# Bingo, Casino Nights, and Poker Tournaments for Booster Clubs

> How state law and IRS rules treat booster club bingo, casino nights, and poker tournaments, including licensing, W-2G thresholds, and the bingo UBIT exclusion.

- URL: https://boosterclub.org/raffles/other-gaming/
- Section: Raffles
- Updated: 2026-10-08

Bingo nights, casino nights, and poker tournaments are gaming, as raffles are, and each is legal for a booster club only where state law specifically allows it, sometimes under a separate license with its own rules. Federal tax rules also differ by game: bingo has its own reporting threshold and its own exclusion from unrelated business income tax, and poker tournaments have a much higher reporting threshold than raffles. The president confirms the state rule for the specific game before the board approves the event.

Internal Revenue Service (IRS) Publication 3079 lists bingo, pull-tabs, poker and other card games, raffles, casino nights, and Las Vegas nights as gaming. A state that allows charitable raffles does not necessarily allow the others.

## How the Games Compare

| Game | State treatment (varies by state) | Form W-2G threshold, 2026 payments | Regular 24% withholding | Unrelated business income tax (UBIT) note |
|---|---|---|---|---|
| Raffle | Charitable raffle exception, permit or registration | $2,000 and at least 300 times the ticket price | When prize minus ticket price exceeds $5,000 | Exempt if occasional or volunteer-run |
| Bingo | Varies; may require a separate bingo license | $2,000 from one game, not reduced by the price of the cards (was $1,200) | Never; backup withholding of 24% if no taxpayer identification number (TIN) | Statutory bingo exclusion if requirements met |
| Pull-tabs and instant bingo | Varies; separate license where allowed | $2,000 and at least 300 times the wager | When proceeds exceed $5,000 | Not "bingo"; needs the volunteer exception |
| Poker tournament | Varies; prohibited in some states (Tennessee) | More than $5,000 after subtracting the buy-in | Not required if Form W-2G is filed; backup withholding if no TIN | Needs the volunteer exception if regular |
| Casino night | Varies; some states license charity casino events (California) | Depends on how prizes are awarded | Depends on how prizes are awarded | Exempt if occasional or volunteer-run |

The 2026 thresholds come from the January 2026 Form W-2G instructions, which set a $2,000 minimum reporting threshold for 2026 payments and adjust it yearly for inflation. Proposed Treasury regulations issued in April 2026 apply the $2,000 figure to bingo, replacing the former $1,200 threshold. The poker tournament figure comes from Publication 3079; the 2026 instructions refer to the "applicable reporting threshold" without restating it.

## Bingo

### State rules

A state that allows charitable bingo may license it separately from raffles and may regulate the hall, the equipment, the workers, and the use of proceeds. Tennessee lists bingo as one of the games allowed at an organization's single approved annual event. Rules vary by state; see the club's [state page](https://boosterclub.org/states/#raffles-gaming).

### The bingo exclusion from UBIT

Bingo income is not unrelated business income when all three conditions in Publication 3079 and Publication 598 are met:

1. The game meets the legal definition of bingo: cards with a grid, numbers called at random, and "wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game."
2. The game is legal under state and local law. A law that is rarely enforced still counts.
3. For-profit organizations cannot regularly conduct bingo in the same jurisdiction, which is normally the whole state.

"Instant bingo," pull-tabs, and online or satellite bingo do not meet the definition, whatever they are called.

### Reporting

For 2026 payments, the club files Form W-2G for bingo winnings of $2,000 or more from a single game. All winnings from all cards a player used in that game are added together, and the price of the cards is not subtracted. Regular withholding never applies to bingo, but the club must backup withhold 24% if a reportable winner does not provide a TIN.

## Casino Nights

A casino night is the hardest of these events to run legally, because the usual format (pay admission, receive chips, play games of chance, win prizes) has every element of gambling. Three approaches exist:

1. **A state-licensed charity casino event.** California, for example, allows a nonprofit to hold one gambling fundraiser per calendar year under Business and Professions Code §§ 19985 to 19987. The club registers with the Bureau of Gambling Control for each event, pays a $100 nonrefundable fee, and should file at least 30 days ahead. Only "controlled games" are allowed; slot machines, roulette, craps, twenty-one, and banking or percentage games are prohibited, and no one under 21 may participate. See [California](https://boosterclub.org/states/california/).
2. **A purely recreational event.** Tennessee's Secretary of State says casino nights that "are purely recreational in nature and in which participants are not required to pay to participate with the promise of a prize" are not gaming events requiring approval there. Free play, no prizes for chips, and admission that buys food and entertainment only.
3. **"Funny money" with prizes.** Guests pay admission, play with chips, and trade chips for raffle tickets or prizes at the end. Paying to play for a chance at prizes can put the event back under the state's gambling or raffle law. The club treats this format as a raffle at minimum and confirms it with the state rule before planning.

