Illinois Bingo Act

Bingo Law in Illinois

GAMING

(230 ILCS 25/) Bingo License and Tax Act.

Sec. 1. [License]  The Department of Revenue shall, upon application therefor on forms prescribed by such Department, and upon the payment of an annual fee of $200 or a triennial fee of $600, and upon a determination by the Department that the applicant meets all of the qualifications specified in this Section, issue a license for the conducting of bingo to any bona fide religious, charitable, labor, fraternal, youth athletic, senior citizen, educational or veterans' organization organized in Illinois which operates without profit to its members, which has been in existence in Illinois continuously for a period of 5 years immediately before making application for a license and which has had during that entire 5 year period a bona fide membership engaged in carrying out its objects. However, the 5 year requirement shall be reduced to 2 years, as applied to a local organization which is affiliated with and chartered by a national organization which meets the 5 year requirement. Each annual license expires at midnight, June 30 following its date of issuance, except that, beginning with applicants whose licenses expire on June 30, 1983, the Department shall stagger license expiration dates by dividing the applicants into 4 groups which are substantially equal in number. Licenses issued and license fees charged to applicants in each group shall be in accordance with the following schedule:

Group No. License Expiration Date Fee
1 December 31, 1983 $100
2 March 31, 1984 $150
3 June 30, 1984 $200
4 September 30, 1984 $250

Following expiration under this schedule, each renewed license shall be in effect for one year from its date of issuance unless suspended or revoked by Department action before that date. After June 30, 1983, every new annual license shall expire one year from the date of issuance unless suspended or revoked and every new triennial license issued or renewed on or after July 1, 2004 shall be in effect for 3 years from its date of issuance unless suspended or revoked by Department action before that date. A licensee may hold only one license and that license is valid for only one location.

For purposes of this Act, the following definitions apply :

"Organization ": A corporation, agency, partnership, association, firm or other entity consisting of 2 or more persons joined by a common interest or purpose.

"Non‑profit organization ": An organization or institution organized and conducted on a not‑for‑profit basis with no personal profit inuring to any one as a result of the operation.

"Charitable organization ": An organization or institution organized and operated to benefit an indefinite number of the public.

"Educational organization ": An organization or institution organized and operated to provide systematic instruction in useful branches of learning by methods common to schools and institutions of learning which compare favorably in their scope and intensity with the course of study presented in tax‑supported schools.

"Religious organization ": Any church, congregation, society, or organization founded for the purpose of religious worship.

"Fraternal organization ": An organization of persons, including but not limited to ethnic organizations, having a common interest, organized and operated exclusively to promote the welfare of its members and to benefit the general public on a continuing and consistent basis.

"Veterans organization ": An organization comprised of members of which substantially all are individuals who are veterans or spouses, widows, or widowers of veterans, the primary purpose of which is to promote the welfare of its members and to provide assistance to the general public in such a way as to confer a public benefit.

"Labor organization ": An organization composed of labor unions or workers organized with the objective of betterment of the conditions of those engaged in such pursuit and the development of a higher degree of efficiency in their respective occupations.

"Youth athletic organization ": An organization having as its exclusive purpose the promotion and provision of athletic activities for youth aged 18 and under.

"Senior citizens organization ": An organization or association comprised of members of which substantially all are individuals who are senior citizens, as defined in Section 3.05 of the Illinois Act on the Aging, the primary purpose of which is to promote the welfare of its members.

[Restrictions]   Licensing for the conducting of bingo is subject to the following restrictions:
(1) The license application, when submitted to the Department of Revenue, must contain a sworn statement attesting to the not‑for‑profit character of the prospective licensee organization, signed by the presiding officer and the secretary of that organization.

(2) The application for license shall be prepared in accordance with the rules of the Department of Revenue.

(3) Each license shall state which day of the week and at what location the licensee is permitted to conduct bingo. The Department may, on special application made by any organization having a bingo license, issue a special operator's permit for conducting bingo at other premises and on other days not exceeding 7 consecutive days, except that a licensee may conduct bingo at the Illinois State Fair or any county fair held in Illinois during each day that the fair is in effect; such bingo games conducted at the Illinois State Fair or a county fair shall not require a special operator's permit. No more than 2 special operator's permits may be issued in one year to any one organization. Any organization, qualified for a license but not holding one, upon application and payment of a $50 fee may receive a limited license to conduct bingo at no more than 2 indoor or outdoor festivals in a year for a maximum of 5 days on each occasion or, upon application and payment of a $150 fee, may receive a limited license to conduct bingo at no more than 2 indoor or outdoor festivals in a year for up to 3 years for a maximum of 5 days on each occasion. Such limited license shall be prominently displayed at the site of the bingo games.

