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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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DEPARTMENT OF JUSTICE

 

DIVISION 25

BINGO/RAFFLES/MONTE CARLO

General Provisions

137-025-0020

Definitions

For purposes of these rules, the following definitions shall apply:

(1) The "Department" means the Oregon Department of Justice.

(2) "Bingo" means a game played on a printed form or card containing a grid bearing horizontal and vertical lines of numbers. Each card must include the same number of numbers. The numbers may be pre-printed or completed by the players. Numbers are drawn from a receptacle containing no more than 90 numbers, until there are one or more winners. A winner(s) is determined by the player(s) to first cover or uncover the selected numbers in a designated combination, sequence or pattern as they appear on the player's card. The progress toward a "bingo" of the non-winning players shall be irrelevant in determining the prize payout for the winner(s). A "blackout" (i.e., covering all squares on the grid) shall qualify as a designated sequence or pattern. Games which do not qualify as bingo include, but are not limited to, games marketed as "quick shot bonanza," "pick X" bingo, and "pick-8" bingo in the format utilizing a 40 square grid.

(3) "Pull Tab" means a single folded or banded ticket or card, the face of which is initially covered or otherwise hidden from view to conceal a number, symbol or set of symbols, a few of which numbers or symbols out of every set of pull tabs have been designated in advance and at random as prize winners.

(4) "Raffle" means a form of a lottery in which each participant buys a ticket for an article or money designated as a prize and where the winner is determined by a random drawing. A raffle includes the elements of consideration, chance and a prize. Consideration is presumed to be present unless it is clearly and conspicuously disclosed to prospective participants that tickets to the drawing may be acquired without contributing something of economic value.

(5) "Door Prize Drawing" means a drawing held by a nonprofit organization at a meeting of the organization where both the sale of tickets and the drawing(s) occur during the meeting and the total value of the prize(s) does not exceed $500.

(6) "Handle" means the total amount of money and other things of value bet on the bingo, lotto or raffle games, the value of raffle chances sold or the total amount collected from the sale of imitation money during Monte Carlo events.

(7) "Responsible Officials of the Organization" means the officers of the organization and the board of directors, if any.

(8) "Bingo Game Manager" means any person who is responsible for the overall conduct of bingo games of a charitable, fraternal or religious organization.

(9) "Regular Bingo Game" means a bingo game where players use hard cards or paper cards from a packet which have been purchased for a package price and may be used by players during more than one game of a session.

(10) "Special Bingo Game" means a bingo game where players must purchase individual paper cards where use is limited to a specific bingo game.

(11) "Concessions" means the sale of food, beverages, related bingo supplies, such as daubers, glue and other retail items using a bingo theme sold to bingo players.

(12) "Management or Operation" means supervising the games.

(13) "Administration or Operation" means supervising the games.

(14) "Supervise" means to direct, oversee and inspect the work of others; to exercise authority with respect to decision-making or the implementing of decisions; and responsibility for the performance of functions integral to the operation of bingo and raffles, including operation of the games and operation of the facility used to conduct the games.

(15) "Drawing" means an approved random selection process for determining winners in a raffle. To be random, each number in the drawing must have an equal chance of selection.

(16) "Monte Carlo event" means a gambling event at which wagers are placed with imitation money upon contests of chance in which players compete against the house. As used in this subsection, "imitation money" includes imitation currency, chips or tokens.

(17) "Monte Carlo equipment supplier" means a person or organization who leases equipment to a non-profit tax exempt organization for operation of a Monte Carlo event.

(18) "Monte Carlo event contractor" means a Monte Carlo event supplier who is employed to operate a Monte Carlo event on behalf of a non-profit tax exempt organization.

(19) "Monte Carlo event licensee" means any organization which has obtained a Monte Carlo event license pursuant to OAR 137-025-0410.

(20) "Related party" means an officer, director or bingo game manager of the licensed organization. Related party includes the family of such an individual. Family shall include a spouse, domestic partner, brothers and sisters (whether by the whole or half blood), ancestors and lineal descendents. Related party also includes corporations wherein the preceding individuals directly, or indirectly, own 50% or more of the capital interest and a trust in which the preceding individuals serve as fiduciaries or are named beneficiaries.

(21) "Sleeper Bingo" -- A bingo game where the licensee adopts a house rule providing that a bingo prize may be shared between player(s) announcing a qualifying bingo on the last number called and player(s) who achieved a qualifying bingo as a result of a previously called number.

(22) "Linked Progressive Bingo Game" means a standard non-linked bingo game where an additional prize is paid to a winner based upon a designated combination, sequence or pattern. The additional prize is paid from a common prize pool which is collected from multiple participating licensees.

(23) "Linked Progressive Bingo Contractor" means a person or organization who leases equipment to bingo licensees for operation of a linked progressive bingo game.

Stat. Auth.: ORS 167.117(10)(12), 464.250(1) & 914
Stats. Implemented: HB 3009, 1997, SB 716, 2003
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; JD 1-1989, f. & cert. ef. 3-1-89; JD 1-1991, f. 2-1-91, cert. ef. 3-1-91; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02; DOJ 6-2004, f. 2-19-04, cert. ef. 4-1-04; DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0030

Eligibility for Licenses in General

(1) Every applicant for a license to conduct bingo, raffle games, or Monte Carlo events must:

(a) Be organized primarily for purposes other than the operation of bingo, Monte Carlo, and raffle games;

(b) Have a valid organizational governing structure, and the members of the governing structure must exercise independent control over the organization's activities and budget;

(c) Be exempt from the payment of federal income taxes and have held that exempt status for at least one year preceding its application for a license. The application must be accompanied by a copy of a determination letter from the Internal Revenue Service, verifying tax exempt status or, if the organization qualifies for tax exempt status other than pursuant to IRC 501(c), a signed opinion letter from an attorney or certified public accountant stating that the organization holds tax exempt status and citing the relevant provisions of the Internal Revenue Code which support the tax exempt status. If an Internal Revenue Service determination letter is dated less than one year prior to the date of application to the Department, the applicant shall have the burden of demonstrating that it has met all organizational and operational tests for the exempt status and has been organized primarily for charitable, fraternal or religious purposes for a period of not less than one year prior to the date of the application. Any applicant that claims its tax exempt status through a ruling by the Internal Revenue Service as to its parent organization's tax exempt status must demonstrate that it is covered by such a ruling. The applicant must have been chartered by the parent organization for a period of one year preceding its application for a license.

(2) No joint license for conducting bingo, Monte Carlo, or raffle games will be issued to two or more organizations. However, the Department may grant approval for a licensee to share the operation of the games with other organizations which would otherwise qualify for a license under section (1) of this rule.

(3) Licenses to conduct bingo, Monte Carlo, or raffle games may not be transferred or assigned.

(4) A licensee shall promptly notify the Department if the licensee loses its federal tax exempt status. A license ceases to be valid if the licensee loses its tax exempt status.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-8; JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0040

General Requirements of Operations

(1) No person shall conduct bingo, Monte Carlo, or raffle games unless he or she conducts such activities on behalf of a charitable, fraternal or religious organization licensed by the Department to operate such games or engages in such activity as is otherwise exempt from licensing as provided in section (2) of this rule. The sale of pull tabs shall not qualify as bingo, Monte Carlo, or raffle and is not permitted by these rules.

(2) The following activities shall not require a license under these rules:

(a) Door prize drawings;

(b) Operating bingo with a handle of no more than $2,000 per session and with a total handle of no more than $5,000 per calendar year;

(c) Holding one or more raffles with a cumulative handle of less than $10,000 per calendar year;

(d) Holding Monte Carlo events with a handle of no more than $2,000 per Monte Carlo event and a total handle of no more than $5,000 per calendar year.

(3)(a) Except as provided in subparagraph (b) below, all individuals involved in the operation of bingo or raffle games, or Monte Carlo events shall be volunteers or employees of the licensee. Operation of the games shall not be conducted by independent contractors. However, a bingo licensee may contract with a third party to provide specific collateral services required for the proper and efficient operation of a bingo game. Such services may include concessions, bookkeeping/accounting services, payroll services, janitorial services, security services, construction services and legal services. Contract shall be permitted only if the third party regularly performs such services for clients other than licensees and the fee, if any, charged for the service(s) provided is customary and reasonable. However, a bingo licensee may not locate its game in a for-profit restaurant, tavern or similar establishment unless it is a Class C or D bingo licensee and bingo is not played in the establishment more than one day per week and the establishment is open to the public and serves non-players during the bingo session.

(b) An organization licensed to conduct Monte Carlo events may contract with a licensed or exempted Monte Carlo equipment supplier and/or Monte Carlo event contractor as provided in OAR 137-025-0420 to operate the event, including the provisions of equipment, supplies and personnel, provided that the licensed supplier is paid a fixed fee to conduct the event and the imitation money is sold to players by employees or volunteers of the licensed charitable, fraternal, or religious organization.

(4) A licensee shall not permit the operating expenses of its bingo and raffle games, excluding prizes and money paid to players, to exceed 18.0 percent of the annual handle of its bingo and raffle operations. If the expenses of bingo and raffle games operated by the licensee in the preceding 12 months have exceeded 18.0 percent, the bingo, or raffle license shall not be renewed unless the licensee files, on a form prescribed by the Department, a satisfactory plan for operating in compliance with the 18.0 percent expense limitation. The license shall be conditioned on continued compliance with the plan and may be revoked or suspended in the event of noncompliance.

