Citations Affected: IC 4-35; IC 6-8.1-1-1; IC 35-45-5-11.
Synopsis: Electronic gaming. Authorizes electronic gaming devices
in establishments licensed to sell alcoholic beverages for consumption
on the licensed premises.
Effective: July 1, 2004.
January 15, 2004, read first time and referred to Committee on Public Policy, Ethics and
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
licensee for each violation of this article.
(b) If a licensee holding an establishment license issued under this article no longer holds a permit issued by the alcohol and tobacco commission, the commission shall revoke the establishment license.
(c) A license issued under this article is automatically revoked if the commission determines that a licensee has offered, installed, serviced, maintained, possessed, or otherwise made available to the public an electronic gaming device that is not licensed by the commission.
(d) A person whose license is revoked under subsection (c) may not be licensed under this article for three (3) years after the revocation.
Sec. 8. The commission shall adopt standards for the licensing of the following:
(1) Persons regulated under this article.
(2) Electronic gambling devices.
Sec. 9. The commission shall require a licensee conducting gambling operations authorized under this article to use a cashless wagering system in which a player's money is converted to tokens or electronic cards that may be used only for wagering on the premises of the licensee's establishment.
Sec. 10. The state police department shall assist the commission in conducting background investigations of applicants. The commission shall reimburse the state police department for the costs incurred as a result of the assistance. The commission shall make the payment from fees collected from applicants.
Chapter 4. Licensing of Establishments
Sec. 1. The commission may issue establishment licenses to applicants that satisfy the requirements of this article.
Sec. 2. To qualify for an establishment license, a person must operate an establishment licensed under IC 7.1-3 to sell alcoholic beverages to customers for consumption on the licensed premises. However, a person holding a horse track permit under IC 7.1-3-17.7 may not apply for an establishment license issued under this article.
Sec. 3. (a) A person applying for an establishment license under this chapter must pay a nonrefundable application fee to the commission. The commission shall determine the amount of the application fee.
(b) An applicant must submit the following on forms provided by the commission:
(1) If the applicant is an individual, two (2) sets of the individual's fingerprints.
(2) If the applicant is not an individual, two (2) sets of fingerprints for each officer and director of the applicant.
(c) The application must include at least the following:
(1) The name and address of the applicant and of any person holding at least a one percent (1%) interest in the applicant.
(2) The applicant's consent to credit investigations and criminal record searches.
(3) Waivers and releases signed by the applicant that the commission believes are necessary to ensure a full and complete review of the application.
(d) An applicant shall furnish all information requested by the commission, including financial data and documents, certifications, consents, waivers, and individual histories.
(e) The commission shall review the applications for an establishment license under this chapter and shall inform each applicant of the commission's decision concerning the issuance of the establishment license.
(f) The costs of investigating an applicant for an establishment license under this chapter shall be paid from the application fee paid by the applicant.
(g) An applicant for an establishment license under this chapter must pay all additional costs:
(1) associated with the investigation of the applicant; and
(2) greater than the amount of the application fee paid by the applicant.
Sec. 4. The commission shall conduct or cause to be conducted a background investigation of each applicant for licensure.
Sec. 5. Criminal history record information obtained during the investigation of an individual must be maintained by the commission for the term of the license and for any subsequent license term.
Sec. 6. The commission may require that an application or other document submitted by an applicant or a licensee must be sworn to or affirmed before a notary public.
Sec. 7. The commission may not issue a license to an applicant who:
(1) has knowingly made a false statement of material fact to the commission;
(2) is found by the commission to lack the necessary financial stability or responsibility for licensure;
(3) if an individual, is less than twenty-one (21) years of age on the date the application is received by the commission;
(4) is on the most recent tax warrant list provided to the commission by the department;
(5) if an individual, has been convicted of or entered a plea of guilty or nolo contendere to a felony in the ten (10) years preceding the date of license application, unless the commission determines that:
(A) the individual has been pardoned or the individual's civil rights have been restored;
(B) after the conviction or entry of the plea, the individual has engaged in the kind of law abiding commerce and good citizenship that would reflect well upon the integrity of the commission; or
(C) the individual has terminated a relationship with a person whose actions directly contributed to the conviction or entry of the plea;
(6) if an individual, has been convicted of or entered a plea of guilty or nolo contendere to a violation of a gambling statute in any jurisdiction; or
(7) fails to provide all materials requested by the commission.
However, the commission may determine that a waiver is warranted under the circumstances for an individual described in subdivision (6).
Sec. 8. Credit and security investigation information submitted in connection with an application for a license under this article is confidential and may not be disclosed except for official purposes under this article or under a judicial order.
Sec. 9. A license issued under this article may not be transferred without prior written approval of the commission.
Sec. 10. (a) An establishment license issued under this chapter expires one (1) year after the date of issuance.
(b) An establishment license may be renewed for a fee and in the manner determined by the commission.
Chapter 5. Gambling Operations in an Establishment
Sec. 1. IC 7.1 and the rules adopted by the alcohol and tobacco commission apply to a person holding an establishment license.
Sec. 2. Subject to the provisions of this chapter, gambling may be conducted by a person holding an establishment license issued under this article on the premises of the establishment.
Sec. 3. (a) For each establishment license that is issued by the commission, the commission shall create and maintain a list of the
(1) The name of the individual who signed the application for the license.
