TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.100 INTRODUCTION
Section 435.100 Introduction
This Part implements the
Charitable Games Act [230 ILCS 30] (hereafter referred to as "the
Act"), which was adopted by the General Assembly to allow not-for-profit
charitable, fraternal, labor, educational, veterans, local fraternal mutual
benefit and religious organizations to raise funds by conducting casino-type
gaming events. Other forms of licensed gaming, such as bingo and raffles, may
be played during an event. Licenses for these activities, however, must be
obtained. Licenses for bingo must be obtained from the Department, while
raffle licenses must be obtained from the county or municipal government
responsible for licensing. See the Raffles and Poker Runs Act [230 ILCS 15].
For persons familiar with the rules governing those activities, some of the
following charitable games rules are more restrictive than the bingo and raffle
rules. The reason is that the charitable games events authorized by the Act
are, to a much greater extent than bingo, subject to the abuses often
associated with gambling. In turn, these abuses are more likely to occur
because the amounts of money involved are potentially much greater, and the
bigger the pot, the greater the danger of involvement by criminal elements. In
bingo, the statutory prize limit effectively puts a ceiling on the amount of
money involved at any single bingo session. At charitable games events, if
cash prizes are used, chips, scrip or play money can be cashed in for currency
not to exceed $250 per person. No limit is imposed, however, on the total
amount of non-cash prizes. The General Assembly recognized the increased
potential for violations at charitable games events, and the Act is
consequently more restrictive in many ways than the Bingo License and Tax Act
[230 ILCS 25]. A few examples: eligibility for charitable games licenses is
more limited; the number of events allowed is much smaller; licensees must
notify local law enforcement authorities of their charitable games events; the
Illinois Department of Revenue (Department) may summarily suspend charitable
games licenses before hearings are held; record keeping requirements are more
detailed; and the criminal penalties for violation of the Act are much more
severe (a second violation of the Act constitutes a felony). In addition, any
person who violates any provision of the Act or knowingly violates any rule of
the Department for the administration of the Act is, in addition to other
penalties, subject to a civil penalty in the amount of $250 for each separate
violation. The rules that follow reflect the statutory mandate. Organizations
applying for licenses must understand that their failure to comply fully with
this Part and to cooperate with the Department's investigative efforts will
inevitably mean that long-planned charitable games events will have to be
postponed, or even cancelled. At the same time, it is the Department's policy
to do everything possible to assist qualified organizations in obtaining
licenses and afford these organizations every opportunity to hold a successful
fundraiser. Applicants and licensees may visit the Office of Bingo and
Charitable Games at 101 W. Jefferson Street, Springfield, Illinois 62702 or
contact us with any questions,
By mail: P.O. Box 19480,
Springfield, Illinois 62794-9480
By phone: (217) 558-7425 or
(217) 785-3707
By email: rev.bptcg@illinois.gov.
Finally, the Act and this Part
are designed to regulate who may be licensed, where and when charitable games
events may be played, and what records must be kept of the funds raised.
Licensees who suspect that they are being defrauded by players or workers, or
that money is being stolen, should immediately contact the Department's Bureau
of Criminal Investigations at (800) 243-2811.
(Source: Amended at 48 Ill. Reg. 6075, effective April 2, 2024)
 | TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.110 DEFINITIONS
Section 435.110 Definitions
As used in this Part, the terms
listed below are defined as follows:
"Act":
The Charitable Games Act [230 ILCS 30].
"Charitable
games": The 14 games of chance involving cards, dice, wheels, random
selection of numbers, and gambling tickets enumerated in Section 435.160
that may be conducted at charitable games events. Only the following
games may be conducted at a charitable games event: roulette, blackjack,
poker, pull tabs, craps, bang, beat the dealer, big six, gin rummy, five card
stud poker, chuck-a-luck, keno, hold-em poker, and merchandise wheel. (Section
2 of the Act)
"Charitable
games equipment": Any supplies, devices, equipment, products or materials
designed for use or used in the playing of charitable games, including, but not
limited to, cards, dice, pull tabs and any related type of gambling ticket,
chips, representations of money, and wheels.
"Charitable
games event" or "event": The type of fundraising event
authorized by the Act at which participants pay to play charitable games for
the chance of winning cash or noncash prizes, and which may be conducted
only on the date stated on a license issued by the Department (Section 2 of the
Act).
"Charitable
games license": A license to conduct charitable games issued under Section
435.120, including any renewed or amended license issued under Section 435.120.
"Charitable
organization": An
organization or institution organized and operated to benefit an indefinite
number of the public. (Section
2 of the Act)
"Chips":
Scrip, play money, poker or casino chips, or any other representations of
money, used to make wagers on the outcome of any charitable game. (Section
2 of the Act)
"Consultant
company": Any person, as defined in this Section, that is hired by or on
behalf of a licensed organization to perform services at the event (other than
management or operation of the event), including, but not limited to, security
for persons or property at the event (other than for the charitable games
equipment and money, chips or scrip used in the conducting of charitable
games), or to perform services before the event, including, but not limited to,
training for volunteers or advertising. "Consultant companies"
include, for instance, "party planners" who plan an event for a
licensed organization by locating and securing qualified suppliers and
providers on behalf of the licensed organization, or who assist a licensed organization
in planning a hosted casino night that is not open to the public (e.g., an
event open to only a corporation and its clients that is hosted by the licensed
organization and in return for which a donation is made to the licensed
organization).
"Currency":
Coin, checks, marketable securities, or any other similar item that can be
readily redeemed or converted into legal tender.
"Department":
The Illinois Department of Revenue (Section 2 of the Act).
"Educational
organization": An organization or institution organized and
operated to provide systematic instruction in useful branches of learning by
methods common to schools and institutions of learning that compare
favorably in their scope and intensity with the course of study presented in
tax-supported schools (Section 2 of the Act). For purposes of the
Act, a public school or school district is not considered an educational
organization.
"Fraternal
organization": An organization of persons, including but not
limited to ethnic organizations, having a common interest, organized and
operated exclusively to promote the welfare of its members and to benefit the
general public on a continuing and consistent basis (Section 2 of the Act).
"Holiday":
Any of the holidays listed in Section 17 of the Promissory Note and Bank
Holiday Act [815 ILCS 105].
"Ineligible organization": An
organization that is ineligible for any license under the Act and Section
435.150.
"Labor
organization": An organization composed of labor unions or workers
organized with the objectives of betterment of the conditions of those engaged
in such pursuit and the development of a higher degree of efficiency in their
respective occupations (Section 2 of the Act).
"License
year": The two-year period beginning on the date a charitable games
license, or the renewal of a charitable games license, is effective under the
Act. The licensure date is stated on the license or renewed license.
"Licensed
organization": A qualified organization that has obtained a charitable
games license under Section 435.120
(Section 2 of the Act).
"Management or operation" of an
event includes, but is not limited to:
selling admission tickets or pull tabs at the
event; selling or redeeming or in any way assisting in the selling or redeeming
of chips; or participating in the conducting of any games played at the event
or acting as a supervisor or pit boss of a person conducting the games;
conducting a game, which includes, but is not
limited to, dealing cards in poker or other card games, spinning the roulette
wheel, turning the chuck-a-luck cage, or acting as a croupier;
counting or handling, or supervising anyone
who counts or handles, any of the proceeds or chips at the event;
being present at the event to ensure that the
games are being conducted in conformance with the rules established by the
licensed organization or to ensure that the equipment is working properly; and
providing security for the charitable games
equipment, the chips used in the conducting of charitable games, or money at
the event.
