Ohio Attorney General Charitable Law Section Policy 201: Games of Chance 1.0 Purpose
Ohio Attorney General Charitable Law Section Policy 201: Games of Chance 1.0 Purpose
1.0 Purpose
This procedure establishes the policy and guidelines for the dissemination of
information regarding the conduct of games of chance pursuant to Revised Code
Section 2915.02 by qualifying charitable organizations. Charitable Law Section
employees will use this procedure in responding to public inquiries regarding the
conduct of games of chance and in reviewing or auditing the records of games of
chance.
4.0 Policy
It is the policy of the Attorney General’s Charitable Law Section that the conduct
of games of chance for profit is statutorily limited to qualifying charitable
organizations under the restrictions set forth by statute in R.C. § 2915.02(D) .
Recognizing that the legal conduct of games of chance by qualifying charitable
organizations is an allowable and effective means of raising funds to further
charitable programs in the community, it is the policy of the Attorney General’s
Charitable Law Section to provide complete information to persons and entities
planning to conduct games of chance for profit, so that such games may be
conducted in compliance with Ohio law, which requires all of the following:
b) The games of chance may not include craps for money or roulette for
money;
f) The only expense that may be deducted from the money or assets received
from the games of chance are the prizes paid out during the conduct of the
games of chance. All of the remaining funds must be used by, or given,
donated or otherwise transferred to an organization that is described in
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code
and is either a governmental unit or an organization that is tax exempt
under subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code;
g) The games of chance are not conducted during, or within ten hours of, a
bingo game conducted for amusement purposes only;
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i) The charitable organization maintains all records regarding the games of
chance required by R.C. § 2915.10, as follows:
The Attorney General’s Charitable Law Section adopts the following policies with
respect to the interpretation of the provisions of R.C. § 2915.02:
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• A governmental unit that is described in R.C. § 2915.02(D)(1)(d) is qualified to
receive distributions from the proceeds of the games of chance, even if the
governmental unit is the lessor of the premises at which the games of chance were
conducted.
• No person may be compensated in any manner, directly or indirectly, for
operating or assisting in the operation of a game of chance. Compensated
employees of a business that provides equipment and supplies to a charitable
organization for the conduct of games of chance shall not operate or assist in the
operation of the games of chance on behalf of that charitable organization.
• No deductions may be taken from the money or assets received from the games of
chance except for the prizes paid out on the games of chance. No other expenses
may be paid or payments made from the money or assets received from the games
of chance. All of the remaining money or assets received from the games of
chance must be distributed in accordance with R.C. § 2915.02(D)(1)(d).
• Expenses incurred in the conduct of the games of chance, such as rent for the
premises, purchase or lease of equipment or supplies necessary for the conduct of
the games of chance, or advertising, may be paid only from a source of funds
other than the money or assets received from the games of chance, and only to the
extent that the amount paid is not more than is customary and reasonable for the
goods or services provided.
• If participants in the games of chance are required to pay an admission or entry
fee to enter the festival and/or to participate in the games of chance, the admission
fees paid by all such participants shall be included in the “money or assets
received from the games of chance.”
5.0 Definitions
B. Game of chance for profit shall have the same meaning as defined in R.C.
§ 2915.01(E): any game of chance designed to produce income for the
person who conducts or operates the game of chance, but does not include
bingo.
Card games conducted for profit at Texas Hold ‘Em Tournaments, Las
Vegas Nights, and similar events are “games of chance conducted for
profit.”
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consideration for a chance to win a prize, but does not include bingo, a
skill-based amusement machine, or a pool not conducted for profit.
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the national veteran’s association or has received a letter from the national
veteran’s organization indicating that the state headquarters is in good
standing with the national veteran’s association. As used in this division,
“national veteran’s association” means any veteran’s association that has
been in continuous existence as such for a period of at least five years and
either is incorporated by an act of the United States congress or has a
national dues-paying membership of at least five thousand persons.
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craft displays, children’s games, competitions, dancing, agricultural
displays or programs, historical exhibitions, or religious celebrations. A
festival shall include at least two types of activities conducted by the
charitable organization that do not include games of chance. An event that
is held solely for the purpose of conducting games of chance and
providing food and beverages to the participants of the games of chance is
not a festival.
6.0 Responsibilities
B. Attorney General employees who audit or review the use of the money or
assets received from the conduct of games of chance conducted by
charitable organizations, shall determine that the games of chance were
conducted by the charitable organization in compliance with all of the
statutory requirements of Chapter 2915 of the Revised Code, consistent
with this policy.
7.0 Procedures
C. Attorney General employees who audit or review the use of the money or
assets received from the conduct of games of chance conducted by a
charitable organization shall determine that the charitable organization
conducted the games of chance in accordance with R.C. § 2915.02(D) and
this policy.
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D. Attorney General employees who audit or review the use of the money or
assets received from the games of chance conducted by charitable
organizations shall verify that no expenses other than the prizes paid out
from the games of chance were paid from the money or assets received
from the games of chance and shall verify that all money or assets
received from the games of chance were used or distributed in
conformance with R.C. § 2915.02(D)(1)(d).
E. Attorney General employees who audit or review the records of the games
of chance conducted by charitable organizations shall determine if all
records required pursuant R.C. § 2915.10 were accurately maintained by
the charitable organization.
F. Any failure to comply with the statutory requirements and this policy
discovered by the Attorney General employee’s compliance with the
procedures set forth in items “C” through “E” above shall be noted in the
employee’s report on the audited organization.