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)

 

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)

 

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)

 

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)

 

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)

 

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)

 

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, 1^st 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)

 

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)

 

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)

 

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)

 

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)

 

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)

 

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)