FAQs
My organization just started conducting bingo. How do I learn how to keep accurate
records?
Please read the Bingo Enabling Act and Charitable Bingo Administrative Rules, and reveiw the
Quarterly Report forms and the Bingo Operations Manual before you
start conducting bingo. All are available on this Web site. We also suggest that you attend
an
Operator Training
Class conducted by the Commission, or take the class
on-line to
learn more about bingo bookkeeping.
We no longer play bingo. Can I sell / donate equipment, unused paper, pulltabs? How do I
destroy equipment or supplies?
Any remaining, unopened bingo supplies and equipment may be returned to the distributor for a
refund. You may also request written permission from the Charitable Bingo Operations Division to
sell or donate supplies or equipment to a specific licensed organization. For your convenience, you
may complete the following forms as required:
Supplies or equipment that cannot be returned, sold, or donated
can only be destroyed in the presence of a Texas Lottery Commission Enforcement Investigator or
Auditor. Any refunds obtained for unused bingo material must be accounted for and distributed with
other remaining funds. Contact our office for more detailed information.
How does a telephone or fax amendment work?
An organization that holds a license to conduct bingo may change only their licensed days and
times through use of a telephone or fax amendment. The telephone amendment requires the caller to
use the Personal Identification Number (PIN#) that is issued to the organization and mailed in a
letter at the time of original licensing. Both fax and telephone amendments require that the $10
amendment fee which must be previously deposited into an amendment fee escrow account. No license
can be issued without the required license fee being paid. Contact the licensing staff for more
details at 1-800-246-4677 (BINGO77).
How do I calculate the 35% charitable distribution?
| |
Gross Receipts
|
= Total of Lines 3+4+5 on quarterly report
|
| Less: |
Regular Prizes |
= Line 7 on quarterly report |
| Less: |
Instant Prizes |
= Line 8 on quarterly report |
| Less: |
Cost of Goods Sold |
= Line 10 on quarterly report |
| Less: |
Lease Payments to Distributor |
= Line 11 on quarterly report |
| Equals: |
Adjusted Gross Receipts |
= Line 13 on quarterly report |
| |
x .35 |
| Equals: |
35% Distribution |
|
| Less: |
Expense Credit (Either 6% of Gross Receipts or Allowable Expenses, whichever is
less) (Allowable Expenses: rent, mortgage, other authorized expenses = Total of lines 22, 23, 25,
26, 27, 28, 29, 30, 31, 32 and 33 on quarterly report.) |
| Equals: |
Required Minimum Distribution |
What is the late penalty fee that is charged if a quarterly return is filed after the due
date?
The late penalty fee is charged for unpaid balances of prize fees or gross rental tax due. If
your payment of prize fees or gross rental tax is 1 to 30 days late, the penalty is 5% of the
unpaid balance due. If your payment is paid 31 to 60 days late, the penalty is 10% of the unpaid
balance due. If your unpaid prize fee or gross rental tax balance exceeds $100.00 and the payment
is more than 20 days after a notice of determination penalty has been issued, an additional 10%
jeopardy determination penalty must be added to the amount due. If a determination penalty becomes
final your organization may also be required to post a bond or increase the amount of an existing
bond.
We have not received our license renewal paperwork and our license expires in two days. Do we
have to stop playing bingo?
Please call our office 1-800-246-4677 (BINGO77) immediately. We mail the renewal notices
approximately 30 to 45 days in advance of the license expiration date. We can fax a copy to you in
an emergency. The renewal application must be postmarked on or before the license expiration date.
If this is done, the organization is allowed to continue playing its current licensed days and
times while the renewal application is being processed. If the renewal application is postmarked
after the expiration date of the license, the license is expired and the renewal application will
be denied. The organization must file an original application for a new license in this case.
Why can't we drop off the applications at the regional offices? Why can't the regional office
give me my license?
The regional offices are not set up to receive applications and license fee checks. All licenses
are issued and printed in Austin. If needed, the application may be faxed to (512) 344-5142,
but we are unable to process the application until sufficient payment is received.
I did not receive my temporary license Monday. Today is Tuesday and the game is Wednesday. Can
you fax a copy of the license? Can I play without it?
