An Act to Allow Veterans' Organizations and Fraternal
Maine Legislature, Session 132, LD 1434
Committee: Veterans and Legal Affairs
Sponsors: ARCHER
Amends: 8 MRSA §371, 8 MRSA §372, 8 MRSA §374, 8 MRSA §375, 8 MRSA §376, 8 MRSA §377, 8 MRSA §379, 8 MRSA §383

Legislative Document
No. 1434
H.P. 943
House of Representatives, April 3, 2025
An Act to Allow Veterans' Organizations and Fraternal 
Organizations to Obtain a License to Operate the Draw Game Keno
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ARCHER of Saco.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  8 MRSA §371, sub-§4-B is enacted to read:
4-B.  Fraternal organization.  "Fraternal organization" means an incorporated 
organization operating in a bona fide manner solely for the purposes of a fraternal nature 
and not for pecuniary gain.
Sec. 2.  8 MRSA §371, sub-§4-C is enacted to read:
4-C.  Keno.  "Keno" means a draw game that has more than 5 daily drawings and that 
pays a player a set prize amount based on the wager made by the player and in which the 
operator keeps all losing wagers.
Sec. 3.  8 MRSA §371, sub-§4-D is enacted to read:
4-D.  Keno agent.  "Keno agent" means a nonprofit fraternal or veterans' organization 
that has been licensed under this chapter to sell lottery tickets for the game of keno on 
behalf of the State from the physical premises of the licensee's organization.
Sec. 4.  8 MRSA §371, sub-§7 is enacted to read:
7.  Veterans' organization.  "Veterans' organization" means an organization that 
provides services to veterans and their families that is chartered under 36 United States 
Code, Subtitle II, Part B, including posts or local offices of that organization.
Sec. 5.  8 MRSA §372, sub-§2, ¶D-1 is enacted to read:
D-1.  In accordance with this chapter and the rules adopted under this chapter, license 
as keno agents such organizations that, in the director's opinion, will best serve the 
member or public convenience and promote the sale of tickets for the game of keno. 
The director may require a bond from every licensed keno agent in such amount as 
provided by rule. Every licensed keno agent shall prominently display the keno agent's 
license, or a copy of the license, as provided by rule;
Sec. 6.  8 MRSA §374, first ¶, as amended by PL 2015, c. 96, §1, is further amended 
to read:
The commission shall meet with the director, not less than once each month, to adopt 
and amend rules, subject to the approval of the commissioner, relating to the lotteries; to 
make recommendations and set policy for state lotteries and to transact other business that 
may be properly brought before the commission.  A lottery under this section may include, 
but is not limited to, a draw game in which the prize paid to a winning player is calculated 
as a share of the prize pool.  A lottery may not include a draw game that has more than 5 
daily drawings and that pays a player a set prize amount based on the wager made by the 
player and in which the operator keeps all losing wagers, as with the draw game commonly 
known as keno a game of keno when operated pursuant to subsection 6.  Rules adopted by 
the commission must be adopted in a manner consistent with Title 5, chapter 375.
Sec. 7.  8 MRSA §374, sub-§6 is enacted to read:
6.  Game of keno.  The commission shall develop and initiate a game of keno designed 
to raise funds for a charitable purpose for a nonprofit fraternal or veterans' organization 
licensed pursuant to section 375, subsection 1-A. The sales commission paid to a keno 
agent for the sale of lottery tickets for the game of keno must be at least equal to the sales 
commission paid to agents for the sale of other draw game tickets. The commission shall 
adopt rules for the conduct of keno. To the extent possible, rules for the conduct of keno 
must be consistent with the rules adopted for other draw games under this chapter. Rules 
adopted pursuant to this subsection are routine technical rules pursuant to Title 5, chapter 
375, subchapter 2‑A.
Sec. 8.  8 MRSA §375, sub-§1-A is enacted to read:
1-A.  Factors; keno.  A license to sell lottery tickets for the game of keno may be 
issued by the director or the director's designee to any nonprofit fraternal or veterans' 
organization operating in this State.  Before issuing the license, the director or the director's 
designee shall consider at least the following factors:
A.  The financial responsibility and security of the organization or activity;
B.  The organization's fund-raising activity and expenditures;
C.  The accessibility of the organization's physical premises to its members and the 
public;