(4) The licensee shall display a license in a prominent place in the area where it is to conduct bingo.

(5) The proceeds from the license fee imposed by this Act shall be paid into the General Revenue Fund of the State Treasury.

(6) A license authorizes the licensee to conduct the game commonly known as bingo, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random.

(7) The Director has the power to issue or to refuse to issue a license permitting a person, firm or corporation to provide premises for the conduct of bingo; provided, however, that a municipality shall not be required to obtain a license to provide such premises. The fee for such providers' license is $200. A person, firm or corporation holding such a license may receive reasonable expenses for providing premises for conducting bingo. Reasonable expenses shall include only those expenses defined as reasonable by rules promulgated by the Department.

(8) The Department may issue restricted licenses to senior citizens organizations. The fee for a restricted license is $10 per year or $30 for 3 years. Restricted licenses shall be subject to the following conditions:

(A) Bingo shall be conducted only at a facility which is owned by a unit of local government to which the corporate authorities have given their approval and which is used to provide social services or a meeting place to senior citizens, or in common areas in multi‑unit federally assisted rental housing maintained solely for the elderly and handicapped;

(B) The price paid for a single card shall not exceed 5 cents;

(C) The aggregate retail value of all prizes or merchandise awarded in any one game of bingo shall not exceed $1;

(D) No person or organization shall participate in the management or operation of bingo under a restricted license if the person or organization would be ineligible for a license under this Section;

(E) No license is required to provide premises for bingo conducted under a restricted license; and

(F) The Department may, by rule, exempt restricted licensees from such requirements of this Act as the Department may deem appropriate.

The Director has the power to issue a license permitting an Illinois person, firm or corporation to sell, lease or distribute to any organization licensed to conduct bingo games or to any licensed bingo supplier all cards, boards, sheets, markers, pads and all other supplies, devices and equipment designed for use in the play of bingo. No person, firm or corporation shall sell, lease or distribute bingo supplies or equipment without having first obtained a license therefor upon written application made, verified and filed with the Department in the form prescribed by the rules and regulations of the Department. The fee for such license is $200.

Applications for providers' and suppliers' licenses shall be made in writing in accordance with Department rules. Each providers' or suppliers' license is valid for one year from date of issuance, unless suspended or revoked by Department action before that date.

The following are ineligible for any license under this Act:

(a) any person who has been convicted of a felony;

(b) any person who has been convicted of a violation of Article 28 of the "Criminal Code of 1961";
(c) any person found gambling, participating in gambling or knowingly permitting gambling on premises where bingo is being conducted;

(d) any firm or corporation in which a person defined in (a), (b) or (c) has a proprietary, equitable or credit interest, or in which such person is active or employed;

(e) any organization in which a person defined in (a), (b) or (c) is an officer, director, or employee, whether compensated or not;

(f) any organization in which a person defined in (a), (b) or (c) is to participate in the management or operation of a bingo game.

Sec. 2. [Restrictions]  The conducting of bingo is subject to the following restrictions:

(1) The entire net proceeds from bingo play must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game.

(2) (Blank).

(3) No person may receive any remuneration or profit for participating in the management or operation of the game, except that if an organization licensed under this Act is associated with a school or other educational institution, that school or institution may reduce tuition or fees for a designated pupil based on participation in the management or operation of the game by any member of the organization. The extent to which tuition and fees are reduced shall relate proportionately to the amount of time volunteered by the member, as determined by the school or other educational institution.

(4) The aggregate retail value of all prizes or merchandise awarded in any single day of bingo may not exceed $2,250, except that in adjoining counties having 200,000 to 275,000 inhabitants each, and in counties which are adjacent to either of such adjoining counties and are adjacent to a total of not more than 2 counties in this State, and in any municipality having 2,500 or more inhabitants and within one mile of such adjoining and adjacent counties having less than 25,000 inhabitants, 2 additional bingo games may be conducted after the $2,250 limit has been reached. The prize awarded for any one game, including any game conducted after reaching the $2,250 limit as authorized in this paragraph (4), may not exceed $500 cash or its equivalent.

