GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 988 Short Title: Revise Law on Instant Bingo. (Public) Sponsors: Representative Hawkins. For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Rules, Calendar, and Operations of the House April 14, 2025 *H988 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO REVISE THE LAWS GOVERNING INST ANT BINGO GAMES, TO REVISE 2 THE METHOD BY WHICH FUNDS RECEIVED IN CONNECTION WITH A BINGO 3 GAME MAY BE DISBURSE D, AND TO MAKE VARIO US TECHNICAL 4 CORRECTIONS. 5 The General Assembly of North Carolina enacts: 6 SECTION 1. G.S. 14-309.6 reads as rewritten: 7 "§ 14-309.6. Definitions. 8 For purposes of this Part, the term:following definitions apply: 9 (1) "Exempt organization" means anExempt organization. – An organization that 10 has been in continuous existence in the county of operation of the bingo game 11 for at least one year and that is exempt from taxation under section 501(c)(3), 12 501(c)(4), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal 13 Revenue Code and is exempt under similar provisions of the General Statutes 14 as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic or 15 veterans' organization or as a nonprofit volunteer fire department, or as a 16 nonprofit volunteer rescue squad or a bona fide homeowners' or property 17 owners' association. (If the organization has local branches or chapters, the 18 term "exempt organization" means the local branch or chapter operating the 19 bingo game);game). 20 (2) "Bingo game" means aBingo game. – A specific game of chance played with 21 individual cards having numbered squares ranging from one to 75, in which 22 prizes are awarded on the basis of designated numbers on such cards 23 conforming to a predetermined pattern of numbers (but shall not include 24 "instant bingo" which is a game of chance played by the selection of one or 25 more prepackaged cards, with winners determined by the appearance of a 26 preselected designation on the card);numbers. This term includes instant 27 bingo. 28 (2a) Instant bingo. – A game of chance played by the selection of one or more 29 predesignated paper or digital tickets, with winners determined by the 30 appearance of a preselected designation on the ticket. 31 … 32 (4) "Local law-enforcement agency" means forLocal law enforcement agency. – 33 For any bingo game conducted outside the corporate limits of a municipality 34 General Assembly Of North Carolina Session 2025 Page 2 House Bill 988-First Edition or inside the corporate limits of a municipality having no municipal police 1 force:force, this term means either of the following: 2 a. The county police force; orforce. 3 b. The county sheriff's office in a county with no county police 4 force;force. 5 (5) "Local law-enforcement agency" means theLocal law enforcement agency. – 6 The municipal police for any bingo game conducted within the corporate 7 limits of a municipality having a police force;force. 8 (6) "Beach bingo games" means bingoBeach bingo games. – Bingo games which 9 have prizes of ten dollars ($10.00) or less or merchandise that is not 10 redeemable for cash and that has a value of ten dollars ($10.00) or less; 11 andless. This term does not include instant bingo. 12 (7) "Licensed exempt organization" means anLicensed exempt organization. – An 13 exempt organization which possesses a currently valid license. 14 (8) "Nonprofit organization" means anNonprofit organization. – An organization 15 or association recognized by the Department of Revenue as tax exempt 16 pursuant to G.S. 105-130.11(a), or any bona fide branch, chapter, or affiliate 17 of that organization." 18 SECTION 2. G.S. 14-309.8 reads as rewritten: 19 "§ 14-309.8. Limit on sessions. 20 The number of sessions of bingo conducted or sponsored by an exempt organization shall be 21 limited to two sessions per week and such sessions must not exceed a period of five hours each 22 per session. No two sessions of bingo shall be held within a 48-hour period of time. No more 23 than two sessions of bingo shall be operated or conducted in any one building, hall or structure 24 during any one calendar week and if two sessions are held, they must be held by the same exempt 25 organization. This section shall not apply to bingo games conducted (i) at a fair or other 26 exhibition conducted pursuant to Article 45 of Chapter 106 of the General Statutes.Statutes or 27 (ii) by an organization exempt from taxation under section 501(c)(8), 501(c)(10), or 501(c)(19) 28 of the Internal Revenue Code." 29 SECTION 3. G.S. 14-309.9(a) reads