Ohioans tend to enjoy bingo, based on the $779 million that was spent on bingo last year. Those activities generated $102 million after expenses for almost 1,800 charitable organizations that hold licenses in our state at more than 3,500 locations. These locations include churches, veteran posts, and retail establishments selling instant tickets on behalf of a licensed charitable organization.
Licenses are required for most bingo fundraising activities, including purse bingo and similar activities that are outlined in Ohio Revised Code Section 2915. There are different bingo licenses granted based on the type of bingo activities played. A Type I bingo license is used when only a traditional bingo game that involves the use of a hopper, paper, and daubers; a Type II license is required when instant ticket sales are combined with a traditional game; and a Type III license is required when selling instant tickets is not connected to a traditional bingo game. Instant tickets typically include windows that are popped open to reveal whether the ticket is a winner.
As 501 (c)(3) charitable organizations seek new fundraising ideas, many are considering a bingo license. The number of 501 (c)(3) charitable organizations holding a Type III instant bingo license has increased in recent years. In these arrangements, a charitable organization develops a contractual arrangement with a restaurant, gas station, hotel or other commercial entity to sell instant bingo tickets on their behalf. Businesses that enter into these contracts often find the sale of the tickets to be a favorable way to support worthy community organizations, and even a way to attract business. In this specific fundraising activity, the business pays the charity the guaranteed profit in advance for each deal, or box, of instant tickets it agrees to sell. This ensures that the charity receives the guaranteed profit on each deal and reduces the time and effort charities spend coordinating cash handling details connected with each ticket sold.
It’s important to think about and remember the responsibilities that coincide with fundraising activities. Proper recordkeeping is essential for all organizations holding bingo licenses. The Charitable Law Section provides Bingo School training throughout the state for bingo licensees and those considering to apply for bingo licenses. This training covers details on the recordkeeping requirements and other issues related to bingo. To register for a specific training date, go to Bingo School.