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Rules & Regulations

Indiana HB1153 has been passed by the legislature and signed by the Governor. The law takes affect on July 1, 2008. The law gives the Indiana Alcohol and Tobacco Commission the authority to license manufactures and distributors of pulltabs, punchboards and tip boards as well as the authority to license retailers to sell pulltabs, punchboards and tip boards as well as hold daily drawings.

The final rules and regulations for Bars and Taverns to sell pull tabs in Indiana are currently being written by the Indiana Alcohol and Tobacco Commission (ATC). As these rules are promulgated they will be updated here and on the ATC website. You can access the ATC at You can also access the retailers application at this site.

Frequently Asked Questions

  1. What type of gambling will I be allowed to have in my establishment with a Type II gambling endorsement?
    The statue authorizes a retailer to sell and conduct a type II gambling game on the premises of the retailer's tavern. Type II gambling games include pulltabs, punchboards and tip boards. The endorsement also allows the following:
    • Raffles - retailer retains the proceeds of the raffle drawing.
    • Winner take all drawing - retailer retains no portion of the amounts wagered.
  2. How long is the gambling endorsement good for and can I transfer it to someone else?
    The type II gambling endorsement is valid for one year. An endorsement or a license issued under this article may not be transferred without prior written approval of the commission.
  3. Who is eligible to receive a type II gaming endorsement?
    A person must operate a tavern licensed under IC 7.1-3 to sell alcoholic beverages to customer for consumption on the premises of the tavern. The applicant must state the name and address of the applicant and of any person holding at least a ten percent (10%) interest in the establishment.
  4. How much is the fee for the type II gambling endorsement?
    The initial cost is $250.00 for a retailer's initial endorsement fee. The cost for renewal will be determined by your adjusted gross revenue for the following year.
  5. Where can I have type II gambling in my establishment?
    Type II gambling games, raffles and winner take all drawings may not be offered in any part of the retailer's licensed premises in which a minor may be present under IC 7.1-5-7-11(a)(16).
  6. Where can I buy my type II games to sell in my establishment?
    Well, TNT for certain, but a retailer must obtain the type II gambling games only from a distributor licensed by the ATC.
  7. Are the prize payout rates mandated by the statute?
    Yes, they are listed below:
    • A single prize awarded for one (1) winning ticket in a type II gambling game may not exceed five hundred and ninety-nine dollars. ($599)
    • The total prizes awarded for one (1) type II gambling game may not exceed five thousand dollars. ($5,000)
    • The selling price for one (1) ticket for a type II gambling game may not exceed one dollar. ($1.00)
    • A type II gambling game must pay out at least 75% and not more than 100% of the amount wagered unless sold for less than one dollar ($1.00). If a gambling game is sold for less than $1.00, the following payout rule apply:
      Purchase PriceMinimum Payout %
      Three for $1.0065%
    • A type II gambling game's payout must be stated on the ticket or on the accompanying flare.
  8. Will there be record keeping requirements for this type II gambling and need it be separate from the record keeping for food and alcoholic beverage sales in my establishment?
    Yes, a retailer shall maintain accurate records of all financial aspects of the retailer's type II gambling operation. A retailer shall make accurate reports of all financial aspects of the type II gambling operation to the ATC within the time established by the ATC. The ATC shall prescribe forms for this purpose. The receipts from type II gambling operations may not be co-mingled with the receipts of the retailer's alcoholic beverage sales, food sales and other related non-gambling activities.
  9. Can the type II endorsement be suspended or revoked by the commission like my alcoholic beverage license can?
    Yes, the ATC may suspend or revoke the endorsement or license of or levy a civil penalty against a licensee for any of the following:
    • Violation of a provision of this article or of a rule of the ATC.
    • Failure to accurately account for type II gambling games.
    • Failure to accurately account for sales proceeds from type II gambling operations.
    • Commission of a fraud, deceit or misrepresentation.
    • Conduct prejudicial to public confidence in the commission.
    • Conduct any illegal gambling upon the licensed premise.
  10. Can anyone play these type II gambling games?
    No, in fact it is a class A misdemeanor for a retailer who (1) permits a person less than 21 years of age to play a type II gambling game; or (2) wagers or accepts a wager on a type II gambling game at a location other than a retailer's licensed establishment.
  11. Where can I apply for my type II gaming endorsement?
    You can get your application on line at

More rules to follow as the ATC finalizes the rules process. Check back often for updates.