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Texas Statewide Rule

Texas Requires a TDLR License to Conduct Charitable Bingo

Significant RestrictionsApplies statewide across Texas (2026)

Key Facts

Regulator
Texas Department of Licensing and Regulation (TDLR)
Regulatory transfer
From Texas Lottery Commission, Sept. 1, 2025
Prize cap per occasion
$5,000 aggregate, Occ. Code 2001.420
Door prize cap
$250
Unlicensed bingo penalty
Third-degree felony, 2001.551
Administrative penalty
Up to $1,000 per violation per day
License eligibility
3+ years in Texas as qualifying nonprofit or fraternal/veterans org
Last verified: August 21, 2026

Summary

Texas nonprofits can conduct bingo only under a license from the Texas Department of Licensing and Regulation, which absorbed the Texas Lottery Commission's charitable bingo program on September 1, 2025. Eligible applicants are religious societies, fraternal and veterans organizations, volunteer fire departments, EMS providers, and qualifying nonprofits that have existed in Texas for at least three years. Running unlicensed bingo is a third-degree felony.

(b) A person may not offer or award on a single bingo occasion prizes with an aggregate value of more than $5,000 for all bingo games other than: (1) pull-tab bingo; or (2) bingo games that award individual prizes of $50 or less. (c) A licensed authorized organization or other person may not award or offer to award a door prize with a value of more than $250.

Full Breakdown

The Bingo Enabling Act, Occupations Code Chapter 2001, lets a licensed authorized organization run bingo to fund its own charitable work, not for private profit. Section 2001.101 opens licensing to religious societies, medical-research nonprofits, fraternal organizations, veterans organizations, volunteer fire departments, and volunteer EMS providers, each of which (other than the medical-research nonprofit) must have operated in Texas for at least three years. Applicants file an application disclosing officers, the bingo chairperson responsible for compliance, IRS Form 990s, and information for criminal-background checks under Section 2001.102.

Once licensed, an organization may not stack more than $5,000 in aggregate prizes on a single bingo occasion, apart from pull-tab games or games awarding $50 or less per prize, and door prizes are capped at $250 under Section 2001.420. A separate $750 single-game cap that used to sit in the same section was repealed effective September 1, 2023, by SB 643. All net proceeds must go to the organization's own charitable purposes as defined by its federal tax exemption, and Section 2001.456 bars using bingo money to support or oppose a candidate, a ballot measure, or legislation. Receipts must be deposited within three business days in a dedicated bingo account at a Texas financial institution, and retained operating capital is capped at $100,000 absent a commission waiver.

Regulatory authority sits with the Texas Commission of Licensing and Regulation and its department, TDLR. The Texas Lottery Commission's charitable bingo program, including its licenses and staff, transferred to TDLR on September 1, 2025, under SB 3070. A separate law, the Charitable Raffle Enabling Act (Occupations Code Chapter 2002), lets qualified nonprofits run raffles with no license at all, making bingo the stricter of Texas's two charitable-gaming tracks.

Violations & Penalties

Conducting bingo without a license is a third-degree felony under Section 2001.551, the same grade that applies to rigging a prize drawing under Section 2001.552. Recordkeeping violations, false statements on a license application, or diverting proceeds range from a Class C to a Class A misdemeanor and can trigger license revocation under Section 2001.554. The commission may separately assess an administrative penalty of up to $1,000 per violation, with each day of a continuing violation counted separately.

Frequently Asked Questions

Who can get a Texas bingo license?
The Texas Commission of Licensing and Regulation, acting through TDLR, may license a religious society, a nonprofit whose main work is medical research, a fraternal organization, a veterans organization, a volunteer fire department, or a volunteer EMS provider. Except for the medical-research nonprofit, each must have existed in Texas for at least three years, under Occupations Code Section 2001.101.
How much can a Texas bingo prize be worth?
Under Section 2001.420, total prizes on a single bingo occasion can't exceed $5,000, not counting pull-tab bingo or any game awarding $50 or less per prize, and door prizes are capped separately at $250. An older $750 single-game limit that used to sit in the same section was repealed effective September 1, 2023.
What happens if you run bingo without a Texas license?
It's a third-degree felony under Section 2001.551, the same grade that applies to rigging a prize drawing under Section 2001.552. Lesser violations, like faulty recordkeeping or diverting proceeds, are Class C to Class A misdemeanors that can also cost the organization its license, and TDLR can separately impose an administrative penalty of up to $1,000 per violation per day.
Do Texas charitable raffles need a license too?
No. The Charitable Raffle Enabling Act, Occupations Code Chapter 2002, lets qualified religious societies, volunteer fire departments and EMS providers, and nonprofit organizations run raffles without a state license, unlike bingo. Raffle proceeds still must go entirely to the organization's charitable purposes, and prizes must be awarded on the announced date or within 30 days after.
Where do bingo proceeds have to go in Texas?
A licensed organization must devote its net bingo proceeds and any premises rental income to its own charitable purposes, consistent with the federal tax exemption it holds under 26 U.S.C. Section 501, per Section 2001.454. The organization also can't use bingo money to back a candidate, a ballot measure, or lobby the legislature, under Section 2001.456.

Sources

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