Indiana bingo laws allow only licensed nonprofit “qualified organizations” to host games, cap prizes at $1,000 for a single regular game and $6,000 for an entire event, and require unpaid members of the organization to run the games. The rules sit in Title 4, Article 32.3 of the Indiana Code and are enforced by the Indiana Gaming Commission, which can fine, suspend, or revoke a license for violations.
Who Can Legally Host Bingo
Hosting is limited to what the statute calls a “qualified organization”: bona fide charitable, civic, fraternal, religious, educational, senior citizens’, and veterans groups genuinely operating in Indiana.1Indiana General Assembly. Indiana Code 4-32.3-2-31 – Qualified Organization The group’s governing documents must include a dissolution clause directing any remaining assets to the nonprofit’s stated purposes if it ever shuts down.
Being incorporated in Indiana is not enough on its own. The organization must have a real charitable purpose and the governing structure to back it. Groups that exist mainly to run gaming events will not pass the Gaming Commission’s review.
Getting a License
Every qualified organization needs an annual activity license from the Indiana Gaming Commission before it hosts a game. The commission issues the license to any qualifying group that submits an application and pays the required fee.2Indiana General Assembly. Indiana Code 4-32.3-4-5 – Annual Activity License; Facility or Location Limitations The fee is set by the commission under Chapter 6 rather than fixed in the statute, so check the current schedule with the commission directly.
The application asks for detail about the organization’s structure, purpose, and finances, and the commission screens officers and key personnel. Anyone convicted of a felony within the past ten years is barred from serving as an operator or worker at a charity gaming event, so criminal history is part of the review.3Indiana Gaming Commission. Charity Gaming Basics: A Reference Guide for Charity Gaming in Indiana
Prize Limits
Indiana caps bingo prizes at three levels under IC 4-32.3-5-15.4Indiana General Assembly. Indiana Code 4-32.3-5-15 – Bingo Event Prize Limits Mixing them up is one of the most common compliance mistakes:
- Regular bingo game: no single game prize may exceed $1,000.
- Progressive bingo game: prize may not exceed $2,000. A progressive game builds a jackpot over multiple sessions until someone hits a specific pattern, which is why the cap is higher.
- Total event prizes: all prizes at one bingo event combined cannot exceed $6,000.
The commission can authorize a qualified organization to exceed the $6,000 event total for bingo held at a festival, but only with express advance approval. Proceeds from pull tabs, punchboards, and tip boards do not count toward the $6,000 event cap, so organizations offering those alongside bingo have more flexibility than the headline number suggests.
The nature and value of all prizes must be disclosed to participants before the event begins, and detailed records of every prize awarded are subject to commission inspection.
Operating Rules During an Event
Who Can Work
The people running the games must be members of the qualified organization. Operators need at least 60 days of membership before working an event; workers need at least 30 days.3Indiana Gaming Commission. Charity Gaming Basics: A Reference Guide for Charity Gaming in Indiana Everyone involved must be at least 18, and the ten-year felony bar applies to workers as well as operators.
Operators, workers, and volunteer ticket agents cannot be paid for conducting or helping conduct the event.5Indiana General Assembly. Indiana Code 4-32.3-5-8 – Remuneration of Operators, Workers, Volunteer Ticket Agents, and Certain Employees Prohibited The organization may provide meals during the event and host recognition dinners or social events for volunteers, but only if the value does not amount to a significant inducement to participate. Pizza is fine; gift cards that function as wages are not.
Venue Limits
Beginning January 1, 2026, no single facility or location may host bingo events or casino game nights on more than three calendar days per week, regardless of how many different qualified organizations use the space.2Indiana General Assembly. Indiana Code 4-32.3-4-5 – Annual Activity License; Facility or Location Limitations If your group shares a venue with other organizations, coordinate schedules to stay within the cap.
Use of Proceeds
All proceeds must go toward the organization’s lawful charitable purposes. Detailed financial records of every event are required, and the Gaming Commission can inspect them at any time. The commission does not need to suspect fraud to request an audit, so gaps in the books look bad even when nothing improper happened.
Federal Tax and Reporting
IRS Form W-2G
For 2026, any bingo prize of $2,000 or more triggers a federal reporting obligation.6IRS. Instructions for Forms W-2G and 5754 (Rev. January 2026) The organization issues the winner a Form W-2G and files a copy with the IRS. The threshold is adjusted annually for inflation starting in 2026, so check the current instructions each January. Federal income tax withholding does not apply to bingo winnings the way it does to other gambling payouts.7eCFR. 26 CFR 31.3402(q)-1 – Extension of Withholding to Certain Gambling Winnings The winner still owes income tax on the prize, but the organization does not withhold at the time of payment.
Unrelated Business Income Tax
Bingo has a specific federal exclusion from unrelated business income tax. As long as the games comply with state and local law, and bingo is not ordinarily carried out on a commercial basis in the jurisdiction, the income is not treated as unrelated business income.8eCFR. 26 CFR 1.513-5 – Certain Bingo Games Not Unrelated Trade or Business Indiana allows bingo only through licensed qualified organizations, not commercial operators, so most lawful Indiana charity bingo qualifies. Violating Indiana’s charity gaming laws can strip that federal shelter and expose bingo revenue to tax.
Penalties for Violations
The Indiana Gaming Commission can impose fines, suspend a license, or revoke it entirely. Chapter 8 of the charity gaming statute lists the grounds and gives the commission broad discretion based on the severity of the violation.9Indiana General Assembly. Indiana Code 4-32.3-8-4 Revocation effectively ends an organization’s gaming program.
Severe violations can also lead to criminal prosecution. Unlawful gambling is a Class B misdemeanor under Indiana’s general gambling statute, carrying up to 180 days in jail and a fine of up to $1,000.10Indiana General Assembly. Indiana Code 35-45-5-2 – Unlawful Gambling If someone uses the internet in connection with the activity, the offense becomes a Level 6 felony. Fraud or embezzlement of bingo proceeds is charged under separate theft or fraud statutes and can carry harsher penalties depending on the amount involved.
Organizations that fail to file required W-2G forms face IRS penalties as well. For returns due after December 31, 2025, the minimum failure-to-file penalty is $525.11IRS. Failure to File Penalty Combined with the loss of the UBIT exclusion when state law is violated, the state and federal consequences reinforce each other and make small compliance lapses expensive.