Charitable Games Tax & License Fees

• Statutory - 230 ILCS 30/1 to 30/15
• Regulations - Part 435

The tax is imposed on the net proceeds of charitable games. Annual license fees are imposed on suppliers and providers of such games. Operators must pay a license fee every two years.

Fourteen games are permitted: bang, beat the dealer, big six, blackjack, chuck-a-luck, craps, five-card stud poker, gin rummy, hold-em poker, keno, merchandise wheel, poker, pull tabs, and roulette. Profits from the games must be used to support the organization’s goals, such as charitable work or education. A licensed organization may hold up to four charitable game events per year.

For a group to be eligible to conduct charitable games, it must

• be a religious, charitable, educational, veterans’, fraternal, or labor organization;
• have been in existence in Illinois for at least five years (may be reduced to two years in certain circumstances);
• operate without profit to its members; and
• already be exempt from federal income taxation under Internal Revenue Code, Section 501(c)(3), (4), (5), (8), (10), or (19).

Organizations eligible to hold charitable games must submit an application at least 30 days before the event. License fees must be paid when the application is filed. To apply for a license,

• qualifying organizations must file Form RCG-1, Charitable Games Application for License, either electronically through MyTax.illinois.gov or by mail. The application must contain a sworn statement attesting to the not-for-profit character of the prospective licensee organization, signed by a person listed on the application as an owner, officer, or other person in charge of the necessary day-to-day operations of that organization.
• You must also complete Forms RCG-2, List of Charitable Games Workers, and RCG-10, Diagram of Charitable Games Event Playing Area. If renewing, complete Form RCG-25, Expenditure of Funds Earned Through Charitable Games. Keep these forms in your records and make them available to us when we request them. After you have filed Form RCG-1 and you need to add or revise a scheduled event, you must complete Form RCG-1-E, Charitable Games, Bingo, or Pull Tabs Events Updates, 30 days before the event. Mail your completed information to the address on the form.

• The police department or sheriff’s office whose jurisdiction includes the premises at which the charitable games events are authorized under the license must be notified of all originally scheduled, added, changed, or cancelled events.
• No person except a bona fide member, employee, or volunteer of a licensed organization may participate in the management or operation of the games.
• Volunteers may only participate in 12 events per year.
• No person may receive any remuneration or compensation either directly or indirectly from any source for participating in the management or operation of the game.
• No single bet at any house banked game may exceed $20.
• When leaving, participants may cash in their chips in exchange for currency not to exceed $500 in cash winnings. Gift cards that have wide-scale acceptance (ex. Visa gift cards) are considered cash prizes. There is no limit on the amount of noncash prizes that may be exchanged for chips. Each participant shall sign a receipt for the prizes and the licensee shall make available to IDOR a list of all prizes awarded.
• Tax returns must be filed within 30 days of the event in order to avoid penalties and interest.

• suppliers must file Form RCG-7, Application for Charitable Games Supplier’s License, either electronically through MyTax.illinois.gov or by mail.

• No one other than the licensed sponsoring organization of charitable games may have a proprietary interest in the event.
• A supplier may have only one representative present at the charitable games event, for the exclusive purpose of ensuring that its equipment is not damaged and is functioning properly.
• No employee, owner, or officers of a supplier may participate in the management or operation of a charitable games event.
• A supplier may not provide volunteers at the charitable games event.
• A supplier may not promote or solicit a charitable games event on behalf of a charitable games licensee.

• providers must file Form RB-30, Provider of Premises License Application, either electronically through MyTax.illinois.gov or by mail.

• May not have more than 12 events per license year.
• Must publicly display the license with the date and time of the event (copy of license provided by the licensed operator).
• Must notify IDOR of any changes with the licensed operator.

• No one other than the licensed sponsoring organization of a charitable games event may have a proprietary interest in the event.
• No employee, owner, or officer of a consulting service hired by a licensed organization to perform services at the event, (including but not limited to, security for the persons or property for the event or services before the event including, but not limited to, training for volunteers or advertising) may participate in the management or operation of the event.

Note: Violations of the above requirements could result in an organization’s license being revoked or civil penalties up to $250 for each violation being assessed against any individual involved (or both), as well as a referral to local authorities for prosecution pursuant to section 28-1 of the Criminal Code of 2012. IDOR may require that any organization licensed under the Charitable Games 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 charitable games licensee to comply with this requirement within 90 days of receiving notice from IDOR may result in suspension or revocation of the licensee's license.

When applying for the equipment ownership permit, organizations must file Form RCG-9, Application or Annual Report for Charitable Games Equipment Ownership Permit, either electronically through MyTax.illinois.gov or by mail.

Organizations must complete a report each year for the charitable games equipment they own on Form RCG-9. Keep the report in your records and make it available to us when we request it.

• You must file a separate return, Form RCG-18, Charitable Games Tax Return, for each event. File your return within 30 days of the event either electronically through MyTax.illinois.gov or by mail.
• Complete but do not submit Form RCG-32, Charitable Games Event Workers Attendance List, with Form RCG-18. Keep it in your records and make it available to us when we request it.

One annual application is good for four events. However, if all four dates are not requested at application time, an organization may amend or add dates by requesting an amendment in writing at least 30 days prior to an event.

• Organizations conducting charitable games are required to pay a $400 license fee. Licenses are valid for two years.
• Suppliers of gaming equipment are required to purchase an annual license for $500 or $1,500 for three years.
• An annual “provider’s fee” of $50 or $150 for three years is imposed on anyone who rents space to be used for a charitable game.
  

Lookup Gaming Licenses using MyTax Illinois

1. What are the restrictions and limitations of cash prizes?
2. Who must be in charge of a charitable game event?
3. Who can manage a charitable game event?
4. What are the responsibilities of a Charitable Game supplier?

OFFICE OF BINGO AND CHARITABLE GAMES 3-215
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19480
SPRINGFIELD IL 62794-9480

Email: rev.bptcg@illinois.gov

Phone: 217 558-7425