Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.07-004 - Rule 2007-4: Charitable Bingo and Raffles

Current through Register Vol. 49, No. 6, June, 2024
This final rule is adopted under the provisions of Ark. Code
				Ann. §
								25-15-204,
				§
								26-18-101 et
				seq. and
Act 388 of 2007
, which is codified at Ark. Code Ann.
				§
								23-114-101, et seq.
				This rule is necessary to properly administer the provisions of
Act 388
				of 2007
regarding the operation of charitable bingo and raffles within
				the State of Arkansas.
A.
Definitions.
The following words and terms, when used in this
			 rule, shall have the following meanings:
1.
			 "Authorized organization" means an organization eligible for a license to
			 conduct games of bingo and raffles that is a nonprofit tax exempt religious,
			 educational, veterans, fraternal, service, civic, medical, volunteer rescue
			 service, volunteer firefighters organization or volunteer police organization
			 that has been in continuing existence as a nonprofit tax exempt organization in
			 this state for a period of not less than five (5) years immediately prior to
			 conducting the game of bingo or raffles. A nonprofit tax-exempt instrumentality
			 of the United States Government is a service agency for the purpose of this
			 definition;
2. "Bingo equipment"
			 means equipment and supplies used, made or sold for the purpose of use in
			 bingo. Bingo equipment shall include: a machine or other device from which
			 balls or other items are withdrawn to determine the letters and numbers or
			 other symbols to be called; a bingo face; a bingo ball and any other device
			 commonly used in the direct operation of a bingo game.
"Bingo equipment" is not intended and shall not be construed to
				permit the participants to play the game through any electronic device or
				machine or a pull-tab bingo ticket. Bingo equipment shall not include: a bingo
				game set commonly manufactured and sold as a child's game for a retail price of
				Twenty Dollars ($20) or less, unless the set or a part of the set is used in a
				game of bingo subject to regulation under this chapter; a commonly available
				component part of bingo equipment such as a light bulb or fuse. Bingo equipment
				does not include items not specifically designed for use in bingo such as:
				chairs, tables, lamps, or any other items that are not construed for use in
				bingo.
3. "Bingo Face"
			 means a disposable flat piece of paper that may be used one (1) time and that
			 cannot be reused after the game in which the bingo face was used has ended. The
			 bingo face is marked off into any number of squares in any arrangement of rows,
			 with each square being designated by number, letter or combination of numbers
			 and letters, and with one (1) or more squares designated as a "free" space with
			 the word "Arkansas" and a facsimile outline of a map of Arkansas on the
			 space.
4. "Bingo session" means all
			 activities incidental to the series of bingo games by a licensed authorized
			 organization, beginning when the first game of bingo of a bingo session is
			 commenced by calling the first bingo ball drawn. A bingo session shall not
			 exceed five (5) consecutive hours during any one (1) twenty-four-hour calendar
			 day.
5. "Charitable purpose" means
			 a purpose described by Ark. Code Ann. §
									23-114-504.
6. "Department" means the Arkansas Department
			 of Finance and Administration.
7.
			 "Director" means the Director of the Arkansas Department of Finance and
			 Administration.
8. "Distributor"
			 means a person or business entity that sells, markets, or otherwise provides
			 bingo equipment to a licensed authorized organization.
9. "Game of Bingo" means a game in which the
			 winning participant receives a pre-announced, fixed dollar prize. If the dollar
			 amount or value of the prize is unknown at the time the game of bingo is
			 commenced, the licensed authorized organization shall inform the bingo game
			 patrons that the prize will not exceed a certain dollar amount or value. The
			 winner is determined by the matching of letters and numbers on a bingo face
			 purchased by the winner, with letters and numbers appearing on objects randomly
			 drawn and announced by a caller, in contemporaneous competition among all
			 players in the game. A game of bingo is completed upon the announcement and
			 verification of a winning bingo face.
10. "Gross receipts" means the total amount
			 received from the sale of raffle tickets and the sale, transfer or use of bingo
			 faces and entrance fees charged at premises in which games of bingo or raffles
			 are conducted without any deduction on account of prizes paid, losses or any
			 other expenses whatsoever.
11.
			 "Licensed authorized organization" means an authorized organization that holds
			 a license issued by the Director to conduct games of bingo or
			 raffles.
12. "Manufacturer" means a
			 person or business entity that produces finished bingo equipment from raw
			 materials, supplies, or subparts and that sells, markets or otherwise provides
			 such equipment to a licensed distributor.
13. "Net receipts" means gross receipts minus
			 the reasonable and necessary expenses defined under paragraph AA of this
			 Rule.
14. "Person" means any
			 individual, company, partnership, limited liability company, joint venture,
			 joint agreement, association (mutual or otherwise), corporation, estate, trust,
			 business trust, receiver, trustee, syndicate or other private entity.
15. "Premises" means the area subject to the
			 direct control of and actual use by a licensed authorized organization to
			 conduct bingo games or raffles and shall include a location or place.
16. "Primary business office" means the
			 location within the state of Arkansas at which all records relating to the
			 primary purpose of a licensed authorized organization are maintained in the
			 ordinary course of business.
17.
			 "Raffle" means the selling of tickets to win a prize awarded through a random
			 drawing, provided that the term "raffle" shall not include any game played
			 through the use of a machine or electronic device.
18. "Responsible person" means the person or
			 persons within a licensed authorized organization that are responsible for
			 organizing, conducting and otherwise administering the licensed authorized
			 organization's raffles or bingo sessions.
19. "Taxpayer" means a distributor of bingo
			 equipment licensed under this rule.