Charitable Gaming

Frequently Asked Questions





Sections:
  • Gaming FAQ



  • Gaming FAQ

    Who may conduct Gaming activities?
    How can I qualify for a permit?
    What is the definition of a "Qualified Organization"?
    What must I do to apply for a permit?
    How long does it take to get a permit?
    What is the member in charge test?
    How often do we have to take the member in charge test?
    How do we add an activity to our existing permit?
    How much does a permit for another activity cost?
    Do we need a permit to give door prizes at a dinner or other function?
    How can I obtain another statute book?
    When is the annual financial statement due?
    Can I apply for a Monte Carlo permit?
    What is a raffle record?
    What must we do with the raffle tickets we did not sell?
    Can we delay a raffle drawing?
    If we start a raffle in one year, what must we do to continue selling in the following year?
    Can we borrow another organization’s permit to run a raffle?
    What is a "pull-tab" game?
    What can I do with a pull-tab game that won’t sell?
    How can I dispose of a pull-tab game?
    How do I determine how much in prizes is remaining in a pull-tab game?
    I want to report missing money in our gaming operation. Who can help?
    What types of gaming are considered illegal in Alaska?
    What is illegal gambling, and how can I report it?
    What limits are there for using net proceeds from gaming?  Must we donate a certain percentage to other organizations?
    How do I get permission to retain net proceeds for a longer period under AS 05.15.150(b)?
    Do you have suggested text for the dissolution clause required by 15 AAC 160.020(a)(5)?
    The application for a gaming permit requires a membership list. What is the definition of a member?
    How do I renew my operator contract?
    How do I renew my vendor registration?
    What are the main statutes and regulations regarding vendors selling pull-tabs on behalf of permittees?


  • Who may conduct Gaming activities?

    • Permittees are generally non-profit organizations and municipalities that conduct gaming activities. Permittees remit a 1% fee to the Division. Permits are issued on a calendar year basis.

    • Multi-Beneficiary Permittees (MBP’s) consist of a group of permittees that conduct gaming activities. Permits are issued on a calendar year basis.

    • Operators are for-profit businesses that conduct gaming activities on behalf of organizations that have gaming permits. Licenses are issued on a calendar year basis.

    • Vendors are for-profit businesses that hold a license issued by the Alaska Alcoholic and Beverage Control (ABC) Board. Vendors conduct pull-tab sales on behalf of permittees. Vendors are registered annually.

    • Pull-tab Distributors are for-profit businesses that sell pull-tabs to Permittees and Operators from a location(s) within the State of Alaska. When a distributor sells a pull tab game, they remit a 3% tax to the Division. Licenses are issued on a calendar basis.

    • Pull-tab Manufacturers are for-profit businesses that manufacture and sell pull tab games to Pull–Tab Distributors. Licenses are issued on a calendar year basis.


  • How can I qualify for a permit?

  • You must be a qualified organization with at least 25 Alaska residents as members.  If so, complete and file an application to obtain a permit to conduct gaming activities.  Only municipalities and certain non-profit organizations can be qualified to obtain a gaming permit.  The department may issue a permit to a qualified organization that operates without profit to its members and that has been in existence continually for a period of three years immediately before applying for a permit.  The organization may be a firm, corporation, company, association, or partnership.

  • What is the definition of a "Qualified Organization"?

  • A "Qualified Organization" means a bona fide civic or service organization or bona fide religious, charitable, fraternal, veterans, labor, political, or educational organization, police or fire department and company, dog mushers' association, outboard motor association, or fishing derby or nonprofit trade association in the state.

  • What must I do to apply for a permit?

    • 1. The gaming permit application is not available in paper form.
    • 2. To apply for a gaming permit for the first time, go to https://online-tax.alaska.gov
    • 3. Select Submit a License/Permit App or Test under Quick Links
    • 4. Select New Gaming Permit, License or Test
    • 5. Select I want to apply for a Gaming Permit or License
    • 6. Select Alaska Gaming Permittee Permit Application


  • How long does it take to get a permit?

  • First, make sure your application is complete with all documentation--we will not issue a permit unless the application is complete.  We can usually turn around permit applications in two to four weeks, if there are no problems or questions, but it can take longer.  During the annual renewal period, it may take longer due to the increased volume of applications--figure four to six weeks.  Please be sure to provide all information and documentation requested on the forms to insure an efficient response to your application.

  • What is the member in charge test?

  • Each permittee must designate a primary member in charge of gaming activities and at least one alternate member in charge.  These individuals must pass a test on the Charitable Gaming statute and regulations.  The test is designed to ensure that the members in charge have sufficient knowledge of statute and regulation so that the permittee’s gaming activities are properly conducted, recorded and reported and that net proceeds are properly used.