"Management or operation"
of an event does not include setting up, cleaning up, selling food and drink,
or providing security either for persons or property at the event (other than
for the charitable games equipment or chips used in the conducting of
charitable games).
"Non-profit
organization": An organization or institution organized and
conducted on a not-for-profit basis with no personal profit inuring to anyone
as a result of the operation
(Section 2 of the Act).
"Organization":
A corporation, agency, partnership, association, firm, business or other
entity consisting of two or more persons joined by a common interest or purpose
(Section 2 of the Act).
"Person":
Any natural individual, corporation, partnership, limited liability company,
organization as defined in this Section, qualified organization, sponsoring
organization, licensed organization, or volunteer (Section 2 of the
Act).
"Premises":
A distinct parcel of land and the buildings thereon (Section 2 of the
Act). Premises may also include a boat upon which charitable games are
being played, provided that documentation required by the Department regarding
the location and identification of the boat is submitted with the application.
"Provider":
Any person or organization owning, leasing, or controlling premises upon
which any charitable game event is to be conducted (Section 2 of the Act).
"Qualified
organization": An organization that:
is not an ineligible organization;
is a bona fide
charitable, religious, fraternal, veterans, labor or educational
organization that is exempt from federal income taxation under sections
501(c)(3), (c)(4), (c)(5), (c)(8), (c)(10) or (c)(19) of the Internal Revenue
Code; a veterans organization as defined in Section 1.1 of the Bingo License
and Tax Act [230 ILCS 25]; an auxiliary organization of a veterans
organization; or a local fraternal mutual benefit organization;
is organized in Illinois (Section 2 of the Act);
is a non-profit organization; and
except in the
case of a local fraternal mutual benefit organization, has been in existence
in Illinois continuously for a period of 5 years immediately before making
application for a license and which has had during that 5-year period a bona
fide membership engaged in carrying out its objects. The 5-year period is
reduced to 2 years in the case of a local organization that is affiliated with
and chartered by a national organization that meets the 5-year requirement.
To be chartered by a national organization, an Illinois organization must have
a document issued by the national organization formally authorizing the
establishment of the Illinois organization. The period of existence
specified in this subparagraph shall not apply to an organization, organized
for charitable purposes, created by a fraternal organization that meets the
existence requirements if the charitable organization has the same officers and
directors as the fraternal organization. Only one charitable organization
created by a branch lodge or chapter of a fraternal organization may be
licensed under this provision. In the case of a local fraternal mutual
benefit organization, the organization must be chartered at least 40
years before it applies for a license under the Act. (Section 3 of the Act)
"Religious
organization": Any church, congregation, society, or organization
founded for the purpose of religious worship (Section 2 of the Act).
"Sponsoring
organization": A qualified organization that has obtained a license to
conduct a charitable games event in conformance with the provisions of the Act
(Section 2 of the Act).
"Supplier":
Any person, firm, or corporation that sells, leases, distributes or
otherwise provides to any licensed organization any charitable games equipment (Section
2 of the Act).
"Veterans'
organization": An organization comprised of members of which
substantially all are individuals who are veterans, or spouses, widows, or
widowers of veterans, the primary purpose of which is to promote the welfare of
its members and to provide assistance to the general public in such a way as to
confer a public benefit (Section 2 of the Act).
"Volunteer":
A person who, without consideration, performs services at a
charitable games event for the benefit of a licensed organization,
including participation in the management or operation of a game under Section
435.170(b) (Section 2 of the Act).
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.120 CHARITABLE GAMES LICENSES
Section 435.120 Charitable
Games Licenses
a) Licenses
1) In General
A) Except as otherwise provided, no
person may conduct charitable games without having in its possession a valid
charitable games license issued by the Department. In addition, a licensed
organization may conduct charitable games only on the date, during the hours,
and (except as provided in subsection (a)(4)) at the location stated on the
license.
B) A charitable games license will be
issued for as many as four events during a license year. A charitable games
event is considered to be a one-date event (beginning no earlier than noon of
one day and concluding no later than 2 a.m. on the following day). These dates
may be consecutive or separate, or a combination of both.
C) A licensed organization may hold
only one charitable games license. (Section
3 of the Act) A license is not assignable or transferable. (Section 4(8)
of the Act)
D) The Department shall issue a
charitable games license only upon:
i) submission of an application in the
form and manner provided in this Section;
ii) payment of a nonrefundable fee of $400
in the form of a check or money order payable to the Illinois Department of
Revenue; and
iii) a determination by the Department
that the applicant is a qualified organization.
E) Unless renewed or extended as
provided in subsection (a)(3) and (a)(5), a charitable games license shall be
valid only for the two-year period beginning with the effective date stated on
the license. However, as provided in Section 435.200, the Department may
suspend or revoke a license prior to the expiration of the two-year period.
2) Application.
At least 30 days prior to the date or dates an organization wishes to conduct
charitable games, the organization must submit to the Department an application
for a charitable games license. The Department may issue a license to an
organization that applies less than 30 days prior to the date or dates the
licensee wishes to conduct the games if all other requirements of the Act are
met and the Department has sufficient time and resources to issue the license
in a timely manner. (Section 3 of the Act) Application for a license shall
be made on the forms prescribed by the Department and must contain the
following information:
A) A sworn
statement attesting to the not-for-profit character of the prospective licensee
organization, signed by a person listed on the application as an owner,
officer, or other person in charge of the necessary day-to-day operations of
that organization. (Section 4(1) of the Act)
B) Documentary
evidence sufficient to show that the organization is a qualified organization. The
documentation (bylaws, constitution, charter, minutes of past meetings,
promotional material and articles of incorporation) should prove that the
organization has been carrying out its objectives for the requisite period
preceding the application.
C) Any other
information requested by the Department necessary to establish the eligibility
of the organization for a license, including a copy of the determination letter
or other document issued to the organization by the Internal Revenue Service
showing that the organization is currently exempt from federal income taxation
under section 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8), 501(c)(10) or
501(c)(19) of the Internal Revenue Code.
D) Information
concerning all of the members, volunteers and employees of the organization who
will participate in the management or operation of the charitable games events
to be conducted under the license. This information shall include the names,
addresses, social security numbers and dates of birth of all persons who will
participate in the management or operation of the games, along with a sworn
statement made under penalty of perjury, signed by the presiding officer and
secretary of the applicant, that the persons listed as participating in the
management or operation of the games are bona fide members, volunteers or
employees of the applicant, that to the best of his or her knowledge these persons
have not participated in the management or operation of more than 12 charitable
games events conducted by any licensed organization in the calendar year, and
that these persons will receive no remuneration or compensation, directly or
indirectly, from any source, for participating in the management or operation
of the games. Any amendments to this listing, including a list of additional
members, volunteers and employees who will participate in the management or
operation of the charitable games events, must contain an identical sworn
statement. If, from the information provided, the Department cannot determine
with reasonable certainty that a member, volunteer or employee does not have a
criminal record that would make the organization ineligible for a license under
Section 435.150, the Department will require the member, volunteer or employee
to submit to fingerprinting in order to make a more certain determination as to
the lack of a criminal history of the member, volunteer or employee.
