Chapter 5

11 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 1 CHAPTER 5 [GAMING ACTIVITIES ] SOURCE: Formerly entitled 'Gaming,' this chapter was appa rently created in 1996 when the Compiler codified GC §§ 59001-5901 9.1 as Chapter 5 of Title 11 of the Guam Code Annotated. Entire chapte r repealed and reenacted by P.L. 30-162:3 (July 16, 2010). 2013 NOTE: The first Guam law to address gaming was P.L. 13- 026:1 (June 7, 1975), which added new Title LXIV to the G overnment Code and provided for the creation of the Guam Greyhound Rac ing Commission to oversee dog racing in Guam. (This public law errone ously identified the title as LXIV, rather than LIX, but this typographical er ror did not affect the substance or validity of the legislation.) The nam e of the commission was amended to 'Guam Gaming Commission' pursuant to P.L . 13-105:3 (Nov. 26, 1975). Gaming activities were addressed in other legislati on. P.L. 13-105:1 (Nov. 26, 1975), the Guam Jai Alai Act, added new Chapter IV to GC Title XXVII (§§ 26400 - 26438). This public law erroneously ide ntified the title as XXVII, rather than XXVI, this typographical error d id not affect the substance or validity of the legislation. P.L.

tle XXVII (§§ 26400 - 26438). This public law erroneously ide ntified the title as XXVII, rather than XXVI, this typographical error d id not affect the substance or validity of the legislation. P.L. 13- 123:1 (Jan. 7, 1976), the Territorial Lottery Act, added new Title LXVI (§§ 6 2300 - 62326) to the Government Code. This public law erroneously ident ified the title as LXVI, rather than LXII, this typographical error did not affect the substance or validity of the legislation. Numerous changes were instituted by P.L. 19-005 (Au g. 21, 1987). Section 117 of this public law repealed GC § 59000 that cre ated the commission, GC § 59002(3) that related to compensation of the comm ission chairman and secretary; and GC §§ 62524-62525 as they relate to compensation of commission members and audit of the commission. Se ction 118 of this public law amended any reference of Guam Gaming Com mission to Director of the Department of Revenue and Taxation in GC §§ 59001 - 59013, 26400 - 26438 and 62301 - 62323, excluding those sections a ffected by section 117. Section 121 of P.L. 19-005 transferred all supplies , records, personal property, equipment, and commission staff to the De partment of

301 - 62323, excluding those sections a ffected by section 117. Section 121 of P.L. 19-005 transferred all supplies , records, personal property, equipment, and commission staff to the De partment of Revenue and Taxation; and all cash on hand transferred to the T reasurer of Guam. P.L. 19-019:29 and 31 (Aug. 22, 1988) repealed both the Guam Jai Alai Act (GC §§ 26400 – 26438) and the Territorial Lottery A ct (§§ 62300 – 62326). It appears that in 1996, the remaining statutes add ressing gambling (GC §§ 59001-59019.1) were codified by the Compiler as Cha pter 5 of Title 11 of the Guam Code Annotated, entitled 'Gaming.' P.L. 30-162 :3 (July 16, 2010) repealed Chapter 5 of 11 GCA entitled 'Gaming' and enacted a new untitled Chapter 5 of 11 GCA consisting of §§ 5101 and 5102. Upon the enactment of P.L. 32-060:2 (July 9, 2013), Articles 1 and 2 w ere established to harmoniously fit within Chapter 5, pursuant to the authority granted by 1 GCA §1606. COL922201711 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 2 Article 1. Dog Racing. Article 2. Revenue from Limited Gaming Activities. ARTICLE 1 [DOG RACING ] § 5101. Dog Racing. § 5102. Licensing and Permitting. § 5101. Dog Racing.

N CH. 5 GAMING ACTIVITIES 2 Article 1. Dog Racing. Article 2. Revenue from Limited Gaming Activities. ARTICLE 1 [DOG RACING ] § 5101. Dog Racing. § 5102. Licensing and Permitting. § 5101. Dog Racing. Notwithstanding any other provision of law, rule or regulation, no dog racing or racing meeting where any form of bett ing or wagering on the speed or ability of dogs occurs shall be conduc ted or permitted. SOURCE: Added by P.L. 30-162:3 (July 16, 2010). § 5102. Licensing and Permitting. The Department of Revenue and Taxation and all othe r government of Guam agencies are hereby prohibited from accepti ng or approving any applications or requests for any canine racing-rela ted activities, including, but not limited to, racing dates, race m eetings and pari-mutuel pools. SOURCE: Added by P.L. 30-162:3 (July 16, 2010). ARTICLE 2 REVENUE FROM LIMITED GAMING ACTIVITIES § 5201. Limited Gaming Tax. § 5202. Violations of Taxation Provisions - Penalti es. § 5203. Returns and Reports - Failure to File - Pen alties. § 5204. Limited Gaming Fund. § 5205. Limited Gaming Activities - Authorized and Unauthorized. § 5201. Limited Gaming Tax.

