To run bingo, raffles, pull-tabs, or keno as a nonprofit in Louisiana, you need a charitable gaming license from the Office of Charitable Gaming, a division of the Louisiana Department of Revenue. The Louisiana charitable gaming license requirements come from the Charitable Raffles, Bingo and Keno Licensing Law at Louisiana Revised Statutes Title 4, Sections 701 through 740.1Louisiana Department of Revenue. Louisiana Office of Charitable Gaming The license is what makes the game legal; everything else, from quarterly reports to tax filings, follows from holding it.
Which Organizations Can Get Licensed
The default rule is federal tax-exempt status under Section 501(c) of the Internal Revenue Code. Without it, the Office of Charitable Gaming will not issue a license.2Justia Law. Louisiana Revised Statutes Title 4 RS 4-707 – Authorization to License
Louisiana carves out a specific list of groups that can be licensed without 501(c) status:
- Mardi Gras carnival organizations
- Civic or service associations
- Volunteer fire companies
- Booster clubs
- Parent-teacher associations
- Private nonprofit elementary or secondary schools
- Public elementary or secondary schools
- Public institutions of higher education
- Qualified associations of licensed charitable organizations
Falling into one of these categories removes the 501(c) hurdle, but it does not remove the license requirement. These groups still have to apply for and hold a valid state charitable gaming license before running any game.2Justia Law. Louisiana Revised Statutes Title 4 RS 4-707 – Authorization to License
Each Organization Needs Its Own License
Closely connected organizations cannot share a license. Louisiana treats groups as closely connected when membership in one automatically qualifies someone for the other, when membership in one depends on membership in another, or when one organization’s existence depends on the other’s. A parent organization and its auxiliary each need their own license if both want to run games.2Justia Law. Louisiana Revised Statutes Title 4 RS 4-707 – Authorization to License
State License First, Then Local
Some parishes and municipalities issue their own gaming authorizations. No local government can license an organization that has not already obtained its state charitable gaming license. The state license is always the first step.2Justia Law. Louisiana Revised Statutes Title 4 RS 4-707 – Authorization to License
Which Games the License Covers
Louisiana authorizes four categories of charitable games: bingo, raffles, pull-tabs (sometimes called instant bingo), and keno. Each has its own licensing tier and operational rules, and separate authorization may be required for a game type the license does not already cover. Keno in particular should be confirmed with the Office of Charitable Gaming before an organization adds it. Bingo carries its own restrictions on how often sessions can be held and where they can take place; raffles require recordkeeping on ticket sales and prize distributions; pull-tabs trigger the same financial reporting as the scheduled games even though they can be sold without an event.
Quarterly Reporting Through BLAIR
Holding a license commits the organization to ongoing financial reporting. Louisiana imposes a tax on net proceeds from charitable gaming, and licensees submit quarterly reports through the BLAIR system, which stands for Bingo Licensing, Accounting, Inventory and Reporting.1Louisiana Department of Revenue. Louisiana Office of Charitable Gaming Licensees must keep copies of every report they submit.3Louisiana Department of Revenue. Charitable Gaming Quarterly Report Instructions
The quarterly report instructions require documentation of loan transactions, which must be board-approved, tracking of NSF check recoveries, and compilation of data from the organization’s model accounting system worksheets.3Louisiana Department of Revenue. Charitable Gaming Quarterly Report Instructions A third-party preparer can get their own BLAIR login and file on the organization’s behalf, but the organization stays responsible for the accuracy of what gets submitted. Delegating the paperwork does not delegate the liability.
Gaming funds have to go toward the organization’s charitable purpose. The Office of Charitable Gaming reviews financial statements to verify this, and enforcement is most aggressive here because it goes to the reason the gaming privilege exists in the first place.
Federal Tax Obligations the License Can Trigger
A license does not shield gaming revenue from federal tax. The IRS treats gaming income as potential unrelated business taxable income (UBTI). An organization with $1,000 or more in gross income from an unrelated business, including gaming, must file Form 990-T. If the expected tax for the year is $500 or more, the organization also has to pay estimated taxes throughout the year.4Internal Revenue Service. Unrelated Business Income Tax
Whether a particular organization’s gaming revenue counts as UBTI depends on the facts, including whether the activity is regularly carried on and whether it is substantially related to the organization’s exempt purpose. An annual bingo night may be treated differently than a weekly operation. The IRS has noted that gaming is a common fundraising method for exempt organizations but that it is normally regulated by state and local law where it occurs.5Internal Revenue Service. Exempt Organization Gaming and Unrelated Business Taxable Income Groups running frequent games should talk to a tax professional about their exposure.
Tips Paid to Staff at Gaming Events
Tips received by employees or paid workers at gaming events are taxable income. All cash and non-cash tips are subject to federal income tax, Social Security, and Medicare withholding. An employee who receives $20 or more in tips during a calendar month from a single employer must report those tips to the employer by the 10th of the following month. Service charges the organization adds to a customer’s bill are not tips; they are non-tip wages, subject to the same withholding but handled differently for reporting.6Internal Revenue Service. Tip Recordkeeping and Reporting Organizations that mix paid staff and volunteers at bingo events are the ones most likely to miss this.
What Costs You the License
Running any authorized game of chance without a charitable gaming license is a violation on its own.2Justia Law. Louisiana Revised Statutes Title 4 RS 4-707 – Authorization to License The Office of Charitable Gaming can suspend or revoke a license for failure to meet reporting requirements, misuse of gaming funds, or violations of operational rules.
Financial penalties can be substantial. Beyond fines, individuals responsible for misappropriating funds raised through charitable gaming can face criminal charges, including potential imprisonment. The Office of Charitable Gaming investigates complaints and conducts audits built to find these problems. Losing the license shuts down one of the most productive fundraising channels a Louisiana nonprofit has, and the reputational damage often outlasts the financial penalty.