Wisconsin Bingo Laws: Licenses, Rules, and Penalties

Wisconsin bingo laws, set out in Chapter 563 of the state statutes, let certain nonprofit organizations run bingo games for fundraising under a license issued by the Department of Administration’s Division of Gaming. The rules cover who can hold a license, how games must be run, what prizes can be awarded, who can play, and what records must be kept. Violations can bring fines up to $5,000, up to 90 days in jail, and loss of the license.

Who Can Hold a Bingo License

Only nonprofit organizations qualify. Under Section 563.11, eligible groups include religious, charitable, service, fraternal, and veterans organizations, plus any organization whose donors can deduct contributions on federal or state tax returns. The statute specifically includes community-based residential facilities, senior citizen community centers, and adult family homes as “service organizations.”¹

Most applicants also have to meet several prerequisites before a license will issue. The organization must be incorporated as a Wisconsin nonprofit, have at least 15 members in good standing, and have existed for at least three years with members actively engaged in legitimate expenditures during that time. It must conduct activities in Wisconsin beyond bingo and receive funding from sources other than bingo. Community-based residential facilities, senior citizen centers, and adult family homes are exempt from these additional prerequisites.¹

The Division of Gaming’s Office of Charitable Gaming inside the Department of Administration handles licensing and oversight.²

Fees and the Application

The application requires a sworn statement from the organization’s designated member confirming that no one will be paid to run the games and that all profits will go to the organization’s legitimate purposes. The license fee is $20 per bingo occasion the organization plans to hold, plus a $10 annual fee for the designated member who oversees how proceeds are spent.³

Because the per-occasion fee adds up, an organization planning weekly events will pay substantially more than one running a single annual fundraiser. Plan the schedule before you apply.

What Counts as Bingo, and What You Can Give Away

Wisconsin defines bingo as a game using 75 numbered objects drawn at random and 5-by-5 player cards with a free center space. A winner is the first player to match a predetermined pattern of called numbers.⁴

Progressive jackpot bingo, in which a player wins by covering every number on the card within a specified number of calls, is expressly allowed and sits outside the regular prize limits.⁵

For regular games, the single-game prize ceiling is $500 and the total value of all prizes awarded during one bingo occasion cannot exceed $2,500. Both cash and merchandise count toward those caps. Two carve-outs apply: the $2,500 aggregate can be exceeded by the amount of minimum prizes paid when multiple players win on the same call, and progressive jackpots are exempt from both limits.⁵

Some prizes are prohibited regardless of value. Alcohol, real estate, and securities cannot be awarded. Merchandise prizes must be valued at current retail price and cannot be convertible to cash by the organization. When more than one player wins on the same call, the cash prize is split equally, with rounding to the nearest dollar permitted and a minimum payout of up to $10 per winner.⁵

All bingo supplies and equipment must come from a licensed supplier or another licensed organization. Equipment must be owned outright by the licensee or borrowed at no cost from another licensed group, and must be kept in good working order.⁵

Where and When Games Can Be Held

Games cannot be held at any location owned, operated, or controlled by someone convicted of running a gambling operation within the past five years. Every player who buys a card is entitled to a spot with enough room to play comfortably. No game can start before 7 a.m. or after midnight.⁵

Who Can Play and Who Can Work the Games

Minors may play at a licensed bingo event if an adult relative by blood, marriage, or adoption, or a legal guardian, is present in the building while the minor plays. Minors cannot help run or conduct the games in any capacity.⁵ Individual organizations and venues can set stricter age rules, so check before bringing a younger family member.

On the staffing side, no one can receive any payment for participating in the management or operation of a bingo game. No salaries, no tips, no commissions for callers, card sellers, or anyone else involved. Everyone running the games must be a genuine volunteer, and all profits must go to the organization’s legitimate purposes.⁵ The sworn statement filed with the application locks that commitment in, so any deviation creates both regulatory and criminal exposure.³

Reports, Inspections, and Penalties

Every licensed organization files semiannual reports with the Department of Administration, covering each six-month period measured from the date the license was issued. Reports are due within 60 days after the period ends and must come with payment of the gross receipts tax owed. The organization keeps a copy as a permanent record. A report is required even if no games were held during the period.⁶ Each report itemizes the supervising members, the date and location of every occasion, games played, gross receipts, expenditures, and the bingo account’s balance and bank information.

Law enforcement officers, district attorneys, and authorized Department of Administration staff can enter a bingo venue during reasonable hours and examine the organization’s books, papers, and records to confirm that all required taxes and fees have been paid. Refusing an inspection is itself grounds for license suspension or revocation and is a criminal violation.⁷

Under Section 563.73, any violation of Chapter 563 can bring a fine of up to $5,000, up to 90 days in jail, or both. That penalty reaches running unlicensed games, paying workers, exceeding prize limits, refusing inspections, and anything else the chapter forbids. A revoked license bars the organization from any further bingo events.⁷

Federal Tax Treatment

State compliance also affects federal taxes. Bingo income is normally excluded from federal unrelated business income tax under 26 U.S.C. § 513(f), but only when three conditions are met: wagering, winner determination, and prize distribution all happen in front of the players; bingo is not ordinarily run as a commercial activity in the area; and the games comply with all state and local laws. Breaking Wisconsin’s bingo statutes costs the organization the federal exclusion too.⁸ The exclusion covers only the games themselves. Side revenue from food, beverages, and dauber sales does not qualify and may be taxable unless another exception applies.⁹

Organizations reporting more than $15,000 in gross gaming income must complete Part III of Schedule G on their Form 990 or 990-EZ.¹⁰

For players, bingo winnings are taxable income whether or not a form is issued. Starting with payments made in 2026, organizations must file a Form W-2G for any bingo winner whose payout meets or exceeds $2,000. Bingo winnings are exempt from regular federal gambling withholding, but if a winner does not provide a taxpayer identification number, the organization must apply 24% backup withholding on the winnings (optionally reduced by the amount wagered).¹¹

1
Wisconsin State Legislature. Wisconsin Statutes 563.11 – License to Conduct Bingo
2
Wisconsin Department of Administration. Division of Gaming
3
Wisconsin State Legislature. Wisconsin Statutes 563.13 – Affidavits and Fees
4
Wisconsin State Legislature. Wisconsin Statutes Chapter 563 – Bingo and Raffle Control
5
Wisconsin State Legislature. Wisconsin Statutes 563.51 – Restrictions on the Conduct of Bingo
6
Wisconsin State Legislature. Wisconsin Statutes 563.61 – Report of Bingo Operations
7
Wisconsin State Legislature. Wisconsin Statutes 563.72 – Inspection for Enforcement
8
Office of the Law Revision Counsel. 26 USC 513 – Unrelated Trade or Business
9
Internal Revenue Service. Exempt Organization Gaming and Unrelated Business Taxable Income
10
Internal Revenue Service. Instructions for Schedule G (Form 990)
11
Internal Revenue Service. Instructions for Forms W-2G and 5754 (01/2026)