ons - Penalti es. § 5203. Returns and Reports - Failure to File - Pen alties. § 5204. Limited Gaming Fund. § 5205. Limited Gaming Activities - Authorized and Unauthorized. § 5201. Limited Gaming Tax. (a) There is hereby imposed a limited gaming tax on the gross receipts from limited gaming activities allowed by this Act in Guam. The tax rate on limited gaming activities shall be four percent. (b) (1) The Department shall collect the amount o f limited gaming tax on the gross receipts from limited gamin g activities COL922201711 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 3 determined pursuant to Subsection (a) of this Secti on from any limited gaming licensee owing the tax, and shall ha ve all of the powers, rights, and duties provided for by law to c arry out such collection. (2) All moneys collected pursuant to this Section shall be deposited in the Fund created by § 5204 of this Act . (c) Senior Citizen Centers. Notwithstanding the pr ovisions of 11 GCA § 5205(a), all bingo games or raffles being con ducted in the senior centers by persons enrolled in the senior program s hall not be taxable.

itizen Centers. Notwithstanding the pr ovisions of 11 GCA § 5205(a), all bingo games or raffles being con ducted in the senior centers by persons enrolled in the senior program s hall not be taxable. Any income derived from the bingo games or sale of raffle tickets shall go towards the activities of the senior citizens an d for exclusive use by the senior citizens. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). Subsectio n (c) added as uncodified law by P.L. 32-068:XII:27 (Sept. 11, 201 3). Codified to this section by the Compiler. § 5202. Violations of Taxation Provisions - Penalti es. (a) Any person who willfully: (1) makes any false or fraudulent return in attempt ing to defeat or evade the tax imposed by this Act, commit s a third degree felony and shall be punished as provided for by law ; (2) fails to pay tax due under this Act within thir ty days after the date the tax becomes due, commits a misdemeanor and shall be punished as provided for by law; (3) fails to file a return required by this Act wit hin thirty days after the date the return is due, commits a misdeme anor and shall be punished as provided for by law; (4) violates either Subsection (2) or (3) of this S ection

uired by this Act wit hin thirty days after the date the return is due, commits a misdeme anor and shall be punished as provided for by law; (4) violates either Subsection (2) or (3) of this S ection two or more times in any twelve-month period, commits a th ird degree felony and shall be punished as provided for by law ; and (5) aids or assists in, or procures, counsels, or a dvises the preparation or presentation under, or in connection with any matter arising under any title administered by the Departm ent, or a return, affidavit, claim, or other document which is fraudu lent or is false as to any material fact, whether or not such falsity o r fraud is with the knowledge or consent of the person authorized or re quired to present such return, affidavit, claim, or document, commits a third COL922201711 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 4 degree felony and shall be punished as provided for by law. (b) For purposes of this Section, 'person' includes corporate officers having control or supervision of, or respo nsibility for, completing tax returns or making payments pursuant to this Act. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). § 5203.

des corporate officers having control or supervision of, or respo nsibility for, completing tax returns or making payments pursuant to this Act. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). § 5203. Returns and Reports - Failure to File - Pen alties. (a) (1) Any person who fails to file a return or r eport required by this Act for limited gaming activities, which retur n or report includes taxable limited gaming transactions, on or before the date the return or report is due, as prescribed in § 520 2(a)(3) of this Act, is subject to the payment of an additional amount a ssessed as a penalty equal to fifteen percent of the tax, or One Thousand Dollars ($1,000), whichever is greater; except that for goo d cause shown, the Director may reduce or eliminate such penalty. (2) Any person, subject to taxation under this Cha pter for limited gaming activities, who fails to pay the tax within the time prescribed, is subject to an interest charge of two percent per month or portion thereof for the period of time during wh ich the payment is late, or One Thousand Dollars ($1,000), whicheve r is greater.

cribed, is subject to an interest charge of two percent per month or portion thereof for the period of time during wh ich the payment is late, or One Thousand Dollars ($1,000), whicheve r is greater. (3) (A) Penalty and interest are considered the sa me as a tax for the purposes of collection and enforcement, inc luding liens, distraint warrants, and criminal violations. (B) Any payment received for taxes, penalties, or interest is applied, first to the tax, beginning with the ol dest delinquency, then to interest, and then to penalty. (4) The Director may, upon application of the taxp ayer, establish a maximum interest rate of twenty-four pe rcent upon delinquent taxes if the Director determines that th e delinquent payment was caused by a mistake of law and not by a willful intent to evade the tax. (b) The procedures for collection of any taxes due under this Act and the authority of the Department to collect such taxes, shall be the same as those provided for the collection of busine ss privilege taxes. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). § 5204. Limited Gaming Fund. COL922201711 GCA FINANCE & TAXATION CH.

