ohio charitable gaming laws

8/14/2019 Ohio Charitable Gaming Laws

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CHARITABLE LAWSECTION

OHIO

CHARITABLEGAMING

BINGO LAWS

OHIO

CHARITABLEGAMING

BINGO LAWS


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WHATIS "BINGO?"

O.R.C. 2915.01 generally defines Bingo as:

Traditional bingo in which playerscover spaces on cards which correspondto letters and numbers called by a bingogame operator;

Instant bingo, punch boards and raffles.

For a completedefinition, please seeO.R.C. 2915.01(S).

ISA LICENSE REQUIREDTO CONDUCT

BINGO?

(O.R.C. 2915.01; 2915.07; 2915.08; O.A.C. 109:1-4-03)

A license is required to conduct tradi-tional bingo and instant bingo. Conduct-ing bingo without a license is a felony of

the fourth degree. Conduct means toback, promote, organize, manage, carryon, sponsor or prepare for the operationof bingo or a game of chance.

A bingo license is always required to

conduct instant bingo. A license is NOT required if a traditional

bingo game is conducted for the purposeof amusement only as described in O.R.C.2915.12(A)(1) and 2915.12(A)(2); or by a

multipurpose senior center consistentwith the provisions of O.R.C. 173.121.


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WHAT TYPESOF BINGO DOESTHE

ATTORNEY GENERAL'S OFFICE

LICENSEAND WHENARETHEAPPROVED HOURS?

(O.R.C. 2915.01; 2915.09)

Type I License To conduct traditional

bingo no more than two times per weekfor no more than five hours per session.The scheduled hours for these sessionsmust be between 10:00 a.m. andmidnight.

Type II License To conduct instantbingo during the hours traditional bingois conducted and for not more than twohours before and two hours after thatperiod. The earliest time to begin Type IIbingo sales is 9:00 a.m. for traditionalbingo that begins at 10:00 a.m.

Type III License To conduct instantbingo other than at a traditional bingo

session. Veteran, fraternal and sportingorganizations may conduct Type IIIbingo seven days per week, up to 12hours per day, between the hours of10:00 a.m. and 2:00 a.m. The 12 hours donot have to be consecutive. Other quali-fied 501(c)(3) charitable organizations donot have any day or time restrictions forthe conduct of Type III instant bingo.

WHOIS ELIGIBLETOBE LICENSED?(O.R.C.2915.08)

To be eligible for a bingo license anapplicant must be one of the 14 types ofcharitable organizations defined inO.R.C. 2915.01(H). Eligible charitableorganizations include any tax exempt


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religious, educational, veteran, fraternal,sporting, service, nonprofit medical,volunteer rescue service, volunteer fire-

fighter, senior citizen, historic railroadeducational, youth athletic, amateurathletic or youth athletic park organization.

An organization must be exempt fromfederal income tax with a tax exempt

status of 501(c)(3), 501(c)(4), 501(c)(8),501(c)(10), 501(c)(19) or if the organizationis a sporting organization with a taxexempt status of 501(c)(7).

In general, a charitable organization must

have been in continuous existence in Ohiofor at least two years prior to makingapplication for a bingo license. Fraternaland nonprofit medical organizations musthave been in existence for five years prior

to making application. Exceptions to thisrule include volunteer rescue service orvolunteer firefighter organizations, or any501(c)(3) organization that is created by aveteran, fraternal or sporting organization.

HOWDO I OBTAINA BINGO LICENSE

FOR MY ORGANIZATION?

An application for a bingo license may berequested from the Ohio Lottery Commission orthrough the Ohio Attorney Generals web site:

www.ag.state.oh.usThe contact information can also be found on

the last page of this publication.
http://www.ag.state.oh.us/http://www.ag.state.oh.us/


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WHATISTHE BINGO LICENSE FEE?

(O.R.C. 2915.08)

The fees vary for different types of bingolicenses. The instructions about calculating thefee for a specific type of license can be found inthe Application Instructions at the AttorneyGenerals web site or through the Ohio Lottery

Commission.

HOWDO I REQUEST CHANGESTO

OUR

BINGO

LICENSE

?(O.R.C. 2915.08)

Submit a written request for the changesto the Ohio Lottery Commission at least

30 days before the date of the desiredchange. Include a reason why it is imprac-tical to conduct bingo at the location(s),day(s) of the week or time of day specifiedon the existing license.

The amendment fee is $250 and mustaccompany the request. Please mail yourrequest to the Ohio Lottery Commission.

The organization must surrender itscurrent license at the time the amended

license is issued.

No more than two amendments of thedays and times specified on the licensemay be requested in a calendar year.


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WHATARETHE RESPONSIBILITIESOF

HAVINGA BINGO LICENSE?

(O.R.C.2915.09)(O.R.C. 2915.091)

An organization must:

Conspicuously display bingo license andserial numbers of all instant bingo deals in

play.

Not conduct traditional bingo or instantbingo on any day, time or premises notindicated on the license.

