(1) The licensing authority shall not require an exempt organization to use raffle tickets in any particular form or displaying any particular information that would cause undue expense to the exempt organization and therefore interfere with the charitable fund-raising drive of the organization.
(2) (a) A bingo-raffle licensee may offer a progressive raffle in which a jackpot may be carried over and increased from one drawing to another until the jackpot is awarded. If the jackpot is not awarded at a drawing, the bingo-raffle licensee shall conduct a new drawing at the same location at a time and date determined by the bingo-raffle licensee.
(b) A bingo-raffle licensee may award a consolation prize for a progressive raffle. The bingo-raffle licensee may designate the consolation prize as either a specified amount or a specified percentage of the gross proceeds collected from the sale of raffle tickets for a particular drawing. The bingo-raffle licensee may determine the amount of the jackpot based on the gross proceeds collected from the sale of raffle tickets for a particular drawing plus the value of the jackpot carried over from previous drawings in which the jackpot was not awarded. If a consolation prize is offered and the progressive prize is won, the licensee may opt to award the consolation prize for that particular drawing.
(c) If the bingo-raffle licensee offers a consolation prize, the bingo-raffle licensee shall, before the drawing:
(I) Designate the specific amount or specific percentage of the gross proceeds collected from the sale of raffle tickets that the consolation prize equals; and
(II) Conspicuously display the amount or percentage of the gross proceeds collected that the consolation prize equals.
(d) The licensing authority may establish by rule the maximum jackpot that a bingo-raffle licensee may award for a progressive raffle; except that, notwithstanding section 24-21-617 (5), the maximum jackpot must be at least fifteen thousand dollars. The maximum jackpot does not include the aggregate amount of consolation prizes awarded.
(e) The licensing authority may establish by rule the maximum number of progressive raffles that a bingo-raffle licensee may conduct simultaneously. To ensure that all prizes offered are timely awarded, the licensing authority may limit by rule the number of drawings that a bingo-raffle licensee may conduct before a jackpot must be awarded; except that the maximum number of drawings must be at least thirty.
(f) (I) The licensing authority may establish by rule the permitted methods of conducting a progressive raffle.
(II) The licensing authority may not prohibit those methods of conducting a progressive raffle in which the participant whose ticket number is drawn wins both a prize for the winning ticket number and a chance to win the jackpot.
Source: L. 2017: Entire part added with relocations, (SB 17-232), ch. 233, p. 934, � 2, effective May 23.
Editor's note: This section is similar to former � 12-9-107.3 as it existed prior to 2017.
24-21-621. Persons permitted to manufacture and distribute games of chance equipment - reporting requirements. (1) A person other than a manufacturer licensee or licensed agent shall not act as a bingo-raffle manufacturer within Colorado. The manufacture of electronic devices used as aids in the game of bingo, and the printing of raffle tickets other than pull tabs, as designed and requested by a licensee, does not constitute the manufacture of games of chance equipment; except that such electronic devices are subject to the reporting requirements of subsections (4) and (5) of this section, and the fees established by the licensing authority in accordance with section 24-21-606 (2) and subsection (4) of this section.
(2) An individual shall not act for or represent a landlord, manufacturer, or supplier licensee with respect to an activity covered by such license unless such individual is the licensee's owner, officer, director, partner, member, or ten percent or more shareholder of record with the licensing authority, or is the manufacturer's or supplier's licensed agent. A manufacturer or supplier licensee shall not allow any person not authorized by this subsection (2) to represent it or serve as its agent with regard to any Colorado transaction.
