House Bill 95 Analysis
August 26, 2003:

Ohio’s charitable gaming law has undergone considerable changes in the past few months. House Bill 512, which was passed by the legislature in late December 2002, made major revisions to Ohio’s charitable gaming laws. However, the effective date of House Bill 512, which originally was to be effective April 2, 2003, was delayed until July 1, 2003. House Bill 95, the budget bill, passed in late June of 2003 and contained a number of revisions which were needed to clarify the changes contained in House Bill 512. These two pieces of legislation went into effect on July 1, 2003.

The major provisions of House Bill 95 are:

• Allows “veteran”, “fraternal” and “sporting organizations” (as such are defined in the Ohio Revised Code) to conduct instant bingo.

• Allows veteran, fraternal and sporting organizations to retain 45% of the “gross profits” (defined as gross receipts less prizes) to pay for the expenses associated with the operation of the post or chapter as well as the expenses incurred to operate instant bingo.

• “Sporting Organizations” are defined as: “ a hunting, fishing, or trapping organization, other than a college or high school fraternity or sorority, that is not organized for profit, that is affiliated with a state or national sporting organization, including, but not limited to, the Ohio League of Sportsmen, and that has been in continuous existence in this state for a period of three years.”

• License fees for operating instant bingo are as follows:
  [fees are based upon the gross profits (defined as gross receipts less prizes) received by the charitable organization from the operation of instant bingo at a bingo session or instant bingo other than at a bingo session, during the one-year period ending on the thirty-first day of October of the year immediately preceding the year for which the license is sought]

• $500.00, if the total is $50,000 or less;

• $1,250 plus one-fourth per cent of the gross profit, if the total is more than $50,000 but less than $250,001 (reduced from $300,001);

• $2,250 plus one-half per cent of the gross profit, if the total is more than $250,000 but less than $500,001 (reduced from $300,000 and $600,001);

• $3,500 plus one per cent of the gross profit, if the total is more than $500,00 (reduced from $600,000) but less than $1,000,001;

• $5,000 plus one per cent of the gross profit, if the total is $1 million or more.

• Defines a “Pool Not Conducted For Profit” as: “a scheme in which a participant gives a valuable consideration for a chance to win a prize and the total amount of consideration wagered is distributed to a participant or participants.”

  * This allows people to participate in office pools, such as NCAA bracket contests, super bowl charts, etc.

• Allows veteran, fraternal and sporting organizations to use paid employees to sell instant bingo tickets.

• Creates three types of bingo licenses:

  Type 1 – traditional bingo
  Type 2 – instant bingo operated at a traditional bingo game
  Type 3 – instant bingo operated other than at a traditional bingo game

  * Veterans, fraternal and sporting organizations usually apply for a Type 3 license only.

• Does not require charitable organizations to obtain a license to conduct raffles but restricts the types of organizations who can conduct raffles and apparently does not permit veterans, fraternal, or sporting organizations to conduct raffles. The current language with respect to raffles is ambiguous and some believe the current statutory language only permits non-profit raffles (i.e.: winner takes all).

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