  • How often do we have to take the member in charge test?

  • The gaming test is not available in paper form. Prospective members in charge may take the test at their convenience through Revenue Online. Once a prospective member in charge has passed the test, there is no requirement to retest.
    • 1. To take the gaming test, go to https://online-tax.alaska.gov
    • 2. Select Submit a License/Permit App or Test under Quick Links
    • 3. Select New Gaming Permit, License or Test
    • 4. Select I want to take the Gaming Permittee or Operator Test


  • How do we add an activity to our existing permit?

  • New activities can be added to your permit through your Revenue Online account. There is no additional fee to add or change gaming activities. However, if you want to sell pull-tabs through a registered vendor, there is a fee of $50 per vendor location.

  • How much does a permit for another activity cost?

  • There is no additional fee. Note, however, that there is an additional fee if you are adding a pull-tab vendor.

  • Do we need a permit to give door prizes at a dinner or other function?

  • Yes, a permit is necessary whenever a purchase is required to enter a door prize drawing. This includes a door prize at a dinner if a dinner ticket must be purchased to participate in the drawing.

  • How can I obtain another statute book?

  • You can directly access the information via the Internet by following the link below.

    Gaming Statute and Regulations book with Index

  • When is the annual financial statement due?

  • Annual financial reports are due by March 15 of the year following the year in which the activities were conducted, accompanied by payment of the additional fee, if applicable. The report must list the types of activities conducted, and, for each activity, the total amount of gross receipts, authorized expenses, value of prizes awarded, and net proceeds. The report also includes uses (donations) of net proceeds for the year and a reconciliation of the gaming account (or accounts).

  • Can I apply for a Monte Carlo permit?

  • No. Monte Carlo games are no longer authorized in the state. Authority to conduct Monte Carlo games was repealed as of November 11, 1996, and they are now considered illegal.

  • What is a raffle record?

  • Permittees or operators conducting raffles must keep a record of

    1. the number of raffle tickets printed
    2. the number of raffle tickets sold
    3. the number of unsold raffle tickets
    4. the price collected for a raffle ticket
    5. the raffle prizes
    6. the date and location of the raffle drawing
    7. the raffle prizes claimed
    8. the name, address, telephone number, and prize won for each prize winner, and
    9. the disposition of unclaimed raffle prizes.

    Records must be retained by the permittee or operator for a period of three years from the date of the raffle drawing.

  • What must we do with the raffle tickets we did not sell?

  • Keep a record the number of unsold tickets and dispose of them. Records must be retained by the permitee or operator for a period of three years from the date of the raffle drawing.

  • Can we delay a raffle drawing?

  • Yes, but you must notify the Gaming unit in writing of the delay. You may then reschedule the drawing. However, if ticket buyers must be present to win, you must also notify all ticket buyers. Even in cases where the buyers need not be present to win, reasonable efforts should be made to notify the public of the rescheduled drawing.

  • If we start a raffle in one year, what must we do to continue selling in the following year?

  • Make sure you renew your permit timely. If the Gaming Group receives your application timely, we can issue the new permit (or a temporary permit, pending arrival of the new permit) prior to the new year and you can continue selling. Tickets with the prior year’s permit number are still valid, and you do not have to reprint.

  • Can we borrow another organization’s permit to run a raffle?

  • You cannot "borrow" another organization's permit. However, another organization may conduct a raffle for your benefit and donate the proceeds to your group. The permittee name and permit number must appear on the tickets and stubs, even if only in small print while your name is in large print. Your members can sell tickets, but all sales receipts must be turned over to the permittee for deposit and accounting control. The permit and a permittee representastive must be present at the drawing. Afterwards, the permittee will write a check to you for the net proceeds.

  • What is a "pull-tab" game?

  • A "pull-tab" game is a game of chance where a card, the face of which is covered to conceal a number, symbol, or set of symbols, is purchased by the participant and where a prize is awarded for a card containing certain numbers or symbols designated in advance and at random.

  • What can I do with a pull-tab game that won’t sell?

  • Offer the tickets at a discount, offer a prize for the last ticket sold, or use them as door prizes. You cannot simply remove the game from sale. See 15 AAC 160.470(j).

  • How can I dispose of a pull-tab game?

  • You can request to dispose of a pull-tab game through Revenue Online. Select your Annual Financial Statement account and then select Withdraw Pull-Tabs From Sales in the upper-right under the “I Want To…” header. Destruction of pull-tab games must be witnessed by an agency representative, or by a local official.

  • How do I determine how much in prizes is remaining in a pull-tab game?

  • Total the prizes paid to date and subtract that total from the total prizes offered in the game as shown on the flare card.

  • I want to report missing money in our gaming operation. Who can help?

