Attorney General’s Guide to Charitable Bingo Operations

Under California law, church bingo and other charitable bingo games are governed by the Attorney General’s Guide to Charitable Bingo Operations and the requirements of Penal Code §326.5. Only certain tax‑exempt organizations may legally conduct bingo, and they must meet strict criteria to qualify.

According to the Attorney General, organizations exempt under Revenue and Taxation Code §§ 23701a, 23701b, 23701d (religious organizations), 23701e, 23701f, 23701g, 23701k, 23701l, and 23701w may raise money through bingo only if all requirements of Penal Code §326.5 are satisfied.

Criteria for Tax‑Exempt Organizations Conducting Church Bingo

To legally operate church bingo or any charitable bingo game in California, a qualifying tax‑exempt organization must meet all of the following requirements:

• All profits from the bingo game must be used for charitable purposes
• Games must be played on property the organization uses for its tax‑exempt purpose
• Games must be open to the public, and all players must be physically present
• Minors may not participate
• Games must be conducted by unpaid members of the organization
• Bingo cannot be conducted online
• Prize value may not exceed $500 per game
• Bingo proceeds must not be commingled with other funds
• The organization must hold a valid city and/or county bingo license

These requirements apply to all charitable bingo operations, including church bingo, and are enforced at both the state and local levels..

Registration and Licensing Requirements for Charities Operating Bingo

A city and/or county that enacts an ordinance permitting bingo games may specify in the ordinance that if the monthly gross receipts from bingo games of an organization within this subdivision exceed five thousand dollars ($5,000), a minimum percentage of the proceeds shall be used only for charitable purposes not relating to the conducting of bingo games and that the balance shall be used for prizes, rental of property, overhead, administrative expenses, and payment of license fees.

City of Los Angeles: Specific Bingo Licensing Rules

By way of an example, in the City of Los Angeles, no organization shall conduct a bingo game unless it is in possession of a valid bingo license issued by the Los Angeles Police Department. To be eligible, an organization must apply for and obtain a bingo license to conduct bingo in the City. The application must be filed 60 days prior to the commencement of the bingo event and the annual fee is $50”

• An additional fee for law enforcement and public safety costs incurred by the City shall be collected monthly by the City of Los Angeles.
• If a member of an eligible organization applying for a license has been convicted of violating Sections 326.3 or 326.5 of the Penal Code, the provisions of the Los Angeles City Bingo Ordinance, or the provisions of any ordinance adopted by a City or County of the State of California pursuant to Section 19 of Article IV of the State Constitution, or has been convicted of any crime involving the theft of money and/or property, said member shall have no control over the operation or participate in the staffing of the authorized bingo game(s) or the disposition of proceeds derived therefrom.
• Bingo may only be conducted between the hours of 12:00 noon and 12:00 midnight. A licensee shall not conduct bingo more than three days per week. No bingo session shall exceed six continuous hours and not more than one bingo session shall be permitted in one day by any one licensee.
• No person shall either serve or consume alcoholic beverages within the room(s) where bingo is being played during the hours of operation of any bingo game(s).

Property Tax Exemptions and Bingo Operations for Charitable Organizations

Although Bingo games may or may not come within the purview of the welfare exemption, the Revenue and Tax Code authorizes the conduct of certain bingo games on properties that otherwise qualify on the basis of a charitable or religious use and ownership by a qualifying organization, provided the local jurisdiction has adopted a local ordinance. Bingo can qualify only as an incidental activity on the property, and that activity must conform to the provisions of section 326.5 of the Penal Code above. If the property of a qualified organization in a non-authorizing locality is used for bingo on a regular basis, the property will not be eligible for exemption.

Under a Church Exemption, conducting Bingo activities disqualifies the church from property tax exemption and the church must claim the welfare exemption.

Unrelated Business Income Tax and Bingo Games for Charities

Regarding Unrelated Business Income Taxes, the term unrelated trade or business does not include conducting bingo games, provided State and local laws permit the playing of the game. In addition, the locality where the game is played may not be in the same jurisdiction where for-profits also conduct the game such as a casino.

Please see our other related articles

California Attorney General
Church Officer and Director Liability
General Liability Insurance

Disclaimer: Every situation is different and particular facts may vary thereby changing or altering a possible course of action or conclusion. The information contained herein is intended to be general in nature as laws vary between federal, state, counties, and municipalities and therefore may not apply to any given matter. This information is not intended to be legal advice or relied upon as a legal opinion, course of action, accounting, tax, or other professional services. You should consult the proper legal or professional advisor knowledgeable in the area that pertains to your particular situation.