We cannot fax a license. An organization must have the actual license or a Letter of Authority
from our office posted at the playing location to conduct the game. A Letter of Authority
states the same information found on the license and is issued only when the license will not reach
the organization by mail before the bingo occasion. The Letter of Authority will be faxed to the
organization and is to be displayed as a license. It is the organization's responsibility to get
the temporary application in to our office to allow a minimum of 7-10 working days process time.
Organizations may wish to use an express mail service (Fedex, Airborne, Lone Star Overnight etc.)
to ensure faster delivery of their temporary licenses, but the organizations must furnish their own
account number for this service.
Can I get copies of previously filed quarterly reports or copies of applications for my
organization that I have misplaced?
Yes, quarterly report information and applications are available:
Quarterly Reports
If you only need the financial data that was previously filed in a quarterly report, authorized
users may access and log-in to the Bingo Services Center (from our website at
www.txbingo.org
, or directly from the URL:
https://bsc.txbingo.org
) and look at the applicable quarterly report(s) for their organization(s) under the Financial
Reports column. (Authorized users are individuals named on the current bingo license for an
organization or given access by the primary operator or business contact, as applicable, for the
organization.)
If you need a printed copy of the original quarterly report previously filed, you will need to
make an Open Records request in writing.
Copies of Applications
If you need a copy of an application previously filed by your organization (renewal, amendment,
temporary license, etc.), you will need to make an Open Records request in writing.
To make an Open Records Request
You may mail or fax your request to our open records coordinator in our Legal Services Division.
Please be as specific as possible as to which documents you are requesting. There may be a charge
for this service depending on number of printed pages and/or amount of staff processing time
involved.
Katelind Powers
Open Records Coordinator
Texas Lottery Commission
P.O. Box 16630
Austin, TX 78761-6630
Tel: (512) 344-5420
Fax: (512) 344-5189
Email:
openrecords@lottery.state.tx.us
Can I change the previous proceeds undistributed on line 12 on my quarterly report; it is not
even close to the balance in my check book?
Yes, if you have reconciled your bingo checking account and savings account (if you have a bingo
savings account) and added your petty cash as of the end of the previous quarter, you may enter
this amount on line 12 of your current report, with the notation to the left of the amount entered
explaining the reason for the change. After doing so, don't adjust previous proceeds undistributed
for subsequent quarters because it most likely is an error in bookkeeping. You should go back to
the beginning of the quarter and recheck your bookkeeping and posting to determine why the
undistributed proceeds do not balance with your checkbook and petty cash.
If I file and pay my prize fees or rental tax after the due date can I have the penalties
waived for various reasons?
The Charitable Bingo Operations Director, for good cause shown, may waive a penalty if a
licensee holding a license to conduct bingo or license to lease bingo premises exercised reasonable
diligence to comply with Occupations Code, Section 2001.504. The Division will not consider a
request for a penalty or interest waiver until the principal related to the specific request is
paid in full. To be considered, a written request stating the reason(s) penalty should be waived
must be sent to the Charitable Bingo Operations Division within 14 days of the date the quarterly
report or prize fees or rental taxes were due. For more information, consult Section 2001.504 of
the Bingo Enabling Act and Administrative Rule 402.602.
How do I come into compliance with a 35% charitable distribution obligation before my assigned
hearing date if I can't get a copy of the canceled check before the hearing?
If you purchase a cashier's check with money from the bingo checking account, you may mail or
fax a copy of the cashier's check with the notation on the cashier's check that it is for a
charitable distribution and the period(s) that it is to be applied to. The check should be made
payable to your general fund account or to a qualified charity. You will also need to submit a copy
of the deposit slip and amended quarterly report(s) revealing the total charitable distribution(s)
for the quarterly period(s) that the distribution(s) was due.
Can we pay for door prizes from the bingo account?
A door prize, a giveaway, or any promotion for that matter may be
paid from the bingo account only if it can be shown that the promotion financially benefited the
organization or unit. If not, it must come from non-bingo funds.
This is not to say that you cannot try the door prize or other
promotion a few times to see if it will work for your organization and be profitable. If you
look at the results and decide that it isn’t worth the investment because it is not increasing
sales and abandon the door prize promotion, the expense would almost always be permissible and
therefore may be paid from the bingo account.
