99B.7B - CARD GAME TOURNAMENTS CONDUCTED BY QUALIFIED ORGANIZATIONS REPRESENTING VETERANS.
99B.7B CARD GAME TOURNAMENTS CONDUCTED BY QUALIFIED
ORGANIZATIONS REPRESENTING VETERANS.
1. As used in this section, unless the context otherwise
requires:
a. "Card game" means only poker, pinochle, pitch, gin rummy,
bridge, euchre, hearts, or cribbage.
b. "Qualified organization representing veterans" means any
licensed organization representing veterans, which is a post, branch,
or chapter of a national association of veterans of the armed forces
of the United States which is a federally chartered corporation,
dedicates the net receipts of a game of skill, game of chance, or
raffle as provided in section 99B.7, is exempt from federal income
taxes under section 501(c)(19) of the Internal Revenue Code as
defined in section 422.3, has an active membership of not less than
twelve persons, and does not have a self-perpetuating governing body
and officers.
2. Notwithstanding any provision of this chapter to the contrary,
card game tournaments lawfully may be conducted by a qualified
organization representing veterans if all of the following are
complied with:
a. The organization conducting the card game tournament has
been issued a license pursuant to subsection 4 and prominently
displays that license in the playing area of the card game
tournament.
b. The card games to be conducted during a card game
tournament, including the rules of each card game and how winners are
determined, shall be displayed prominently in the playing area of the
card game tournament. Each card game shall be conducted in a fair
and honest manner and shall not be operated on a build-up or pyramid
basis. Every participant in a card game tournament must be given the
same chances of winning the tournament and shall not be allowed any
second chance entries or multiple entries in the card game
tournament.
c. Participation in a card game tournament conducted by a
qualified organization representing veterans shall only be open to
members of the qualified organization representing veterans and
guests of members of the qualified organization participating in the
tournament, subject to the requirements of this section. The total
number of members and guests participating in a card game tournament
shall not exceed the occupancy limit of the premises where the card
game tournament is being conducted. Participants in a card game
tournament shall be at least twenty-one years of age.
d. (1) If the card game tournament is limited to one guest
for each member of the qualified organization representing veterans
participating in the tournament, then the requirements of this
subparagraph shall apply. The cost to participate in a card game
tournament shall be limited to one hundred dollars and shall be the
same for every participant in the card game tournament. Cash or
merchandise prizes may be awarded during a card game tournament and
shall not exceed one thousand dollars and no participant shall win
more than a total of five hundred dollars.
(2) If the card game tournament is not limited to one guest for
each member of the qualified organization representing veterans
participating in the tournament, then the requirements of this
subparagraph shall apply. The cost to participate in a card game
tournament shall be limited to twenty-five dollars and shall be the
same for every participant in the card game tournament. Cash or
merchandise prizes may be awarded during a card game tournament and
shall not exceed three hundred dollars and no participant shall win
more than a total of two hundred dollars.
(3) A qualified organization representing veterans shall
distribute amounts awarded as prizes on the day they are won and
merchandise prizes shall not be repurchased. An organization
conducting a card game tournament shall only display prizes in the
playing area of the card game tournament that can be won.
e. The qualified organization representing veterans shall
conduct each card game tournament and any card game conducted during
the tournament and shall not contract with or permit another person
to conduct the card game tournament or any card game during the
tournament. In addition, the card game tournament and any card game
conducted during the tournament shall be conducted on the premises of
the qualified organization representing veterans as identified in the
license application pursuant to subsection 4.
f. No person receives or has any fixed or contingent right to
receive, directly or indirectly, any profit, remuneration, or
compensation from or related to a game in a card game tournament,
except any amount which the person may win as a participant on the
same basis as the other participants.
g. A qualified organization representing veterans licensed
under this section shall not hold more than two card game tournaments
per month and shall not hold a card game tournament within seven
calendar days of another card game tournament conducted by that
qualified organization representing veterans. Card game tournaments
held under an annual game night license shall not count toward the
limit of one card game tournament per week for a license holder. A
qualified organization representing veterans shall be allowed to hold
only one card game tournament during any period of twenty-four
consecutive hours, starting from the time the card game tournament
begins.
h. At the conclusion of each card game tournament, the person
conducting the card game tournament shall announce the gross receipts
received, the total amount of money withheld for expenses, and the
amount withheld for state taxes.
i. The person conducting the card game tournament does none
of the following:
(1) Hold, currently, another license issued under this section.
(2) Own or control, directly or indirectly, any class of stock of
another person who has been issued a license to conduct games under
this section.
(3) Have, directly or indirectly, an interest in the ownership or
profits of another person who has been issued a license to conduct
games under this section.
3. The qualified organization representing veterans licensed to
hold card game tournaments under this section shall keep a journal of
all dates of events, amount of gross receipts, amount given out as
prizes, expenses, amount collected for taxes, and the amount
collected as revenue.
a. The qualified organization representing veterans shall
dedicate and distribute the net receipts from each card game
tournament as provided in section 99B.7, subsection 3, paragraph
"b".
b. Each qualified organization representing veterans shall
withhold that portion of the gross receipts subject to taxation
pursuant to section 423.2, subsection 4, which shall be kept in a
separate account and sent to the state along with the organization's
quarterly report.
c. A qualified organization representing veterans licensed to
conduct card game tournaments is allowed to withhold no more than
five percent of the gross receipts from each card game tournament for
qualified expenses. Qualified expenses include but are not limited
to the purchase of supplies and materials used in conducting card
games. Any money collected for expenses and not used by the end of
the calendar year shall be donated for educational, civic, public,
charitable, patriotic, or religious uses as described in section
99B.7, subsection 3, paragraph "b". The qualified organization
representing veterans shall attach a receipt for any donation made to
the fourth quarter quarterly report required to be submitted pursuant
to section 99B.2.
d. Each qualified organization representing veterans licensed
under this section shall make recordkeeping and all deposit receipts
available as provided in section 99B.2, subsection 2.
4. An organization wishing to conduct card game tournaments
pursuant to this section as a qualified organization representing
veterans shall submit an application and annual license fee of one
hundred dollars to the department. The application shall identify
the premises where the card game tournaments are to be conducted and
the occupancy limit of the premises, and shall include documentation
that the qualified organization representing veterans has conducted
regular meetings of the organization at the premises during the
previous eight months.
5. a. A person under twenty-one years of age who participates
in a card game tournament in violation of this section is deemed to
violate the legal age for gambling wagering provisions under section
725.19, subsection 1.
b. The department shall revoke, for a period of one year, the
license of a qualified organization representing veterans to conduct
card game tournaments under this section if the licensee knowingly
permits a person under the age of twenty-one years to participate in
a card game tournament. Section History: Recent Form
2007 Acts, ch 119, §1
Referred to in § 99B.8, 99B.9, 99B.12, 423.2