Florida Bingo Law Basics
Generally, Florida bingo laws are found in Ch. 849.0931, Fla. Stat., which sets out a series of requirements for the lawful conduct of bingo games in Florida. In addition to meeting a number of statutory and case law requirements, lawful bingo in Florida must typically be conducted by a non-profit organization on premises that it owns or leases. Florida Statutes define these non-profit organizations—also known as organizations exempt from federal income taxes—as those organizations determined to be 501(c)(3)(c) organizations by the Internal Revenue Service. In other words, Florida generally authorizes bingo games conducted by not-for-profit, non-commercial organizations.
To qualify for such exemption, an organization must be organized or chartered for one or more charitable, civic, benevolent, or fraternal purposes . In determining whether its not-for-profit organization has been organized for such purposes, the Florida statute requires the organization to provide certain information and comply with numerous requirements, including that:
In addition to these general requirements, certain specific provisions are applicable to for-profit entities. For-profit entities are classified as "commercial" entities for bingo purposes, and are organizations that obtain and conduct gambling gaming for the purpose of profit; that is, to receive something of value by means of bingo. "Commercial" bingo operations are not permissible in Florida.
Florida law also imposes numerical restrictions on the number of charitable organizations that may participate in bingo games. Specifically, the law limits organizations to 5 or fewer non-profit organizations per location and 2 or fewer for-profit players in each game. Further, all participants must meet the net worth limitations and group composition requirements.
Bingo: The Legal Requirements
If an organization wishes to end up on the right side of the law, it must follow a specific filing and licensing procedure with the Department of Gaming. There are two types of licenses that apply to bingo operations that are licensed by the Florida Department of Agriculture and Consumer Services – a Class A and Class B license. Class B licenses cover games of chance (excluding the purchase of bingo cards). There are basic eligibility requirements that must be met for an organization to qualify for a license. Notably, the organization must: Applications for licensing must be made through the State of Florida’s Department of Agriculture and Consumer Services on a form to be provided by the Department. Class A licenses cost $100 each. Class B licenses are issued for free. Applications must be filed with the Department no later than 20 days prior to any scheduled event. Fees from state licensing are deposited into the Bingo Regulation Trust Fund. The funds generated from the Bingo Regulation Trust Fund are used to administer the regulation and enforcement of bingo. The filing must include the following documentation: The Department may then conduct such investigation as it believes necessary to determine that the applicant has complied with the eligibility requirements set forth above. Once the Department completes its investigation, it will either issue a license to the applicant or cancel the proposed event.
Bingo by Charitable / Not For Profit Organizations
Nonprofit and charitable organizations wishing to conduct bingo games in Florida may benefit from special provisions in the law and should consult with knowledgeable legal counsel to ensure compliance with the regulations. Under the law, a civic, charitable or nonprofit organization is exempted from licensing (i.e., third-party licensing) by the Florida Department of Agriculture and Consumer Services and from state bingo taxes if:
• A minimum of 65 percent of the net proceeds of the bingo games are used for charitable purposes; and
• The organization conducts no more than three bingo games a week for no more than three hours a day on-site at their principal established place of business.
A "principal established place of business" is a facility that has been used continuously and consistently as the organization’s principal meeting place for six months or longer immediately prior to the commencement of the bingo game. If the civic, charitable or nonprofit organization has no such location, the bingo games must be conducted on a property owned by the organization.
In addition to the potential exemption from licensing and bingo tax, there are other regulatory requirements for civic, charitable or nonprofit organizations conducting bingo games, including the following:
• The organization must have articles of incorporation filed and in good standing with the appropriate state agency for a minimum of three years prior to the game date.
• The bingo game must occur on the organization’s principal established place of business.
• At least 65 percent of the net proceeds of the bingo game must be used for the organization’s charitable, civic or nonprofit purposes.
• Each session of bingo must have at least 10 bona fide players.
• No person may receive any remuneration from the organization for conducting the bingo game.
• A bingo card, regardless of when the card was purchased, is valid for use at any game played by the organization in the same calendar month.
• All notices required to be posted and other statutory materials must be on-site during an event.
• All proceeds from the sale of bingo cards must be kept separate from other funds of the organization.
Prohibited Conduct and Penalties
In addition to the licensure and operational standards, Florida Bingo laws prohibit its licensees from the following practices: Certain procedures must be followed by licensees in order to avoid possible penalties. On the first offence, the licensee must cease and desist from the prohibited conduct in question. For the second offence, the licensee will lose license privileges for up to one year. For the third offence , the licensee will lose any and all license privileges. Further, the Department of Agriculture and Consumer Services may revoke agency approval of the license. Florida violations are enforced by the local law enforcement authorities working in concert with the Department of Agriculture and Consumer Services. Local regulatory authorities generally conduct the police activities concerning the game operation.
Recent Bingo Legislation
Over the past several years, Florida lawmakers have deliberated on specific provisions of Chapter 849.0931, Florida Statutes, related to the regulation of bingo. Some of the most significant changes include the ability of organizations to conduct the game for a period not to exceed eight hours, a requirement that accounting records be maintained for a period of at least three years, the addition of stipulations with specific prohibitions to get a license, an annual registration fee for bingo operations and a 3-hour requirement for bingo operations. These and other requirements are discussed in this blog.
Comparative Analysis of Florida Bingo Laws
Over the past several decades, a number of states have repealed or curtailed their legislative regulations on bingo. Florida’s bingo laws are, compared to most other states, relatively involved. For example, Colorado authorizes game licenses and permits only once a year. Some states, like Massachusetts, operate numerous state-run bingo games and bingo halls. In New York, organizations engaged in nonprofit bingo activities must meet a slew of requirements. In Wisconsin, the state has preempted local control for state-authorized charitable bingo organizations. Further, states like New Mexico, Maryland, Oregon and Washington have adopted varying degrees of electronic bingo.
Other states have more closely modeled their regulations after Florida’s laws, and in doing so, have left the states’ issues with variance between counties. For example, Minnesota permits county commissioners to offer licenses to promote bingo. The Minnesota law also allows counties, cities and towns to adopt amendments to bingo regulations. The Ohio bingo law mirrors Florida’s law in that both Florida’s and Ohio’s bingo regulatory boards have the authority to sanction violators of the bingo laws for only deliberate acts, and that the sanctions may not include suspension or revocation of an organization’s bingo license or permit . Consistent with Florida’s law, the Ohio law does not allow for the charging of interest on notes or money advanced to players.
Compared to other states, Florida’s bingo licensing and regulatory requirements are stricter. Florida’s laws allow for stricter regulatory oversight in that every charitable organization desiring to conduct bingo games within the state is required to first obtain a license from the Department of Agriculture and Consumer Services. In contrast, the legislatures in North Dakota and Iowa do not require private organizations who are in good standing with the state to obtain a regulatory license. Additionally, Florida’s law is more specific and detailed when it comes to the revenue and distributions on compendia bingo games (e.g. 80/20 split).
While it may be useful to compare Florida’s bingo laws against those in other states for purposes of how the respective state attorneys general interpret their laws, and for valuable context on how bingo is regulated in other states, every time the Florida legislature undertakes an overhaul of its bingo laws, the new statutory changes can make it unclear how compliant operators must be, and can result in varying interpretations of a law or regulation.