(5) In the event that compensation is paid to personnel for services related to the operation of bingo, Monte Carlo, and raffle games, the compensation shall not exceed:

(a) 200 percent of the federal minimum wage for nonsupervisory personnel; and

(b) 300 percent of the federal minimum wage for supervisory personnel.

(6) No bingo card or raffle tickets shall be sold to persons under 18 years of age unless the sale is made in the presence of their parent or legal guardian.

(7) Unless excepted by the Department pursuant to OAR 137-025-0190, no person shall spend more than 30 hours per week administering or operating bingo and raffle games on behalf of a licensee. Pursuant to ORS 464.310(2), the Department may authorize bingo game managers or supervisors to work as supervisors for other licensees. The Department will approve such requests if it concludes that the licensees involved have satisfactory inventory control systems in place and that the applicant will not usurp the functions (as provided in OAR 137-025-0090(3)) of the bingo game manager permitee(s) for the additional licensee(s).

(8) Bingo and raffle licensees with handles in excess of $250,000 shall limit administrative and prize expenses to ensure that an amount not less than five (5.0) percent of the annual gaming handle is earned and transferred to the organization's general operating account, or other fund as directed by the organization's governing board, for use by the governing board in pursuit of the organization's charitable, fraternal, or religious mission. If an organization fails to comply with the five percent profitability requirement, in whole or in part, due to the payment of one or more prizes in excess of $2,500, the Department shall take that fact into account in fashioning a conditional license.

(9) Licensees may publicly acknowledge other organizations, including for profit businesses, which donate prizes and help underwrite the cost of the licensees' gaming activities. These organizations may be referred to as "sponsors" of the activity. However, any public information referencing the event must promote an understanding that the event is conducted by and operated for the benefit of the named licensee and this information must be more prominent than any sponsorship recognition.

Stat. Auth.: ORS 464.250(1) & ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 6-1991, f. & cert. ef. 10-22-91; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0045

Operation of Linked Progressive Bingo Games- Generally

Operation of linked progressive bingo games shall be of two types: single hall and multiple hall games. Multiple hall games shall be operated by a licensed Linked Progressive Bingo Contractor. Single hall games shall also be operated by a Linked Progressive Bingo Contractor except that linked progressive bingo games played at a single hall, involving prizes not exceeding $2500, may be operated by the licensees operating non-linked games at that location.

Stat. Auth.: ORS 167.117(10)(12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

Bingo Licenses

137-025-0050

Classes of Licenses

(1) A "Class A" bingo license shall authorize a licensee to collect a bingo handle of an unlimited amount during the license year.

(2) A "Class B" bingo license shall authorize a licensee to collect a bingo handle of no more than $250,000 during the license year.

(3) A "Class C" bingo license shall authorize a licensee to collect a bingo handle of no more than $75,000 during the license year.

(4) A "Class D" bingo license shall authorize a licensee to collect a bingo handle of no more than $20,000 during the license year.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0060

Application for Bingo License

(1) An application for a bingo license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization and shall be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

(a) The name, address and telephone number of the organization;

(b) A statement of the purposes for which the money received from the bingo games will be used;

(c) A statement as to whether or not the organization has had a license to operate bingo or raffle games denied, revoked or suspended by the State of Oregon or any other licensing authority;

(d) The full names and addresses of the responsible officials of the organization;

(e) For Class A or B bingo licensees, the name and address of the individual proposed by the applicant to act as its supervising bingo game manager;

(f) The address of the location proposed by the applicant where the bingo games will be held; the amount of rent to be paid for the location if not owned by the applicant; the party who is to be paid rent, if any; and a statement that rent will not be paid to a related party;

(g) The class of license sought by the applicant; and

(h) For Class A or B bingo licensees, the name and address of the financial institution and the account number for the bingo account(s) to be used by the applicant.

(2) The applicant shall submit the following documents with the application. The information required in subsections (c) through (f) of this section shall be on forms prescribed by the Department:

(a) A copy of a letter supporting tax exempt status as specified in OAR 137-025-0030(c);

(b) For a Class A or B license, a copy of a current or proposed lease agreement for the location of the bingo games if the applicant does not own the premises intended for use;

(c) For a Class A or B bingo license, a completed authorization to inspect bank records on a form furnished by the Department, authorizing the financial institution to disclose customer information regarding the applicant's bingo account to the Department;

(d) As required by Chapter 914, Oregon Law 1987, a waiver of potential liability claims against the State of Oregon, its agencies, employees and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;

(e) A consent to inspections authorized by Chapter 914, Oregon Laws 1987, and the rules adopted thereto;

(f) A statement verifying whether or not the applicant has conducted bingo operations during the 12 months prior to submitting the application for a license and, if so, a financial summary of its operation; and

(g) Such other information as may be requested by the Department.

(3) The application fees are as follows:

(a) Class A license -- $200;

(b) Class B license -- $100;

(c) Class C license -- $40;

(d) Class D license -- $20.

Stat. Auth.: ORS 464

Stats. Implemented: ORS 464.250(2) & (4), 464.280(2)(a) & (b) & 464.510

Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

137-025-0070

Issuance of License to Conduct Bingo

(1) Within 60 days after the filing of a completed application for a license or license renewal to conduct bingo, the Department shall either issue a license or notify the applicant in writing, in accordance with ORS 183.310 to 183.550, that the license has been denied, and that the applicant is entitled to a hearing. The license shall be effective for one year from the date it is issued and may be renewed annually, except that a license issued prior to January 1, 1988, shall be effective until January 1, 1989. The form of the license shall be prescribed by the Department and shall include:

(a) The name of the licensed organization;

(b) The class of license;

(c) The expiration date of the license;

(d) The authorized county and specific location where bingo games may be operated by the licensee; and

(e) Any special conditions of the license.

(2) Each license shall be conspicuously displayed by the licensee during operating hours at its authorized location.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(2)
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87

137-025-0080

Bingo License Renewal and Amendment

(1) Within 60 days prior to the expiration of an existing bingo license, the licensee may apply to the Department to renew the license. The application and fee shall be the same as for the initial license.

(2) A licensee shall not exceed the class limit for gross receipts:

(a) As soon as it is apparent to the licensee that the class limit on annual receipts from licensed activities will be exceeded, it shall immediately notify the Department and shall apply for the license class which is proper, submitting the basic fee required for that class less the amount originally submitted for the previous license;

(b) Any such additional license issued by the Department shall be valid only for the period which remains in the term of the previous license at the time such additional license is issued.

(3) A licensee shall not conduct any bingo operations at a location in addition to the location designated on its license unless approved in advance by the Department. A licensee desiring to change its regular authorized location to operate bingo shall submit an application to amend its license on a form prescribed by the Department.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(2)
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87

137-025-0090

Bingo Game Manager Permit

(1) No person shall act as a bingo game manager for a Class A or B licensee unless he or she has a current bingo game manager permit or temporary authorization from the Department. A Class A or B bingo licensee shall not allow any person to act as a bingo game manager unless he or she possesses a current bingo game manager permit or temporary authorization from the Department. Temporary authorization to act as a manager may be granted by the Department upon the filing of a completed bingo game manager application.

(2) An application for a bingo game manager permit shall be made on a form prescribed by the Department and shall be accompanied by a $40 permit application fee. The Department shall reject applications which are incomplete or are not accompanied by a sufficient fee. All applicants shall be immediately notified of any such deficiencies. The license application shall include a personal information statement, including information regarding personal identity and personal history; a description of prior bingo employment activity and compensation received; a criminal history statement; finger prints and a completed release of educational, employment and military records form.

(3) A Class A and B licensee shall designate a bingo game manager for the licensee. The bingo game manager permit for the licensee's manager shall be conspicuously displayed by the licensee during operating hours at its authorized location. The licensee shall notify the Department in writing if it intends to designate a different bingo game manager:

(a) The bingo game manager shall be responsible for the overall operation of the bingo games by ensuring that:

(A) The public and the licensees are protected from fraud;

(B) All provisions of ORS 167.118, ORS Chapter 464 and OAR 137-025-0010 et seq. are followed;

(C) All records are completed and correct; and

(D) All monies derived from the bingo game are safeguarded until transferred to the licensee's bingo checking account.

(b) To the extent that they are not assumed by the board of directors or a bingo committee designated by the board, the duties and responsibilities of a bingo game manager include the following:

(A) Personnel actions regarding bingo workers including hiring, firing, training, evaluating, scheduling work periods, and/or setting salaries;

(B) Scheduling the bingo activity, including determining the time and days of operation;

(C) Setting the scope of the bingo activity by determining:

(i) The number of games to be played;

(ii) The type of games to be played;

(iii) The cost to each player to participate; and

(iv) The type and amount of prizes to be awarded.

(D) Setting the scope of marketing activities related to the bingo activity by determining:

(i) Type and scope of promotional activities; and

(ii) The media, content, timing, and target market area of advertising.

(4) A bingo game manager shall be knowledgeable regarding the rules for the conduct of bingo games.

(5) Within 60 days after the filing of a completed application for a permit, the Department shall either issue a permit or notify the applicant in writing, in accordance with ORS 183.310 to 184.550 that the permit has been denied and that the applicant is entitled to a hearing. The permit shall be effective for one year from the date it is issued and may be renewed annually. The form of the permit shall be prescribed by the Department.

(6) No person may concurrently act as a bingo game manager for more than one licensee unless such participation is approved by the Department. The Department may approve requests for bingo game managers to temporarily act in that capacity on behalf of more than one licensee for a period of up to 90 days. Such requests shall be approved in emergency situations when a licensee is already operating a game and is without a bingo game manager as a result of unforeseen circumstances or circumstances beyond the licensee's control.