Information concerning additional members, volunteers and employees must be
received by the Department in writing at least 3 days before the event and must
contain all the information required in this subsection (a)(2)(D).
3) Renewals
A) In General.
At least 30 days prior to the expiration of its current license (but no earlier
than 60 days), an organization holding a valid license may apply for renewal of
its license in the manner provided in this subsection (a)(3). A license so
renewed shall be considered a valid license for the two-year period beginning
on the effective date stated on the renewed license.
B) Notice of
License Renewal. Upon payment of a nonrefundable fee of $400, in the form of a check or money order
payable to the Department, and a determination by the
Department that the organization remains a qualified organization eligible for
a license, the Department shall issue the organization a renewed license. An
organization may not conduct charitable games at any time following the
expiration of its license without having been issued a renewed license.
C) Application
for Renewal. Application for renewal shall be made on the forms prescribed by
the Department and must contain the following information:
i) A
sworn statement attesting to the not-for-profit character of the prospective
licensee organization, signed by a person listed on the application as an
owner, officer, or other person in charge of the necessary day-to-day
operations of that organization. (Section 4(1) of the Act)
ii) A
statement of the names, addresses, social security numbers and dates of birth
of all persons who will participate in the management or operation of the games
not previously provided to the Department under this subsection (a)(3)(C)(ii)
or under subsection (a)(2)(D), plus a statement that information previously
provided to the Department under subsection (a)(2)(D) regarding the persons who
will participate in the management or operation of the games remains unchanged,
plus a sworn statement made under penalty of perjury, signed by the presiding
officer and secretary of the applicant, that the persons who will participate
in the management or operation of the games are bona fide members, volunteers
or employees of the applicant, that to the best of his or her knowledge these
persons have not participated in the management or operation of more than 12 charitable
games events conducted by any licensed
organization in the calendar year, and that these
persons will receive no remuneration or compensation, directly or indirectly,
from any source, for participating in the management or operation of the games.
Any amendments to this listing, including a list of additional members,
volunteers and employees who will participate in the management or operation of
the charitable games events, must contain an identical sworn statement. If,
from the information provided, the Department cannot determine
with reasonable certainty that a member, volunteer or employee does not have a
criminal record that would make the organization ineligible for a license under
Section 435.150, the Department will require the member, volunteer or employee
to submit to fingerprinting in order to make a more certain determination as to
the lack of a criminal history of the member, volunteer or employee.
Information concerning additional members, volunteers and employees must be
received by the Department in writing at least 3 days before the event and must
contain all the information required in this subsection (a)(3)(C)(ii).
iii) Any other
information requested on the form supplied by the Department necessary to
establish the continued eligibility of the organization for a charitable games
license.
4) Amended License.
Upon submission by a licensed organization of a written request, the Department
may issue the organization an amended license that changes the location, day or
time in which the licensed
organization is authorized to conduct charitable
games. In the case of a request to change the location, the requirements of subsection
(a)(1)(B) apply. An organization may not conduct charitable games at the new
location, date, or time without having in its possession the amended regular
license. If a licensee wishes to
conduct games at a location other than the locations originally specified in
the license, the licensee shall submit the written request at least 30 days
before the night on which the licensee wishes to conduct games at the alternate
location. The Department may accept an applicant's change in location with less
than 30 days' notice if all other requirements of the Act are met and the
Department has sufficient time and resources to process the change in a timely
manner. (Section 3 of the Act)
5) Extensions.
The Department may grant an extension of a charitable games license beyond the
period for which the license is otherwise effective (but not to exceed one
year), provided that an application for renewal of the license has been first
submitted to the Department in accordance with subsection (a)(3).
b) Upon receipt of a charitable games license, including any
renewed or amended license, the licensed organization shall file a copy of
the license with each police department or, if in an unincorporated area, each
sheriff's office whose jurisdiction includes the premises on which the
charitable games events are authorized under the license (Section 4(4) of
the Act).
c) The Department will not issue a charitable games license for
an event to be held in a municipality if the municipality or county has adopted
an ordinance prohibiting such events and has filed a copy of the ordinance with
the Department.
d) A licensed organization must notify the Department of a change
in officers within 30 days after the change. Notification must include the
name, address, social security number, date of birth, sex and daytime telephone
number of the officer. In addition, the presiding officer and secretary will be
required to sign an amended application.
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.130 SUPPLIER'S LICENSE
Section 435.130 Supplier's
License
a) In General. No person shall sell, lease, lend,
distribute or otherwise provide to any organization licensed to conduct
charitable games events in Illinois any charitable games equipment, without
having first obtained a supplier's license to do so from the
Department except as provided in subsection (h) (Section 6 of the Act).
1) No licensed supplier under the Act shall lease, lend, or
distribute charitable gaming equipment, supplies, or other devices to persons
not otherwise licensed to conduct charitable games under the Act (Section 6
of the Act). To ensure that the organization to whom equipment is sold,
leased, lent or distributed is licensed for charitable gaming, the supplier
shall obtain from the organization and retain among his or her books and
records a copy of the organization's license showing the license number,
expiration date and event date for which the equipment was sold, leased, lent
or distributed.
A) All charitable games
equipment shall be kept segregated and separate from any other products,
materials or equipment that the supplier might own, sell or lease (Section 6 of the Act), and the supplier
shall inform the Department of the exact location of the storage of all
charitable games equipment in the supplier's possession.
B) No supplier shall sell,
lease or distribute to any licensed organization any item of charitable games
equipment not included on the list (or any amendments to the list) described in
subsection (b)(1), nor shall any supplier sell, lease or distribute to any
charitable games licensed organization any item of charitable games equipment
at a price other than the price on file with the Department. Changes in price
must be reported to the Department 30 days prior to the change.
C) Suppliers may deliver
equipment to a licensed organization up to one day before the date of the
scheduled event, if the contract with the licensed organization specifies an
early delivery date. Delivery is authorized only when the supplier delivers the
equipment to a secured location (e.g., a location where access is restricted to
the licensed organization with whom the supplier has contracted).
2) A
licensed organization may purchase charitable games equipment only from a
person that possesses a valid supplier's license issued by the Department.
3) A supplier's license
shall not be issued to an ineligible organization.
4) Unless
extended as provided in this Section, an annual supplier's license shall be
valid only for the one-year period beginning with the effective date stated on
the license, and a triennial supplier's license shall be valid only for the
three-year period beginning with the effective date stated on the license.
However, as provided in Section 435.200, the Department may suspend or revoke a
supplier's license prior to the expiration of the one or three year period.
5) The
Department may extend a supplier's license beyond the period for which the
license is otherwise effective (but not to exceed one year), provided that an application
for a license with respect to the period covered by the extension has first
been submitted to the Department in accordance with subsection (b).
b) Applications. Application for a supplier's license must be
made on the form and in the manner provided by the Department, and must contain
such information or documentation as the Department may require to show that
the applicant is not an ineligible organization. Applications for an annual
license must be accompanied by a nonrefundable license fee of $500 in the form of a check or money order
payable to the Illinois Department of Revenue. Applications for a triennial
license must be accompanied by a nonrefundable license fee of $1,500 in the
form of a check or money order payable to the Illinois Department of Revenue.
