(1) Card game tournaments which involve consideration in order to play and the chance of winning something of value are gambling activities. Publicly played card game tournaments involving gambling activity are limited to the card games known as panguingue and poker, as described by ARM 23.16.1202.

(2) If a licensed operator with a permit for operating at least one live card game table on his premises wishes to conduct a card game tournament, the operator shall submit an application to the department for a card game tournament permit. Form 14, the card game tournament permit application, is available from the department upon request. The application must include:

(a) licensed operator's name;

(b) operator license number;

(c) location of the card game tournament;

(d) type of game to be played;

(e) number of tables to be used during the tournament;

(f) date of the tournament;

(g) amount of entry fee;

(h) amount of cash prizes;

(i) $10 processing fee; and

(j) copy of the tournament rules, which must identify the face value of the chips to be used.

(3) The card game tournament application should be received by the department at least ten working days before the start of the tournament. The department may process an application received by FAX but shall not issue a permit on such an application until the fee is received by the department. An application may not receive approval if received by the department with less than ten working days before the start of the tournament.

(4) A copy of the tournament rules must be provided to tournament participants and posted as provided for in 23-5-317, MCA.

(5) In a card game tournament involving poker or panguingue, each card game must be conducted by a licensed dealer as required in 23-5-309, MCA. In addition, a designated person, who may be one of the licensed dealers, must be present on the premises to oversee the conduct of the games and settle disputes.

(6) The only consideration that may be paid by a tournament participant is:

(a) an entry fee; and

(b) a fee paid to reenter the tournament after being eliminated from competition, if permitted to do so under tournament rules.

(7) Under no circumstances may the total amount paid by an individual, including entry and reentry fees, exceed $2,500 for tournament play.

(8) A card game tournament permitted under these rules may be part of a progressive card game tournament in which the ultimate prize is not awarded until completion of the final round of the progressive tournament.

(a) The tournament must be publicly identified as being part of a progressive tournament prior to initiation of the tournament.

(b) Each location that participates in the progressive tournament must obtain a card game tournament permit.

(c) If the tournament is part of a progressive tournament, prize(s) may include the right to participate in the higher level of tournament play, so long as the value of the higher level tournament is equal to the value of the expected top prize in the tournament.

(9) Winners are determined at the conclusion of the tournament based upon points or chips accumulated throughout the course of the tournament. Prizes may only be awarded at the conclusion of the tournament.

(10) A tournament may not be conducted for more than five consecutive days. Card games may not be conducted between the hours of 2 a.m. and 8 a.m. each day unless the hours for operating a live card game table have been extended by a city or county ordinance. An operator may conduct up to 12 card game tournaments per year.

(11) An operator's card game tournament permit must be posted and clearly visible to the public. The permit is specific to an operator and location.

(12) For any card game tournament that is represented as a charitable tournament, no less than 50% of the total of all entry and reentry fees must be paid to charitable, educational, or recreational nonprofit organization(s).

(13) For each card game tournament, the location operator shall maintain for a period of 12 months and must provide to the department upon request a record of all entry fees and reentry fees paid by each participant. In addition, if the tournament was represented as a charitable tournament, the location operator shall also maintain for a period of 12 months, and provide to the department upon request, a record of the distribution of the tournament proceeds.

(14) No card game tournament may be part of a casino night.

(15) Card game tournaments must comply with the requirements of Title 23, chapter 5, MCA, and the rules of the department.