CHAPTER 103BINGO[Prior to 12/17/86, Revenue Department, Ch 94][Prior to 11/18/87, Racing and Gaming Division][Prior to 6/14/89, Racing and Gaming Division, Ch 23][Prior to 9/5/90, this chapter was entitled “Qualified Organization”]481103.1(99B) Definitions. In addition to definitions found in Iowa Code chapter 99B and in rule 481—100.1(99B), the following definitions apply to all qualified organizations where bingo is played.
"Cash" means any legal tender of the United States.
"Category" means the name given to a particular type of playing face to distinguish one from another.
"Limited license" means a 14-day license issued only to a qualified organization. There are no limits on the number of games played or occasions held, except that only two bingo occasions may be held during the period of 14 days, with no limit on the number of bingo games or the number of hours played during each designated bingo day.
"Playing face" means the grid on which a player marks numbers and letters called as the game progresses.Related ARC(s): 4014C481103.2(99B) License. 103.2(1) License required—exception. A license is required in order to conduct a bingo occasion unless all of the following requirements are met: a. Participants in the bingo occasion are not charged to enter the premises where bingo is conducted. b. Participants in the bingo occasion are not charged to play. c. Any prize awarded at the bingo occasion is donated. d. The bingo occasion is conducted as an activity and not for fundraising purposes. 103.2(2) Location. Bingo occasions are restricted to the location for which application is made by the qualified organization and approved by the department. For good cause, a license may be transferred to a different location only after written notice by the licensee and approval by the department. “Good cause,” for purposes of this subrule, may include flood, fire or other natural disasters; sale of the building; or nonrenewal of lease. 103.2(3) Application. Before any organization may conduct bingo, a license application must be approved by the department. Application and license requirements are found in rules 481—100.3(99B), 481—100.4(99B), and 481—100.5(99B). 103.2(4) Examples. The following are examples of circumstances affecting whether a license is granted. a. Qualified organization X applies for and is issued a two-year license to conduct bingo occasions at 313 Cherry Street, Des Moines, Iowa. The license is effective from August 1, 2017, to July 31, 2019. On October 1, 2017, qualified organization Y applies for a 14-day limited license to conduct bingo at the same location. The license is approved and issued because a limited license can be issued for the same location used for a two-year bingo license. b. Qualified organization ABC applies for and is issued a two-year qualified organization license to conduct bingo at 1002 West 2nd Avenue in Jones Town, Iowa. The license is effective from October 1, 2017, to September 30, 2019. On November 15, 2017, qualified organization EFG applies for a two-year qualified organization license for the same location. A license may be issued to organization EFG for the same location during the same period to conduct any games of chance, games of skill or raffles. Organization EFG shall not conduct bingo at the location. c. Hometown Community School applies for and is issued a two-year qualified organization license to conduct games of skill, games of chance and raffles at the grade school building. The license is effective from September 1, 2017, to August 31, 2019. During the time that the Hometown Community School license is in effect, the school-sponsored pep club applies for a 14-day limited license to conduct games of skill at the grade school building. The school-sponsored pep club may be issued a limited license for the same location during the same time. Under this example, the school-sponsored pep club would not be required to obtain a separate license, because school-affiliated organizations may operate separate events under a school’s two-year license.Related ARC(s): 4014C481103.3(99B) Bingo occasion. A qualified organization may conduct only 3 bingo occasions per week, but not more than 15 occasions per month, under a two-year qualified organization license. A week starts on Sunday and ends on Saturday. At the end of each occasion, the person conducting the games shall announce both the gross receipts and the use to which the net receipts will be dedicated and distributed.Related ARC(s): 4014C481103.4(99B) Game of bingo. Each game shall meet all of the requirements of the definition of “bingo” in Iowa Code section 99B.1(4) to be a legal game of bingo. Games ordinarily considered bingo may be played. 103.4(1) A fair and legal game shall meet at least all of the following criteria: a. Concealed numbers on a playing face are not allowed. b. The game requires an announcer or caller. c. Numbers shall be announced so all players can hear clearly. d. A free space or spaces are allowed. e. The game proceeds as the caller selects and announces the numbers. If a caller miscalls a number or misreads a ball, only the number on the ball may be used. Miscalled numbers are invalid. f. Rules established by the licensee may require that a player have the last number called for a bingo. If not posted in the rules established by the licensee, the player is not required to have the last number called. g. Each game ends when it is determined that a player has covered the announced pattern of spaces. The caller or another worker shall verify the numbers on winning cards. The caller checks for additional bingos and officially closes the game. h. Wild numbers are allowed, but must be chosen using a random selection method. 