(7) The organization's designated bingo game manager shall be physically present and shall personally oversee the operation of the game at least 50 percent of the time the licensee's bingo games are in session for each reporting period. The Department may approve a lower percentage requirement for designated managers of licensees holding exceptions pursuant to OAR 137-025-0190.

(8) Any person to whom a bingo game manager permit is issued shall notify the Department upon any change of the person's name, residence or mailing address, or change of employment if employed by a licensee. Notice required under this section may be given in person or by mail and:

(a) Must be given within 30 days of the date of the change;

(b) Must be in writing and contain the old and new name, residence or mailing address, or employer(s); and

(c) Must contain the person's bingo game manager permit number.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: ORS 464.250(1), (2), (3) & (4) & 464.280
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

137-025-0091

Licensee/Permittee Qualifications

Pursuant to ORS 464.280, an applicant or holder of a bingo or raffle license or permit shall establish the following qualifications:

(1) Basic knowledge of the rules and regulations governing the operation of bingo by Class A and B licensees;

(2) Honesty, integrity and forthrightness, including completeness of relevant information submitted by the applicant in the course of the application process;

(3) Adherence to local, state and federal laws and regulations;

(4) Financial responsibility and integrity in financial transactions. Past insolvency, bankruptcy or intention to file for bankruptcy shall not per se disqualify an applicant.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: ORS 464.280
Hist.: JD 2-1993, f. 6-21-93, cert. ef. 7-1-93

137-025-0100

Notice of Bingo Activities

Prior to conducting bingo operations, each Class A or B bingo licensee shall file with the Department a schedule of bingo activities on a form provided by the Department. The form shall list the regular sessions conducted by the licensee, specifying the days and hours of the week. The licensee shall not conduct operations except during the times on file with the Department. A licensee desiring to change its scheduled bingo activities shall file an amended schedule with the Department on a form prescribed by the Department.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87

137-025-0110

Operator Lists

Each Class A or B bingo licensee shall submit to the Department, on a form prescribed by the Department, a list of the names, address and dates of birth of all employees who conduct bingo operations on behalf of the licensee. An initial list shall be submitted on or before the date the licensee begins conducting bingo operations pursuant to these rules. An updated list of employees shall be filed once every 90 days.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87

137-025-0115

Application for Linked Progressive Bingo Contractor License

(1) An application for a Linked Progressive Bingo Contractor license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization, and must be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section, or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

(a) The name, address and telephone number of the organization;

(b) A statement as to whether or not the organization has had a license to provide equipment or services for bingo or other gambling activity denied, revoked or suspended by the State of Oregon or any other licensing authority; and

(c) The full names and physical addresses of the responsible officials of the organization.

(2) The applicant shall submit the following documents with the application. The information required in subsections (b) and (c) of this section shall be on forms prescribed by the Department and shall be signed by a responsible official of the organization:

(a) Proof of compliance with applicable state and local business registration laws and regulations.

(b) As required by Oregon ORS 464.280, a waiver of potential liability claims against the State of Oregon, its agencies, employees, and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;

(c) A consent to allow Department employees access to licensees' place of business for inspection and testing of equipment and to examine records maintained by licensees.

(d) A description of the Linked Progressive Bingo Game(s) which the applicant intends to offer to Oregon bingo licensees.

(e) Such other information as requested by the Department.

(3) The non-refundable application and licensing investigation fee is $500.

Stat. Auth.: ORS 167.117(10)(12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0117

Application for Linked Progressive Bingo Game Escrow Agent

(1) An application for a Linked Progressive Bingo Game Escrow Agent license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization, and must be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section, or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

(a) The name, address and telephone number of the person or organization;

(b) A statement as to whether or not the person or organization has had a license to provide equipment or services for bingo or other gambling activity denied, revoked or suspended by the State of Oregon or any other licensing authority; and

(c) The full name(s) and physical address(s) of the responsible official(s) of the applicant.

(2) The applicant shall submit the following documents with the application. The information required in subsections (b) and (c) of this section shall be on forms prescribed by the Department and shall be signed by a responsible official of the applicant:

(a) Proof of compliance with applicable state and local business registration laws and regulations.

(b) As required by Oregon ORS 464.280, a waiver of potential liability claims against the State of Oregon, its agencies, employees, and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;

(c) A consent to allow Department employees access to licensees' place of business for inspection of equipment and to examine records maintained by licensees.

(d) Such other information as requested by the Department.

(3) The non-refundable application and licensing investigation fee is $50 for an applicant licensed pursuant to ORS 696.505 et seq. The fee for all other applicants is $250.

Stat. Auth.: ORS 167.117(10)(12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

Bingo Records and Reports

137-025-0120

Daily Bingo Records

Each Class A or B bingo licensee shall prepare and retain a daily bingo record on a form prescribed by the Department. A form shall be completed for each session and shall require the following information:

(1) The date, time and location of the session.

(2) A count of the attendance and the time the attendance count was made.

(3) The handle collected during the session.

(4) The number of regular bingo game cards sold and the total money collected from such sales.

(5) For special bingo games, the number of cards sold and the total money collected from such sales for each game.

(6) For each bingo game of a session, the value of the prizes awarded to the winner(s) and the number of winners receiving such prizes.

(7) The total value of prizes awarded during the session.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0130

Bingo Receipts

(1) Each Class A or Class B licensee shall maintain a record of all winners of prizes valued at $100 or more. The record shall be completed on a form prescribed by the Department. A form shall be completed for each session and shall require the following information:

(a) The name of the licensee;

(b) The date;

(c) A description of the prize;

(d) The amount of each cash prize;

(e) The name and address of the prize winner; and

(f) The signature of the prize winner.

(2) It shall be the responsibility of the licensee to see that the prize winner is accurately identified, and the licensee shall require such proof of identification as is necessary to establish the winner's identity. The licensee shall not pay out any prize until the winner has furnished to the licensee all information required by this rule to be upon the prize record.

(3) The record of prize winners shall be affixed to the daily bingo report for that session, along with a copy of the games schedule for that session, and shall be retained for a period of three years.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88

137-025-0140

Bingo Reports

(1) Each Class C or D licensee shall file an annual report with the Department no later than 60 days after the end of its license year. The report shall be on a form prescribed by the Department. The report shall include the following information:

(a) The total number of bingo sessions held during the license year;

(b) The total bingo handle;

(c) The total amount of cash prizes and the total cost to the licensee of all noncash prizes awarded;

(d) The total expenses directly related to the operation of bingo, itemized by major categories of expenses;

(e) The total expenses expressed as a percentage of the total of the bingo handle; and

(f) The net income from bingo activities.

(2) A Class B licensee shall file an annual report no later than 60 days after the end of the license year. The report shall be on a form prescribed by the Department. The report shall include the following information:

(a) The total number of bingo sessions held during the license year;

(b) The total bingo handle for the license year;

(c) The total amount of cash prizes and the total cost to the licensee of all noncash prizes awarded;

(d) The total expenses directly related to the operation of bingo itemized by major categories of expenses, including the following:

(A) A listing of each employee connected with the management, promotion, conduct or operation of the bingo game along with the employee's duties, hours and compensation;

(B) A statement describing the allocation method used in allocating common use expenses; and

(C) A detailed listing of all other expenses.

(f) The total expenses expressed as a percentage of the bingo handle plus the total receipts from concessions if operated by the licensee; and

(g) The total number of customers participating.

(3) A Class A licensee shall file a quarterly report for each of the following periods of the year: January 1 through March 31; April 1 through June 30; July 1, through September 30; and October 1, through December 31. The reports shall be on a form prescribed by the Department. The reports shall be filed no later than 30 days after the end of the reporting period. A licensee need not file a report for a quarterly period if the license was issued during the last month of the quarterly reporting period. However, if the licensee elects not to file a report, any activities during that month shall be included in the next quarterly report. The report shall include the following information:

(a) The total number of bingo sessions held during the quarter;

(b) The total bingo handle for the quarter;

(c) The total amount of cash prizes, and the total cost to the licensee of all noncash prizes awarded;

(d) The total expenses directly related to the operation of bingo, itemized by major categories of expenses, including the following:

(A) A listing of each employee connected with the management, promotion, conduct or operation of the bingo game along with the employee's duties, hours and compensation;

(B) A statement describing the allocation method used in allocating common use expenses; and

(C) A detailed listing of all other expenses.

(f) The total expenses expressed as a percentage of the bingo handle plus the total receipts from concessions if operated by the license; and

(g) The total number of customers participating during the reporting period.

(4) All bingo reports shall be signed by the bingo game manager and a responsible official of the organization who shall be a different person than the bingo game manager.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0150

Bingo Fees

(1) All annual and quarterly bingo reports filed with the Department shall be accompanied by a fee, made payable to the Department of Justice, as follows:

(a) Class D license -- $20;

(b) Class C license -- A fee of $20 plus 0.5 of 1 percent of the bingo handle in excess of $20,000;

(c) Class B license -- A fee of 0.5 of 1 percent of the bingo handle up to $75,000 and 1 percent of the bingo handle in excess of $75,000;

(d) Class A license -- A fee of 1.20 percent of the bingo handle up to $3,000,000 and 1 percent of the bingo handle in excess of $3,000,000.

(2) A delinquency fee of $20 or 1 percent of the fee described above, whichever is greater, shall be paid by the licensee if the report or regular fee is not delivered to the Department by the due date. The minimum delinquency fee shall increase to $50 after 60 days from the due date of the report.

