Gambling Review

A GUIDE TO GAMBLING / GAMING ACTIVITIES IN NEW MEXICO This guide was first developed by the NM Alcohol and Gaming Division as A Guide to Conducting Fundraising Activities in New Mexico. This updated version is prepared by the NM Gaming Control Board. Revised August, 2009.

INTRODUCTION Unless specifically permitted by law, gambling is prohibited in New Mexico pursuant to 60-2E-4 of t Gaming Control Act and the New Mexico Criminal Code, 30-19-1 thru 30-19-15 NMSA 1978. Examples of gambling specifically permitted by law include activities conducted under the a) Gaming Control Act, 60-2E-1 thru 60-2E-62 NMSA 1978, 15.1.1 thru 15.1.26 NMAC, b) the Hors Racing Act, 60-1A-1 thru 60-1A-30 NMSA 1978, 15.2.1 thru 15.2.7 NMAC, c) the State Lottery Act, 24-1 thru 6-24-34 NMSA 1978, and d) the Bingo and Raffle Act, 60-2F-1 thru 60-2F-26 NMSA, 15.4. thru 15.4.9 NMAC. Properly qualified organizations may conduct certain games of chance in New Mexico for fundraising purposes on a limited basis. Following describes qualifying factors, organizational responsibilities, and the limitations on gaming imposed by New Mexico law.

IMPORTANT DEFINITIONS BINGO is a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random. GAME under the Gaming Control Act is an activity where you pay to play a game or on a slot machine, the outcome of which is based on chance and possibly some skill, to receive a prize or something of value. LOTTERY is a game of chance in which, for consideration, the player has an opportunity to win a prize, the award of which is determined by chance, even if some skill is required. PULL TABS printed tickets that have a pull-tab or seal to be opened by the purchaser where a winning combination is printed on each ticket or on a separate card. RAFFLE is a game of chance conducted by drawing for prizes by chance or by selling tickets or rig to participate in such a drawing. SWEEPSTAKES used to promote legitimate business objectives. Entry obtained with purchase b must also provide a no purchase necessary alternative method of entry.

ORGANIZATIONS THAT MAY OBTAIN A LICENSE TO CONDUCT REGULARLY SCHEDULED GAMES OF CHANCE The Bingo and Raffle Act identifies certain qualified or charitable organizations that may obtain licensure from the NM Gaming Control Board to conduct regularly scheduled bingo games and/or to sell pull tabs and raffle tickets in the state. Monies raised by these means shall go to a lawful purpose. In the 2009 legislative session the old act was repealed, redone and renumbered, it is

now 60-2F-1 thru 60-2F-26 NMSA.

60-2F-4(P) "lawful purposes" means: (1) educational, charitable, patriotic, religious or public-spirit purposes that benefit an indefinite number of persons either by bringing their minds or hearts under influence of education or religion, by relieving their bodies from disease, suffering or constraint, by assisting them in establishing themselves in life, by erecting or maintaining public buildings or works providing legal assistance to peace officers or firefighters in defending civil or criminal actions arising out of the performance of their duties or by otherwise lessening the burden of government. "Lawful purposes" includes the erection, acquisition, improvement, maintenance, insurance or repair of property, real, personal or mixed, if the property is used for one or more of the benefits stated in this paragraph; or (2) augmenting the revenue of and promoting the New Mexico state fair;

60-2F-4(F) NMSA "charitable organization" means an organization, not for pecuniary profit, that is operated for the relief of poverty, distress or other condition of public concern in New Mexico and tha has been granted an exemption from federal income tax as an organization described in Section 501 of the United States Internal Revenue Code of 1986, as amended or renumbered;

60-2F-4(Y)NMSA "qualified organization" means a bona fide chartered branch, lodge or chapter of national or state organization or any bona fide religious, charitable, environmental, fraternal, educational or veterans' organization operating without profit to its members that has been in existen in New Mexico continuously for a period of two years immediately prior to conducting a raffle or mak an application for a license under the New Mexico Bingo and Raffle Act and that has had a membership engaged in carrying out the objects of the corporation or organization. A voluntary firefighter's organization is a qualified organization and a labor organization is a qualified organizatio for the purposes of the New Mexico Bingo and Raffle Act if they use the proceeds from a game of chance solely for scholarship or charitable purposes. The following are defined in 60-2F-4 NMSA; (G) chartered branch, lodge or a chapter of a national or state organization (AA) religious organization; (J) environmental organization; (L) fraternal organization; (I) educational organization; (BB) veterans organization.

Except for charitable organizations, the Act does not require that the organization seeking licensure have obtained an exemption from federal income tax under Section 501(c) of the Internal Revenue Code. Therefore, in determining whether any other applicant is a qualified organization, the NMGCB may accept other satisfactory proof of non-profit status, such as a copy of the organizations Articles Incorporation filed with the Public Regulation Commission under the states Nonprofit Corporation Ac chapter 53, Article 8, NMSA 1978.