(3) Except to the extent otherwise provided in section 24-21-615 (1), a manufacturer or supplier licensee or licensed agent shall not buy, receive, sell, lease, furnish, or distribute any pull tabs, bingo cards or sheets, electronic devices used as aids in the game of bingo, or other games of chance equipment from or to any person within Colorado other than manufacturer or supplier licensees or agents and bingo-raffle licensees; except that:
(a) A landlord licensee, supplier, or manufacturer or its agent may sell, donate, or distribute cards, sheets, equipment, or electronic devices used as aids in the game of bingo for the playing of bingo not for resale to nursing homes and other entities that distribute the cards, sheets, or electronic devices and allow playing of the game free of charge, without consideration given or received by any person for the privilege of playing; and
(b) A bingo-raffle licensee may sell or donate its used equipment to another bingo-raffle licensee.
(4) Every manufacturer and supplier licensee shall file, upon forms prescribed by the licensing authority, quarterly reports on its licensed activities within Colorado. The reports must be accompanied by quarterly fees established by the licensing authority in accordance with section 24-21-606 (2) and deposited in the department of state cash fund created in section 24-21-104 (3)(b). The reports shall be filed with the licensing authority no later than April 30, July 31, October 31, and January 31 of each year licensed, and each report must cover the preceding calendar quarter. Reports must enumerate by quantity, purchaser or lessee, and price the pull tabs, bingo cards or sheets, electronic devices used as aids in the game of bingo, and other games of chance equipment manufactured, conveyed, or distributed within Colorado or for use or distribution in Colorado and must include the licensee's total sales, including amounts realized from leases, of equipment and electronic devices used as aids in the game of bingo and the names and addresses of all Colorado suppliers or agents of the licensee and shall be signed and verified by the owner or the chief executive officer of the licensee. These quarterly reports are not public records as defined in section 24-72-202.
(5) Every manufacturer or supplier licensee, and every licensed agent for such licensee, shall keep and maintain complete and accurate records, in accord with generally accepted accounting principles, of all licensed activities. The records shall include invoices for all games of chance equipment or electronic devices used as aids in the game of bingo conveyed or distributed within Colorado, or for use or distribution in Colorado, which invoices are specific as to the nature, description, quantity, and serial numbers of the pull tabs, bingo cards or sheets, electronic devices used as aids in the game of bingo, and other equipment so conveyed or distributed. The records shall also show all receipts and expenditures made in connection with licensed activities, including, but not limited to, records of sales by dates, purchasers, and items sold or leased, monthly bank account reconciliations, disbursement records, and credit memos for any returned items. These records shall be maintained for a period of at least three years.
(6) A manufacturer or supplier licensee or licensed agent must not be a person responsible for or assisting in the conduct, management, or operation of any game of chance within Colorado.
Source: L. 2017: Entire part added with relocations, (SB 17-232), ch. 233, p. 935, � 2, effective May 23.
Editor's note: This section is similar to former � 12-9-107.5 as it existed prior to 2017.
24-21-622. Bingo-raffle licensee's statement of receipts - expenses - fee - definitions. (1) (a) On or before April 30, July 31, October 31, and January 31 of each year, every bingo-raffle licensee shall file with the licensing authority upon forms prescribed by the licensing authority a duly verified statement covering the preceding calendar quarter showing the amount of the gross receipts derived during said periods from games of chance, the expenses incurred or paid, and a brief description of the classification of such expenses, the net proceeds derived from games of chance, and the uses to which such net proceeds have been or are to be applied. Each licensee shall maintain and keep such books and records as may be necessary to substantiate the particulars of each such report.
(b) Exempt organizations are not subject to the requirements of this subsection (1), except to the extent that they shall file with the licensing authority statements showing the amount of the gross proceeds from their fund-raising drives and identifying all organizations receiving portions of such proceeds and the amounts received by each such organization.
(2) (a) If a bingo-raffle licensee fails to file reports within the time required or if reports are not properly verified or not fully, accurately, and truthfully completed, any existing license may be suspended until such time as the default has been corrected.
(b) Exempt organizations are subject to the requirements of this subsection (2) only to the extent that such requirements apply to subsection (1)(b) of this section.
