1. Local governing authority approval. An organization applying for a tournament game license must first receive approval by the local governing authority where the game is to be conducted. Proof of approval from the local governing authority must be provided to the Gambling Control Unit upon application for a tournament game license.

2. License application. An organization shall submit a license application to the Gambling Control Unit on a form provided by the Gambling Control Unit. The license application must specify one or more charitable organizations that the proceeds of the tournament game are intended to benefit. For the purposes of this section, “charitable organization” means a person or entity, including a person or entity in a foreign state, that is or purports to be organized or operated for any charitable purpose or that solicits, accepts or obtains contributions from the public for any charitable, educational, humane or patriotic purpose. For purposes of this subsection, “foreign state” means a governmental unit other than the United States; any state, district, commonwealth, territory or insular possession of the United States; the Panama Canal Zone; the Trust Territory of the Pacific Islands; or the Ryukyu Islands.

3. License.

3-A. License. The license fees for tournament game licenses are as follows:

4. Tournament. The organization licensed to conduct a tournament game under this section shall display the rules of the tournament game and the license issued. The maximum number of players allowed is 100 unless the tournament game is held on premises owned by the licensee, in which case the maximum number of players allowed is 300. Winners are determined by a process of elimination. The use of currency is prohibited as part of tournament game play. The maximum entry fee to play in the tournament game is $100, except the organization may add to the player entry fee to defray the cost of the license fee, as long as the total additional amount collected from all players does not exceed $125. Only one entry fee is permitted per person. A tournament game must be completed within 48 hours. Other games of chance on the premises are prohibited during a tournament game, except for high?hand competitions under subsection 7, lucky seven or similar sealed tickets and no more than one 50/50 raffle per tournament with a prize value up to $2,000. All prizes awarded in accordance with this subsection must be paid in cash or by check.

4-A. Exception for super cribbage tournament. Notwithstanding any provision of this section to the contrary, the Gambling Control Unit may issue up to 15 licenses per year for the conduct of a super cribbage tournament. For the purposes of this subsection, “cribbage” means a card game that uses a board and pegs to keep score and of which the characteristic feature is a crib into which players discard cards from their dealt hand to create a crib of 4 cards unseen by other players that will be ultimately part of the dealer’s hand. The license fee for a super cribbage tournament is $75. A super cribbage tournament must be conducted in the same manner as prescribed for a tournament game by this section except as follows.

4-B. Charitable cribbage tournament. The Gambling Control Unit shall accept a registration for a cribbage tournament to be conducted as prescribed by this subsection. For the purposes of this section, “cribbage” means a card game that uses a board and pegs to keep score and of which the characteristic feature is a crib into which players discard cards from their dealt hand to create a crib of 4 cards unseen by other players that will be ultimately part of the dealer’s hand. In a cribbage tournament, winners are determined by a process of elimination. A cribbage tournament may extend beyond a calendar day. A person may operate a cribbage tournament as registered by the Gambling Control Unit if the operator:

5. Proceeds. No less than 75% of the entry fees under subsection 4 must be paid as prizes to the winners of the tournament game.

6. Cost of administration; surplus. The Gambling Control Unit may retain, from license fees collected in accordance with subsection 3?A, only an amount necessary to defray the costs of administering this section. All fees collected in excess of the amount necessary to defray the costs of administration must be allocated as follows:

7. High-hand competition. A licensee under this section may conduct one high-hand competition per tournament game. Participation in the high-hand competition is not mandatory and must be determined prior to the start of the tournament. Notwithstanding any other provision of this chapter to the contrary, the total number of bets received in a high-hand competition must be awarded to the winner or, in the case of multiple winners, divided among them as evenly as possible. All prizes awarded in accordance with this subsection must be paid in cash or by check.