Conduct bingo in the same county as theorganizations principal place of business.

Upon opening a deal of instant bingotickets, sell tickets until all prizes in toptwo prize tiers are awarded.

Not allow persons less than 18 years oldto play or work any type of bingo.

Purchase or lease supplies from a licenseddistributor and pay by check drawn on

the bingo checking account. Pay allowable expenses and charity

recipients by check.

Keep unsold tickets and maintain re-quired records for three years.

Not sell or provide an instant bingo ticketfor a price different than that printed onthe ticket or game flare.

Not pay fees to any person for any ser-

vices performed in relation to an instantbingo game.

Not sell instant bingo tickets to other bingogame operators or to employees of a Dpermit holder who are working at pre-

mises where instant bingo tickets are sold.

Not allow a person convicted of a gam-bling or felony offense to be a bingo gameoperator.


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The owner or lessor is not assisting inthe conduct of instant bingo, providesonly the premises, has no other com-

mercial activity at the location, and noportion of the rent is paid from theproceeds of Type III instant bingo.

The contract must be a form contract incompliance with administrative rule; no

changes to the terms are permitted. Type III instant bingo cannot be the primary

source of retail income at any location.

WHATARETHE REQUIREMENTSFORVETERAN, FRATERNALAND SPORTING

ORGANIZATIONS CONDUCTING

TYPE III INSTANT BINGO?

(O.R.C. 2915.091)

Instant bingo must be conducted on theorganizations own premises.

Instant bingo sales are limited to theorganizations own members and invitedguests.

Maximum time allowed for instant bingois seven days per week, 12 hours per day,

between the hours of 10:00 a.m. and2:00 a.m. (Hours do not need to beconsecutive.)

A paid employee of an organization maysell instant bingo tickets to members or

invited guests, as long as no portion of theemployees compensation is paid frombingo receipts.

The organization must have a fundraisingcontract with a 501(c)(3) public charitywith its principal place of business inOhio, or with a governmental unit.


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Not pay any compensation to a bingogame operator for conducting instantbingo or for preparing, serving or selling

food or beverages at the site of instantbingo.

Not use instant bingo ticket dispensers tosell tickets.

Not possess a deal of instant tickets orcards that was not purchased from alicensed distributor as reflected on aninvoice containing all of the informationrequired by O.R.C. 2915.10.

WHATARETHE REQUIREMENTSFOR

501(C)(3) CHARITABLE

ORGANIZATIONS CONDUCTING

TYPE III INSTANT BINGO?(O.R.C. 2915.09; 2915.091; 2915.093; 2915.094; 2915.095;2915.10)

Type III instant bingo may be conducted

by a charity at a festival or at the charitysprincipal place of business when notconducting a traditional bingo session or,conducted by a third party assisting thecharity, such as a retail store, restaurant or

bar.

The charity is limited to five locations,except in limited circumstances.

The charity must have a contract with the

owner or lessor of the premises, exceptwhen:

The charity plays on property it owns.

The charity conducts instant bingo atthe location for not more than fivedays per year and not more than 10hours per day and the owner or lessoris not assisting in the conduct ofinstant bingo.


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For a complete list of restrictions and require-ments, see O.R.C. 2915.09, 2915.091, 2915.093,2915.094, 2915.095, 2915.10, and 2915.13.

WHATARETHE ALLOWABLE EXPENSES

FROM BINGO PROCEEDS?

(O.R.C. 2915.01(LL), 2915.09)

Proceeds from traditional bingo may be usedfor the payment of prizes and the payment orreimbursement of expenses for:

Purchase or lease of bingo supplies. Annual license fee.

Bank fees and service charges for a bingosession or game account.

Audits and accounting services. Safes.

Cash registers.

Hiring security personnel.

Advertising bingo.

Renting premises for a bingo session.

Tables and chairs.

Expenses for maintaining and operating a

charitable organizations facilities, includ-ing a post home, club house, lounge,tavern, or canteen and any groundsattached to these facilities.

For veteran, fraternal and sporting organiza-tions conducting instant bingo, prizes and thecost of instant bingo supplies are deducted fromthe instant bingo gross receipts to determine netprofit from the proceeds of the sale of instantbingo. These organizations may then use the

allowable percentage of net profit from the sale ofinstant bingo for the remaining expenses listedabove.


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WHATARETHE RECORDKEEPING

REQUIREMENTSFOR BINGO LICENSES?

(O.R.C. 2915.10)

These records must be kept for three years fromthe date the bingo or game of chance is conducted:

Itemized list of gross receipts from bingo

session and each game of instant bingo byserial number.

Itemized list of gross profits of each gameof instant bingo by serial number.

Itemized list of all expenses, other thanprizes, incurred in conducting bingo orinstant bingo, the name of the person orcompany paid, and a receipt.

List of all prizes awarded during each

bingo session and the total prizes awardedfrom each game of instant bingo by serialnumber. There must also be a record of thename, address and Social Security numberof all winners of prizes of $600 or more.

