In a renewed effort to safeguard the integrity of community-based fundraising, Indiana lawmakers added new accountability measures to legislation that loosens spending restrictions on charity gambling this week.
The changes come less than three months after state regulators cracked down on a charity-run casino in northern Indiana. The Indiana Gaming Commission accused a Fort Wayne Elks Lodge of racketeering in December, seizing over $100,000 in what officials said was an abuse of charity gambling privileges.
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Sen. Ron Alting, R-Lafayette, who chairs the Senate Public Policy Committee, said the amendments strike a balance between empowering charitable groups and preventing abuse. “We’re just putting in some reasonable checks to make sure these charitable events don’t morph into full-scale, for-profit casinos,” Alting told the committee Wednesday, according to The Indiana Capital Chronicle.
The changes, which originated from the Indiana Alcohol and Tobacco Commission, include a number of new rules for Indiana charity gambling:
- So-called “casino game nights” will now be referred to as “card, dice and roulette games events.”
- Starting next year, no single location may host more than three days of such events per week, regardless of how many different licensed groups use the facility.
- Groups pulling in at least $1 million in revenue near the end of their license term must undergo an independent financial audit.
- Operators of bingo nights, festivals, and games events must wear clear ID badges, displaying their full names and the name of the sponsoring charity.
The committee approved the amendments without opposition.
This comes just a week after the Senate voted to permit electronic pull tabs for charity gambling — a move that drew concerns across party lines. Sen. Liz Brown, R-Fort Wayne, pointed to so-called “figurehead” charities allegedly exploiting loopholes to exceed gambling limits. Sen. Greg Taylor, D-Indianapolis, criticized some groups for stockpiling funds without timely use on charitable purposes.
Senate Bill 108, authored by Alting, is the main vehicle for the changes. It also revises how charities can use gambling revenue. Under current law, proceeds must be spent only for the group’s “lawful purposes,” including property repairs and improvements. The bill would allow use for “any lawful purpose” and remove specific spending categories.
Alting said the change would give flexibility to struggling veterans’ organizations that face bureaucratic hurdles in using funds.
The Public Policy Committee advanced the bill 9-0. It now moves to the full Senate for consideration.
This article was based on the reporting of The Indiana Capital Chronicle.