| Summary |
This bill permits the Gambling Control Board, beginning January 1, 2014, to issue a license to a charitable nonprofit organization that is a fraternal organization or a veterans organization that is tax-exempt under the federal Internal Revenue Code to operate up to 5 slot machines on premises that are owned or leased by the organization, serve as its primary headquarters for fulfilling its charitable mission and are located in a municipality that has, by referendum of the voters, approved the operation of slot machines in that municipality. The organization must be able to demonstrate that it has a cash reserve of $2,000 for each machine the organization intends to operate. An organization that wishes to apply prior to January 1, 2014 may file a declaration of intent to apply with the Gambling Control Board. An application must include a refundable $5,000 deposit. The initial application fee for a slot machine operator license is $1,000, and the annual renewal fee is $350. A slot machine operated by a charitable nonprofit organization is subject to the same central site monitoring that applies to casinos and slot machine facilities at harness racing tracks. The total number of slot machines allowed to be operated by charitable nonprofit organizations statewide is 250. Ten percent of the net slot machine income is required to be deposited directly with the Gambling Control Board for administrative expenses; 8% goes directly to the General Fund; 10% goes to the host municipality; and 2% is dedicated to gambling addiction prevention and treatment. A charitable nonprofit organization that is licensed to operate slot machines is required to establish a separate account, from which the board may withdraw funds to distribute the net revenue percentages. The remaining revenue generated from the slot machines must be used to support the charitable purposes of the fraternal organization or veterans' organization. |
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