What can I pay a Primary Operator?
No person can be paid for performing the duties of an Operator during a bingo occasion.
How much may I pay workers, callers, and cashiers?
There is no limit on wages for callers, cashiers, and ushers; however, you may only
pay what is "reasonable or necessary" (§ 2001.458, Bingo Enabling Act). Factors that determine
reasonable and necessary may include attendance and sales amounts.
May I pull a box of instant bingo pull tabs before the entire box is sold out?
A licensed organization may not withdraw a series of cards from play until the series is
completely sold out or all winning cards of $5.00 or more have been cashed or the bingo occasion
ends (Rule 402.300, Charitable Bingo Administrative Rules). Therefore, you may pull a box of
instant bingo pull tabs before the entire box is sold out if the occasion has ended or if all
winners greater than $5.00 have been redeemed.
What is this required operator training? Can we conduct bingo without it? We can't afford to
go.
On September 11, 2000, the Texas Lottery Commission adopted a new rule, 16 TAC 402.103, relating
to the Bingo Training Program. This rule establishes content, information, and requirements of the
Training Program as required by § 2001.107, Bingo Enabling Act.
At least one person designated as an operator must attend the eight-hour training, but as space
permits, multiple persons from a licensed authorized organization are encouraged to attend
training. At the training program, each attendee will be required to sign a form that they have
read and reviewed the entire Bingo Enabling Act and the Charitable Bingo Administrative Rules prior
to the training. The training must be completed every two years and a person may complete training
for one licensed authorized organization only.
The following topics will be covered in the training program: Introduction, General Information,
Conducting a bingo game, Record-keeping requirements, Administration and Operation of a bingo game
and Promoting a bingo game.
All reasonably and necessary expenses or costs of attendance may be paid from the licensed
authorized organization's bingo bank account. Expenses and costs are limited to travel, lodging,
meals, and materials.
Operators may sign up for attendance and view future training dates/locations on the Charitable
Bingo Operations Division web site (
www.txbingo.org
), or by calling our Austin office at 1-800-246-4677. Generally, physical-site classes will be
tentatively scheduled for two classes per bingo audit region.
Additionally, the Operator Training Program is also available and may be completed
on-line
.
Our primary operator has been hospitalized following a car accident. Can we play bingo
tonight?
If the organization has previously appointed other members as alternate operators and these
individuals are currently listed on the organization's bingo and the Registry of Approved Bingo
Workers records, they may fill in for the primary operator and conduct the licensed bingo session.
If the organization has not designated any other alternate operator and the primary operator is not
available, the organization may not conduct bingo. It is recommended that every organization have a
minimum of one alternate operator to conduct the game in case the primary operator is not
available.
Why was the renewal of my license held up because of an operator and a problem with DPS?
The Bingo Enabling Act requires every director, officer and operator of an organization holding
a bingo license to undergo a background check conducted by the Department of Public Safety (DPS).
This background check can take 1-30 days processing time depending if an investigation must be
conducted based on the criminal history check. A license may not be issued or renewed without
all personnel having passed a background check. If an individual is found disqualified, the
organization will later be notified.
Your office sent a letter indicating my 501c exemption was not valid. We have been in existence
since 1923 and have played bingo since 1981. Why do we have a problem now?
An organization's 501c exemption from IRS must be valid in order to hold a license to
conduct bingo. If your organization has a parent organization that holds the 501c exemption and
your organization is listed as a subordinate organization with the IRS, the parent
organization must re-certify your organization each year as being in good standing. If your
organization holds its own 501c exemption, there may be a problem with IRS records. Contact the IRS
at 1-877-829-5500 for procedures on resolving this problem.
I mailed in my renewal overnight express mail. It came back in the mail as undeliverable. What
is going on?
When using the U.S. Postal Service, you must use our mailing address: Charitable Bingo
Operations Division, Texas Lottery Commission, P.O. Box 16630, Austin, 78761-6630. The U.S. Postal
Service does not deliver any mail to our physical address: 611 E. 6th Street, Austin, 78701, even
if it is express overnight, next-day delivery. If you are using express delivery services (FEDEX,
UPS, Lone Star Overnight, etc.) they deliver only to our physical address.
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