103.4(2) Any player may request that all numbers drawn and all numbers not drawn be verified when the winning card or cards are verified. Numbers shall be verified in the presence of the member in charge and the caller. The player who requested verification may observe the count. 103.4(3) The cost to play each game shall not exceed $5. Cards or games may be sold only within the premises of the bingo occasion. The cost for each packet, playing face, or tear sheet shall be the same for each participant, i.e., the cost for an opportunity to play shall be equal. Players may pay for games with cash, personal check, money order, bank check, cashier’s check, electronic check, or debit card. a. All cards or games shall be assigned a price. b. The price shall be posted. Cards may be sold only for the posted price. c. Free games shall not be given. Free games include gift cards redeemable for games. This paragraph does not prohibit giving free concession items such as food, beverages or daubers. 103.4(4) Cards for each category shall be distinctly marked. Each shall be easy to distinguish from all others. a. Bingo games or cards may be printed on only one side. b. In each game, the bingo operator must ensure that duplicate playing faces are not sold.Related ARC(s): 1929C, 4014C481103.5(99B) State rules and rules established by the licensee. Iowa administrative rules and rules established by the licensee must be readily available to every bingo player. 103.5(1) A copy of these rules, 481—Chapter 103, “Bingo,” shall be maintained at every bingo location during every bingo occasion. Bingo players who request it shall have the opportunity to read the administrative rules. 103.5(2) Rules established by the licensee shall be posted on a sign near the front of the playing area. a. Rules shall be in large, easily readable print and shall include: (1) The name and mailing address of the licensee; (2) Prices to play; and (3) Rules established by the licensee for the game. b. Rules established by the licensee shall include how to indicate “bingo” to halt the game, how to collect a prize, and how the licensee will verify winners’ names and addresses. c. Rules established by the licensee may include rules related to reserved seating and age restrictions for children to play. 103.5(3) The following information shall be correctly posted before the beginning of each bingo occasion and shall not be changed after the bingo occasion begins: a. Description of each game to be played; b. Price of each game; c. Prize for each game or method for determining the prize for each game; and d. Jackpot rules, if any.Example: Single bingo $1 per game, $50 payout.Related ARC(s): 1929C, 4014C481103.6(99B) Prizes. Cash or merchandise prizes awarded for each game shall not exceed $250 in value. Jackpot games are excepted and are governed by standards in subrule 103.6(5). The exact amount of the prize shall be announced before the beginning of each game. 103.6(1) Prizes shall be recorded each occasion on the daily bingo summary (see Table A**See forms at end of this chapter.) as they are paid by listing the number of the game; the pattern required to win; the type, color, and series of cards used in the game; and the amount of the prize. The name, address, and social security number of each jackpot winner is required.Note: Prizes of more than $600 require the deduction of 5 percent withholding taxes. See paragraph 103.6(5)“g.” 103.6(2) Prizes awarded in games with more than one winner shall be shared equally. It is permissible to round up or down, provided doing so does not exceed the maximum payout for that particular game.Examples of prizes awarded in games with more than one winner:
- Two winners with a total of three bingos: Player 1 has two bingos in separate squares, and Player 2 has one bingo in one square. Player 1 receives 2/3 of the prize, and Player 2 receives 1/3 of the prize.
- Multiple winners equally splitting a prize with rounding to the nearest dollar: Six players all win the single $250 prize. The appropriate payout is $41.66 each, but rounding to the nearest dollar ($42) for each winner would result in a payout of $252, in violation of the maximum payout for a nonjackpot bingo game.
- The license fee;
- Withholding, unemployment or social security taxes;
- Promotion cost;
- Equipment and supply purchases;
- Rent for bingo occasion;
- Utilities for bingo occasion; and
- Wages paid for bingo workers.
- All buildings in which bingo occasions are conducted must meet state or local standards for occupancy and safety.
- The name of the licensee shall be posted on the sign of each building or location where bingo occasions are held.
- A name which is closely associated with the licensee and which clearly identifies the lawful uses of the proceeds may also be used. Generic-type names, such as “Nelson Street Bingo” or “Uncle Bob’s Bingo,” shall not be used.
- The rent shall not be related to nor be a percentage of the receipts.
- The licensee may terminate any lease or rental agreement without paying a penalty or forfeiting money or a deposit. Damage deposit money is excepted.
- Alcoholic beverages may be served in a bingo location if that location possesses a beer permit or liquor license.
- The lessor of the building shall not participate in conducting bingo.
- During a bingo occasion, the lessor shall not sell any beverage, food or any other merchandise in the room in which bingo is played.
- Only one licensed qualified organization may conduct bingo occasions within the same structure or building.