For Form 990 reporting, the instructions treat a casino night that is not regularly carried on, where the only prizes or auction items are donated noncash items, as a fundraising event rather than gaming. Other casino nights are gaming.

Casino nights often include alcohol. District policy may prohibit gambling-style events or alcohol on school property, and the club's insurance may exclude liquor liability. See [Booster Club Insurance](https://boosterclub.org/governance/insurance/).

## Poker Tournaments

A state that allows charitable raffles may not allow charitable poker. Tennessee expressly lists "poker games and/or tournaments" among games nonprofits may not hold. Where poker is allowed, the club follows the state's buy-in, prize, and licensing limits.

Federally, the club files Form W-2G for a player whose winnings from a tournament, after subtracting the buy-in, exceed $5,000. Winnings from other tournaments the club sponsored during the year are not combined. If the club files Form W-2G, regular withholding does not apply; backup withholding of 24% applies if the winner gives no TIN.

## Records and the Annual Return

Publication 3079 requires the club to keep records of gross gaming receipts, prize payouts, and related expenses. All gaming income is reported gross: Form 990-EZ line 6a or Form 990 Part VIII line 9a, with prizes and direct expenses reported separately. When gross gaming income exceeds $15,000, Schedule G Part III requires a breakdown by bingo, pull-tabs, and other gaming; cash and noncash prizes; the percentage of volunteer workers for each type; and the states where the club holds gaming licenses. See [Federal Tax Rules for Raffles](https://boosterclub.org/raffles/federal-rules/).

Weekly bingo is "regularly carried on." If it does not meet the bingo exclusion, its income is taxable unless substantially all the work is done by unpaid volunteers. Publication 3079 recommends keeping a log of hours worked by volunteers and any paid workers, and it treats tips, meals beyond a mere gratuity, and fee reductions for working as compensation.

## Common Mistakes

- **Assuming a raffle permit covers other games.** Bingo, pull-tabs, and casino events can require separate licenses, if the state allows them at all.
- **Running a "fun money" casino night with prizes.** The play-money label does not remove the payment, the chance, or the prize.
- **Letting volunteers accept tips.** Tips are compensation under Publication 3079 and can defeat both the volunteer exception and the state's volunteer-labor licensing condition.
- **Treating pull-tabs as bingo.** They do not qualify for the bingo exclusion, and their reporting test includes the 300-times rule.
- **Ignoring age limits.** California bars anyone under 21 from charity casino events; students at a family event cannot play.

## Checklist

- [ ] Identify each game planned for the event (president)
- [ ] Confirm on the club's [state page](https://boosterclub.org/states/#raffles-gaming) that each game is legal for the club and which license or registration it needs
- [ ] Confirm the district and venue allow the event, including any alcohol
- [ ] Apply for each required license or registration (California casino events: at least 30 days ahead)
- [ ] Confirm the club's insurance covers the event, including liquor liability if alcohol is served
- [ ] Set age limits and check IDs where the state requires it
- [ ] Staff the event with unpaid volunteers and prohibit tips
- [ ] Log volunteer and any paid hours for each game
- [ ] Collect Form W-9 from any winner at or above the reporting threshold for that game
- [ ] Record gross receipts and prizes by type of game (treasurer)
- [ ] File any state post-event report and include gaming income on the annual return

## Related Pages

- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) how state gaming exceptions work
- [Federal Tax Rules for Raffles](https://boosterclub.org/raffles/federal-rules/) W-2G, withholding, and Schedule G
- [Unrelated Business Income Tax for Booster Clubs](https://boosterclub.org/taxes/ubit/) the volunteer exception and Form 990-T
- [Running a Booster Club Fundraising Event](https://boosterclub.org/fundraising/events/) permits, insurance, and the post-event report
- [Alternatives When Raffles Are Not Allowed](https://boosterclub.org/raffles/opportunity-drawings-and-alternatives/) event formats without games of chance

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*This page is general information for volunteer-run booster clubs. It is not legal,
tax, or accounting advice, and BoosterClub.org is not a law firm, accounting firm, or
government agency. Rules change and vary by state and district. Confirm current
requirements with the IRS, the relevant state agency, the school district, and a
qualified professional before acting. If a fact on this page is out of date, we want
to know.*

## Sources

1. IRS: https://www.irs.gov/pub/irs-pdf/p3079.pdf
2. IRS: https://www.irs.gov/instructions/iw2g
3. IRS: https://www.irs.gov/publications/p598
4. IRS: https://www.irs.gov/instructions/i990ez
5. IRS: https://www.irs.gov/instructions/i990
6. IRS: https://www.irs.gov/instructions/i990sg
7. California Attorney General: https://oag.ca.gov/gambling/charitable
8. Tennessee Secretary of State: https://sos.tn.gov/charities/guides/charitable-gaming-event-faqs