Charitable Gaming Proceeds

Expenditures solely and directly applicable to games of chance do not require prior Commission approval and must simply be reported in part B on Form GC-7 and Form GC-7R where applicable.

• Purchase and rental of games of chance equipment, tables and chairs, dice, cards, games of chance currency, etc.
• Rent paid to licensed games of chance lessors
• Janitorial and custodial services, guard service, preparation of Form GC-7s and Form GC-7Rs and maintaining a monthly bookkeeping system
• License fees - All fees are paid to the municipality. Additional license fees must be reported in part C on Form GC-7 and Form GC-7R; and part B on Form GC-7Q
• Other expenses, including printing of games of chance forms; house rules, postage for games of chance purposes; fidelity bonds for persons responsible for games of chance funds; repairs to games of chance equipment; advertising expenses; bank charges, etc.

Expenditures for the following items do not require the prior Commission approval and must simply be reported in part E on Form GC-7 and part D on Form GC-7Q and Form GC-7R.

• Charitable donations to nationally or locally recognized charitable organizations
• Patriotic contributions to or participation in patriotic, civic and community projects, such as Veterans' Day activities, Memorial Day and Independence Day observances, memorials, etc.; uniforms, instruments and traveling expenses for bands that participate in civic, patriotic and community activities
• Nationally or locally recognized youth athletic, recreational and civic programs
• Open scholarships where recipients are not limited to children of the licensee, its auxiliary or affiliate and the selection committee is not dominated by members of the licensee, its auxiliary or affiliate; teachers' salaries; exchange student funds; books for libraries and equipment for schools or other educational organizations

• Religious: Contributions or expenditures for religious purposes and activities such as clerics' salaries, maintenance of religious buildings, and the purchase of religious supplies
• Fire-Fighting Activities and Volunteer Ambulance Corps: Expenditures incurred in providing services in case of fire, accidents, sudden severe illness, public calamity or other emergencies; purchase of vehicles, apparatus, equipment and uniforms; attending training schools and inspections; participation in drills and exhibitions; membership fees of licensee organization in fire-fighting and emergency medical technician associations
• Veterans: Activities that initiate, perform or foster the provision of services to veterans by encouraging the gathering of such veterans and enable or further the erection or maintenance of facilities for use by such veterans that shall be used primarily for charitable or patriotic purposes or those purposes that shall be authorized by a bona fide organization of veterans, provided however that such proceeds are disbursed pursuant to section 189 of the General Municipal Law and the commission's rules.

Authorized Organizations must submit an Application for Permission to Disburse Net Proceeds of Games of Chance (Form GC-317) to the Commission when requesting approval of certain expenses listed below. Veterans’ organizations must also submit the minutes of the meeting authorizing any such expenditures to the Commission.

• Mortgages
• Rent paid by licensee organization for use of property for its activities
• New buildings, additions, renovations or repairs in excess of $10,000 per calendar year
• Purchase of air conditioning units, furniture, furnishings, office and kitchen equipment and motor vehicles
• Repair, maintenance, and acquisition of parking lots
• Salaries other than those outlined in statute and regulation
• Legal, accounting or other professional fees exceeding $5,000 per calendar year

The use of games of chance funds for the exclusive benefit of members of the licensee organization, its auxiliary or affiliate is prohibited. Authorized Organizations* may not use games of chance funds for:

• Entertainment or social activities for the benefit of members of licensee organization, its auxiliary or affiliate
• Welfare, sick or death benefit funds for members and families
• Dues and assessments
• Gifts or loans to members of licensee organization, its auxiliary or affiliate
• Convention expenses for delegates of licensee organization, its auxiliary or affiliate
• Expenses connected with bars and the dispensing of alcoholic beverages
• TV or other amusement devices for use of the licensee organization, its auxiliary or affiliate
• Expenses and salaries connected with other fundraising activities, such as the operation of food service facilities and concessions
• Tickets purchased from profit or not-for-profit organizations, such as raffle or theatre tickets, for use by members

*Except for Veterans’ organizations with applicable charter and bylaws must submit the minutes of the meeting authorizing such expenditures to the Commission

Games of chance funds may be transferred from the special games of chance checking account into one or more interest-bearing accounts.

• The Commission allows transfer only into savings accounts, money market accounts and certificates of deposit insured by the U.S. Government, and U.S. Treasury Bills.
• Monies transferred remain part of the unexpended balance of games of chance funds and any account into which the games of chance funds are transferred shall be designated a “special games of chance account.”
• Advance approval by the Commission of such transfers is not required. However, a memo reflecting the following for each transfer should accompany the appropriate financial statement:
  • Date, check number and amount
  • Description of the account into which funds are transferred, including the bank name, address, phone number and account number
• No expenditures may be made directly from an interest-bearing account. Funds must be redeposited in the special games of chance account and disbursed in accordance with statute and regulation

Establishment of a Building Fund

• Organizations seeking to establish a building fund with games of chance monies must first submit Form GC-317 to the Commission for approval.
• Organizations of veterans must file a copy of the minutes of the meeting of the membership authorizing the establishment of a building fund with the Commission in lieu of filing Form GC-317.
• Funds must be redeposited into the special games of chance checking account before being disbursed.

All interest earned by interest-bearing accounts are considered part of the unexpended games of chance balance and must be reported annually (at least) in part E-4 of Form GC-7, part C-3 on Form GC-7Q and part D-4 of Form GC-7R.