(5) The number of games may not exceed 25 in any one day including regular and special games, except that this restriction on the number of games shall not apply to bingo conducted at the Illinois State Fair or any county fair held in Illinois.

(6) The price paid for a single card under the license may not exceed $1 and such card is valid for all regular games on that day of bingo. A maximum of 5 special games may be held on each bingo day, except that this restriction on the number of special games shall not apply to bingo conducted at the Illinois State Fair or any county fair held in Illinois. The price for a single special game card may not exceed 50 cents.

(7) The number of bingo days conducted by a licensee under this Act is limited to one per week, except as follows:

(i) Bingo may be conducted in accordance with the terms of a special operator's permit or limited license issued under subdivision (3) of Section 1.

(ii) Bingo may be conducted at the Illinois State Fair or any county fair held in Illinois under subdivision (3) of Section 1.

(iii) A licensee which cancels a day of bingo because of inclement weather or because the day is a holiday or the eve of a holiday may, after giving notice to the Department, conduct bingo on an additional date which falls on a day of the week other than the day authorized under the license. As used in this subdivision (iii), "holiday" means any of the holidays listed in Section 17 of the Promissory Note and Bank Holiday Act.

(8) A licensee may rent a premises on which to conduct bingo only from an organization which is licensed as a provider of premises or exempt from license requirements under this Act. If the organization providing the premises is a metropolitan exposition, auditorium, and office building authority created by State law, a licensee may enter into a rental agreement with the organization authorizing the licensee and the organization to share the gross proceeds of bingo games; however, the organization shall not receive more than 50% of the gross proceeds.

(9) No person under the age of 18 years may play or participate in the conducting of bingo. Any person under the age of 18 years may be within the area where bingo is being played only when accompanied by his parent or guardian.

(10) The promoter of bingo games must have a proprietary interest in the game promoted.

(11) Raffles or other forms of gambling prohibited by law shall not be conducted on the premises where bingo is being conducted, except that pull tabs and jar games conducted under the Illinois Pull Tabs and Jar Games Act may be conducted on the premises where bingo is being conducted. Prizes awarded in pull tabs and jar games shall not be included in the bingo prize limitation.

(12) An organization holding a special operator's permit or a limited license may, as one of the occasions allowed by such permit or license, conduct bingo for a maximum of 2 consecutive days, during each day of which the number of games may exceed 25, and regular game cards need not be valid for all regular games. If only noncash prizes are awarded during such occasions, the prize limits stated in paragraph (4) of this Section shall not apply, provided that the retail value of noncash prizes for any single game shall not exceed $150.

Sec. 3. [Tax]  There shall be paid to the Department of Revenue, 5% of the gross proceeds of any game of bingo conducted under the provision of this Act. Such payments shall be made 4 times per year, between the first and the 20th day of April, July, October and January. Payment must be by money order or certified check. Accompanying each payment shall be a report, on forms provided by the Department of Revenue, listing the number of games conducted, the gross income derived and such other information as the Department of Revenue may require. Failure to submit either the payment or the report within the specified time may result in suspension or revocation of the license.

The provisions of Section 2a of the Retailers' Occupation Tax Act pertaining to the furnishing of a bond or other security are incorporated by reference into this Act and are applicable to licensees under this Act as a precondition of obtaining a license under this Act. The Department shall establish by rule the standards and criteria it will use in determining whether to require the furnishing of a bond or other security, the amount of such bond or other security, whether to require the furnishing of an additional bond or other security by a licensee, and the amount of such additional bond or other security. Such standards and criteria may include payment history, general financial condition or other factors which may pose risks to insuring the payment to the Department of Revenue, of applicable taxes. Such rulemaking is subject to the provisions of the Illinois Administrative Procedure Act. The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act which are not inconsistent with this Act, and Section 3‑7 of the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of this Act to the same extent as if such provisions were included in this Act. Tax returns filed pursuant to this Act shall not be confidential and shall be available for public inspection. For the purposes of this Act, references in such incorporated Sections of the Retailers' Occupation Tax Act to retailers, sellers or persons engaged in the business of selling tangible personal property means persons engaged in conducting bingo games, and references in such incorporated Sections of the Retailers' Occupation Tax Act to sales of tangible personal property mean the conducting of bingo games and the making of charges for playing such games.