Itemized list of all recipients of the netprofit of bingo and, if the organizationuses the net profit for charitable or otherpurposes defined in O.R.C. 2915.01(Z) or2915.101, a list of each purpose and each

expenditure for each purpose.

Number of persons who participate ineach bingo session.

List of receipts from the sale of food and

beverages by the charitable organizationor auxiliary, if the receipts were excludedfrom gross receipts."

Itemized list of expenses incurred at eachbingo session or instant bingo game for

the sale of food and beverages, the nameof each person paid and a receipt for alllisted expenses.


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The organization must keep the records atits principal place of business in Ohio orits headquarters in Ohio, and shall notify

the Attorney General's Office of thislocation.

The organization shall conduct and recordan inventory of all its bingo supplies as ofNovember 1st of each year.

HOWDO I OBTAINA DISTRIBUTOR'S

LICENSE?

(O.R.C. 2915.081)

The Ohio Attorney General must licenseanyone distributing bingo supplies for use

in this state.Application forms may be

obtained by contacting the Attorney

Generals Office at (614) 466-3180 or by

visiting our web site at www.ag.state.oh.us.

A distributor license is valid for one yearand the annual fee is $5,000.

No distributor shall:

Sell, offer to sell, or otherwise provide oroffer to provide bingo supplies or modify,convert, add to, or remove parts frombingo supplies for use in this state exceptto or for the use of a charitable organiza-tion or to another distributor that hasbeen issued a license under O.R.C.2915.08.

Participate in the conduct of bingo onbehalf of a charitable organization or haveany ownership interest in premises usedfor the conduct of bingo.

For a complete list of requirements, please see

O.R.C. 2915.081.


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WHATISA RAFFLE?

A raffle is a form of bingo where prizes are

won by purchasing a raffle ticket. A ticket stubor other detachable section is drawn from areceptacle.

WHO MAY CONDUCT RAFFLES?(O.R.C. 2915.092)

Organizations conducting raffles must bea charity, public school, chartered non-

public school, a community school or aveteran, fraternal or sporting organizationand have a tax exempt status with the IRSof 501(c)(3), 501(c)(4), (501(c)(8), 501(c)(10),or 501(c)(19), or a sporting organization

with a tax exempt status with the IRS of501(c)(7).

If the raffle is conducted by an organiza-tion that is not a 501(c)(3) charitableorganization, 50 percent of the net profit

must be distributed for a charitablepurpose described in O.R.C. 2915.01(Z) orto a governmental unit.

A bingo license is not required in order toconduct raffles.

Local law enforcement and local prosecu-tors enforce the laws regarding raffles.


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WHATISA "POOL NOT CONDUCTED

FOR PROFIT?"

(O.R.C. 2915.01)

No license is required for a scheme inwhich a participant gives money for achance to win a prize, and the totalamount of money wagered is distributedto a participant or participants.

Not a scheme of chance or bingo.

WHATARE GAMESOF CHANCE?(O.R.C. 2915.01(D) (O.R.C. 2915.02 (D)(1)(C)

Games of chance are gambling activi-ties where games such as Texas Holdem,

black jack, poker and other similar gamesare played to raise funds for a charity.Bingo is not a game of chance."

Games of chance are limited to chari-table organizations that have an IRS tax

exempt status of 501(c)(3). In most cases,the charitable organization must havebeen in continuous existence in thestate for at least two years or longerdepending on the type of organization.

(See Who is Eligible to be Licensed? formore details.)

The games ofchance must beconducted at

festivals of thecharitable organiza-tion that are conductedeither for a period offour consecutive days or

less and not more thantwice a year or for a periodof five consecutive days notmore than once a year.


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Certain games are prohibited, such ascraps or roulette for money.

Workers cannot be paid.

Proceeds must be distributed to a501(c)(3) public charity or to a govern-mental unit.

WHATARETHE PENALTIESFORVIOLATINGTHE GAMBLING LAWS?

(O.R.C. 2915)

Violations of Ohios Gambling Act canresult in criminal penalties. Decisions tocriminally prosecute under the gamblingstatutes are made by county and otherlocal prosecutors, who have criminal

enforcement authority under the Act. Violations may also result in civil pros-

ecutions or the suspension or revocationof an organizations charitable bingolicense.

For applications, instructions and otherforms, please contact:

THE OFFICEOF CHARITABLE GAMINGA DIVISIONOFTHE OHIO LOTTERY

COMMISSION615 W. SUPERIOR AVE.

CLEVELAND, OH 44113-1879(800) 686-4208

This information is also available on theAttorney Generals web site atwww.ag.state.oh.us under the Charitable LawSection.


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Attorney General Mike DeWine

CHARITABLE LAWSECTION150 E. GAY ST., 23RD FL.

COLUMBUS , OH 43215(614) 466-3180

FAX: (614) 466-9788

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