(2) The name, address, and telephone number of the person holding the license.
(3) The number of electronic gaming devices located at the establishment.
(4) The serial number of each electronic gaming device located at the establishment.
(5) The sticker numbers required under section 4(c) of this chapter.
(b) The list described in subsection (a) must be available for public inspection in the offices of the commission.
Sec. 4. (a) An establishment license issued under this article authorizes an establishment to have not more than five (5) electronic gaming devices placed in the establishment.
(b) An establishment must pay the annual fee required under IC 4-35-6-1 for each electronic gaming device located on the premises of the establishment.
(c) The commission annually shall issue a sticker with a number for each licensed electronic gaming device. The establishment must place the sticker on each licensed electronic gaming device in a manner determined by the commission.
Sec. 5. (a) An establishment license issued under this article must be displayed conspicuously in the establishment.
(b) Gambling operations may not take place unless the establishment license is displayed conspicuously in the licensed establishment as required by subsection (a).
Sec. 6. Minimum and maximum wagers on gambling games shall be determined by the commission.
Sec. 7. A person who has been issued an establishment license may not permit any form of wagering on gambling games except as permitted under this article.
Sec. 8. Wagers may be received only from a person present on the premises of the licensed establishment. A person present on the premises of the licensed establishment may not place or attempt to place a wager on behalf of another person who is not present on the premises of the licensed establishment.
Sec. 9. Wagering may not be conducted with money or other negotiable currency.
Sec. 10. Gambling operations authorized under this article must be concealed from the view of a person who is less than twenty-one
(21) years of age.
Sec. 11. (a) A person who is less than twenty-one (21) years of age may not make a wager under this article.
(b) A person who is less than twenty-one (21) years of age may not be present in the area of an establishment licensed under this article where gambling is being conducted.
Sec. 12. (a) All tokens or electronic cards that are used to make wagers must be purchased from the person holding an establishment license on the premises of the licensed establishment.
(b) The tokens, chips, or electronic cards may be purchased by means of an agreement under which the licensee extends credit to the patron.
Sec. 13. Tokens or electronic cards may be used while on the premises of the licensed establishment only to make wagers on gambling games authorized under this article.
Chapter 6. Fees
Sec. 1. A licensee shall annually pay a fee of one thousand dollars ($1,000) for each electronic gaming device that the licensee operates in the licensee's establishment.
Sec. 2. Fees collected under this chapter must be deposited in the electronic gaming fund established by IC 4-35-9-2.
Sec. 3. A local governmental authority may not charge an additional fee or charge for the licensing of suppliers or establishments under this article.
Chapter 7. Operation of Electronic Gaming Devices
Sec. 1. Electronic gaming devices and equipment associated with electronic gaming devices must be maintained and serviced in the manner and condition required by the commission.
Sec. 2. (a) An establishment licensee is responsible for keeping a written service log in each of the electronic gaming devices. The log must be located in the main cabinet access area of the device's terminal.
(b) An individual, including an employee or agent of the commission, who gains entry into any internal space of an electronic gaming device shall sign the log and indicate the time, date, and purpose of entry, the electronic and mechanical meter readings, and the parts of the terminal inspected or repaired.
(c) Service log forms must be obtained from the commission and be retained by an establishment during the time that the electronic gaming device is being used for gambling operations and for at least one (1) year after the electronic gaming device is removed from service.
following commits a Class D felony:
(1) Offers, promises, or gives anything of value or benefit:
(A) to a person who is connected with the owner of an establishment licensed under this article, including an officer or an employee of an owner of an establishment licensed under this article; and
(B) under an agreement to influence or with the intent to influence:
(i) the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of a gambling game; or
(ii) an official action of a commission member.
(2) Solicits, accepts, or receives a promise of anything of value or benefit:
(A) while the person is connected with an establishment licensed under this article, including an officer or employee of a licensee; and
(B) under an agreement to influence or with the intent to influence:
(i) the actions of the person to affect or attempt to affect the outcome of a gambling game; or
(ii) an official action of a commission member.
(3) Cheats at a gambling game.
(4) Manufactures, sells, or distributes any cards, chips, dice, game, or device that is intended to be used to violate this article.
(5) Alters or misrepresents the outcome of a gambling game on which wagers have been made after the outcome is made sure but before the outcome is revealed to the players.
(6) Places a bet on the outcome of a gambling game after acquiring knowledge that:
(A) is not available to all players; and
(B) concerns the outcome of the gambling game that is the subject of the bet.
(7) Aids a person in acquiring the knowledge described in subdivision (6) to place a bet contingent on the outcome of a gambling game.
(8) Claims, collects, takes, or attempts to claim, collect, or take money or anything of value in or from a gambling game:
(A) with the intent to defraud; or
(B) without having made a wager contingent on winning a gambling game.
(IC 6-8-1); the various innkeeper's taxes (IC 6-9); the various county
food and beverage taxes (IC 6-9); the county admissions tax (IC 6-9-13
and IC 6-9-28); the oil inspection fee (IC 16-44-2); the emergency and
hazardous chemical inventory form fee (IC 6-6-10); the penalties
assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and
penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the
underground storage tank fee (IC 13-23); the solid waste management
fee (IC 13-20-22); and any other tax or fee that the department is
required to collect or administer.