1) Along with the application form, the applicant must submit a
list of all charitable games equipment offered for sale, lease or distribution
to any charitable games licensed organization, and the sales and/or rental
price for all such equipment, including, if applicable, the price of equipment
rented as part of a package deal.
2) Any change in officers
or directors, or partners, members or stockholders owning at least 10% of the
shares or interests of a licensed organization must be reported to the
Department within 30 days after the change. If ownership of a licensed
organization is changed, a new application must be submitted to the Department
(e.g., a corporate licensed organization is merged into a different
corporation).
c) Within 20 days after the end of any calendar quarter during
which a supplier's license is in effect, the supplier shall file a return with
the Department listing all sales and leases of charitable games equipment for
such quarter, the gross proceeds derived from each such sale or lease, and the
event dates for which equipment was sold, leased, lent or distributed.
d) The following general provisions apply to all licensed
suppliers:
1) A supplier shall not alter or modify any charitable games
equipment, or possess any charitable games equipment so altered or modified, so
as to allow the possessor or operator of the equipment to obtain a greater
chance of winning a game other than as under normal rules of play of such games
(Section 6 of the Act). Any charitable games equipment so altered or modified
shall be confiscated by the Department.
2) A supplier shall permit Department employees to enter the
supplier's premises to inspect and test all charitable games equipment
(Section 6 of the Act).
3) A supplier shall not receive a percentage of the proceeds
or admission fees from any charitable games event (Section 6 of
the Act).
4) No employee, owner, partner, officer or agent of a supplier
may recruit or provide volunteers for a licensed organization.
5) No employee, owner, partner, officer, or agent of
a supplier may participate in the management or operation of any charitable
games event, even if the employee, owner or officer is
also a member, volunteer, or employee of the charitable games licensee (Section
6 of the Act). The supplier may provide training classes and consulting service
prior to the events, and it may have one representative present at the event to
ensure its equipment is not damaged.
6) A supplier shall not have any interest, direct or indirect,
in the business of any person, firm, or corporation licensed under the Act to
provide premises for the conduct of charitable games (Section 6 of the
Act).
7) A supplier may not promote or solicit a charitable games
event on behalf of a charitable games licensee or qualified organization
(Section 6 of the Act). For instance, suppliers may not maintain or operate
hotlines, websites or newsletters that advertise game dates or locations, nor
may they recruit qualified organizations to host events.
8) No corporation, firm, agency or partnership, in which an
owner, officer, partner, agent or employee of a supplier holds any interest,
direct or indirect, shall promote, advertise, announce or solicit charitable
games events on behalf of a charitable games licensed organization or qualified
organization.
e) A supplier shall permanently affix his name to all
charitable games equipment, supplies and pull tabs he or she sells,
leases or rents (Section 6 of the Act).The name shall be plainly visible to
the public while any item of charitable games equipment is being used for the
purpose for which it was intended at a charitable games event. The supplier's
name shall be affixed to any box or other package containing unopened pull tab
or break open tickets, and to any promotional cards, or "flares".
f) Suppliers may not enter into agreements not to compete in
certain geographic areas with other suppliers.
g) A supplier shall keep books and records for the furnishing
of charitable games equipment separate and distinct from any other business the
supplier might operate (Section 6 of the Act). A supplier shall maintain
all such books and records, including the documentation required by this
Section, for a period of at least three years and must allow inspection of the
books and records by agents or employees of the Department during reasonable
business hours.
h) Organizations licensed to conduct charitable games may own
their own equipment. Such organizations must apply to the Department for an
ownership permit. Any such application must be accompanied by a one-time,
nonrefundable fee of $50. Such organizations shall file an annual report
listing their inventory of charitable games equipment. Such organizations may
lend such equipment without compensation to other licensed organizations
without applying for a supplier's license. (Section 6 of the Act) The
one-time, nonrefundable fee of $50 shall be in the form of a check or money
order payable to the Department.
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.140 PROVIDER'S LICENSE
Section 435.140 Provider's
License
a) In General
1) Except as provided in this Section, any person owning, leasing
or controlling premises upon which any charitable games event is to be
conducted must first obtain a license to provide the premises for the
charitable games event.
A) A licensed provider, other than a municipality, may not
provide the same premises for conducting more than 12 charitable games nights
per calendar year. A municipality may provide the same premises for conducting 48
charitable games nights during a 12 month period. (Section 5 of the Act)
B) A provider is authorized to provide premises for charitable
gaming only for organizations that have been duly licensed by the Department.
To ensure that the organization is duly licensed, the provider shall obtain
from the organization a copy of its charitable games license, and shall retain
this documentation in its books and records.
2) A provider's license shall not be issued to an ineligible
organization.
3) Unless extended as provided in subsection (a)(4), an annual
provider's license shall be valid only for the one-year period beginning with
the effective date stated on the license, and a triennial provider's license
shall be valid only for the three-year period beginning with the effective date
stated on the license. However, as provided in Section 435.200, the Department
may suspend or revoke a provider's license prior to the expiration of the one-
or three-year period.
4) The Department may extend a provider's license beyond the
period for which the license is otherwise valid (but not to exceed one year),
provided that an application for a license with respect to the period covered
by the extension has been first submitted to the Department in accordance with
subsection (b), and provided that the person is otherwise eligible to hold a
license.
b) Applications. Application for a provider's license must be
made on the form provided by the Department. Applications for an annual
license must be accompanied by a nonrefundable license fee of $50 in the form
of a check or money order payable to the Illinois Department of Revenue. Applications
for a triennial license must be accompanied by a nonrefundable license fee of
$150 in the form of a check or money order payable to the Illinois Department
of Revenue. Any change in officers or directors, or partners, members, or
stockholders owning at least 10% of the shares or interests of a licensed
organization, must be reported to the Department within 30 days after the
change. If ownership of a licensed organization is changed, a new application
must be submitted to the Department (e.g., a corporate licensed organization is
merged into a different corporation).
c) A licensed organization may rent, lease or borrow premises on
which to conduct charitable games only from an organization possessing a valid
provider's license.
d) A licensed organization may conduct a
charitable games event on premises it owns, or at which it has its
principal office or conducts activities for which it was organized, without
first obtaining a provider's license. In addition, the licensed organization may
obtain a provider's license in accordance with this Section to allow it
to rent or otherwise provide its premises to another licensed organization for
the conducting of an additional 4 charitable games events. However,
in no event shall a premises be used for the conducting
of more than 12 events per calendar year, even if one or more
licensed organizations owns, has its principal office in, or conducts
activities for which it was organized in that premises. (Section 5.1 of the
Act)
e) A provider may receive reasonable compensation for the
provision of the premises (Section 5 of the Act). Any arms-length
agreement as to rent between a provider and a charitable games licensed
organization shall be presumed to be reasonable, provided both parties are in
full compliance with all provisions of this Section.
f) A provider shall not have any interest in any supplier's
business, either direct or indirect. No employee, officer, partner, agent,
or owner of a provider may participate in the management or operation of a
charitable games event, even if the employee, officer, partner, agent,
or owner is also a member, volunteer or employee of the charitable games
licensee, and regardless of whether compensated. (Section 5 of the Act)
g) A provider may not promote or solicit a charitable games
event on behalf of a charitable games licensee or qualified organization
(Section 5 of the Act). For instance, a provider may not maintain or operate a
hotline, website or newsletter advertising the time and date of games. However,
a marquis located on the provider's premises which indicates that a licensed
organization is hosting a charity gaming night is permissable. A provider may
not recruit a qualified organization for an event.
h) The provider's books and records relating to the provision of
premises for charitable games events, including the documentation required by
subsection (a)(1)(B), shall be maintained for a period of three years after the
expiration of a license issued pursuant to this Section and shall be available
for inspection by agents or employees of the Department during reasonable
business hours.
