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Iowa Statewide Rule

Iowa Requires Charitable Gambling Licenses Under Code 99B

Significant RestrictionsApplies statewide across Iowa (2026)

Key Facts

Governing law
Iowa Code ch. 99B, §§99B.1, 99B.11-99B.27
Licensing agency
Dept. of Inspections, Appeals, and Licensing
Two-year license fee
$150; org must exist 5+ years
Short-term license fees
$15 (14-day) to $100 (very large raffle)
Application lead time
30 days before gambling activity begins
Expense cap
40% of net receipts (§99B.14)
Violation penalty
Serious misdemeanor (§99B.4)
Last verified: August 21, 2026

Summary

Iowa Code chapter 99B bars any nonprofit from running bingo, raffles, games of skill or chance, or a game night until the Department of Inspections, Appeals, and Licensing issues a gambling license. A two-year qualified-organization license runs $150 and requires five years of active existence; shorter licenses range $15 to $100. Applications are due 30 days before play starts, and operating without one is a serious misdemeanor.

A qualified organization shall submit an application for a license, along with any required fees, to the department at least thirty days in advance of the beginning of the gambling activity, including the sale of entries or promotion of the sale of entries for raffles. ... The license fee for a two-year qualified organization license is one hundred fifty dollars.

View official code

Full Breakdown

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. 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.

12(1), and fees are non-refundable even if denied. 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. 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.

Violations & Penalties

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.

Frequently Asked Questions

Who counts as a 'qualified organization' for Iowa's charitable gambling license?
Iowa Code section 99B.1(29) requires at least 12 active members and a governing body that isn't self-perpetuating, plus federal tax-exempt status under IRC 501(c)(3), (4), (5), (6), (7), (8), (10), or (19). Government agencies, schools, and registered political parties or candidate committees qualify too. A social club that doesn't meet these tests can't get a license no matter how the proceeds are used.
How much does an Iowa charitable gambling license cost?
Fees scale with duration and activity: $15 for 14 days, $40 for 90 days, $75 for 180 days, and $150 for one or two years, per section 99B.12. A bingo license for a single fair or festival is $50. A very large raffle, one giving away more than $100,000 in prizes or any real property, needs an extra $100 license on top of the base one.
Where does the money from a licensed raffle or bingo game have to go?
Section 99B.14 lets a licensed organization keep up to 40 percent of net receipts for reasonable expenses, fees, and taxes. Everything past that must go to participants as prizes or be dedicated to educational, civic, public, charitable, patriotic, or religious purposes: it can't be diverted to the organization's general operating budget or paid out as compensation to anyone running the game.
What happens if a nonprofit runs bingo or a raffle without an Iowa license?
It's a serious misdemeanor under section 99B.4 to knowingly violate chapter 99B's licensing rules. Filing a false license application or report escalates to a fraudulent practice charge under Iowa Code chapter 714. DIAL, the Department of Inspections, Appeals, and Licensing, also has authority under section 99B.3 to deny, suspend, or revoke a license, which shuts down all licensed gambling activity for that organization.

Sources

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