BINGO AND RAFFLES REQUIRE STATE LICENSES

CHARLESTON, W.Va. -- Today the West Virginia State Tax Commissioner reminds all West Virginians, a State Tax Department license is required to hold a bingo in the Mountain State even when the prizes are not cash but merchandise such as baskets, purses, or home furnishings.

By West Virginia statute, Internal Revenue Service registered tax-exempt charitable or public service organizations can hold a limited bingo or limited raffle license, or both. Under these licenses, the organizations are authorized to hold charitable bingo or raffle fund raising occasions to support charitable and public service work.

To qualify for a West Virginia charitable raffle or charitable bingo license, organizations must have been registered with the West Virginia Secretary of State for at least 2 years before applying for the license. In order to qualify, the most applicants must have been designated by the Internal Revenue Service as tax exempt under subsections 501(c), (3), (4), (8), (10), or (19) of the Internal Revenue Code. However, churches, volunteer fire departments, schools and certain other public service organizations are not required to hold the subsection 501(c) designation.

The State has 60 days to review the license application beginning on the date the applicant applies for the license. Applicants cannot conduct any gaming activities under the license until the 60 day mandatory filing period ends.

Unlicensed raffles can be held by a charitable or public service organization if the organization’s annual gross receipts from raffle operations is less than $15,000, the organization awards no raffle prize worth more than $4,000, and the raffle proceeds are used exclusively for a charitable or public service purpose. Unlicensed bingo is not allowed. Bingo events may only be held by a licensed organization.

The penalty for holding a bingo or raffle event without a license includes a fine and a permanent ban on issuance of a charitable bingo or charitable raffle license to the offending organization in the future. The State Tax Department’s Charitable Bingo / Raffle Unit issues charitable bingo and charitable raffle licenses. Licensing fees vary depending on the type of license sought.

To obtain a license, contact the Charitable Bingo / Raffle Unit at (304) 558-8510.

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