(3) When the filing date for reports and fees falls on a Saturday or legal holiday, the due date is the next business day following the Saturday or legal holiday.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: ORS 464.250(2) & (3)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

Operation of Bingo Games

137-025-0160

Conduct of Bingo in General

(1) No employee of the licensee involved in the conduct of bingo games may receive a prize or participate as a player at a bingo game session in which the employee is actually involved in the conduct of the bingo games.

(2) All prizes awarded in connection with bingo games, whether in cash or merchandise, and all rules by which such prizes may be won, including costs to a participant, shall be disclosed to each participant prior to that participant taking part in the activity or paying for the opportunity to take part in the activity. Disclosures shall be made by conspicuously posting or displaying upon the premises where the activity is operated a complete description of the rules of the activity, an explanation of how each prize can be won, and the cost to participate in the activity.

(3) The numbers for bingo shall be physically selected from a container, and players shall be able to view the selection process, including an unobstructed view of the container or blower chamber. Immediately following the drawing of each number in any bingo game wherein a prize valued at $100 or greater is offered, the caller shall display the letter and number for viewing by the participants. Numbers shall not be selected by electronic equipment, such as a computer. For any game in which a prize valued at less than $100 is offered, upon request by a player to any employee or volunteer of the licensee, the player, accompanied by a management representative of the licensee, shall be allowed to inspect the bingo caller's cradle to verify the bingo numbers called before the bingo numbers are returned to the blower chamber.

(4) All prizes, or script redeemable for prizes, paid to the winner(s) shall be paid by the licensee; no prizes or script shall be transferred from non-winners to the winner(s).

(5) Bingo cards may not be purchased or played other than at the approved location of the licensee's game; a player must be present to win.

(6) Except for the conduct of "bonanza" bingo described in section (7) of this rule, the numbers shall be drawn and announced during the play of the game; each player covers the corresponding number, if present on the bingo card, as each number is called.

(7) A licensee may play "bonanza" bingo by drawing a predesignated quantity of bingo numbers before the actual playing of the bonanza bingo game only if the licensee complies with the following procedures:

(a) Bonanza bingo cards shall remain sealed until such time as they are sold to the players;

(b) The balls drawn in advance of the bonanza bingo game shall be drawn during a bingo session in the presence of the players; and

(c) The quantity of numbers drawn in advance shall be fewer than the number which would produce a probable instant winner, based upon the rules of the game and the expected number of players.

(8) No operator shall engage in any act, practice, or course of operation as would operate as a fraud to affect the outcome of any bingo game.

(9) Cages or blowers used to mix and select bingo numbers shall be designed and constructed in such a manner which reasonably provides a thorough mix of the numbers and random selection. Cages and blowers shall be cleaned and maintained in good repair so as to prevent damage to the bingo numbers.

(10) Bingo numbers shall be periodically inspected, cleaned and maintained in good condition by the licensee. No bingo numbers may be used in play which are defective, cracked, broken, illegible, out of round or damaged in such a manner that would interfere with or affect the random selection process. Only sequentially complete sets of bingo numbers shall be placed in play; there shall be no duplication of numbers.

(11) No person shall tamper with, mutilate, weight, or otherwise alter a bingo number in any manner that would interfere with or affect the random selection process.

(12) The Department may immediately remove any bingo number or set of bingo numbers from play if a violation is found. The number or number set shall not be returned to play until the violation is corrected. The Department may require that any bingo number or number set be replaced or tested for compliance if a violation is found or suspected.

(13) With the exception of "sleeper bingos", a prize may be awarded only to the bingo player(s) who first covers or uncovers the selected numbers in a designated combination, sequence or pattern. Multiple prizes may be awarded in the course of a game if each prize is given to the first player to achieve a designated pattern, such as those offered in "work up" games. No awards, including consolation awards, such as "monitor bingos", shall be made to players other than the prizes described above.

Stat. Auth.: ORS 464.250(1) & 464
Stats. Implemented: ORS 464.250(7), SB 716, 2003
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 1-1991, f. 2-1-91, cert. ef. 3-1-91; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 6-2004, f. 2-19-04, cert. ef. 4-1-04: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0170

Bingo Checking Account

Each Class A or B licensee shall have one or more separate checking accounts for bingo related purposes. All bingo proceeds, except amounts paid for prizes shall be deposited in the bingo checking account within three business days of their collection. Expenses which are exclusively related to the conduct of bingo games shall be paid from the bingo account. After bingo expenses have been paid, the licensee may transfer funds from the bingo account to another account of the licensee. The licensee shall retain a copy of all bingo checking account records, including account statements, canceled checks, check registers, and deposit slips for a period of three years.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88

137-025-0180

Bingo Operating Limits

(1) Unless excepted by the Department, a licensee shall not operate bingo games for more than 15 hours nor more than three days in any one calendar week. However, a Class C or D licensee may operate without restriction as to number of days or hours per week if its total operations are limited to no more than 12 consecutive days during its license year. All bingo games must be conducted at a single physical location. No more than two bingo games may be operated simultaneously at a location. One licensee may not operate simultaneous games. Simultaneous games occur when numbers are pulled from more than one container/blower at the same time.

(2) A licensee shall not award non-linked progressive game prizes exceeding $2,500 in value in any one game except a licensee may award prizes not to exceed $10,000 per game up to 2 times during the license year. A licensee may award an unlimited number of prizes in excess of $2,500 for authorized linked progressive bingo games. On the licensee report as provided by OAR 137-025-0140, the licensee shall record the dates(s) and amount(s) of any prizes awarded exceeding $2,500 per game which were not paid by a licensed Linked Progressive Game Bingo Escrow Agent. A licensee shall not offer a non-linked progressive game prize in excess of $2,500 unless the licensee has such funds available in an account with a financial institution or has evidence that it has purchased current insurance from a surety/insurance company providing for payment if such a prize is won by one or more of the licensee's players. Any such prize won by a player shall be paid by a corporate or cashier's check no later than the close of the second business day after the prize is won.

(3) The "operating expenses" of all bingo and raffle games, conducted by the licensee as defined in ORS 167.117(14), excluding prizes and money paid to players, shall not exceed 18 percent of the total of the annual handle of those games:

(a) If expenses are related to both the bingo operations and the nonbingo operations of a licensee (such as rent, utilities and employee salaries), a reasonable allocation shall be made between the bingo and nonbingo activities. Employee salaries shall be allocated based upon hours spent in bingo and nonbingo activities;

(b) All leasehold improvements and improvements to bingo facilities owned by the licensee may be reasonably amortized;

(c) No salary of an employee of the licensee shall be considered an operating expense for purposes of this subsection, if less than 20 percent of the employee's time is devoted to activities directly related to the games;

(d) Fees paid to the Department are not operating expenses for purposes of this subsection;

(e) If a licensee subleased its space or equipment to one or more additional licensees, the licensee may pro rate its rental expenses based on proportional use of the property; the pro rate shall be based on the actual hours of use by that licensee compared to the total hours of use of the other licensees.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: HB 3009, 1997, SB 716, 2003
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02; DOJ 6-2004, f. 2-19-04, cert. ef. 4-1-04; DOJ 8-2004, f. & cert. ef. 5-19-04

Multiple Hall Linked Progressive Bingo Games

137-025-0181

Operation of Linked Progressive Bingo Games

A licensed Linked Progressive Bingo Contractor shall not operate such a game in Oregon unless it complies with the following:

(1) The specific characteristics/format of the game and the equipment/software have been approved by the Department.

(2) The Contractor has furnished to the Department proof of certification by Gaming Laboratories International, Inc. testing laboratory pursuant to GLI-12 standards or certification by another nationally recognized laboratory pursuant to the preceding standards or standards determined by the Department as being equivalent and any other integrity standards communicated by the Department to the testing laboratory.

(3) The approved Oregon game is not conducted at locations other than those sites of Oregon bingo licensees licensed by the Department.

(4) The contractor has submitted and the Department has approved:

(a) A model contract between the contractor and bingo licensees;

(b) A schedule of lease fees to be charged to bingo licensees, including any proposed discounts; and

(c) A model contract between the contractor and the linked progressive bingo game escrow agent.

(5) A contractor that desires to change the specific characteristics/format of a game which has been approved by the Department pursuant to paragraph (1) above, shall make written application for changes to the Department. The application shall certify that all participating bingo licensees have been notified of the proposed change(s). The Department shall approve or disapprove of the proposed change(s) within 5 business days.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0182

Linked Progressive Bingo Game Contracts

The contract between the Linked Progressive Bingo Game Contractor and a bingo licensee shall provide for the schedule of prize pool contributions to be made by the licensee to the linked progressive bingo game escrow agent. The schedule shall be the same for all licensees and may not be changed without the approval of the Department. The contractor shall provide that if a licensee does not make scheduled payments to the escrow agent, its access to the game(s) will be terminated. A bingo licensee's access to the game shall not be activated until a copy of the signed completed contract has been received by the Department.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0183

Access to Linked Progressive Bingo Games

A Linked Progressive Bingo Game Contractor shall be responsible for implementing and maintaining adequate security measures to restrict access to the electronic linked bingo system to other than authorized parties. Only authorized parties may access the system for legitimate lawful purposes. Authorized parties include Oregon gaming licensees, the designated escrow agent and the Department. A linked bingo system shall be restricted from access by the general public through internet and any other electronic means.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0184

Linked Progressive Games-Manner of Conducting

(1) A licensee shall activate the linked progressive bingo game equipment in its possession in order to host or participate in a linked progressive bingo game and the system equipment shall record and maintain a record of the number of such games hosted or in which the licensee participated.

