of license 
1. Organizations eligible. Notwithstanding any other provisions provision of law, 
and in accordance with section 331, subsection 1, 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 bona fide nonprofit charitable, educational, political, 
civic, recreational, fraternal, patriotic or religious organization, or to a volunteer fire 
department or to an auxiliary of any of these organizations, any of which must be 
founded, chartered or organized in this State for a period of not less than 2 consecutive 
years before applying for a license. 
2. Games conducted by members and bartenders of licensees only. A game of 
chance licensed or otherwise authorized pursuant to this section shall must be operated 
and conducted for the exclusive benefit of the licensee or authorized organization and 
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sflalt must be operated !md conducted only by duly authorized members ofJhe 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 operat~ or conduct any game of chance 
permitted under section 332, subsection 4, paragraph B. The requirements of this 
subsection sflalt do not aply mmlY 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 wffiel:t that constitutes a game of chance, as defined in section 
330, subsection 2, shall be fully 12 governed by the laws contained in this chapter. 
3-A. Prohibited games. The following games are prohibited. 
A. No game may be allowed wffiel:t that utilizes objects wffiel:t 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 his the operator's manner of operating or conducting the 
games game. 
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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 wffiel:t that includes any mechanical or physical 
device wffiel:t 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 1, "vhich 
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 sflalt 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 maybe 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 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 
el ectronic 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. We A distributor or employee of the distributor may not be a member of the 
licensee. 
4. 
Location. A license, issued pursuant to this section, shall must specify the 
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location where the organization may operate the licensed game of chance. 
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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. A licensee or organization listed in subsection 1 may 
not operate games of chance in more than one location at the same time. 
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 lis·ted in subsection 1 may operate a game of 
chance on premises . t6. 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 
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 it} 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 
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of chance may be issued licenses to operate more than one game of chance. Each license 
issued shall be i§. valid for the operation of no more than one game of chance, the nature 
of which shall must be specified on the license. 
6. Charitable organizations; livestock raffling. A license is required before (\ 
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 coriunissioner'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, section3972, a license shall must be issued. 
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Sec. 4. 17 MRSA §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 detenrune 
necessary to satisfy the chief that an applicant or organization licensed or otherwise 
authorized to conduct games of chance conformsJo the restrictions and otper 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 
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assisting in the operation of a licensed game of chance evidence as the chief may 
detenrune 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 detenrune necessary regarding the conduct of games of chance by a licensee or 
organization to detenrune compliance with this chapter. 
Sec. 5. 17 MRSA §335, sub-§2-A, as enacted by PL 1993, c. 45, §7, is amended 
to read: 
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2-A. 
Exceptions. 
Notwithstanding subsection I, a licensee or organization 
authorized to conduct a game of chance may payor use the proceeds of a game of chance 
to: 
A. Defray the expenses or part of the expenses that further the puTpose for which the 
organization is formed, except that the proceeds may not be: 
(l) Used to purchase alcohol or to defray the cost of activities where alcohol is 
served; or 
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(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. 6. 17 MRSA §335, sUllb-§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 
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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. 7. 17 MRSA. §336, as amended by PL 2001, c. 672, §§9 to 12, is furth~r 
amended to read: 
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§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 cine account. 
I-lB. Records required for licensee employing tokens. If a licensee or organization 
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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 1 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 
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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 form 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. 
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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 wh:ieh or organization 
authorized to c~nduct 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 '.vhich shall that must be maintained by a licensee or 
organization authorized to conduct a game' of chance pursuant to this section and pursuant 
t6 the rules and regulations adopted under this chapter Bhatt 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 Bhatt must be designated by the licensee in the license application. 
All these 
records Bhatt must be open to inspection by the Chief of the State Police or his the chief's 
representative and fi9 E! licensee Bhatt or organization authorized to conduct a game of 
chance may not refuse the Chief of the State Police or his the chief's representative the 
right to inspect or audit the records. Refusal to permit inspection or audit of the records 
Bhatt does not constitute a crime under this chapter but Bhatt does constitute grounds for 
revocation of license. 
Sec. 8. 17 MRSA §341, sub-§1, as repealed and replaced by PL 2007, c. 554, §2, 
is amended to read: 
1. Limits. The maximum bet for licensed or otherwise authorized games of chance, 
including card games in which bets are placed per hand or per deal, is $1 for anyone 
chance, hand or deal. Licensed card games that award part or all of the entry fees paid to 
participate as prize money and in which no money or thirig of value is wagered except for 
the entry fee are limited to a $5 daily entry fee and no more than. 40 players at anyone 
time at anyone location, 
Sec. 9. 17 MRSA §341, sub-§2, as enacted by PL 1981, c. 130, is amended to 
read: 
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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:ieh that may be gambled to: 
A .. $+ One dollar daily entry fee; 
B. .w¢ Fifty cents per game; or 
C .. ~ 
Twenty-five cents 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 6f and C is to be 
used and shall post the limit. 
Sec. 10. 17 MRSA §345, as amended by PI., 1997, c. 728, §8, is further amended 
to read: 
§345. Access to premises 
. Any person, firm, corporation, association or organization making application to the 
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Chief of the State Police to conduct or operate a game of chance or any 5tleh 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 shall 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 allows nonprofit organizations to" conduct games of chance without a 
license. 
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