One‑half of all of the sums collected under this Section shall be deposited into the Mental Health Fund and 1/2 of all of the sums collected under this Section shall be deposited in the Common School Fund.

Sec. 4. [Records]   Each licensee must keep a complete record of bingo games conducted within the previous 3 years. Such record shall be open to inspection by any employee of the Department of Revenue during reasonable business hours.
The Director may require that any person, organization or corporation licensed under this Act obtain from an Illinois certified public accounting firm at its own expense a certified and unqualified financial statement and verification of records of such organization. Failure of a bingo licensee to comply with this requirement within 90 days of receiving notice from the
Director may result in suspension or revocation of the licensee's license.

The Department of Revenue may, at its discretion, suspend or revoke any license where it finds that the licensee or any person connected therewith has violated or is violating the provisions of this Act. No licensee under this Act, while a bingo game is being conducted, shall knowingly permit the entry into any part of the licensed premises by any person who has been convicted of a felony or a violation of Article 28 of the "Criminal Code of 1961".

Sec. 4.1. [Penalty]  Any organization which conducts bingo without first obtaining a license to do so, or which continues to conduct bingo after revocation of its bingo license, or any organization licensed to conduct bingo which allows any form of illegal gambling to be conducted on the premises where bingo is being conducted shall, in addition to other penalties provided, be subject to a civil penalty equal to the amount of gross proceeds derived on that day from bingo and any other illegal game that may have been conducted as well as confiscation and forfeiture of the gross proceeds derived from such bingo and any other illegal game.

Sec. 4.2. [Fine]   Any person or organization which provides premises for the conduct of bingo without first obtaining a license or a special provider's permit to do so, or having a provider's license or a special provider's permit allows unlicensed organizations to conduct bingo on his premises, or allows any form of illegal gambling to be conducted on the premises where bingo is being played shall, in addition to other penalties provided, be subject to a civil penalty of $5,000.

Sec. 4.3. Compulsive gambling.

(a) Each organization conducting bingo shall post signs with a statement regarding obtaining assistance with gambling problems, the text of which shall be determined by rule by the Department of Human Services, at all entrances and exits at the premises at which bingo is conducted by the organization. The signs shall be provided by the Department of Human Services.

(b) Each organization conducting bingo shall print a statement regarding obtaining assistance with gambling problems, the text of which shall be determined by rule by the Department of Human Services, on all paper stock that it provides to the public.

Sec. 5. [Offense]  Any person who conducts or knowingly participates in an unlicensed bingo game commits the offense of gambling in violation of Section 28‑1 of the Criminal Code of 1961, as amended. Any person who violates any other provision of this Act, or any person who knowingly fails to file a bingo return or who knowingly files a fraudulent return under this Act, or any person who wilfully violates any rule or regulation of the Department for the administration and enforcement of this Act, or any officer or agent of an organization or a corporation licensed under this Act who signs a fraudulent return filed on behalf of such an organization or corporation, is guilty of a Class A misdemeanor.

In addition to other penalties provided for in this Act, organizations or corporations that illegally play bingo shall be subject to a civil penalty equal to the gross proceeds derived from those unlicensed games, as well as confiscation and forfeiture of all bingo equipment used in the conduct of those unlicensed games.

Sec. 5.1 . The Illinois Administrative Procedure Act is hereby expressly adopted and shall apply to all administrative rules and procedures of the Department of Revenue under this Act, except that (1) paragraph (b) of Section 5‑10 of the Illinois Administrative Procedure Act does not apply to final orders, decisions and opinions of the Department, (2) subparagraph (a)(ii) of Section 5‑10 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Act, and (3) the provisions of Section 10‑45 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department under this Act.

Sec. 6.  If any clause, sentence, section, provision or part of this Act, or the application thereof to any person or circumstance, shall be adjudged to be unconstitutional, the remainder of this Act or its application to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

Sec. 7. [Short Title]  This Act shall be known and may be cited as the "Bingo License and Tax Act".