(2) A winning player must have achieved bingo on the last number called. A progressive bingo game can be played within or as an accompaniment to any other primary bingo game; however, if a winning player achieves the primary bingo on the last number called then the system equipment shall display the winning bingo card for viewing by the players at the location and if a primary bingo is verified, regardless of whether it also qualifies for the progressive prize, that particular linked progressive bingo game is also concluded.

(3) As each linked progressive bingo game is played at a participating licensed location, the bingo prize shall be increased by designated payments per licensee and participating locations will be notified of the increased amount of the progressive prize.

(4) If a linked progressive bingo game is played in conjunction with a standardized non-linked game and a player is charged an extra fee to participate in the linked progressive bingo game, the Linked Progressive Bingo Game Contractor shall operate the linked progressive game in a manner so that it can be verified that any winning player did pay the extra fee to participate in the linked progressive game.

(5) When a linked progressive bingo game winner is initially verified, the Linked Progressive Bingo Game Contractor equipment shall immediately be activated to notify the other participating licensee halls of a likely winner and the players shall be made aware that the progressive prize amount has been frozen. Once the contractor and the host licensee have completed all appropriate activities to verify the winner, the escrow agent shall be notified and the prize shall be reset to the advertised minimum plus any increases due to sales after the prize was frozen. The licensee hosting the game which produced the winner shall obtain all relevant federal W2G form information from the winner. The licensee shall also obtain information as to whether the winner prefers to receive the prize check from the licensee, from the escrow agent or by certified and insured mail delivery at an address provided by the winner. The licensee shall immediately transmit the above information, along with a statement of the amount of the prize, to the escrow agent.

(6) Linked Progressive Bingo Game Escrow Agents may charge the Linked Progressive Bingo Contractor a reasonable fee for their services.

(7) The escrow agent shall establish a "sweep account" with a commercial bank with branch offices throughout Oregon. All participating licensees will be notified as to the identity of the commercial bank. Participating licensees shall establish an account for prize pool contributions at a local branch of the commercial bank and shall execute the necessary documents so that the sums deposited may be swept by the escrow agent, into the sweep account. Participating licensees shall transfer the required prize pool contribution no later than three business days from the date a linked progressive bingo game was conducted.

(8) The escrow agent shall immediately notify the Department if a participating licensee fails to transfer a scheduled prize pool deposit for a linked progressive bingo game. The Department shall immediately notify the licensee of the delinquency and if the delinquent amount is not paid within two business days, the Department shall notify the Linked Progressive Bingo Game Contractor to terminate the licensee's access to the game.

(9) The Department may direct the Linked Progressive Bingo Game Contractor to renew the delinquent licensee's access to the game if the Department has received confirmation that the licensee has contributed the full amount of the delinquency plus a $100 delinquency fee to the licensee's prize pool contribution account.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

Single Hall Linked Progressive Bingo Games

137-025-0186

Operation of Linked Progressive Bingo Games

Such games may be operated by a Linked Progressive Bingo Contractor or a group of licensees operating games at the hall. If operated by a Contractor, the contractor shall be licensed and comply with all rules as provided for Multiple Hall Linked Progressive Bingo Games, including those providing for the utilization of a licensed escrow agent. If operated by the licensees, they shall comply with the following:

(1) The licensees shall apply to the Department for approval to operate the game. Approval shall include:

(a) The specific characteristics/format of the game,

(b) Any specific equipment/software to be utilized to operate the game;

(c) The proposed arrangement and mechanics for operation of a common prize pool, including the identity of the licensee that will hold the prize pool funds; and

(d) The proposed method of verifying winners of linked progressive bingo games, including the method for confirming that winners have paid to participate in the linked progressive bingo game if an additional payment is required.

(2) When a linked progressive bingo game winner is verified, all other participating licensees shall immediately be notified and the game prize shall immediately be reset to the advertised minimum prize.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

Linked Progressive Bingo Game Escrow Agents

137-025-0188

Linked Progressive Bingo Games Escrow Agent Reports

(1) Each Linked Progressive Bingo Games Escrow Agent shall file a monthly report with the Department not later than 10 days after the end of each month. The report shall be on a form prescribed by the Department. The report shall include the following information:

(a) The total escrowed funds deposited during the reporting period.

(b) An itemized record of the escrowed funds paid to the escrow agent by each participating licensee, listing the amount and date received.

(c) The total prize payouts made by the escrow agent, listed by participating licensee and each winning player and showing the date of the payout.

(2) Escrow agents will maintain adequate records to document the custody and transfer of funds under their control for a period of not less than three years.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0189

Linked Progressive Bingo Game Escrow Agents - Generally

(1) Persons or organizations acting as escrow agents for linked progressive bingo game prizes must be licensed by the Department pursuant to ORS Chapter 464 and the administrative rules adopted pursuant to that law. Licensees shall be licensed pursuant to ORS 696.505 et. seq. or shall comply with subparagraph (2) below. To act as an escrow agent, licensees shall be third parties independent of any Linked Progressive Bingo Contractor or bingo licensee involved in the operation of the linked progressive bingo game. All funds held in escrow for charitable gaming licensers shall be held in a designated escrow account or deposit with a commercial bank, located within the state of Oregon and approved by the Department.

(2) A Linked Progressive Bingo Game Escrow Agent not licensed pursuant to ORS 696.505 et seq. shall deposit with the Department a corporate surety bond running to the State of Oregon, executed by a surety company satisfactory to the Department in the amount of $25,000.

(3) An escrow agent may satisfy the preceding requirement by depositing with the State Treasurer an amount equal to $25,000 in a form satisfactory to the Department for the faithful performance of the agent's linked progressive bingo game activity.

(4) The designated escrow agent for a particular linked progressive bingo game shall, upon obtaining the relevant information from the host licensee, immediately obtain a cashiers check for the winning amount, made payable to the winner, and shall prepare the appropriate federal W2G form. The escrow agent shall then immediately deliver the check to the winner in a manner consistent with the winner's expressed method of delivery as communicated to the host licensee.

Stat. Auth.: ORS 167.117(10) & (12), 464.250(1), 914
Stats. Implemented: SB 716, 2003
Hist.: DOJ 8-2004, f. & cert. ef. 5-19-04

137-025-0190

Exceptions Approved by Department

(1) A bingo licensee that has received tax exempt status under the Internal Revenue Code Section 501(c)(3) and was operating a bingo game in Oregon in January, 1987, may apply for certain exceptions as provided in ORS 464.390. Requests for exceptions shall be prepared on forms prescribed by the Department. The forms shall include a description of why the licensee believes there is a compelling community need for the charitable activities funded by its bingo operations, a list of limits for which it seeks an exception plus the desired levels for which approval is sought, an explanation as to why its funding will be reduced unless the specific exceptions are granted, a monthly financial summary of its bingo operations for the period of January 1, 1986 to June 30, 1987, including the handle, the amount paid for prizes, the net receipts and the organization's regular hours of operation and such other information as may be requested by the Department.

(2) For purposes of this rule, "funding" shall refer to the net receipts from bingo operations available to the licensee after prizes, expenses and fees to the Department have been paid.

(3) The Department shall consider the following factors in evaluating whether there is a compelling community need for the charitable activities funded by a bingo operation:

(a) The nature of the charitable activities conducted or supported to date;

(b) The importance of those activities to the community;

(c) The prospect that those activities will be assumed by another organization or governmental entity or that a charitable beneficiary can find similar funding or services elsewhere in the community; and;

(d) The level of community involvement in the organization's activities, including community financial support received through fundraising other than bingo and participation by individuals in the community in the management of the organization.

(4) For purposes of determining whether or not the Act will seriously reduce an organization's funding, the Department shall consider the level of net receipts generated by the bingo operation prior to June 30, 1987 and shall account for inflation in approving any exception. In approving any exception, the Department shall presume that, except for the payment of fees required by this Act, the net receipts as a percentage of handle for the period covered by the exception shall not be less than the comparable relationship which existed prior to June 30, 1987.

(5) The Department shall review the exceptions granted under this rule not less than once per year, unless the Department determines that there has been a material change of circumstances since the time the exceptions were granted to the licensee, in which case the Department shall initiate an immediate review of the license. The Department will not continue an exception that otherwise meets the requirements of this rule if there has been a material change of circumstances as defined in ORS 464.390(4) since the time when the licensee was granted the exception.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0191

Multi License Supervision

(1) Pursuant to ORS 464.310(2), the Department may authorize an individual to manage the operation of a bingo facility on behalf of more than one licensee if:

(a) The individual is employed by or is a member of a bingo licensee and manages one or more functions described below for all of the licensees conducting bingo at the same facility;

(b) The individual's management responsibilities on behalf of the other licensees are solely related to the use, maintenance or upkeep of the facility, which may include janitorial and security services and ordering supplies relating to these functions;

(c) The individual does not exercise supervision or control over functions related to the operation of the games of more than one bingo licensee.

(2) An individual seeking the Department's approval to operate on behalf of more than one licensee as provided in section (1) of this rule, shall make application to the Department on a form prescribed by the Department.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: ORS 464.310(2)
Hist.: JD 2-1993, f. 6-21-93, cert. ef. 7-1-93

Raffle Licenses

137-025-0200

Classes of Licenses

(1) A "Class A" raffle license shall authorize a licensee to conduct raffle games throughout the license year, without restriction as to raffle handle.

(2) A "Class B" raffle license shall authorize a licensee to conduct raffle games throughout the license year with the handle for each such game not to exceed $10,000.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0210

Application for Raffle License

(1) An application for a raffle license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization, and must be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section, or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

(a) The name, address and telephone number of the organization;

(b) A statement of the purposes for which the money received from the raffle games will be used;

(c) A statement as to whether or not the organization has had a license to operate bingo or raffle games denied, revoked or suspended by the State of Oregon or any other licensing authority; and

(d) The full names and addresses of the responsible officials of the organization.

