TAX NEWS - April 2009

Arizona Tax: Conducting Games of Bingo

This brochure is for general informational purposes only, to assist in compliance with current bingo laws and rules. In case of inconsistency or omission, the Arizona Revised Statutes and/or the Arizona Administrative Code will prevail over the language in this publication.


Conducting Games of Bingo

1. The maximum prize amount for a single game may not exceed $1,000.
2. The maximum prize amount for an occasion may not exceed $3,000, except with a Special Bonus Game.
3. The total value of any inducements offered may not exceed $250 per occasion.
4. A copy of the bingo statutes and rules must be available if requested.
5. A qualified supervisor must be present during the entire occasion.
6. All bingo equipment must be in good working order.
7. Licensees are to verify that all bingo balls are present in the receptacle and in good condition. This is to be accomplished in the presence of one or more bingo players.
8. Cards may not be taken to the playing area until they have been paid for.
9. Licensees may not give, donate or distribute any "Free" cards.
10. Players may not sell or transfer cards they have purchased to any other players.
11. Cards may not be reserved for or by players.
12. Duplicate bingo cards are not allowed.
13. The prize amount and the required pattern are to be announced prior to the beginning of each game.
14. If the machine is turned off, the next ball to be called must be secured.
15. Each winning card shall be verified in front of a disinterested player.
16. Only one winning pattern can be verified per bingo card per game.
17. The caller shall officially close each game.
18. All checks are to be signed by the supervisor or an officer of the organization.
19. Licensees are to maintain a sufficient balance in their bingo account to cover all checks written.
20. Cash prize winners are to sign for prizes awarded.
21. Except for Class A Licensees, workers who participate in conducting of a bingo occasion may not play bingo during that occasion.
22. Players are to be at least 18 years of age.
23. It is unlawful to conduct a lottery or raffle within a twelve hour period before or after a bingo occasion, except the official state lottery.
24. Licensees are to maintain a record of cards sold and the money received.


Posting Requirements

1. The bingo license and any license amendments are to be conspicuously displayed during the bingo occasion.
2. If applicable, the Special Bonus Game license is to be conspicuously displayed during the bingo occasion.
3. Admission fees, the cost for bingo cards and any other charges for services or privileges are to be posted prior to the sale of any bingo cards.
4. A notice must be posted which describes the exact amount of each prize awarded. If a prize is a "Split-the-pot" or "Winner-take-all," post it as such. A statement to the effect that, in case of multiple winners, the prize will be equally divided among the verified winners is to be posted.
5. A notice stating that "bingo rules and statutes are available upon request" must be posted.


Prize Limitations

1. The prize limit for an individual game of bingo is $1,000 except for a Class B or Class C licensee that has been issued a Special Bonus Game license.
2. The prize limit for each bingo occasion is $3,000 except for a Class B or Class C licensee that has been issued a Special Bonus Game license.
3. The Special Bonus Game license is available upon application by Class B and Class C licensees. The Special Bonus Game is a weekly consecutive game with a prize limit of $12,000 per quarter.
4. All prizes of $150 or more are to be paid by check.
5. All cash prizes under $150 are to be signed for by the winner(s) of the prize.
6. An alcoholic beverage may not be given as a bingo prize.
7. If there are multiple winners of a prize, the prize amount is to be divided equally among the winners. The licensee has the option of rounding fractional dollars to the next higher dollar.
8. If the prize to be awarded is an item other than cash and the designated prize cannot be divided, the licensee is to award substitute merchandise prizes that have the same value in the aggregate as the original prize.
9. Merchandise prizes may not be redeemed or converted into cash.
10. A licensee may establish minimum prizes.


For further information or assistance, write or call the Bingo Section.

Arizona Department of Revenue
Bingo Section
1600 W Monroe
Phoenix AZ 85007-2650
(602) 716-7801
www.azdor.gov