Effective July 1, 2009, 60-2F-26(B) Notwithstanding the provisions of Subsection A of this section, no raffle with an individual prize exceeding seventy-five thousand dollars ($75,000) shall be held without a ten-day prior notification to the board of the conduct of the event and subsequent notification to the board of the names, addresses and phone numbers of all prize winners. 60-2F-18(B) For a raffle: (1) all raffle tickets shall be represented in the container from which the winner is drawn; (2) the drawing shall be open to the public; (3) each raffle ticket shall display all information as directed by the board; and (4) when any merchandise prize is awarded in a raffle, its value shall be its current retail price. No merchandise prize shall be redeemable or convertible into cash. Pull tabs can be sold by qualified organization pursuant to the rules set out in 15.4.9.1 NMAC. ORGANIZATIONS THAT MAY CONDUCT CERTAIN GAMES OF CHANCE UNDER LIMITED CIRCUMSTANCES WITHOUT OBTAINING A LICENSE

1. Limited exemptions under the Bingo and Raffle Act. Any bingo or raffle held by a qualified organization as defined in 60-2F-4(Y) NMSA1978, of the Bingo and Raffle Act which holds a bingo or raffle no more than once in any three consecutive calendar months and not exceeding four occasions in one calendar year. 60-2F-26(B) NMSA 1978. 2. Limited exceptions under the Criminal Code. Nothing in Chapter 30, Article 19 NMSA 1978 shall be held to prohibit any bona fide motion picture theater from offering prizes of cash or merchandise for advertising purposes, in connect with such business or for the purpose of stimulating business, whether or not any consideration other than a monetary consideration in excess of the regular price of admission is exacted for participation in drawings for prizes. 30-19-6(A) NMSA 1978. Nothing in Chapter 30, Article 19 NMSA 1978 shall be construed to apply to any activity: (1) regulated by the New Mexico Bingo and Raffle Act; or (2) specifically exempted from regulation the provisions of the New Mexico Bingo and Raffle Act. 30-19-6(B) NMSA 1978.

Nothing in this chapter or in the New Mexico Bingo and Raffle Act prohibits a senior citizen gro from organizing and conducting bingo at a senior citizen center, provided that no person other than players participating in the bingo game receive or become entitled to receive any part of th proceeds, either directly or indirectly, from the bingo game and no minor is allowed to participate

in the organization or conduct of games or play bingo. As used in this section, senior citizen group means an organization in which the majority of the membership consists of persons who are at least fifty-five years of age and the primary activities and purposes of which are to provide recreational or social activities for those persons. 30-19-7.2 NMSA 1978.

HORSE RACING / TRACKS Horse Racing is regulated by, 60-1A-1 thru 60-1A-30 NMSA 1978, of the New Mexico Statutes. Horse racing requires a State license and betting/wagering at a licensed track on live racin is legal. 60-1A-15 NMSA 1978, was amended to permit Pari-mutuel betting/wagering, HOWEVER this section also states that pari-mutuel wagering can be done only on the licensed premises where live horse race is conducted or where a simulcast horse race is televised or projected on the racing grounds of the licensed premises of a racetrack licensee. Slot machines can legally be operated at a Licensed Track. The license for this is separate and issued under the Gaming Control Act..

SLOT MACHINES AND CASINO STYLE GAMING Casino style gaming is permitted in this State by Tribal/State Compact with the tribes and pueblos o New Mexico.

Slot Machines are permitted by license only in the tribal casinos, licensed racetracks and in certain licensed non-profit organizations. Non-Profit organizations who can qualify for a gaming operators license pursuant to the Gamin Control Act 60-2E-3(GG): (1) a bona fide chartered or incorporated branch, lodge, order or association, in existence in New Mexico prior to January 1, 1997, of a fraternal organization that is described in Section 501(c)(8) or (10) of the federal Internal Revenue Code of 1986 and that is exempt from federal income taxation pursuant to Section 501(a) of that code; or (2) a bona fide chartered or incorporated post, auxiliary unit or society of, or a trust or foundatio for the post or auxiliary unit, in existence in New Mexico prior to January 1, 1997, of a veterans organization that is described in Section 501(c)(19) or (23) of the federal Internal Revenue Cod of 1986 and that is exempt from federal income taxation pursuant to Section 501(a) of that code HOME OWNERSHIP OF SLOT MACHINES Having a Slot Machine in your home has only very recently become available. This came about as a result of the Court of Appeals decision in State of N.M., ex rel. NM Gaming Control Bd. v. Ten Gamin Devices 138 N.M. 426, 120 P.3d 848. The courts decision is very limited. To legally obtain a slot machine in New Mexico, it MUST be purchased from a distributor or manufacturer licensed to distribute or manufacture machines in this state by the State of New Mexico. ONLY New Mexico licensed manufacturers and distributors, licensed in New Mexico may transport gaming machines in New Mexico. You may not purchase a slot machine in another state and bring it into this state witho first complying with New Mexico law and federal law, the Johnson Act, 15 USC 1171. Any slot machine purchased and transported into New Mexico without first complying with State and Federal law, is subject under the law to forfeiture and destruction. The homeowner may not make a profit fro having the machine. Persons who play on the machine can play for winnings only. The homeowne may not offer the slot machine for resale, to sell a gaming machine in New Mexico, you must be

licensed to do so. A homeowner may not transport the slot machine from one location to another, o a licensed manufacturer or distributor may do so and must comply with the state and federal law to d so. A homeowner charging a fee to play or keeping a portion of monies (tokens exchangeable for cash) put into the slot machine for ANY reason, would be commercial gambling, 30-19-3 NMSA, a fourth degree felony.

