Iowa Requires Charitable Gambling Licenses Under Code 99B

To hold an Iowa charitable gambling license, a group must meet the Code's definition of 'qualified organization' in section 99B.1(29): at least 12 active members, no self-perpetuating governing body or officers, and federal tax-exempt status under IRC 501(c)(3), (4), (5), (6), (7), (8), (10), or (19), or status as a government agency, school group, or political party/candidate committee. Section 99B.12 sets the license menu the Department of Inspections, Appeals, and Licensing (DIAL) administers through its SCG Online Portal: a 14-day license costs $15, a 90-day license $40, a 180-day license $75, a one-year or two-year license $150 (the two-year tier requires the organization to have existed at least five years), a bingo-at-fair-or-festival license $50, and a very large raffle needs an additional $100 license on top of the base license.

Every applicant must file 'at least thirty days in advance of the beginning of the gambling activity,' per section 99B.12(1), and fees are non-refundable even if denied. Once licensed, section 99B.13 requires the license be posted at the playing area, bars anyone but participants from profiting beyond winnings, and requires equal entry pricing for every player, the person running the game can't play it. Section 99B.14 caps overhead: reasonable expenses, fees, and taxes 'shall not exceed forty percent of net receipts,' with the remainder going to prizes or dedicated to 'educational, civic, public, charitable, patriotic, or religious uses.' Raffles are tiered by prize value under section 99B.11, very small ($1,000 or less cash, or $5,000 or less in donated merchandise), small ($1,000-$10,000), large ($10,000-$100,000), and very large ($100,000-$200,000, or any raffle giving away real property), with the very large tier triggering that extra DIAL license and fee.

Knowingly operating outside chapter 99B's licensing rules is a serious misdemeanor under section 99B.4. Filing a false or fraudulent license application or required report is a fraudulent practice under Iowa Code chapter 714: a separate, more serious charge. DIAL can also deny, suspend, or revoke a qualified organization's license under section 99B.3, cutting off the group's ability to run bingo, raffles, games of skill or chance, or game nights until it's reinstated.