California Statewide Rule
California Charitable Bingo and Raffle Rules
Key Facts
- Bingo prize cap
- $500 per separate game
- Local license fee cap
- $50 per organization per year
- Bingo minors rule
- Minors barred from playing
- Profit-taking penalty
- Misdemeanor, up to $10,000 fine
- Raffle proceeds rule
- At least 90% to charity
- Raffle registration
- Annual DOJ registration, about $10 fee
Summary
California Penal Code § 326.5 lets only tax-exempt nonprofits, mobilehome park associations, senior groups, and school-affiliated charities run bingo, and only under a local city or county ordinance. Prizes are capped at $500 per game, cities may charge up to a $50 annual license fee, minors cannot play, and every dollar of net proceeds must go to charity.
(a) Neither the prohibition on gambling in this chapter nor in Chapter 10 (commencing with Section 330) applies to any bingo game that is conducted in a city, county, or city and county pursuant to an ordinance enacted under Section 19 of Article IV of the State Constitution, if the ordinance allows games to be conducted only in accordance with this section and only by organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701l of the Revenue and Taxation Code and by mobilehome park associations, senior citizens organizations, and charitable organizations affiliated with a school district; and if the receipts of those games are used only for charitable purposes. ... (n) The total value of prizes available to be awarded during the conduct of any bingo games shall not exceed five hundred dollars ($500) in cash or kind, or both, for each separate game. ... (e) Minors shall not be allowed to participate in any bingo game.
Full Breakdown
5(a) carves bingo out of the general lottery and gambling prohibitions, but only when a city, county, or city and county has adopted an authorizing ordinance under Article IV, Section 19 of the California Constitution, and only for a defined list of eligible operators: organizations tax-exempt under Revenue and Taxation Code §§ 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701l, plus mobilehome park associations, senior citizens organizations, and charitable groups affiliated with a school district. 5(l)(1) caps the license fee a city or county can charge each authorized organization at $50 a year, though the jurisdiction may add a separate fee to cover its actual law-enforcement costs of overseeing the games.
Subdivision (n) limits total prizes to $500 in cash or kind per separate game, and subdivision (e) bars minors from playing entirely. Under subdivision (k), bingo proceeds must be used only for charitable purposes, with a narrow carve-out for prizes, hall rental, overhead, administrative costs, security, and license fees, capped at roughly 20% of proceeds or a state-adjusted monthly dollar ceiling. Nobody may draw a profit, wage, or salary from running the games, subdivision (b) makes that a misdemeanor, though security staff can be paid from game revenue under subdivisions (j) and (k).
5, governs charity raffles: only a private nonprofit that has operated in California for at least a year and holds one of the same Revenue and Taxation Code tax exemptions may run one, at least 90% of gross ticket receipts from each draw must support a beneficial or charitable purpose, and the organization must register annually with the Department of Justice's Registry of Charitable Trusts (a roughly $10 fee) and file yearly reports on receipts, costs, and where the money went before it can lawfully sell a single ticket.
Violations & Penalties
Running a bingo game outside these rules, or letting anyone but security staff draw pay from one, is a misdemeanor under § 326.5(b) or (c); taking a profit, wage, or salary specifically carries a fine of up to $10,000, deposited into the general fund of the city or county that authorized the game, and that jurisdiction can also sue to enjoin the violation under § 326.5(d). For raffles, the Department of Justice can pursue civil or administrative action against an unregistered or noncompliant organization under § 320.5, and that doesn't preclude a separate criminal case brought by a district or city attorney.
Frequently Asked Questions
Can any nonprofit in California hold a bingo night?
How big can a bingo prize be in California?
Do California nonprofits have to register raffles with the state?
Can bingo volunteers or organizers get paid from the proceeds?
Sources
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