(3) (a) All money collected or received from the sale of admission, extra regular cards, bingo strip cards, special game cards, sale of supplies, and all other receipts from the games of traditional and strip bingo games, raffles, and pull tab games shall be deposited in a special checking or savings account, or both, of the licensee, which must contain only this money. If the licensee conducts progressive games of chance, the licensee may maintain one additional checking or savings account, which must contain only money received from the sale of progressive games. The licensee may withdraw money from these accounts only by consecutively numbered checks or withdrawal slips or by electronic transactions referenced by transaction number or date. A check or withdrawal slip must not be drawn to cash or a fictitious payee. The licensee shall maintain all of its books and records in accordance with generally accepted accounting principles.
(b) Exempt organizations are not subject to this subsection (3).
(4) No part of the net proceeds, after they have been given over to another organization, shall be used by the donee organization to pay any person for services rendered or materials purchased in connection with the conducting of bingo by the donor organization.
(5) No item of expense shall be incurred or paid in connection with holding, operating, or conducting a game of chance pursuant to a bingo-raffle license except bona fide expenses of a reasonable amount. Such expenses include those incurred in connection with all games of chance, for the following purposes:
(a) Advertising and marketing;
(b) Legal fees related to any action brought by the licensing authority against the bingo-raffle licensee in connection with games of chance;
(c) The purchase of goods, wares, and merchandise furnished to the licensee for the purpose of operating games of chance pursuant to this part 6;
(d) The purchase or lease of electronic devices used as aids in the game of bingo;
(e) Payment for services rendered that are reasonably necessary for repairs of equipment and operating or conducting games of chance;
(f) Rent, if the premises are rented, or for janitorial services if not rented;
(g) Accountant's fees; and
(h) License fees.
(6) (a) For the purposes enumerated in subsection (5) of this section, the following terms have the following meanings:
(I) Goods, wares, and merchandise means prizes, equipment, and articles of a minor nature.
(II) Services rendered means:
(A) The repair of equipment;
(B) Compensation to bookkeepers or accountants for services in preparing financial reports for a reasonable amount as determined by the licensing authority by rule. A landlord, manufacturer, or supplier licensee, or employee of a landlord, manufacturer, or supplier licensee, shall not act as a bookkeeper or accountant for a bingo-raffle licensee, nor shall a landlord, manufacturer, or supplier licensee offer or provide accounting or bookkeeping services in connection with the preparation of financial reports on bingo-raffle activities, except for the transfer or encoding of data necessitated by the sale, upgrade, or maintenance of accounting software sold or leased to a bingo-raffle licensee by a landlord, manufacturer, or supplier licensee. A landlord licensee that is also a bingo-raffle licensee may act as a bookkeeper or accountant on such licensee's own behalf.
(C) The rental of premises;
(D) A reasonable amount for janitorial service as determined by the licensing authority in rules for each occasion; and
(E) A reasonable amount for security expense based on established need as determined by the licensing authority in rules for each occasion.
(b) There shall be paid to the licensing authority an administrative fee, established in accordance with section 24-21-606 (2), upon the gross receipts of any game of chance held, operated, or conducted under this part 6; except that an exempt organization shall not be charged more than twenty dollars per year. All administrative fees collected by the licensing authority under this part 6 shall be deposited in the department of state cash fund created in section 24-21-104 (3)(b).
(7) Each licensee, at the time each financial report is submitted to the licensing authority, shall pay to the order of the licensing authority the amount of administration expense provided in subsection (6) of this section.
Source: L. 2017: Entire part added with relocations, (SB 17-232), ch. 233, p. 937, � 2, effective May 23. L. 2022: (3)(a) amended, (HB 22-1093), ch. 366, p. 2608, � 5, effective April 1, 2023. L. 2024: (3)(a) amended, (HB 24-1326), ch. 420, p. 2868, � 8, effective June 5.
Editor's note: This section is similar to former � 12-9-108 as it existed prior to 2017.