Charitable Games Tax & License Fees

Statutory Reference

230 ILCS 30/1 to 30/15

Regulations

Part 435

Definition

The tax is imposed on the gross proceeds of charitable games. Annual license fees are imposed on operators, suppliers, and providers of such games.

Fourteen games are permitted: bang, beat the dealer, big six, blackjack, chuck-a-luck, craps, five-card stud poker, gin rummy, hold-em poker, keno, merchandise wheel, poker, pull tabs, and roulette. Profits from the games must be used to support the organization’s goals, such as charitable work or education. A licensed organization may hold up to four charitable game events per year.

For a group to be eligible to conduct charitable games, it must

be a religious, charitable, educational, veterans’, fraternal, or labor organization;
have been in existence in Illinois for at least five years (may be reduced to two years in certain circumstances);
operate without profit to its members; and
already be exempt from federal income taxation under Internal Revenue Code, Section 501(c)(3), (4), (5), (8), (10), or (19).

Note: Veterans’ organizations that are eligible to hold a bingo license are also eligible for a charitable game license without regard to federal tax status.

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