Game nights licensing exceptions

1. A person other than a qualified organization may lawfully conduct a game night without a license, and may award cash or merchandise prizes, under the following conditions: a. A bona fide social, employment, or trade or professional association relationship exists between the sponsors and the participants. b. The participants pay no consideration of any nature, either directly or indirectly, to participate in the games. c. All money, play money, or other items of no intrinsic value which may be wagered are provided to the participant free, and the sponsor conducting the game receives no consideration, either directly or indirectly, other than goodwill. d. The games may be conducted at any location, except at a fair or a location for which a license is required pursuant to section 99B.31. e. During the entire time activities permitted by this subsection are being engaged in, no other gambling is engaged in at the same location. 2. A person or an organization may sponsor one or more game nights using play money for participation by students without the person or organization obtaining a license otherwise required by this chapter if the person or organization obtains prior approval for the game night from the board of directors of the accredited public school or the authorities in charge of the nonpublic school accredited by the state board of education for whose students the game night is to be held. 3. A gambling device intended for use or used as provided in this section is exempt from the provisions of section 725.9, subsection 2.