Bingo, Raffle Rules Finalized, License Registration Begins

Last updated Thursday, June 7, 2007 7:26 PM CDT in News

By Rob Moritz
THE MORNING NEWS

    LITTLE ROCK -- The rules governing charitable bingo and raffles in Arkansas have been developed and nonprofit and tax exempt groups can begin applying for licenses to operate the games, the state Department of Finance and Administration said Thursday.

    Actual playing of the games won't begin until July 31.

    "We're letting organizations start registering now," Tom Atchley, the department's excise tax administrator, said Thursday.

    Registration forms can be accessed through the department's Web site, he said.

    The rules implement Act 388 of 2007, which provided for the licensing and registration of nonprofit and charitable organizations to conduct games of bingo and raffles in the state.

    Atchley said the games cannot begin until July 31 because Act 388 did not have an emergency clause. Acts without such a clause making them effectively immediately upon being signed into law, or without another specific enactment date, take effect 90 days after the end of the legislative session, which officially ended May 1.

    Organizations eligible to apply for licenses include nonprofit and tax exempt religious, educational, veterans, fraternal, service, civic, medical and volunteer rescue, firefighters and police organizations.

    Eligible organizations must have been in continuing existence in Arkansas for at least five years. Licensing fees range from $10 to $100, depending on the type of license granted.

    Last year, Arkansas voters approved a constitutional amendment legalizing charitable bingo and raffles in the state.

    Also under Act 388, all proceeds above the cost of conducting the games are to be used only for charitable, religious or philanthropic purposes. Also, the organizations holding the games are prohibited from hiring agents to run them or pay employees from the proceeds. The bingo sessions must end within five hours, and organizations may not hold more than two sessions a week.

    The maximum prize per game is $1,000, and the total in prizes per session may not exceed $7,500. The law places a $50,000 annual limit on the value of the prizes if they're purchased and a $100,000 annual limit on the value of the prizes if they're donated.

    Web Watch: www.arkansas.gov/dfa/

    For more information call DF&A's Miscellaneous Tax Section at (501)682-7187 or through mail at P.O. Box 896, Little Rock, AR 72203.

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