  • Contact the Gaming Investigations Unit at our Anchorage office. You can contact them at (907) 269-6620.

  • What types of gaming are considered illegal in Alaska?

  • Cards, dice, roulette wheels, coin-operated instruments or machines, or other objects or instruments used, designed, or intended primarily for gaming or gambling or any other method or implement not expressly authorized by the Department of Revenue. Refer to AS 05.15.180.

  • What is illegal gambling, and how can I report it?

  • An activity is illegal gambling if it has all three elements of gambling—consideration (what is paid to enter the activity, such as the price of a raffle ticket, or the amount bet in a poker game), chance and prize. Any gambling activity that is not conducted under a permit is illegal gambling, unless the affirmative defense of AS 11.66.200(b) applies. To qualify as an affirmative defense, the gambling activity must take place in a personal residence and there can be no house cut or income from the operation of the game.


    To report illegal gambling, contact the Alaska State Troopers or your local law enforcement agency. The Alaska State Troopers can be contacted at the following address:

    AST - Criminal Investigations Unit
    5700 E Tudor Rd.
    Anchorage, AK 99507-1225
    (907) 269-5511



  • What limits are there for using net proceeds from gaming?  Must we donate a certain percentage to other organizations?

  • Net proceeds must be used in one or more of the broad areas allowed in AS 05.15.150(a)—political, educational, civic, public, charitable, patriotic or religious uses, and the use must be in Alaska, or for the direct benefit of an Alaskan who is temporarily outside the state. Net proceeds may be donated to individuals, to assist with such things as medical, educational or funeral expenses, and to other Alaska not-for-profit organizations. They may also be used internally, to pay permittee operating expenses [but not gaming or for-profit expenses]. There is no set amount or percentage that must be used one way or another—all net proceeds must be used as described above and in the permit application, and they must be used by the end of the year following the year in which they are earned. Under AS 05.15.150(b), the Department may grant permission to retain net proceeds for a longer period.

  • How do I get permission to retain net proceeds for a longer period under AS 05.15.150(b)?

  • Requests to retain net proceeds for a longer period under AS 05.15.150(b) can be submitted through Revenue Online. Select your Annual Financial Statement account and then select Request Approval to Hold Proceeds in the upper-right under the “I Want To…” header.

  • Do you have suggested text for the dissolution clause required by 15 AAC 160.020(a)(5)?

  • Yes—"Upon dissolution, any remaining net proceeds from gaming activity under AS 05.15 will be distributed to one or more existing permittees, other than a multiple-beneficiary permittee, in accordance with 15 AAC 160.020(a)(5)."

  • The application for a gaming permit requires a membership list. What is the definition of a member?

  • There is no definition of "member." It should be defined in your bylaws or other organizational documents.

  • How do I renew my operator contract?

  • As the operator:
    Permits and licenses can be renewed through Revenue Online starting 11/1. Once the operator’s license and the permittee’s permit have been renewed, the operator can initiate the operator contract renewal through their “Game Oper Contract” account type on Revenue Online. Once this contract renewal has been submitted, the permittee will automatically be notified that they need to log into their Revenue Online account to review and electronically sign the contract. Once the contract has been signed, the operator will be mailed a letter authorizing them to conduct gaming activity on the permittee’s behalf. This letter will also be available through the “Letters” tab of the operator’s Revenue Online account.

    As the permittee:
    Permits and licenses can be renewed through Revenue Online starting 11/1. Once your permit has been renewed, your operator will be able to renew the operator contract through their Revenue Online account. Once this contract renewal has been submitted by the operator, the permittee will automatically be notified that they need to log into their Revenue Online account to review and sign the contract. The contract will be located under the “Gam Oper Contract” account type. Once the contract has been signed, a letter will automatically be mailed to the operator authorizing them to conduct gaming activity on your organization’s behalf.

  • How do I renew my vendor registration?

  • Permits can be renewed through Revenue Online starting 11/1. Once your permit has been renewed, you can then renew your vendor registration through the “Vendor Registration” account type on Revenue Online. Once this renewal has been submitted, a letter will be mailed to your organization authorizing the sale of pull-tabs at the vendor location. This letter will also be available through the “Letters” tab of your Revenue Online account. New vendor registrations can be added through the “Register a New Vendor or Location” hyperlink under the “Permit” account type of your Revenue Online account.

  • What are the main statutes and regulations regarding vendors selling pull-tabs on behalf of permittees?

  • Gaming Statutes

    Sec. 05.15.187
    Sec. 05.15.188
    Sec. 05.15.690
    15 AAC 160.340
    15 AAC 160.350
    15 AAC 160.360
    15 AAC 160.470
    15 AAC 160.480