D.  The sufficiency of existing keno licensees to serve the organization's members or 
the public convenience; and
E.  The volume of expected sales.
Sec. 9.  8 MRSA §375, sub-§2, as amended by PL 2011, c. 310, §9, is further 
amended to read:
2.  Appeals.  If the director or the director's designee denies a person a license to sell 
lottery tickets or shares or denies a nonprofit fraternal or veterans' organization a license to 
sell lottery tickets for the game of keno, the person or a nonprofit fraternal or veterans' 
organization may appeal the decision to the commission by filing a written appeal with the 
commission within 15 days of the mailing of the decision.  A person or a nonprofit fraternal 
or veterans' organization aggrieved by a decision of the commission may appeal the 
commission's decision by filing a complaint with the District Court and serving a copy of 
the complaint upon the commission.  The complaint must be filed and served within 30 
days of the mailing of the commission's decision.
Sec. 10.  8 MRSA §376, sub-§1, as amended by PL 2011, c. 310, §10, is further 
amended to read:
1.  Reasons for suspension or revocation.  The director or the director's designee may 
suspend or revoke, after notice and hearing in a manner consistent with the Maine 
Administrative Procedure Act, any license issued pursuant to this chapter.  The license may 
be temporarily suspended by the director or the director's designee, pending any 
prosecution, investigation or hearing.  A license may be suspended or revoked by the 
director or the director's designee for just cause, including actions inconsistent with those 
considered appropriate for an agent or keno agent operating a business on behalf of the 
State, or one or more of the following reasons:
A.  Failure to account for tickets received or the proceeds of the sale of tickets or to file 
a bond, if required, or to comply with provisions of this chapter or rules adopted under 
this chapter concerning the licensed activity;
B.  Conviction of any criminal offense;
C.  Failure to file any return or report, to keep records or to pay any tax;
D.  Engaging in fraud, deceit, misrepresentation or conduct prejudicial to public 
confidence;
E.  Insufficiency of the number of tickets sold by a person licensed to sell lottery tickets 
or shares or sold by a nonprofit fraternal or veterans' organization licensed to sell lottery 
tickets for the game of keno; or
F.  A material change, since issuance of the license, with respect to any of the matters 
required to be considered by the director under section 375 or as defined by rules 
adopted under this chapter.
Sec. 11.  8 MRSA §377, as enacted by PL 1987, c. 505, §2, is amended to read:
§377.  Authority to act
Notwithstanding any other provision of law, any person licensed as provided in this 
chapter section 375, subsection 1 may act as a lottery sales agent and any nonprofit fraternal 
or veterans' organization licensed as provided in section 375, subsection 1-A may act as a 
keno agent.
Sec. 12.  8 MRSA §379, first ¶, as enacted by PL 1987, c. 505, §2, is amended to 
read:
No A person may not sell a ticket or share at a price greater than that fixed by rule of 
the commission.  No A person other than a licensed lottery sales agent may not sell lottery 
tickets or shares and a person, other than a licensed keno agent, may not sell lottery tickets 
for the game of keno, except that nothing in this section prevents any person from giving 
lottery tickets or shares to another as a gift.
Sec. 13.  8 MRSA §383, as corrected by RR 2023, c. 1, Pt. C, §40, is amended to 
read:
§383.  Deposit of receipts; reports
The director may require any lottery sales agents and keno agents to deposit to the 
credit of the State Lottery Fund in banks designated by the Treasurer of State all money 
received by the agents and keno agents from the sale of lottery tickets or shares, less the 
amount, if any, retained as compensation for the sale of tickets or shares, and to file with 
the director or the director's designated agents reports of their receipts and transactions in 
the sale of lottery tickets in such form and containing such information as the director may 
require.  The director may make such arrangements for any person, including a bank, to 
perform the functions, activities or services in connection with the operation of the lottery 
as the director determines advisable pursuant to this chapter and the rules of the 
commission, and those functions, activities or services constitute lawful functions, 
activities and services of that person.
SUMMARY
This bill authorizes the Director of Alcoholic Beverages and Lottery Operations to 
issue licenses to nonprofit fraternal or veterans' organizations to conduct a draw game, 
commonly known as keno, that has more than 5 daily drawings and that pays a player a set 
prize amount based on the wager made by the player and in which the operator keeps all 
losing wagers from that organization's physical premises. The bill directs the State Liquor 
and Lottery Commission to develop and initiate a game of keno designed to raise funds for 
a charitable purpose for a licensed nonprofit fraternal or veterans' organization and, to the 
extent possible, develop such rules in a manner consistent with the existing rules for the 
conduct of other licensed draw games.