Organizations Authorized to Conduct Gambling:

Permit Procedure.

(a)Sections 64.10 and 64.20 do not apply to gambling activities sponsored, promoted and conducted by an organization which has been issued a permit to conduct such activities pursuant to Subsection (c).

(b)A permit to conduct gambling activities shall be issued by the Director of the Department of Revenue and Taxation if:

(1)the organization which applies for the permit has been organized and functioning actively as a nonprofit organization in the Territory for not less than two

(2)years prior to filing its application and is:

(A)a church or religious organization;

(B)a fraternal or fraternal benefit society;

(C)an educational or charitable organization; or

(D)a club or organization organized and operated exclusively for pleasure, recreation and other nonprofit purposes not part of the net earnings of which inures to the benefit of any member or shareholder;

(2)the promotion and management of such bingo games or lottery (raffle tickets) are confined solely to the qualified members of the sponsoring organization, no member of which receives remuneration in any form for time or effort devoted to the promotion and management of the bingo games or lottery (raffle tickets); and

(3)all net proceeds derived from such gambling activities are used exclusively for the purposes stated in the sponsoring organization's application to conduct such activities, which purposes shall be limited to educational, charitable, religious, fraternal or civic purposes.

(c)

(1)An organization which meets the requirements of Subsection

(b)and which desires to conduct or operate gambling activities shall apply for a permit to conduct such activities from the Director of the Department of Revenue and Taxation. COL6/5/2019 CH. 64 GAMBLING

(A)The application form shall include:

(i)the name and address of the applicant;

(ii)the evidences on which the applicant relies in order to qualify under Subsection (b);

(iii)the names of three

(3)officers or members of the organization who shall be responsible for the operation of the gambling activities;

(iv)the address of the premises on which the operation of the gambling activities will be held; and

(v)the uses to which the net proceeds will be applied.

(B)Upon receipt of such application the Director shall determine whether it is in conformity with this Section.

(i)If so, the Director shall forthwith issue a permit. The permit shall be valid for one

(1)year from the date of its issuance. The Director shall retain a copy of the application.

(ii)If there is any change subsequent to the making of the application for a permit in the facts set forth therein, the applicant shall forthwith notify the Director of such change, and the Director shall issue a permit if the applicant is qualified, or, if a permit has already been issued and the change in the facts set forth in the application disqualify the applicant, the Director shall revoke such permit.

(2)If an application for a permit to conduct gambling activities is not acted upon within thirty

(30)days after submission, or if the organization is denied a permit, or if a permit is revoked, any person named on the application may obtain a judicial review of such inaction, refusal or COL6/5/2019 CH. 64 GAMBLING revocation by filing a petition for review in the Superior Court.

(A)Such petition for review shall be filed within ten

(10)days of the refusal or revocation of a permit or within ten

(10)days of the expiration of the thirty

(30)day period.

(B)If the court is satisfied that there was no reasonable ground for refusing a permit and that the applicant was not prohibited by law from holding gambling activities, he may direct that such permit be issued.

(d)The Director shall immediately revoke a permit in case of violation of any provision of this Section, and the Director shall not issue any permit to such permittee within three

(3)years following the date of such violation.

(1)Any person aggrieved by such action may appeal to the Superior Court provided that such appeal is filed within twenty

(20)days following receipt of notification by the Director.

(2)The court shall hear all pertinent evidence and determine the facts; upon the facts so determined the court shall annul such action or make such decision as equity may require. This remedy shall be exclusive.

(e)

(1)An organization which is issued a permit shall submit a report to the Director on a form to be approved by him within thirty

(30)days of the expiration of the permit. Such form shall require information concerning the nature of the gambling activities held, the amount of money received, the expenses incurred in connection with such activities, the net proceeds of such activities, and the uses to which the net proceeds were applied.

(2)The organization shall maintain and keep such books and records as may be necessary to substantiate the particulars of such report; such books and records shall be preserved for at least one

(1)year after such report is submitted and shall be available for inspection. COL6/5/2019 CH. 64 GAMBLING

(3)The report shall be certified to by the three

(3)persons designated in the permit application as responsible for such gambling activities and by an accountant.

(4)Failure to file such a report shall constitute sufficient grounds for refusal to renew a permit to conduct gambling activities.

(f)As used in this Section:

(1)Bingo Games means a specific game of chance, commonly known as bingo, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random;

(2)Lottery (Raffle Tickets) means a plan whereby prizes are distributed by chance among persons who have paid or promised to pay anything of monetary value for a chance to win a prize; and

(3)Gambling Activities means either a lottery (raffle tickets) or bingo games and does not include any form of casino gambling.

(g)Notwithstanding any other law, rule or regulation, a non-profit tax exempt organization issued a permit pursuant to Subsection

(c)may conduct bingo operations on any premises where it is authorized to do so by the Department of Revenue and Taxation, regardless of whether the premises is owned or leased by it or another non-profit tax exempt organization. However, the use of such premises shall not be conditioned on the payment of a share of bingo proceeds.

(h)Notwithstanding any other law, rule or regulation, a bingo licensee, as that term is used in Title 3 GAR Chapter 7, is required to own all equipment used to conduct the bingo games or lease such equipment from an organization licensed with the Department of Revenue and Taxation (DRT). However, the use of such premises shall not be conditioned on the payment of a share of bingo proceeds.

(i)Notwithstanding any other law, rule or regulation, a bingo licensee, as that term is used in Title 3 GAR Chapter 7, shall file an annual itemized report with the Gaming Control COL6/5/2019 CH. 64 GAMBLING Commission each year disclosing the gross receipts and all expenses and expenditures associated with the operation of the bingo games. Such report shall be filed on or before April 15th of every year. The report must be prepared on the form prescribed and provided by the Gaming Control Commission.

(j)Notwithstanding any other law, rule or regulation, no person or organization may receive any money or other consideration for salary, expense money, or any other fees for the operation of or assistance with regard to any bingo game, except that a member or auxiliary member of the licensed nonprofit tax exempt organization who assists in the conducting of such games on such day shall be compensated based on the prevailing wages according to the member’s position.