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.150 INELIGIBLE ORGANIZATIONS
Section 435.150 Ineligible
Organizations
a) The following are ineligible for any license under the Act:
1) Any person who has been convicted of a felony within the
last 10 years prior to the date of the application;
2) Any person who has been convicted of a violation of Article 28
(Gambling) of the Criminal Code of 1961 or the Criminal Code of 2012 [720 ILCS
5/Art. 28];
3) Any person who has had any license issued
under the Bingo License and Tax Act [230 ILCS 25], Illinois Pull Tabs
and Jar Games Act [230 ILCS 20] or Charitable Games Act [230 ILCS
30] revoked by the Department;
4) Any person who is or has been a professional gambler;
for example, one who has declared himself to be a professional gambler on an
income tax return, or who has been convicted of a gambling offense in another
jurisdiction;
5) Any person found gambling in a manner not authorized
by the Act, the Illinois Pull Tabs and Jar Games Act, or the Bingo License and
Tax Act, participating in such gambling, or knowingly permitting such gambling
on premises where an authorized charitable games event is authorized to be or
has been conducted. These acts are deemed to have been committed by a
person when any determination issued by the Department (e.g., fine, suspension
or revocation) regarding these events has become final;
6) Any organization in which a person defined in subsection
(a)(1), (2), (3), (4) or (5) has a proprietary, equitable or credit interest,
or in which the person is active or employed;
7) Any organization in which a person defined in
subsection (a)(1), (2),(3), (4) or (5) is an officer,
director, or employee, whether compensated or not;
8) Any organization in which a person defined in subsection
(a)(1), (2), (3), (4) or (5) is to participate in the
management or operation of charitable games (Section 7 of the Act);
9) Any unlicensed person engaging in any activities required to
be licensed under the Act. These acts are deemed to have been committed when
any determination issued by the Department (e.g., fine, confiscation) regarding
these events has become final;
10) Any person submitting any application, supporting
documentation, return or report containing statements the person knows, or
should know, to be false;
11) Any person who, when required pursuant to the Act or this
Part, has failed to file or submit any report, return, application or
documentation, or that has failed to pay any fee, tax, penalty or interest due
the Department for any period during which the person has a valid license
issued under the Act;
12) Any person that fails to file a return, or to pay the tax,
fee, penalty or interest shown in a filed return, or to pay any final
assessment of tax, fee, penalty or interest, as required by any other
tax or fee Act administered by the Department. [20 ILCS
2505/2505-380].
b) The ineligibility of a person under subsection (a)(6), (7) or
(8) shall continue so long as any person defined in subsection (a)(1), (2),
(3), (4) or (5) maintains with the person a relationship causing
ineligibility. The ineligibility of a person under subsection (a)(9) shall continue
for a period of five years from the date the unlicensed activities were
discontinued. The ineligibility of a person under subsections (a)(2), (3), (4),
(5) and (10) is permanent. The ineligibility of a person under subsections
(a)(11) and (12) shall continue until the required information has been
provided, the amounts owed the Department have been paid, or arrangements for
payment have been made with the Department.
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.160 OPERATION OF CHARITABLE GAMES EVENTS
Section 435.160 Operation of
Charitable Games Events
a) Only the following games may be conducted at a charitable
games event: roulette, blackjack, poker, pull tabs, craps, bang, beat the
dealer, big six, gin rummy, five card stud poker, chuck-a-luck, keno, hold-em
poker, and merchandise wheel. A licensed organization need not conduct every
game permitted. The licensed organization shall promulgate rules, and make
printed copies available to participants, for the games conducted at the charitable
games event (Section 8(15) of the Act). However, the games, as played at a
charitable games event, must be recognizable from the following general
descriptions of these games: Craps, bang, beat the dealer, and chuck-a-luck
are dice games. "Craps" involves players rolling a pair of dice in
an effort to throw certain combinations of numbers paying various odds.
Several rolls may be necessary to determine whether a player has won or lost.
"Bang" is similar to craps but with fewer relevant combinations, and
a decision is reached on each roll of the dice. In "beat the dealer"
the player attempts to throw a higher total on two dice than the dealer.
"Chuck-a-luck" uses three dice with players wagering on whether
particular spots will appear on one or more of the dice. Roulette, big six,
and merchandise wheel are wheel games. "Roulette" uses a wheel,
usually separated into 38 numbered compartments into which a ball drops at
random, and wagers are made regarding several variables in the outcome of a spin
of the wheel. "Big six" uses a sectioned wheel on which are pictured
various combinations of three dice, and wagers are made on whether particular
spots will appear in the combination that is chosen at random by spinning the
wheel. "Merchandise wheels" have numbers, symbols or colors used to
designate the winning wager and, where applicable, the type of merchandise to
be awarded. Blackjack, gin rummy, poker, hold-em poker, and five card stud
poker are card games and must be played substantially according to the
description of such games found in Hoyle's Modern Encyclopedia of Card Games by
Walter B. Gibson, published by Doubleday and Company, Inc., April 1974, 1st
Edition, hereby incorporated by reference (no later editions or amendments are
included). However, a house dealer must be provided for all card games played
at an event. These dealers are considered to participate in the management and
operation of the games, and must be a bona fide employee, member, or volunteer
recruited by the licensed organization. Keno is a lotto-type game, similar to
bingo, in which a player, to win, must select numbers on a card which
correspond to numbers drawn at random from a container. A pull tab, or similar
type of gambling ticket, is a single-folded or banded ticket, or is a card, the
face of which is initially covered or otherwise hidden from view to conceal a
number, symbol, or set of symbols, some of which are winners. Players receive
from the licensed organization the prize for a winning ticket, which is stated
on the promotional display or "flare". No cards, dice, wheels or
other charitable games equipment may be modified or altered so as to give the
licensee a greater advantage in winning, other than as provided under the
normal rules of play of a particular game (Section 8 of the Act). Any
charitable games equipment so altered or modified shall be confiscated by the
Department. No single bet at any game shall exceed $20. (Section 8(4)
of the Act)
b) Only chips may be used to play any of the games
listed in subsection (a). Cash may never be used to wager on any of the games
conducted at any charitable games event. All chips must be permanently monogrammed
with the license number or logo of the sponsoring organization or of the
supplier (Section 8(5) of the Act). Sponsoring organizations may, at their
discretion, accept checks or credit cards as payment for chips. However, such
checks must be endorsed by the sponsoring organization. Proceeds from credit
cards must be maintained as provided in Section 435.190.
1) Chips must be sold and redeemed at a single, stationary
location on the premises where the charitable games event is conducted. This
area shall be known as the "bank". (See Section 8(5) of the Act.)
