CHAPTER 5. TYPE II GAMBLING OPERATIONS
IC 4-36-5
Chapter 5. Type II Gambling Operations
IC 4-36-5-1
Retailers authorized to offer type II gambling games and qualified
drawings; conduct of qualified drawings
Sec. 1. (a) A retailer may offer the sale of type II gambling games
in accordance with this article.
(b) A retailer's endorsement also authorizes a retailer to conduct
qualified drawings on the premises of the retailer's tavern. A
qualified drawing must be conducted in the manner required by this
section.
(c) A qualified drawing is subject to the following rules and
limitations:
(1) The purchase price for a chance to win a prize in a qualified
drawing may not exceed five dollars ($5).
(2) The total value of all prizes that may be won in a particular
qualified drawing may not exceed three hundred dollars ($300)
for any of the following:
(A) A daily drawing.
(B) A weekly drawing.
(C) A monthly drawing.
(3) A qualified drawing must be conducted in accordance with
the following limitations:
(A) Not more than one (1) daily drawing may be conducted
each day.
(B) Not more than one (1) weekly drawing may be
conducted each week.
(C) Not more than one (1) monthly drawing may be
conducted each month.
(D) Weekly drawings must be held on regular seven (7) day
intervals posted in the information required by subdivision
(11).
(E) Monthly drawings must be held on regular monthly
intervals posted in the information required by subdivision
(11).
A weekly or monthly drawing may be conducted on the same
day that a daily drawing is conducted.
(4) Except as otherwise provided in this section, a patron must
be present to claim a prize awarded in a qualified drawing.
(5) A retailer may not profit from conducting a qualified
drawing.
(6) All amounts wagered on qualified drawings must be
returned to a retailer's patrons in the form of prizes.
(7) A retailer may not conduct a qualified drawing or any other
event in which the winner of the prize is determined, in whole
or in part, by a sporting event.
(8) If no winning ticket is drawn in a qualified drawing, a
retailer may:
(A) carry the prize over to a later drawing in accordance
with this section; or
(B) continue drawing tickets until a winner is drawn.
(9) If a patron who purchased a winning ticket is not present to
claim a prize at the time of the qualified drawing, a retailer shall
hold the prize for the winning patron in accordance with the
rules of the retailer.
(10) In order to comply with subdivision (9), a retailer shall
obtain the name, address, and telephone number of each patron
who purchases a ticket for a qualified drawing.
(11) A retailer must conspicuously display the following
information concerning each qualified drawing conducted by
the retailer:
(A) The price of a ticket.
(B) The time of the drawing.
(C) The description and value of the prizes awarded in the
drawing.
(D) The manner in which a prize may be claimed.
(E) The rules of the retailer concerning the following:
(i) Qualified drawings in which no winning ticket is
drawn.
(ii) The period that the retailer will hold a prize for a
winning patron who was not present to claim the prize at
the time of the qualified drawing.
(12) Notwithstanding any other provision of this chapter, a
retailer must continue drawing tickets in a monthly drawing
until the retailer draws a ticket purchased by a patron who is
present to claim the prize.
(d) When the winning patron is not present at the time of the
qualified drawing to claim a prize, the retailer shall award the prize
in the following manner:
(1) The retailer shall immediately notify the winning patron by
telephone that the patron's name was drawn in a qualified
drawing and that the patron has the time permitted by the rules
of the retailer, which must be at least seventy-two (72) hours, to
claim the prize.
(2) The winning patron must appear at the retailer's premises
within the time permitted by the rules of the retailer to claim the
prize in person.
(3) The retailer shall verify the identity of the winning patron
and award the prize.
(e) This subsection applies when the rules of a retailer require the
retailer to carry over a prize when no winning ticket is drawn and
when a winning patron fails to claim a prize in the manner required
by subsection (d). The retailer shall carry the prize over to a later
qualified drawing as follows:
(1) An unclaimed prize from a daily drawing must be carried
over to the next daily drawing.
(2) Subject to the prize limits set forth in subsection (c)(2), a
retailer may carry over a prize under subdivision (1) not more
than fourteen (14) times. On the fourteenth calendar day to
which a prize has been carried over, the retailer must continue
drawing tickets until the retailer draws a ticket purchased by a
patron who is present to claim the prize.
(3) An unclaimed prize from a weekly drawing must be carried
over to the next weekly drawing.
(4) Subject to the prize limits set forth in subsection (c)(2), a
retailer may carry over a prize under subdivision (3) not more
than one (1) time. On the day that the retailer conducts a weekly
drawing for the carried over prize, the retailer must continue
drawing tickets until the retailer draws a ticket purchased by a
patron who is present to claim the prize.