(2) The applicant shall submit the following documents with the application. The information required in subsections (b) and (c) of this section shall be on forms prescribed by the Department and shall be signed by a responsible official of the organization:

(a) A copy of a letter supporting tax exempt status as specified in OAR 137-025-0030(1)(c);

(b) As required by Oregon Laws 1987, Chapter 914, a waiver of potential liability claims against the State of Oregon, its agencies, employees and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;

(c) A consent to inspection authorized by Chapter 914, Oregon Laws 1987, and the rules adopted thereto; and

(d) Such other information as requested by the Department.

(3) The application fees are as follows:

(a) Class A raffle license -- $100;

(b) Class B raffle license -- $40.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(2), 464.250(4) & 464.280(2)(b)
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

137-025-0220

Issuance of License to Conduct Raffles

(1) Within 60 days after the filing of a completed application for a license or license renewal to conduct raffles, the Department shall either issue a license or notify the applicant in writing, in accordance with ORS 183.310 to 183.550, that the license has been denied, and that the applicant is entitled to a hearing. The license shall be effective for one year from the date it is issued and may be renewed annually, except that a license issued prior to January 1, 1988, shall be effective until January 1, 1989.

(2) The form of the license shall be prescribed by the Department and shall include:

(a) The name of the licensed organization;

(b) The class of license;

(c) The expiration date of the license;

(d) Any special conditions of the license.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 183.310, ORS 183.550 & ORS 464.250(2)
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87

137-025-0230

Raffle License Renewal and Amendment

(1) Within 60 days prior to the expiration of an existing raffle license, the licensee may apply to the Department to renew the license. The application and fee shall be the same as for the initial license.

(2) A licensee shall not exceed the class limit for gross receipts:

(a) If a Class B licensee desires to conduct games with sales in excess of $10,000, it shall notify the Department and shall apply for a Class A license, submitting the basic fee required for that class less the amount originally submitted for the previous license;

(b) Any such additional license issued by the Department shall be valid only for the period which remains in the term of the previous license at the time such additional license is issued.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(2)
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

Raffle Records and Reports

137-025-0240

Raffle Records

(1) A raffle licensee shall maintain the following records or information with regard to individual raffle games and retain the information for a period of three years:

(a) The total amount of proceeds received from the sale of tickets for each raffle game;

(b) All expenses relating to the conduct of each raffle game; and

(c) The winning ticket stubs.

(2) A Class A licensee shall maintain a raffle log book for all raffle games where sales are intended to exceed $10,000. The raffle log book shall be retained by the licensee for a period of three years. The raffle log book shall contain:

(a) A list of the names of all volunteers or employees who receive raffle tickets for sale;

(b) The numbers of tickets received by each seller;

(c) The number of purchased tickets returned to the licensee by each seller; and

(d) The amount of money from ticket sales returned to the licensee by each seller.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0250

Raffle Receipts

(1) A record shall be prepared by a raffle licensee for each winner of a prize with a retail value of $100 or more, which shall include:

(a) The name of the licensee;

(b) The date of the drawing;

(c) A description of the prize;

(d) The name and address of the prize winner; and

(e) The signature of the prize winner.

(2) A raffle licensee shall obtain a receipt from the seller/distributor for all noncash prizes awarded with a retail value of more than $500.

(3) The preceding receipts shall be retained by the licensee for a period of three years.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88

137-025-0260

Notice of Raffle Game

(1) Prior to conducting sales of raffle tickets, each Class A raffle licensee shall submit to the Department a completed raffle notice for all raffles where sales are intended to exceed $10,000.

(2) The notice shall be submitted on a form to be obtained from the Department. The information to be submitted shall include:

(a) The name of the organization;

(b) The organization's raffle license number;

(c) The location, date and time for the draw;

(d) A description of and the retail value of the prizes to be awarded;

(e) The total number of tickets to be offered for sale and the price of each ticket; and

(f) A copy of a sample ticket.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(4) & ORS 464.250(7)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0270

Raffle Reports

(1) A raffle licensee shall file an annual report with the Department of Justice no later than 60 days after the end of the license year. The report shall be on a form prescribed by the Department. The report shall include the following information:

(a) The number of raffle games held during the license year;

(b) The date of each drawing;

(c) The total sales of each game;

(d) The total expenses relating to the conduct of each raffle game;

(e) The total amount of cash prizes and the total cost to the licensee of all noncash prizes awarded;

(f) The total expenses of all games expressed as a percentage of the total raffle handle; and

(g) The net income from raffle games.

(2) All raffle reports shall be signed by a responsible official of the organization.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(5)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88

137-025-0280

Raffle Fees

(1) All annual raffle reports filed with the Department shall be accompanied by a fee, made payable to the Department of Justice, of 2 percent of the raffle handle listed in the report up to $125,000 and 0.5 of 1 percent of the raffle handle in excess of $125,000. A delinquency fee of $20 or one percent of the fee described above, whichever is greater, shall be paid by the licensee if the report or regular fee is not delivered to the Department by the due date. The minimum delinquency fee shall increase to $50 after 60 days from the due date of the report.

(2) When the filing date for reports and fees falls on a Saturday or legal holiday, the due date is the next business day following the Saturday or legal holiday.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(3)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

Operation of Raffle Games

137-025-0290

Conduct of Raffles in General

(1) Tickets for entry into a raffle shall constitute a separate and equal chance to win with all other tickets sold or issued. No person may be required to obtain more than one ticket, or to pay for anything other than the ticket, in order to enter a raffle.

(2) No person may be required to be present at a raffle drawing in order to be eligible to receive a prize.

(3) In conducting a drawing in connection with any raffle, each ticket seller shall return to the organization stubs or other detachable sections of all tickets sold. Except for duck races as provided for in OAR 137-025-0291 and alternate drawing formats approved by the Department in section (8) of this rule, the organization shall place each stub or other detachable section of each ticket sold in a receptacle out of which the winning tickets are to be drawn. The receptacle must be designed so that each ticket placed therein has an equal opportunity with every other ticket to be the one withdrawn.

(4) No unsold ticket or stub shall be entered in the draw container or be otherwise considered for the draw to determine the winner or winners of any prize.

(5) Where prizes for a raffle are unclaimed, the prizes shall be held in a trust for a period of one year from the date of the draw. If at that time the prizes are unclaimed, the prize shall be donated to the licensee.

(6) A raffle licensee shall not sell tickets more than twelve months in advance of the draw date.

(7) If for any reason the raffle is not completed and the prizes not awarded on the scheduled drawing date, the sponsoring organization must take all steps necessary to notify ticket purchasers of that fact and return all money received from ticket purchasers within 30 days.

(8) An alternate drawing format may be used to determine the winner(s) if such a format is approved by the Department prior to the sale of any ticket or other form of raffle entry. The alternate format must meet the definition of a drawing as defined in OAR 137-025-0020

(15) To be approved, an alternate drawing format request must be submitted to the Department in writing at least 30 days prior to the sale of entries and must contain at a minimum, the following information:

(a) The time, date and location of the drawing;

(b) The type of random selection process to be used and complete details of its operations;

(c) A description of how game integrity will be ensured so that each participant has an equal chance of winning.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: ORS 464.250(7)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02

137-025-0291

Duck Race Regulations

A licensee conducting a "Duck Race" raffle shall comply with the following:

(1) All ducks shall be positioned above the river at the same location and shall be released simultaneously. Once dropped, the ducks shall enter the river without interference or obstruction.

(2) Once the ducks enter the river, the ducks shall not receive human assistance until the race is concluded.

(3) The ducks shall be identified so that each duck corresponds to a separate numbered raffle ticket. The method of identification of the ducks shall be waterproof.

(4) At the finish line, the licensee shall construct a boom which will be designed to act to funnel the ducks to a chute. The chute shall be constructed so as to allow one duck at a time to pass through. The boom and the chute shall be reasonably secure. The boom shall be wide enough to capture the ducks that reach the finish line area as they move down stream.

(5) The course for the race shall be established so that the race may be observed by raffle purchasers. The length of the course shall be established so that the race will be conducted in less than one hour. The licensee shall conduct a test of the course, by releasing a sample of ducks and observing their progress, within one week prior to the race date. Once the race has started, a course shall not be altered.

(6) If a duck race is not completed in 90 minutes from the time the ducks are released into the river, the race shall be terminated and the licensee shall conduct the raffle by drawing tickets from a container as provided in OAR 137-029-0290(1) - (5).

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: ORS 464.250(7)
Hist.: JD 2-1993, f. 6-21-93, cert. ef. 7-1-93

137-025-0300

Raffle Prize Limits

(1) The total cash prize(s) offered or awarded in a raffle shall not exceed $2,500.

(2) No prize shall be offered or awarded with a retail market value in excess of $75,000 and the cumulative retail value of all prizes offered or awarded at a raffle shall not exceed $100,000.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02; DOJ 3-2006, f. & cert. ef. 1-4-06

137-025-0310

Raffle Tickets

(1) The following information must be printed upon each ticket sold or shall be otherwise provided to each purchaser at the time of the sale:

(a) The date and time of the drawing;

(b) The location of the drawing;

(c) The name of the organization conducting the raffle;

(d) The price of the chance;

(e) A full and fair description of the prize or prizes to be awarded;

(f) The retail market value of each prize to be awarded; and

(g) The total number of tickets which may be sold.