The bank must be staffed entirely by members, volunteers or employees of the
sponsoring organization, who will be required to account for all transactions.
No "floor sellers" or "runners" are allowed. For each
participant, the sponsoring organization shall keep a complete and accurate
record of the name and address of the participant, the cash value of each
purchase of chips by the participant, and, if chips are redeemable for cash,
the cash value of all chips redeemed by the participant. After each separate
purchase of chips, the sponsoring organization shall issue to the purchaser a
separate receipt identified by a unique pre-printed number. The number of the
receipt and the amount of the purchase must be entered on the record maintained
for that purchaser.
A) All receipts for the purchase of chips must be pre-printed with
consecutive numbers, beginning with the number one. Any receipts not issued,
and any voided receipts, must be retained as part of the sponsoring
organization's records. (Example: Seller A is selling chips and issuing receipts
numbered 1-150. At the end of the night, seller A has only issued receipts
through number 135. Blank receipts 136-150 must be retained by the sponsoring
organization.)
B) The entire amount of any admission fee shall be considered to
be a purchase of chips even if no chips are given in return for payment of the
fee, and must be entered on the record of each participant. For this purchase
of chips only, the sponsoring organization need not issue a receipt to the
purchaser.
2) If the value of all chips redeemed by a participant for cash
exceeds the value of all chips purchased by the participant, the participant
must give a signed receipt for the cash won. The participant's signature on
the record kept by the sponsoring organization shall be a sufficient receipt. A
participant may cash in his or her chips in exchange for currency not to exceed
$500 (Section 8(6) of the Act). There is no limit on the amount of noncash
prizes that may be exchanged for chips.
3) When a participant exchanges chips for any noncash prize, the
participant shall sign for the receipt of the prize. The receipt shall
describe the noncash prize and state the retail value of the prize. The
sponsoring organization shall provide the Department with a listing of all
prizes awarded, including the retail value of all prizes awarded (Section
8(6) of the Act).
4) All receipts required by this subsection (b) shall include the
date and the sponsoring organization's name and charitable games license
number.
c) The sponsoring organization shall designate a person
in charge of and primarily responsible for the conduct of the charitable games
event, and that person must be present on the premises continuously during the
charitable games event (Section 4(1) of the Act). The person in charge
must verify that only eligible persons, whose names appear on the workers list,
participate in the management or operation of the event. The person in charge
must have been a member of the sponsoring organization for at least one year
prior to the charitable games event and shall be familiar with the provisions
of the Act and this Part.
d) The sponsoring organization must post its charitable games
license in a prominent place at or near the location where chips are sold and
redeemed, and in a manner such that the license may be easily seen by
participants.
e) Charitable games events must be conducted in accordance
with local building and fire code requirements (Section 4(11) of the Act).
f) The sponsoring organization must allow Department employees
to be present on the premises during, and for two hours before and after,
the charitable games event to inspect or test equipment, devices and
supplies used in the conduct of the event, and to examine the records
maintained pursuant to Section 435.190 (Section 4(12) of the Act).
g) The entire net proceeds from charitable games must be
exclusively devoted to the lawful purposes of the organization permitted to
conduct that game (Section 8 of the Act).
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.170 RESTRICTIONS AND LIMITATIONS ON THE CONDUCTING OF CHARITABLE GAMES
Section 435.170 Restrictions
and Limitations on the Conducting of Charitable Games
a) The entire net
proceeds from charitable games must be exclusively devoted to the lawful
purposes of the organization permitted to conduct that game (Section 8(1) of the Act).
b) No person except a bona fide member or employee of
the sponsoring organization, or a volunteer recruited by the sponsoring
organization, may participate in the management or operation of a
charitable games event (Section 8(2) of the Act).
1) A house dealer must be provided for all card games played at
an event. These dealers are considered to participate in the management and
operation of the games, and must be a bona fide employee, member or volunteer
recruited by the licensed organization.
2) No employee, owner or officer of a consultant service hired
by a licensed organization to perform services at the event, including, but not
limited to, security for persons or property at the event, or services before
the event, including, but not limited to, training for volunteers or
advertising, may participate in the management or operation of the games
(Section 8(21) of the Act).
c) No person may receive any remuneration or compensation,
either directly or indirectly, from any source for participating in the
management or operation of a charitable games event (Section 8(3) of the
Act). Whether a person has received compensation for participating in the
management or operation of a charitable games event shall take into account all
the facts and circumstances.
1) Employees of a sponsoring organization may participate in the
management or operation of an event on a volunteer basis only. They may not be
required to participate as a condition of employment, nor may they receive any
compensation for such participation.
2) Food and drink having a retail value less than $10 that is
provided to workers shall not be considered to be "remuneration or
compensation".
d) No person may participate in the management or operation of a
charitable games event and, at the same event, also place any wager, either
personally or by proxy, on any charitable game conducted at the event.
e) All persons participating in the management or operation of a
charitable games event shall wear name tags, plainly visible, on which are
printed the first and last names of the wearer in letters at least one-half
inch in height.
f) No person may participate in the management or operation of
more than 12 charitable games events, either of the sponsoring organization or
any other organization licensed to conduct charitable games, during a calendar
year.
g) No person participating in the management or operation of a
charitable games event may solicit or accept any tip, gratuity, gift or other
consideration from any participant or from any licensed organization under the
Act. The charitable games licensed organization shall post at least one sign
prohibiting tipping in a conspicuous place on the premises where the charitable
games event is being conducted.
h) Only the sponsoring organization of a charitable games event
can make a determination that equipment is not working properly and that a game
must consequently be shut down. If this determination has been made, the
supplier's representative present at the event may contact the supplier to
request removal and repair or replacement of the equipment.
i) No single bet at any game may exceed $20 (Section 8(4)
of the Act). Accordingly, the amount wagered by any participant on the outcome
of any roll of dice, selection of a set of numbers at random, or spin of a
wheel shall not exceed $20 worth of chips. The amount wagered by any
participant on any round of betting during a card game shall not exceed $20
worth of chips. In poker, a round of betting is deemed to occur whenever a
deal of cards, or group of cards on which a wager will be made, has been
distributed to participants (e.g., after the first two cards, one up and one
hole card, have been distributed in 5-card stud poker). In blackjack, a player
is authorized to wager $20 on each hand that has been "split." A
blackjack player who has chosen to "double down" may wager an
additional bet not to exceed $20. The licensed organization shall not extend
credit to any participant in the charitable games event at any time for any
reason.
j) No one other than the sponsoring organization of a
charitable games event may have a proprietary interest in the game
promoted (Section 8(11) of the Act). For example, a person who provides
services to a licensed organization in connection with setting up a charitable
games event may not receive as compensation for those services a percentage of
the gross or net proceeds derived by the licensed organization.
k) Illegal Gambling and Raffles
1) Unlicensed raffles or other forms of gambling prohibited by
law shall not be conducted on the premises where a charitable games event is
being conducted. A raffle is "licensed" only when a document is
issued to the sponsoring organization of the charitable games event by a city
or county pursuant to an ordinance providing for the licensing of raffles.