hall be the same as those provided for the collection of busine ss privilege taxes. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). § 5204. Limited Gaming Fund. COL922201711 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 5 (a) There is hereby created, separate and apart fro m other funds of the government of Guam, a fund to be known as the L imited Gaming Fund. (1) All license fees, taxes and penalties collected under this Act shall be deposited in the Fund. (2) The Fund shall not be commingled with the Gener al Fund, except as indicated herein, shall be kept in a sepa rate bank account, and shall not be used as a pledge of security or as collateral for government loans. (3) The Director of Administration shall make an it emized quarterly report to I Maga’lahen Guåhan (the Governor of Guam), and I Liheslaturan Guåhan , of the condition of, and a detailed description of all financial activity within, the F und. (4) The Director of Administration shall further ma ke an itemized annual report, which shall be made availab le to the general public. (b) The Fund shall be used first for the purpose of the administration of this Act, and as otherwise stated herein.

ke an itemized annual report, which shall be made availab le to the general public. (b) The Fund shall be used first for the purpose of the administration of this Act, and as otherwise stated herein. No more than five percent of the Fund balance may be expended fo r this purpose, and funds shall not be expended for personnel costs. S aid Fund shall be examined and reported upon by the Director of Admin istration as required by law. (c) No claim for the payment of any expense incurre d by the Department or any other agency in the administratio n of this Act, shall be made unless it is against the Fund. No other mon eys of the government of Guam shall be used or obligated to pa y the expenses of the Department. (d) Moneys remaining in the Fund, after maintaining the stated reserves for administrative expenses of this Act, a re hereby appropriated, and for the purposes of the repair and construction of sports facilities shall continue to be deemed appropriated, annually, in t he following manner in each fiscal year: (1) (A) up to one third (1/3) of the available bala nce to the Mayors Council of Guam for the repair and construct ion of village recreational facilities, including

lowing manner in each fiscal year: (1) (A) up to one third (1/3) of the available bala nce to the Mayors Council of Guam for the repair and construct ion of village recreational facilities, including communit y centers, and for the procurement of sports equipment and supplie s, COL922201711 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 6 including, but not limited to, team sponsorships an d uniforms. (B) Funds may also be used to purchase equipment required to support community programs administered by village Mayors; (2) up to one third (1/3) of the available balance to the Department of Parks and Recreation for the repair a nd construction of its facilities, and for the procurement of sport s equipment and supplies; (3) up to one third (1/3) of the available balance to the Department of Education for the repair and construc tion of its sports facilities, and for the procurement of sports equip ment and supplies; and (4) No more than fifty percent (50%) of the amount authorized in Item (1), twenty percent (20%) of the amount authorized in Item (2), and twenty percent (20%) of the amount authorized in Item (3) of this Subsection, for the repair and construction of village

ed in Item (1), twenty percent (20%) of the amount authorized in Item (2), and twenty percent (20%) of the amount authorized in Item (3) of this Subsection, for the repair and construction of village recreational facilities and for the procurement of sports equipment and supplies, may be used for team sponsorships and uniforms. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). Amended b y P.L. 33-009 (Apr. 1, 2015), and P.L. 33-062 (Aug. 24, 2015). 2017 NOTE: Subsection item designations added in subsection (a) pursuant to the authority of 1 GCA § 1606. § 5205. Limited Gaming Activities – Authorized and Unauthorized. (a) The following are the only limited gaming activ ities authorized in Guam under this Article: (1) bingo or lottery that is conducted by a tax exe mpt non- profit organization as authorized in 9 GCA § 64.70( b); (2) cockfighting that is conducted at a licensed co ckpit, and that all wagers are present at the cockpit, as auth orized in 9 GCA § 64.40; and (3) all other limited gaming activities as authoriz ed pursuant to statute. (b) Each non-profit organization choosing to operat e a gaming activity shall be open to an auditing of funds by t he Office of Public

er limited gaming activities as authoriz ed pursuant to statute. (b) Each non-profit organization choosing to operat e a gaming activity shall be open to an auditing of funds by t he Office of Public COL922201711 GCA FINANCE & TAXATION CH. 5 GAMING ACTIVITIES 7 Accountability to ensure that funding is being spen t in the spirit of the non-profit's charter and the public benefit. SOURCE: Added by P.L. 32-060:2 (July 9, 2013). Subsection (a) amended by P.L. 34-015:3 (June 8, 2017). ---------- COL9222017