(2) The preceding rules regarding raffle tickets do not apply to operations exempted by OAR 137-025-0040(2).

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(1)
Hist.: JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 1-1989, f. & cert. ef. 3-1-89

Monte Carlo Events

137-025-0400

Monte Carlo Events in General

(1) All personnel conducting a Monte Carlo event shall be:

(a) volunteers or employees of a non-profit tax exempt organization licensed to conduct Monte Carlo events pursuant to OAR 137-025-0420;

(b) volunteers or employees of a non-profit tax exempt organization exempted from the requirement to hold a Monte Carlo event license pursuant to OAR 137-025-0040(2)(d); or

(c) employees or individual independent contractors of a Monte Carlo event contractor licensed pursuant to OAR 137-025-0420.

(2) No person or organization shall act as a Monte Carlo equipment supplier without a valid Monte Carlo equipment supplier license granted by the Department, except as provided in subparagraph (3) of this rule.

(3) A non-profit tax exempt organization may lease Monte Carlo equipment to another non-profit tax exempt organization without obtaining a Monte Carlo equipment supplier license.

(4) No person or organization shall act as a Monte Carlo event contractor licensee without a valid Monte Carlo event contractor license granted by the Department.

(5) No licensed Monte Carlo equipment supplier or licensed Monte Carlo event contractor shall enter into an agreement to lease Monte Carlo equipment and/or operate Monte Carlo games for a nonprofit tax exempt organization unless they obtain a signed written contract in compliance with OAR 137-025-0450. Equipment shall not be provided or services performed other than pursuant to the price and terms as provided in such contract.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

Monte Carlo Licenses

137-025-0405

Classes of Monte Carlo Charitable Games Licenses

(1) A "Class A" Monte Carlo license shall authorize a licensee to conduct Monte Carlo events with a gross handle of more than $10,000 per event throughout the license year, but shall not exceed 7 events per license year.

(2) A "Class B" Monte Carlo license shall authorize a licensee to conduct Monte Carlo events throughout the license year with (a) the handle for each such event not to exceed $5,000 per event, but shall not exceed 7 events per license year; or (b) the handle for each such event not to exceed $10,000 per event, but shall not exceed 2 events per license year.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0410

Application for Monte Carlo Event License

(1) An application for a Monte Carlo license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization, and must be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section, or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

(a) The name, address and telephone number of the organization;

(b) A statement of the purposes for which the money received from the Monte Carlo events will be used;

(c) A statement as to whether or not the organization has had a license to operate bingo, raffle games, or Monte Carlo events denied, revoked or suspended by the State of Oregon or any other licensing authority; and

(d) The full names and addresses of the responsible officials of the organization.

(2) The applicant shall submit the following documents with the application. The information required in subsections (b) and (c) of this section shall be on forms prescribed by the Department and shall be signed by a responsible official of the organization:

(a) A copy of a letter supporting tax exempt status as specified in OAR 137-025-0030(1)(c);

(b) As required by ORS 464.280, a waiver of potential liability claims against the State of Oregon, its agencies, employees and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;

(c) A consent to inspection authorized by ORS 464.280 and the rules adopted thereto; and

(d) Copies of current or proposed rental or service contracts for facility lease or rental, and Monte Carlo event service or equipment provider. If no contract has been proposed or offered at the time of license application, applicant shall submit such contracts for approval by the Department, not less than seven days prior to the actual conduct of any Monte Carlo event;

(e) Consent to allow Department employees to be present on the premises before, during, and after the conduct of the Monte Carlo event to inspect and test equipment and examine records maintained by licensee;

(f) Such other information as requested by the Department.

(3) The non-refundable application fees are as follows:

(a) Class A Monte Carlo event license -- $100;

(b) Class B Monte Carlo event license -- $40.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

137-025-0415

Application for Monte Carlo Supplier/Event Contractor License

(1) An application for a Monte Carlo equipment supplier and a Monte Carlo event contractor license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization, and must be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section, or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

(a) The name, address and telephone number of the organization;

(b) A statement as to whether or not the organization has had a license to provide equipment or services for Monte Carlo events, bingo or raffle games denied, revoked or suspended by the State of Oregon or any other licensing authority; and

(c) The full names and addresses of the responsible officials of the organization.

(2) The applicant shall submit the following documents with the application. The information required in subsections (b) and (c) of this section shall be on forms prescribed by the Department and shall be signed by a responsible official of the organization:

(a) Proof of compliance with applicable state and local business registration laws and regulations;

(b) As required by Oregon ORS 464.280, a waiver of potential liability claims against the State of Oregon, its agencies, employees and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;

(c) A consent to allow Department employees access to licensees' place of business for inspection and testing of equipment and examine records maintained by licensees;

(d) Consent to allow Department employees to be present on the premises where Monte Carlo events are held before, during, an after the conduct of the Monte Carlo event to inspect and test equipment and examine records maintained by licensee;

(e) A list of all games and gaming equipment offered for sale, lease, or rental;

(f) Such other information as requested by the Department.

(3) The non-refundable application and licensing investigation fees are as follows:

(a) Monte Carlo equipment supplier license -- $50;

(b) Monte Carlo event contractor license -- $300.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

137-025-0420

Issuance of License to Conduct Monte Carlo Events or Supply Equipment and Services

(1)(a) Within 60 days after the filing of a completed application for a license or license renewal pursuant to OAR 137-025-0410 or 137-025-0415, the Department shall either issue a license or notify the applicant in writing, in accordance with ORS 183.310 to 183.550, that the license has been denied, and that the applicant is entitled to a hearing.

(b) The license shall be effective for one year from the date it is issued and may be renewed annually.

(2) The form of the license shall be prescribed by the Department and shall include:

(a) The name of the licensed organization;

(b) The class of license;

(c) The expiration date of the license;

(d) Any special conditions of the license.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0425

Monte Carlo License Renewal and Amendment

(1) Within 60 days prior to the expiration of an existing Monte Carlo event license or a Monte Carlo equipment supplier or event contractor license, the licensee may apply to the Department to renew the license. The application and fee shall be the same as for the initial license.

(2) A Monte Carlo event licensee shall not exceed the class limit for gross receipts:

(a) If a Class B licensee desires to conduct games with sales in excess of $5,000 the limits described in OAR 137-025-0405(2), it shall notify the Department and shall apply for a Class A license, submitting the basic fee required for that class less the amount originally submitted for the previous license;

(b) Any such additional license issued by the Department shall be valid only for the period which remains in the term of the previous license at the time such additional license is issued.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

Operation of Monte Carlo Events

137-025-0430

Conduct of Monte Carlo Events in General

(1) Any person, corporation, or organization desiring to conduct Monte Carlo events shall:

(a) Comply with and meet all applicable provisions of ORS 128.610 et seq., 167.117 et seq., 464.250 et seq., OAR 137-025 et seq. and the applicable provisions of all other state, federal, and local laws.

(b) Be issued and maintain all applicable local licenses.

(2) A Monte Carlo event licensee shall not sell imitation money more than twelve months in advance of the event date.

(3) No Monte Carlo event shall be conducted that exceeds 12 hours in length. For the purposes of this subsection, the 12-hour period is not dependent upon whether contests of chance are continuously operated.

(4) Monte Carlo events shall not be conducted in the same location more than 15 times in a calendar month or 40 times in a calendar year.

(5) An organization conducting a Monte Carlo event may not directly or indirectly rent a facility for the event from a licensed Monte Carlo equipment supplier or a Monte Carlo event contractor.

(6) Any Monte Carlo event contractor, employee, or agent assisting the conduct of a Monte Carlo event shall wear a printed or typed name tag clearly visible by the participants. The printing on the tag shall include, but not be limited to the following:

(a) First name of the person;

(b) The name of the private Monte Carlo event contractor's company for whom the person is working.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0435

Notice of Monte Carlo Event

(1) At least 10 days prior to conducting a Monte Carlo event, each Monte Carlo licensee shall submit to the Department a completed Monte Carlo event notice for all Monte Carlo events where sales of imitation money are intended to exceed $5,000.

(2) The notice shall be submitted on a form to be obtained from the Department. The information to be submitted shall include:

(a) The name of the organization;

(b) The organization's Monte Carlo event license number;

(c) The location, date and time for the event;

(d)(A) A description of; and

(B) The retail value of the prizes to be awarded which exceed $100 in value;

(e) A description of the manner in which imitation money may be redeemed for prizes.

(f) The name and address of any supplier of rented Monte Carlo equipment and/or any Monte Carlo event contractor that will conduct the event. A copy of any contract for such equipment or services shall accompany the notice.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0440

Monte Carlo Equipment Supplier/Event Contractor Contracts

(1) A Monte Carlo event contract with a licensed Monte Carlo equipment supplier and/or a Monte Carlo event contractor shall include, but not be limited to the following:

(a) Name and license number of the non-profit tax exempt organization which will conduct the event;

(b) Name and license number of the Monte Carlo equipment supplier and/or Monte Carlo event contractor;

(c) Date, times and location of events to be conducted;

(d) Detailed list of games to be conducted;

(e) Description of gaming equipment including number of gaming tables to be supplied;

(f) All rental terms and conditions including contract price;

(g) Number of dealers or other workers supplied, if any; and

(h) Signature and name of official of each party to the contract.

(2) A contract shall not provide for the operation of events for a period that exceeds one year in duration.

(3) No licensee shall pay a percentage of the receipts of the net profits from the Monte Carlo event for the rental of Monte Carlo event equipment, services, labor, or premises.