2) No slot machines, including coin-in-the-slot-operated
devices which allow a participant to play games of chance, shall be permitted
to be used on the premises and during the time at which a charitable games
event is being conducted. However, establishments that have video gaming terminals
licensed under the Video Gaming Act [230 ILCS 40] may operate them along
with charitable games under rules adopted by the Department (Section 8(16)
of the Act).
l) Miscellaneous Provisions
1) No person under the age of 18 years may play or participate
in the conducting of a charitable games event. Any person under the age of 18
may be within the area where charitable games are being played only when
accompanied by his or her parent or guardian. (Section 8(10) of the Act) A
licensed organization may, at its discretion, prohibit persons under the age of
18 from being within the area where charitable games are being played.
2) No licensee shall knowingly permit the entry into any part
of the premises where a charitable games event is being conducted by any person
who has been convicted of a violation of Article 28 (Gambling) of the Criminal
Code of 1961 or the Criminal Code of 2012 (Section 10 of the Act).
3) No organization licensed to conduct charitable games shall
purchase or lease any charitable games equipment other than from a person or
organization licensed to supply charitable games equipment under the Act.
4) Any advertising by, or on behalf of, a sponsoring organization
regarding the conducting of its charitable games events shall contain its name
and charitable games license number.
5) Charitable games may be conducted only between the hours of
noon and 2:00 a.m. of the following day. (Section 8(9) of the Act)
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.180 IMPOSITION OF TAX, RETURNS
Section 435.180 Imposition
of Tax, Returns
a) There shall be paid to the Department 5% of the net
proceeds of any charitable games event conducted in the State (Section 9 of
the Act). "Net proceeds" means all money received,
plus the fair market value of any property received, from the sale of chips,
and the entire fee or donation charged for admission or entry into a charitable
games event, minus all money, plus the cost to the organization of any noncash
prize, paid out to participants to redeem chips at the conclusion of the event
or when the participant leaves. For purposes of this Section, "fee
or donation charged for admission or entry into a charitable games event"
includes the amount paid to a sponsoring organization for hosting a charitable
games event which is not open to the public (e.g., a "casino night"
party which is hosted only for a corporation and its clients). The entire
amount of an entry fee or donation is considered to be "net proceeds"
even when payment does not entitle the person paying to receive any chips, and
even though part or all of the fee represents payment for food or beverages.
b) Payment shall be made within 30 days after the completion of
the charitable games events. In the case of a series of charitable games
events conducted on successive days, the payment for all such events shall be
made within 30 days after the completion of the last such event.
c) Accompanying each
payment shall be a return on forms prescribed by the Department. The return shall be filed by the sponsoring
organization and shall contain such information as the Department may require.
The return shall include, on a form provided by the Department, the
names, social security numbers and signatures of all individuals participating
in the management or operation of the games, containing a signed statement by
all such individuals and the presiding officer of the sponsoring organization
that the organization has complied with all provisions of the Act. Failure to submit either the payment or
return within the specified time may result in suspension or revocation of the
license of the sponsoring organization. (Section 9 of the Act)
d) If a sponsoring organization intends to cancel a charitable
games event, it must notify the Department in writing prior to the event. If
it notifies the Department after the event date, it must file a return within
30 days after the scheduled date of the cancelled event.
e) The sale of tangible personal property at charitable games
events is subject to all State and local taxes and obligations
(Section 8(14) of the Act).
f) Tax returns filed
pursuant to the Act shall not be confidential and shall be available for public
inspection (Section 9 of the
Act).
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.190 RECORDS; AUDITS
Section 435.190 Records;
Audits
a) Each licensee must
keep a complete record of charitable games conducted within the previous 3
years. Such record shall be open to inspection by the Department during
reasonable business hours.
(Section 10 of the Act)
b) Licensed organizations must keep all records and receipts this
Part requires licensed organizations to maintain, whether or not those records
and receipts must be filed with the Department. Organizations licensed to
conduct charitable games shall keep any and all tax returns, contracts with
providers and suppliers, and complete and accurate records issued to
participants as set forth under Section 435.160(b)(1). In addition, the
records must demonstrate that the entire net proceeds from charitable games are
devoted to the lawful purposes of the organization as required under Section
8(1) of the Act. If an organization enters into an agreement with a consultant
company, that agreement must be in writing and must be retained by the licensed
organization and available for inspection by the Department. Suppliers shall
keep all contracts with licensed organizations, lists of all charitable games
equipment offered for sale, lease, loan or distribution to organizations
licensed to conduct charitable games, and copies of the licenses of
organizations licensed to conduct charitable games. Providers shall keep all
contracts with licensed organizations and copies of the licenses of
organizations licensed to conduct charitable games. Licensed organizations
shall keep any record or receipt pertaining to any charitable games event for
at least three years after the event. All such records shall be available for
inspection by representatives of the Department during reasonable business hours.
Any and all records of any licensed organizationsshall be subject to an audit
by the Department without notice, performed at the premises where the
charitable games event is conducted or at the office of the person or
organization where the records are located. In the event of an audit by the
Department, the person or organization being audited shall provide all such
records, provide a place where the audit may be performed, and provide any
requested information relevant to the conduct of the event.
c) When the Department has information indicating that any person
or organization licensed under the Act has not paid the full amount of tax due,
has not provided the Department with accurate or complete information
concerning revenues from charitable games events, or is using proceeds from
charitable games events in an unlawful manner, the Department may require
the licensee to obtain from an Illinois certified public accounting firm, at
the licensee's own expense, a certified and unqualified financial statement and
verification of records of the licensee. If required, this statement must
be submitted to the Department within 90 days after notice is received by the
licensed organization. Failure to comply with this requirement may result
in suspension or revocation of the licensee's license and forfeiture of all
proceeds. (Section 10 of the Act)
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.200 DENIAL, SUSPENSION, OR REVOCATION OF LICENSES
Section 435.200 Denial,
Suspension, or Revocation of Licenses
a) The Department shall deny the application, including a renewal
application, of any person or organization that does not satisfy all
eligibility requirements for the license for which application is made, or that
is ineligible for a license under Section 435.150(a).
b) The Department may, in its discretion, suspend or revoke
any license when it finds that the licensed organization or any person
connected therewith has violated or is violating the provisions of the Act (Section
10 of the Act), or when it finds that the licensed organization has become
ineligible for any reason while the license is in effect.
1) The Director may review the offenses subjecting the licensee
to revocation and may issue a suspension. The decision to reduce a revocation
to a suspension, and the duration of the suspension, shall be made by taking
into account factors that include, but are not limited to, the licensee's
previous history of compliance with the Act and this Part, the number,
seriousness, and duration of the violations, and the licensee's cooperation in
discontinuing and correcting violations. Violations of Sections 4, 5, 6, 7,
and 8 of the Act are considered to be more serious in nature than other
violations under the Act.
2) The effective date of a revocation or suspension shall be not
less than 25 days after the date the Department mails the notice of revocation
or suspension to the licensed organization. If the licensed organization
requests a hearing within 20 days as provided in subsection (c)(2), the effective
date of any revocation or suspension is stayed pending the outcome of the
hearing, and the licensed organization may continue to operate under the
license, unless the Department has determined that a summary revocation or
suspension is warranted, as provided in Section 13 of the Act. If a license
expires during a stay of revocation or suspension, the licensed organization
may apply for renewal pursuant to
Section 435.120(a)(3). Assuming the organization is otherwise eligible,
the Department may issue a renewed license. If the hearing officer determines
that revocation is warranted, the renewed
license shall be summarily revoked.