as rewritten: 30 "(a) TheExcept as otherwise provided in this section, the maximum prize in cash or 31 merchandise that may be offered or paid for any one game of bingo is five hundred dollars 32 ($500.00). The maximum aggregate amount of prizes, in cash and/orcash, merchandise, or cash 33 and merchandise, that may be offered or paid at any one session of bingo is one thousand five 34 hundred dollars ($1,500). Provided, however, that if an exempt organization holds only one 35 session of bingo during a calendar week, the maximum aggregate amount of prizes, in cash 36 and/orcash, merchandise, or cash and merchandise, that may be offered or paid at any one session 37 is two thousand five hundred dollars ($2,500). The maximum prize in cash or merchandise that 38 may be offered or paid for any one game of instant bingo is six hundred dollars ($600.00)." 39 SECTION 4. G.S. 14-309.10 reads as rewritten: 40 "§ 14-309.10. Operation of bingo. 41 (a) The operation of bingo games shall be the direct responsibility of, and controlled by, 42 a special committee selected by the governing body of the exempt organization in the manner 43 provided by the rules of the exempt organization. 44 (b) Only organizations exempt from taxation under section 501(c)(8), 501(c)(10), or 45 501(c)(19) of the Internal Revenue Code may conduct instant bingo. 46 (c) Paper instant bingo tickets shall comply with the standards for instant bingo tickets 47 or cards established by the North American Gaming Regulators Association, as amended from 48 time to time. 49 General Assembly Of North Carolina Session 2025 House Bill 988-First Edition Page 3 (d) Prior to use, electronic instant bingo systems shall be tested by an independent gaming 1 test laboratory and certified as compliant with the GLI-14 standard produced by Gaming 2 Laboratories International, LLC." 3 SECTION 5. G.S. 14-309.11 reads as rewritten: 4 "§ 14-309.11. Accounting and use of proceeds. 5 (a) All funds received in connection with a bingo game shall be placed in a separate bank 6 account. No funds may be disbursed from this account except the exempt organization may 7 expend proceeds for prizes, advertising, utilities, and the purchase of supplies and equipment 8 used in conducting the raffle and in playing bingo, taxes and license fees related to bingo 9 andbingo, the payment of compensation as authorized by G.S. 14-309.7(c)14-309.7(c), and for 10 the purposes set forth below for the remaining proceeds. Such payments shall be made by 11 consecutively numbered checks.checks or by electronic funds transfer. Any proceeds available 12 in the account after payment of the above expenses shall inure to the exempt organization to be 13 used for religious, charitable, civic, scientific, testing, public safety, literary, or educational 14 purposes or for purchasing, constructing, maintaining, operating or using equipment or land or a 15 building or improvements thereto owned by and for the exempt organization and used for civic 16 purposes or made available by the exempt organization for use by the general public from time 17 to time, or to foster amateur sports competition, or for the prevention of cruelty to children or 18 animals, provided that no proceeds shall be used or expended for social functions for the members 19 of the exempt organization. 20 (b) An audit of the account required by subsection (a) of this section shall be prepared 21 annually for the period of January 1 through December 31 or otherwise as directed by the Alcohol 22 Law Enforcement Division of the Department of Public Safety and shall be filed with the 23 Division and the local law-enforcement agency at a time directed by the Division. The audit shall 24 be prepared on a form approved by the Division and shall include all of the following 25 information: 26 (1) The number of bingo games conducted or sponsored by the exempt 27 organization;organization. 28 (2) The location and date at which each bingo game was conducted and the prize 29 awarded;awarded. 30 (3) The gross receipts of each bingo game;game. 31 (4) The cost or amount of any prize given at each bingo game;game. 32 (5) The amount paid in prizes at each session;session. 33 (6) The net return to the exempt organization; andorganization. 34 (7) The disbursements from the separate account and the purpose of those 35 disbursements, including the date of each transaction and the name and 36 address of each payee. 37 …." 38 SECTION 6. This act becomes effective October 1, 2025, and applies to bingo 39 games conducted on or after that date. 40