(f) The following apply to a retailer that carries over a prize under
subsection (e):
(1) A retailer may conduct the daily drawing regularly
scheduled for a calendar day occurring during the time that the
retailer holds a prize for a winning patron who was not present
at the time of a qualified drawing.
(2) If an unclaimed prize from a daily drawing is carried over to
a particular date, the retailer may not conduct the regular daily
drawing that would otherwise be permitted under this section on
that date.
(3) If an unclaimed prize from a weekly drawing is carried over
to a particular date, the retailer may not conduct the regular
weekly drawing that would otherwise be permitted under this
section on that date.
(4) Subject to the prize limits set forth in subsection (c)(2), a
retailer may accept additional entries to a drawing for a carried
over prize.
As added by P.L.95-2008, SEC.13. Amended by P.L.108-2009,
SEC.18.
IC 4-36-5-2
Gaming restricted to taverns
Sec. 2. (a) A type II gambling game may be sold under this article
only on the premises of the retailer's tavern.
(b) Type II gambling games, raffles, and winner take all drawings
conducted under section 1(c) of this chapter may not be offered in
any part of the retailer's licensed premises in which a minor may be
present under IC 7.1-5-7-11(a)(16).
As added by P.L.95-2008, SEC.13. Amended by P.L.108-2009,
SEC.19.
IC 4-36-5-3
Type II gambling games must be acquired from a licensed
distributor
Sec. 3. (a) A retailer that obtains a type II gambling game must
obtain the type II gambling game from a distributor licensed by the
commission under this article.
(b) Except as provided in subsection (c), a distributor must obtain
at least twenty-five percent (25%) of the type II gambling games
purchased by the distributor from a manufacturer that is domiciled
in Indiana.
(c) The commission may excuse a distributor from the
requirement set forth in subsection (b) if the commission finds that
at least one (1) of the following conditions exists:
(1) No manufacturer domiciled in Indiana is licensed under this
article.
(2) No manufacturer domiciled in Indiana is in good standing
with the requirements of this article.
(3) All of the licensed manufacturers domiciled in Indiana also
hold distributor's licenses.
As added by P.L.95-2008, SEC.13.
IC 4-36-5-4
Financial record requirements
Sec. 4. (a) A retailer shall maintain accurate records of all
financial aspects of the retailer's type II gambling operation. A
retailer shall make accurate reports of all financial aspects of the type
II gambling operation to the commission within the time established
by the commission. The commission shall prescribe forms for this
purpose.
(b) As long as a retailer's receipts from the retailer's type II
gambling operation remain on the premises of the retailer's tavern,
the receipts may not be commingled with the receipts of the retailer's
alcoholic beverage sales, food sales, and other related nongambling
activities.
As added by P.L.95-2008, SEC.13.
IC 4-36-5-5
Prize limits
Sec. 5. (a) The total prizes awarded for one (1) type II gambling
game may not exceed five thousand dollars ($5,000).
(b) A single prize awarded for one (1) winning ticket in a type II
gambling game may not exceed five hundred ninety-nine dollars
($599).
(c) The selling price for one (1) ticket for a type II gambling game
may not exceed one dollar ($1). Tickets sold for less than one dollar
($1) must be sold for a price specified in section 6(b) of this chapter.
As added by P.L.95-2008, SEC.13.
IC 4-36-5-6
Minimum payouts
Sec. 6. (a) Except as provided in subsection (b), a type II
gambling game must pay out at least seventy-five percent (75%) and
not more than one hundred percent (100%) of the amount wagered.
(b) This subsection applies only to a type II gambling game ticket
that is sold for less than one dollar ($1). A type II gambling game
subject to this subsection must comply with the following minimum
payout percentages:
Purchase Price Minimum Payout Percentage
$0.10 60%
$0.25 65%
Three (3) tickets for one dollar ($1) 65%
$0.50 70%
(c) A type II gambling game's payout percentage must be stated on
the ticket or on the accompanying flare.
As added by P.L.95-2008, SEC.13. Amended by P.L.108-2009,
SEC.20.
IC 4-36-5-7
Individuals prohibited from playing type II gambling games
Sec. 7. The following persons may not play or participate in any
manner in a type II gambling game:
(1) An employee of the commission.
(2) A person less than twenty-one (21) years of age.
(3) The retailer offering the type II gambling game.
(4) A person employed by the retailer offering the type II
gambling game.
As added by P.L.95-2008, SEC.13.