3) A revocation or suspension shall be in addition to, and not
in lieu of, any other civil or criminal penalties or assessments authorized by
the Act (Section 10 of the Act).
c) Notification of Denial, Suspension or Revocation; Requests for
Hearing
1) The Department shall send notices of denial, suspension or
revocation by certified mail, return receipt requested, to the applicant or licensed
organization at the mailing address stated on the applicant's or licensed
organization's most recent license application. All such notices will include a
statement of the reasons for the Department's action.
2) An applicant or licensed organization may request a hearing to
contest a denial, suspension or revocation. The request shall be in writing,
and must be received by the Department within 20 days after the date the
Department mailed the notice of its action to the applicant or licensed
organization. If no hearing is requested within 20 days, the Department's
revocation, suspension or denial becomes final, and the licensed organization
is barred from operating. Hearings shall be governed by the regulations
established at 86 Ill. Adm. Code 200.
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435
CHARITABLE GAMES ACT
SECTION 435.210 CRIMINAL AND CIVIL PENALTIES
Section 435.210 Criminal and
Civil Penalties
a) Section 12 of the Act establishes criminal penalties for
violations as follows:
1) Any person who
conducts or knowingly participates in an unlicensed charitable game commits the
offense of gambling in violation of Section 28-1 of the Criminal Code of 2012.
2) Any person who violates any provision of the Act or who
willfully violates any rule or regulation of the Department for the
administration and enforcement of the Act is guilty of a Class A misdemeanor.
Any second or subsequent violation constitutes a Class 4 felony.
3) Any person who fails to file a charitable games return or
who files a fraudulent return or application under the Act or any officer or
agent of an organization or a corporation licensed under the Act who signs a
fraudulent return or application filed on behalf of such organization or
corporation is guilty of a Class A misdemeanor. Any second or subsequent
violation constitutes a Class 4 felony.
4) Any person or organization which knowingly sells, leases,
or distributes for compensation within this State, or possesses with intent to
sell, or lease, or distribute for compensation within this State, any
charitable games equipment without having first obtained a license to do so
from the Department is guilty of a Class A misdemeanor, the fine for which
shall not exceed $50,000.
b) Forfeitures shall be imposed as follows:
1) Any charitable games equipment used at an unlicensed
charitable games event is forfeited to the State and will be confiscated. Any
charitable games equipment used at the charitable games event of a licensed
organization whose license has been suspended or revoked is forfeited to the
State and will be confiscated.
2) Any charitable games equipment used for any form of illegal
gambling at an otherwise properly licensed charitable games event is forfeited
to the State and will be confiscated.
3) The gross proceeds from any charitable games event described
in subsection (b)(1), or from any illegal gambling at any licensed charitable
games event, are forfeited to the State and will be confiscated. The Department
shall determine the amount of gross proceeds based on all information available
to the Department and its judgment of all the facts of each particular case.
4) The Department will provide a detailed written receipt
describing all confiscated equipment and proceeds.
c) The Act establishes civil penalties as follows:
1) In addition to penalties provided for in subsection (b), the
Department shall assess against an organization a civil penalty equal to the
amount of gross proceeds derived by the organization from any charitable games
event that is conducted without a license or that is conducted under a
suspended or revoked license, or at which illegal gambling is conducted.
Notice of assessment of a civil penalty shall be sent by certified mail, return
receipt requested. (See Sections 12(2) and (3) of the Act.) The person or
organization against whom a civil penalty has been assessed shall remit to the
Illinois Department of Revenue the full amount of the penalty within 60 days
after the date the notice was mailed.
2) When charitable games equipment or gross proceeds are
confiscated and forfeited to the State under subsection (b), or a civil penalty
is assessed under subsection (c)(1), the organization entitled to possession of
the equipment or proceeds at the time of confiscation or at the time a civil
penalty is assessed may, within 60 days after the date of confiscation or
imposition of the penalty, request, in writing, a hearing. The sole issue at
such hearing shall be whether a charitable games event was conducted without a
license, or under a suspended or revoked license, or whether illegal gambling
was conducted at an otherwise properly licensed charitable games event.
3) Any person who violates any provision of the Act or
knowingly violates any provision of this Part shall, in addition to
other penalties provided, be subject to a civil penalty in the amount of $250
for each separate violation (Section 12 of the Act). The penalty shall
become final unless the person makes a written request for a hearing in writing
within 60 days after the date the Department mailed the notice of its action.
Persons subject to this provision include, but are not limited to, sponsoring
organizations, volunteers, any licensed organization under the Act, or any
other person or organization.
(Source: Amended at 39 Ill. Reg. 4454, effective March 10, 2015)
ADMINISTRATIVE CODE TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 435 CHARITABLE GAMES ACT
SECTION 435.220 STATE-LOCAL RELATIONS
Section 435.220 State-Local
Relations
a) Whenever the Department takes any action authorizing or
prohibiting the conducting of a charitable games event, it shall notify the
police department or sheriff's office, as the case may be, whose jurisdiction
includes the premises on which charitable games event(s) are authorized or
prohibited.
b) Any law enforcement agency that takes action relating to
the operation of a charitable games event, whether licensed or unlicensed, shall
notify the Department and specify the extent of the action taken and the
reasons for such action (Section 15 of the Act). The Department shall
thereupon take whatever action is necessary under the Act. Any law enforcement
agency that confiscates charitable games equipment and/or gross proceeds as
provided in Section 435.210(b) shall, as soon as practicable under the
circumstances, turn over such equipment and/or proceeds to the Department.
c) From appropriations to the Department for such purpose, the
Department shall make grants to counties and municipalities for law enforcement
purposes. The amount of a grant to a county or municipality shall bear the
same ratio to the total amount of grants made as the number of charitable games
licenses issued in the municipality, or in the county outside the boundaries of
any municipality, bears to the total number of charitable games licenses issued
in the State in the fiscal year immediately preceding the fiscal year during
which such grants will be made. For purposes of this provision, the Department
shall consider only the number of charitable games licenses issued, not the
number of charitable games events conducted under each license.
(Source: Amended at 15 Ill. Reg. 10966, effective July 10, 1991)
|
AUTHORITY: Implementing and authorized by the Charitable Games Act [230 ILCS 30].
SOURCE: Emergency Rule adopted at 10 Ill. Reg. 15687, effective September 15, 1986, for a maximum of 150 days; adopted at 11 Ill. Reg. 3722, effective February 10, 1987; peremptory amendments at 11 Ill. Reg. 10702, effective May 26, 1987; amended at 15 Ill. Reg. 10966, effective July 10, 1991; amended at 16 Ill. Reg. 14702, effective September 14, 1992; amended at 18 Ill. Reg. 11629, effective July 7, 1994; amended at 21 Ill. Reg. 3978, effective March 14, 1997; emergency amendment at 25 Ill. Reg. 14193, effective October 19, 2001, for a maximum of 150 days; amended at 26 Ill. Reg. 3734, effective February 26, 2002; amended at 39 Ill. Reg. 4454, effective March 10, 2015; amended at 48 Ill. Reg. 6075, effective April 2, 2024.
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