As used in this part, "Calcutta pool" means a form of auction pool conducted by an organization authorized by the department. The Calcutta pool must be an auction pool in which:
(1) a person's wager is equal to the person's bid;
(2) the proceeds from the pool, minus administrative costs and prizes paid, are contributed to a charitable or nonprofit corporation, association, or cause;
(3) the rules of the pool are publicly posted;
(4) no more than one wager for each competitor is allowed;
(5) at least 50% of the total pool is paid out in prizes;
(6) persons may not bid or wager money on any elementary school or high school sports event; and
(7) the underlying event has more than two entrants.