(4) A Monte Carlo event contractor shall deliver to the Department a copy of any contract for services no less than ten days prior to the Monte Carlo event.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0450

Purchase/Sale of Monte Carlo Imitation Money

(1) Imitation money shall be sold only by bona fide members or employees of the licensee organization. No imitation money shall be sold, or cash handled, by a Monte Carlo event contractor, his agents, or employees regardless of whether said person is a member of the licensed charitable, fraternal, or religious organization.

(2) All imitation money sold for use at a Monte Carlo event shall be identifiable as sold by the particular licensee or event contractor operating the event. A licensee may not collect from any player a sum in excess of $200 per event for the purchase of imitation money for use at such Monte Carlo event.

(3) A Class A licensee shall follow the following described procedures in the sale of imitation money to Monte Carlo players.

(a) Each player shall receive a player identification card. The cards shall be sequentially numbered and the player's name shall be completed on the card. The player's name shall also be entered next to the same sequential number on a form prescribed by the department.

(b) The player identification card shall contain incremental amounts of money, the total of which shall not exceed $200. Each time the player purchases imitation money, the licensee's seller shall cancel an amount on the card equal to the amount paid by the player.

(c) The licensee shall make good faith efforts to collect all player identification cards before the close of the event.

(4) Licensees shall conspicuously post a notice that no player may pay more than $200 for imitation money per event

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0455

Monte Carlo Event Prizes

(1) No cash prize shall be offered or awarded. Once purchased, imitation money cannot be redeemed for cash or cash equivalent.

(2) No prize shall be offered or awarded with a retail market value in excess of $50,000 and the retail market value of prizes offered or awarded to Monte Carlo players shall not exceed $100,000 per event.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0460

Authorized Games

(1) During a Monte Carlo event, an organization may conduct only the following authorized games of chance:

(a) Blackjack;

(b) Roulette;

(c) Craps;

(d) Caribbean stud poker;

(e) Let it ride;

(f) Wheel of fortune;

(g) Red dog;

(h) Jackpot; and

(i) Pai gow

(2) No other games may be conducted unless approved in writing by the Department. To be considered for approval, an authorized game request must be submitted in writing to the Department at least 30 days prior to the event.

(3) No games utilizing any electromechanical device or other mechanism employing electronic chips, tubes, video display screens or microprocessors are allowable.

(4) Equipment used in the conduct of a Monte Carlo event shall be maintained in good repair and proper working order. Equipment which is not so maintained may immediately be removed from play at the direction of the Department.

(5) The utilization of equipment and method of play shall be such that each participant is afforded an equal chance of winning.

(6) No organization worker or contract worker shall conduct the game when his or her immediate family member is a participant at the worker's table.

(7) No person under the age of 18 years of age shall be permitted to participate in gaming at the Monte Carlo event or assist in the conduct of the Monte Carlo event.

(8) No volunteer or employee of a licensee No employee of a licensee paid for working a Monte Carlo event, or employee or agent of a Monte Carlo event contractor may participate in playing any game, either directly or indirectly or by proxy, or bid on, or receive any prize, at any Monte Carlo event at which they have worked in any capacity.

(9) Each game shall be conducted by a dealer present at the gaming table. The dealer shall be an employee or volunteer of the organization conducting the event or an employee or agent of a licensed Monte Carlo event contractor.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: HB 3009, 1997
Hist.: JD 7-1997(Temp), f. 12-31-97, cert. ef. 1-1-98 thru 6-20-98; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

Monte Carlo Reports and Records

137-025-0470

Monte Carlo Event Reports

(1) A Monte Carlo event licensee shall file an annual report with the Department of Justice no later than 60 days after the end of the license year. The report shall be on a form prescribed by the Department. The report shall include the following information:

(a) The number of Monte Carlo events held during the license year;

(b) The date of each event;

(c) The total Monte Carlo imitation money sales of each event;

(d) The total Monte Carlo expenses relating to the conduct of each event;

(e) The total cost to the licensee of all Monte Carlo prizes awarded;

(f) For purposes of this rule, if other activities are held at the event, the licensee may make a reasonable allocation between the Monte Carlo and non-Monte Carlo activities.

(2) All Monte Carlo event reports shall be signed by a responsible official of the organization.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0475

Monte Carlo Event Records

A Monte Carlo event licensee shall maintain the following records or information on forms prescribed by the department, with regard to individual Monte Carlo events and retain the information for a period of three years:

(1) In the case of a Class A licensee, the information relating to the sale of imitation money at each Monte Carlo event required by OAR 137-025-0430(3). In the case of a class B licensee, information sufficient to establish gross sales of imitation money at each Monte Carlo event.

(2) All Monte Carlo expenses relating to the conduct of each Monte Carlo event;

(3) A description of all Monte Carlo prizes offered in conjunction with each Monte Carlo event, and the retail value of each prize which is valued at $100 or more;

(4) Any contract with a licensed supplier of Monte Carlo event equipment and/or a licensed Monte Carlo event contractor;

(5) Any contract for rental/use of premises for the event.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98

137-025-0480

Monte Carlo Event Fees

(1) All annual Monte Carlo reports filed with the Department shall be accompanied by a fee, made payable to the Department of Justice, of 1 percent of the Monte Carlo handle listed in the report. A delinquency fee of $20 or one percent of the fee described above, whichever is greater, shall be paid by the licensee if the report or regular fee is not delivered to the Department by the due date. The minimum delinquency fee shall increase to $50 after 60 days from the due date of the report.

(2) When the filing date for reports and fees falls on a Saturday or legal holiday, the due date is the next business day following the Saturday or legal holiday.

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

Miscellaneous

137-025-0500

Suspension, Revocation and Civil Penalties

(1) After notice and opportunity for hearing, as provided in ORS 183.310 to 183.550, the Department may assess a civil penalty not to exceed $10,000 and may deny, revoke, suspend or refuse to renew any license or permit, for conduct as specified in ORS 464.470. In setting the amount of the civil penalty or the term of suspension, the Department shall consider the nature of the violation and whether the applicant, licensee, permit holder, or person with an interest in the bingo or raffles operation or proposed operation knew or should have known that the conduct constituted grounds for such action.

(2) The Department may take actions as specified in subparagraph (1) for conduct as describe in ORS 464.470. Such conduct includes, but is not limited to:

(a) Violating ORS 167.117, ORS 167.118, ORS Chapter 464, or these rules;

(b) Denying representatives of the Department or any law enforcement officer access to a location where a licensee conducts bingo or raffle game activity, or failing to promptly produce for the preceding officials for inspection or audit any records or receipts related to bingo or raffle operations;

(c) Misrepresenting or failing to disclose to the Department any material fact;

(d) Failing to file completed reports or pay fees within 30 days after receiving notification from the Department of a delinquency; and

(e) Operating a bingo, raffle game, or Monte Carlo event without a license, unless exempt under OAR 137-025-0040;

(f) Failing to maintain an adequate financial record keeping system and/or failure to keep accurate financial books and records.

(3) In determining whether to deny, revoke or suspend a license or permit due to past criminal activity, the Department will consider the following with respect to the applicant/licensee/permittee:

(a) The nature and severity of the criminal act(s);

(b) The relevance of the crime as it relates to the legal operation of nonprofit gaming;

(c) Mitigating or extenuating circumstances;

(d) Proximity in time of the criminal activity;

(e) Age at the time of the criminal activity;

(f) Pattern or frequency of criminal activity; and

(g) Honesty and forthrightness in disclosing the past criminal activity to department personnel.

(4) The Department may deny, revoke or suspend a license or permit if the applicant is a relative or associate of another individual or organization who has engaged in conduct in violation of ORS 464.470(1) and there is clear and convincing evidence that the applicant is likely to be subject to the control or influence of the violator.

(5) The Department may require an applicant, permittee or licensee whose permit or license has been denied or revoked to wait a period of time designated by the Department before reapplying for a permit/license.

Stat. Auth.: ORS 464.250(1)
Stats. Implemented: HB 3009, 1997
Hist.: DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98, Renumbered from 137-025-0320

137-025-0520

Model APA Rules

The Attorney General's Model Rules of Procedure under the Administrative Procedures Act, effective September 15, 1997, are by this reference adopted as the rules and procedures for carrying out ORS 167.117, ORS 167.118 and ORS Chapter 464, except as otherwise specifically provided herein.

[ED. NOTE: The full text of the Attorney General's Model Rules of Procedure is available from the Department of Justice.]

Stat. Auth.: ORS 914
Stats. Implemented: HB 3009, 1997
Hist.: DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98, Renumbered from 137-025-0330

137-025-0530

Effective Dates

(1) OAR 137-025-0010 is repealed, effective January 1, 1988.

(2) OAR 137-025-0020 to 137-025-0030, 137-025-0050 to 137-025-0110, 137-025-0190 to 137-025-0230 and 137-025-0330 shall take effect on November 1, 1987.

(3) OAR 137-025-0040, 137-025-0120 to 137-025-0180 and 137-025-0240 to 137-025-0320 shall take effect on January 1, 1988.

(4) The amended fee schedule, to take effect on January 1, 2007, shall apply as follows:

(a) For licensees/permit application fees, for licensees/permits which expire after December 31, 2007; and

(b) For report fees, for licensee reporting periods ending after December 31, 2006.

Stat. Auth.: ORS 464
Stats. Implemented: ORS 464.250(1)
Hist.: JD 8-1987, f. 10-30-87, ef. 11-1-87; DOJ 5-1998, f. 6-19-98, cert. ef. 6-20-98, Renumbered from 137-025-0330; DOJ 7-2006, f. 12-12-06, cert. ef. 1-1-07

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