OAR 137-025-0040: General Requirements of Operations

(1) No person shall conduct bingo, Monte Carlo, or raffle games unless they conduct such activities as an employee or recognized volunteer of a charitable, fraternal or religious organization licensed by the Department to operate such games or engages in such activity as is otherwise exempt from licensing as provided in section (2) of this rule. The sale of pull tabs shall not qualify as bingo, Monte Carlo, or raffle and is not permitted by these rules. (2) The following activities shall not require a license under these rules: (a) Door prize drawings; (b) Operating bingo with a handle of no more than $5,000 per calendar year; (c) Holding one or more raffles with a cumulative handle of less than $10,000 per calendar year; (d) Holding Monte Carlo events with a handle of no more than $5,000 per calendar year. (3)(a) Except as provided in subparagraph (b) below, all individuals involved in the operation of bingo or raffle games, or Monte Carlo events shall be volunteers or employees of the licensee. Operation of the games shall not be conducted by independent contractors. However, a bingo licensee may contract with a third party to provide specific collateral services required for the proper and efficient operation of a bingo game. Such services may include concessions, bookkeeping/accounting services, payroll services, janitorial services, security services, construction services and legal services. Contract shall be permitted only if the third party regularly performs such services for clients other than licensees and the fee, if any, charged for the service(s) provided is customary and reasonable. However, a bingo licensee may not locate its game in a for-profit restaurant, tavern or similar establishment unless it is a Class B, C or D bingo licensee and bingo is not played in the establishment more than two days per week and the establishment is open to the public and serves non-players during the bingo session. (b) An organization licensed to conduct Monte Carlo events may contract with a licensed or exempted Monte Carlo equipment supplier and/or Monte Carlo event contractor as provided in OAR 137-025-0420 to operate the event, including the provisions of equipment, supplies and personnel, provided that the licensed supplier is paid a fixed fee to conduct the event and the imitation money is sold to players by employees or volunteers of the licensed charitable, fraternal, or religious organization. (4) A licensee shall not permit the operating expenses of its bingo and raffle games, excluding prizes and money paid to players, to exceed 22.0 percent of the annual handle of its bingo and raffle operations. If the expenses of bingo and raffle games operated by the licensee in the preceding 12 months have exceeded 22.0 percent, the bingo, or raffle license shall not be renewed unless the licensee files, on a form prescribed by the Department, a satisfactory plan for operating in compliance with the 22.0 percent expense limitation. The license shall be conditioned on continued compliance with the plan and may be revoked or suspended in the event of noncompliance. (5) In the event that compensation is paid to personnel for services related to the operation of bingo, Monte Carlo, and raffle games, the compensation shall not exceed: (a) 200 percent of the applicable Oregon minimum wage rate under ORS 653.025 for nonsupervisory personnel; and (b) 300 percent of the applicable Oregon minimum wage rate under ORS 653.025 for supervisory personnel. (6) No bingo card or raffle tickets shall be sold to persons under 18 years of age unless the sale is made in the presence of their parent or other adult responsible for the minor's supervision. (7) Unless excepted by the Department pursuant to OAR 137-025-0190, no person shall spend more than 40 hours per week administering or operating bingo and raffle games on behalf of a licensee. Pursuant to ORS 464.310(2), the Department may authorize bingo game managers or supervisors to work as bingo game managers or supervisors for other licensees upon approval by the Department. (8) Bingo and raffle licensees with handles in excess of $250,000 shall limit administrative and prize expenses to ensure that an amount not less than five (5.0) percent of the annual gaming handle is earned and transferred to the organization's general operating account, or other fund as directed by the organization's governing board, for use by the governing board in pursuit of the organization's charitable, fraternal, or religious mission. If an organization fails to comply with the five percent profitability requirement, in whole or in part, due to the payment of one or more prizes in excess of $5,000, the Department shall take that fact into account in fashioning a conditional license. (9) Licensees may publicly acknowledge other organizations, including for profit businesses, which donate prizes and help underwrite the cost of the licensees’ gaming activities. These organizations may be referred to as "sponsors" of the activity. However, any public information referencing the event must promote an understanding that the event is conducted by and operated for the benefit of the named licensee and this information must be more prominent than any sponsorship recognition.