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Statement of Basis, Purpose and Specific Statutory Authority

New and Amended Rules Covering and Regulating Bingo and Raffles

Basis and Purpose

These rules are based upon the provisions 12-9-101 et. seq. CRS, and upon information and recommendations from:

  • Bingo-raffle supplier, manufacturer and landlord licensees; 
  • Charitable gaming administration and administrative regulation of other states; and 
  • The Colorado Bingo-Raffle Advisory Board.

It is the general purpose of these rules to clarify and carry out the provisions of the Bingo and Raffles Law. The specific purposes of the individual amendments and additions are as follows:

  1. The amendment to Rule 1 defines a bingo card as having no more than two numbers per square on the card.
  2. Rule 11 is a new rule that provides that bingo-raffle licensees must pay their suppliers within sixty days or be put on a cash only basis until further written notice by the Licensing Authority.
  3. The amendments to Rule 12 allow for discounts to be offered on the sale of bingo card packs if the discount criteria are made known to all players and changes the time period that concealed face card trade-ins must be retained by the bingo-raffle licensee from three years to six months.
  4. The amendments to Rule 16 provide procedures for a licensee to follow if it decides to discontinue bingo operations and there is a Progressive Bingo game in progress and the jackpot has not been one. The rule also provides procedures for a manufacturer or supplier licensee if it decides to discontinue the manufacture of a progressive pull-tab game.
  5. The amendment to Rule 17 changes the procedures for payment of pull tab prizes to allow for discretion on the part of a bingo-raffle licensee to pay a prize if claimed beyond 10 days after the determination of a winner.

Authority for Proposed Rulemaking

These rules are promulgated in accordance with the State Administrative Procedure Act, specifically C.R.S. 24-4-103, “Rule-making-procedure,” and pursuant to the specific statutory authority granted to the Secretary of State by the Colorado Bingo and Raffles Law at C.R.S. 12-9-103(1), “Licensing authority – powers – duties.”

RULES COVERING AND REGULATING BINGO/RAFFLES

Adopted Amendments

18 May 2004

[8 CCR 1505-2]

RULE 1 - DEFINITION OF BINGO AND RAFFLE TERMS

Card:
(1) A disposable, non-reusable, paper bingo card identified by color, serial number, and card number containing five rows of five squares with a free center space, no more than two numbers preprinted in each of the remaining 24 spaces, and the letters B, I, N, G, O printed in order over the five columns.

RULE 11 - ALLOWABLE EXPENSE AMOUNTS AND RENTAL AGREEMENTS

(10) A bingo-raffle licensee shall purchase bingo supplies either in cash or on terms agreed to with the licensed supplier or agent, but such terms shall not exceed sixty (60) days. A supplier shall report to the secretary of state by the tenth day of each month, the name of any bingo-raffle licensee whose account is in arrears by more than sixty (60) days as of the last day of the preceding calendar month. Upon receipt of the notice of delinquency, the secretary of state shall notify all licensed suppliers, suppliers’ agents, and manufacturers and the bingo-raffle licensee that, until further notice from the secretary of state, all sales of bingo supplies to the delinquent bingo-raffle licensee shall be on a cash-only basis. Upon receipt of the notice from the secretary of state, no supplier, supplier’s agent, or manufacturer may extend credit to the delinquent licensee until such time as the secretary of state approves credit sales to such licensee in writing.

RULE 12 - SALE AND USE OF BINGO CARDS, PACKS, AND SHEETS

(2) All cards, packs and sheets shall be sold at a set price. Discounts may be offered on the basis of criteria available to all players, such as quantity purchased. Any charge for the purchase, lease or use of an electronic player aid device shall be at a set price. The price of each type of card, pack, or sheet, including discounts offered, and the charge, if any, for the purchase, lease or use of each type of electronic player aid device that will be offered for use at a bingo occasion shall be posted on the premises at the time of the occasion, in advance of any player purchasing any card, pack, or sheet or paying any such charges for an electronic bingo player aid device.

(7) (d) A licensee that allows concealed face card trade-ins shall mark or deface all returned cards, so that they cannot be further played, and retain such traded-in cards for a period of six (6) months following the end of the quarter in which the tickets were redeemed.

RULE 16 - PULL TAB OPERATION

(15) The conduct and operation of any progressive pull tab game shall comply with the following specific requirements, in addition to those set forth elsewhere in these rules and the provisions of the bingo-raffle law and rules applicable to pull tabs generally:

(i) If a licensee’s license is suspended, revoked, or surrendered or the licensee terminates its bingo-raffle activities for any other reason during the course of its conduct of a progressive pull tab game, the game shall be played out without further contributions to the jackpot and in accordance with the instructions of the Secretary of State, on or before the licensee’s last authorized occasion or day of games of chance operations. The licensee shall publicly announce the date and time of the last authorized occasion by posting such announcement in the hall in which bingo-raffle occasions are held and by making such announcements to the licensee’s membership as are customarily made during scheduled membership meetings. If there is no winner of the jackpot prize on the last authorized occasion, the licensee shall conduct a public drawing for the prize by issuing one ticket free of charge to each member of the public who is present at the end of the occasion, who is at least eighteen years of age, and who is not involved in the conduct of the occasion or the management, rental, or ownership of the commercial bingo facility at which the occasion is conducted in any manner, without regard to whether the person was a participant in any game of chance during the occasion. The jackpot winner will be the person whose ticket is drawn at random from a receptacle in which all tickets have been placed.

(16) A Colorado licensed supplier or manufacturer that sells progressive pull tab games to any Colorado bingo-raffle licensee may elect to discontinue distribution or production of any specific progressive pull tab game that it has sold in Colorado if and only if:

(a) The supplier or manufacturer provides at least sixty (60) days written notice to the secretary of state and all bingo-raffle licensees that have purchased said pull tab game from such supplier or manufacturer within the previous 12 months that the supplier or manufacturer intends to discontinue the distribution or the manufacture of said progressive pull tab game on a specified future date, which date shall be not less than 60 days after such notice is received by the secretary of state, and

(b) The supplier or manufacturer maintains a sufficient inventory of pull-tab deals for that progressive pull-tab game to ensure that all bingo-raffle licensees that have purchased said game within the previous year can close the game by awarding a jackpot.

RULE 17 - CONTROL OF PRIZES

(3) Pull tab prizes shall be awarded immediately upon determination of a winner. Any ticket presented 10 days after such determination may be considered void and of no value, and the licensee may elect to not redeem such pull tab for the prize, except as provided for seal and progressive pull tab winners pursuant to Rule 16 of these Rules.