INTERNET GAMBLING/WAGERING Internet gambling is expressly prohibited by Federal law. This falls under 31 U.S.C.A. 5361, Unlaw Internet Gambling Enforcement Act. The State of New Mexico, and the New Mexico Gaming Contro Board do not regulate, license, control or in ANY way sanction, endorse or approve any Internet or o line gambling, betting activity, wagering or any aspect thereof. Any statement, reference or opinion the contrary is wrong. Such activity is strictly prohibited and not authorized, approved or sanctioned any manner by New Mexico regulatory authorities.

SPORTS BETTING Betting on professional and amateur sports is a violation of federal law. This falls under 28 U.S.C.A 3702, Unlawful sports gambling.

FREQUENTLY ASKED QUESTIONS What types of games and activities are permitted under the Bingo & Raffle Act? Examples of Permitted Activities by Qualified Organizations Raffles and Lotteries where tickets are sold in advance and the winners names are draw at a specific date, time and place for predetermined prizes. Reverse drawings in which the prizewinner is the person whose name is drawn last at a specific date, time, and place Door prizes where money paid, if any, is to attend the event or for the entertainment offered but not for the chance to win a prize. All door prizes with a monetary value ove $100 shall be approved by the Gaming Control Board, 15.4.4.8F NMAC.

Can I, a private home owner raffle my home instead of selling it? No. In order to hold a raffle in New Mexico, you (an organization) must qualify a such under either the Bingo and Raffle Act or as defined by the Criminal Code to do so and all the proceeds must go to lawful purposes as defined by the law.

What types of games and activities are prohibited by law? Examples of prohibited games and activities include but may not be limited to Calcuttas, side bets, or any other method or game in which a participant bets on a ticket number or other item to become a winner. Casino nights where money is paid for the opportunity to play a game of chance and wi money, prizes or other things of value based on the random outcome of a game even though there may be some skill involved.

 Wagering on the outcome of sporting event, or betting pools, with the exception of

horseracing, where bets are placed AT a licensed track. Parimutual or any other type betting by phone or on-line is not permitted. Raffles or lotteries in which all or part of the prize consists of alcoholic beverages. Poker Games/Poker Tournaments/poker runs if money is paid for the opportunity to play and if money or prizes are being awarded as a result of the outcome of the game.

Can an organization conduct games of chance on a liquor licensed premise? NO, commercial gambling is strictly prohibited on liquor licensed premises. 60-7A-19(A) NMSA 1978. Pursuant to 60-7A-19(C)(2) NMSA 1978, commercial gambling does not mean: (a) activities authorized pursuant to the New Mexico Lottery Act, 6-24-1 to 6-24-34 NMSA 1978 and (b) the conduct of activities pursuant to Subsection D of Section 30-19-6 NMSA 1978; and (c) gaming authorized pursuant to the Gaming Control Act, 60-2E NMSA 1978, and as in a manner limited by and permitted by this Act. The Liquor Licensee remains subject to all of the duties and responsibilities prescribed by the New Mexico Liquor Control Act. Liquor Licensees and charitable organizations are encouraged to work cooperatively to provide a safe environment for each event.

Can I use a game of chance to solicit donations? The Charitable Solicitations Act is found at 57-22-4 NMSA. There is no provision in this act providing for the general use of games of chance to solicit charitable donations. However there are specific statutes, the Gaming Control Act, and the Bingo and Raffle Act which permits using specific games of chance for charitable purposes and which set out specific legal guidelines for doing so. There are no statutes permitting the use of ANY other game of chance for the purpos of soliciting charitable donations. Can candidates for political office use raffles to raise campaign funds? Candidates for political office or a group specifically dedicated to raising funds for an individual running for elected office do not qualify as a qualified organization with a charitable purpose under either the Bingo and Raffle Act or Criminal Code to fund raise with raffles.

DISCLAIMER This document is NOT a comprehensive statement of all the laws applicable to fundraising or gambling in New Mexico. This is NOT intended to provide any legal advice to any person or organization. The NM Gaming Control Board strongly urges any person or organization to consult a attorney regarding the possible consequences, effects, criminal and otherwise, of conducting variou games of chance. Additionally, organizations conducting fundraising activities have specific tax reporting obligations. More detailed information about these obligations can be obtained from the N Mexico Taxation and Revenue Department, Tax information and Policy Office, at 827-0700, and the Internal Revenue Service, at 1-800-829-1040. Organizations conducting fundraising activities may

have certain registration and reporting obligations. Contact the Public Regulation Commission, Corporations Bureau at 827-4500, and the (57-22-5 NMSA) Attorney Generals Office, Registry of Charitable Organizations, at 827-6000, for more information.