Charitable Gaming
2015 Annual Report


Charitable Gaming Reports
End Year

2012 to 2015

AS 05.15
DESCRIPTION

Municipalities and qualified nonprofit organizations are eligible to conduct gaming activities as set out in the Alaska Gaming Reform Act. The purpose of these activities is to derive public benefit in the form of money for these entities. Qualified organizations include: civic or service organizations; religious, charitable, fraternal, veterans, labor, political, or educational organizations; police or fire departments and companies; dog mushers’ associations, outboard motor associations, and fishing derby and nonprofit trade associations. Gaming activities include primarily the sale of pull-tabs, bingo and raffles.

The Charitable Gaming Program issues permits and licenses to conduct gaming activities, collects fees and taxes, conducts audits, investigates complaints, and provides educational outreach to municipalities and qualified organizations.

Permits are issued annually with fees ranging from $20 to $100. Licenses are issued annually with fees ranging from$500 to $2,500. A 3% tax on pull-tabs sold by distributors is collected on a monthly basis. A 1% fee on net proceeds is collected annually from permittees if their gross receipts exceed $20,000.

RETURNS

Monthly, quarterly, and annual returns are filed by permittees and licensees conducting gaming depending on the amount of gross receipts and the type of permit/license. Manufacturers and distributors file monthly reports. Operators must file monthly reports to permittees.

DISPOSITION OF REVENUE

The Division deposits permit and license fees, pull-tab taxes, and net proceeds fees into the General Fund.

HISTORY

1960 - The legislature legalized gaming and gave oversight for all gaming activities to the Department of Revenue.

1984 - The Department authorized pull-tabs by regulation.

1988 - The legislature legalized operators, authorized pull- tabs, and increased prize limits.

1989 - Under Administrative Order, gaming functions transferred to the Department of Commerce, Community and Economic Development.

1993 - Under administrative order, gaming functions transferred back to the Department of Revenue and organized as a separate gaming division.

- HB 168 significantly changed various aspects of the statutes governing charitable gaming in Alaska. Third-party vendors were brought under statutory control which allows permittees to contract with them directly to sell pull-tabs and the Department was authorized to issue Multiple- Beneficiary Permits (MBP). MBPs enable two to six permittees to conduct gaming activities jointly. Minimum payments increased from 15% to 30% of adjusted gross income for pull-tab games and require a minimum of 10% of adjusted gross income for all other activities.

1995 - The legislature legalized cruise ship gambling activities in Alaska waters during the 1995 season. The gaming statutes required that cruise ships pay a fee to game in Alaska, and this generated more than $500,000 in revenue during the 1995 season. This law expired after 1995.

1996 - The legislature authorized three new gaming activities – “Sled Dog Race Classic”, “Deep Freeze Classic”, and “Snow Machine Classic.” The legislature also created the “McGrath Kuskokwim River Ice Classic”, and the “Creamer’s Field Goose Classic.” The legislature prohibited the donation of net proceeds from pull-tabs and bingo activities to registered lobbyists and certain political organizations.

2014 - The legislature made a change relating to games of chance and contests of skill to allow the department to issue permits for bull moose derbies. It also expanded the definition of “ice classic” to include the Snow Town Ice Classic. The change was made through HB 268 (CH 22 SLA 14).


Overview and Historical Overview
Annual Report Data

  Collections Summary
FY
2015
FY
2014
FY
2013
FY
2012
   Pull tab tax 2,082,493 2,045,558 1,968,587 2,068,951
   Net Proceeds Fees 385,937 353,163 339,874 373,421
   License and Permit Fees 120,230 149,615 143,985 144,475

   Total Tax

2,588,660

2,548,336

2,452,446

2,586,847


  Filing Information
FY
2015
FY
2014
FY
2013
FY
2012
   Number of returns 2,611 2,972 2,846 2,975
   Number of taxpayers 1,156 1,309 1,543 1,658

  Applications
FY
2015
FY
2014
FY
2013
FY
2012
   Permittees 1,102 1,241 1,171 1,275
   Operators 23 32 29 28
   Multiple-Beneficiary Permittees 15 18 17 16
   Distributors 9 9 9 8
   Manufacturers 7 9 9 7
   Amended applications 308 324
  Reports
FY
2015
FY
2014
FY
2013
FY
2012
   Permittees 2,272 2,601 2,440 2,553
   Operators 115 101 151 147
   Multiple-Beneficiary Permittees 75 72 90 90
   Distributors 85 116 90 100
   Manufacturers 64 82 75 85




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