The Bingo Act 1996

The Bingo Act of 1996 implements a wide variety of substantial changes to the bingo laws that indirectly effects playing bingo online. The main changes include: 

All bingo operators will be required to obtain their bingo cards / paper by first paying the bingo tax to the Department of Revenue. 

Upon payment of the bingo tax, the Department of Revenue will authorize a qualified distributor to sell bingo cards/paper to the bingo operator. However, the bingo cards may be obtained in advance so long as the fee is paid by certified check within 15 days of obtaining the bingo cards. No more bingo cards can be sold until the fees have been paid on the prior purchase of bingo cards. 

The Department of Revenue must collect 16.5 cents per dollar face value of the bingo cards (except for Class C nonprofit organizations.) Twenty-six percent of this revenue will be distributed to the sponsoring charities, with the remainder distributed in accordance with the statute for governmental purposes. 

The Department of Revenue will make distributions to the sponsoring charities from the tax received by the last day of the month following the month the revenue was collected. 

A bingo promoter is limited to five licenses. Prior law allowed the bingo promoter to have ten licenses. 

At least fifty percent of the gross proceeds for the sale of bingo cards must be returned to the bingo players in the form of prizes. 

A bingo operation may take in only two times more in gross proceeds that the prize money for that session. Any excess over that amount is subject to a tax, equal to the amount of the excess. The excess must be remitted with the quarterly financial report filed with the Department of Revenue. The bingo tax, including the "excess portion" tax is distributable in accordance with Code Section 12-21-4190. 

In addition to the price of the bingo cards, a bingo operation must charge an entrance fee as follows: Class AA -$18; Class B -$5; Class C -no entrance fee. Class D and Class E may impose a fee at their option as follows: Class D -$5 and Class E -$5. 

No more that one nonprofit organization may operate bingo in a building.  Bingo cards cannot be sold or transferred among other bingo organizations, distributors, or manufacturers. 

Manufacturers and distributors of bingo cards must be licensed. The manufacturer's license will be $5,000 per year and the distributor's license will be $2,000 per year. Bingo manufacturers and distributors will be required to file a quarterly report with the Department of Revenue. 

Manufacturers, distributors, organizations and promoters may only be licensed in one capacity. For example, promoters cannot be distributors and manufacturers cannot be distributors. 

All bingo licenses, regardless of the date of issue, will expire after September 30, 1997. A new application must be submitted for each organization. The new license will become effective October 1, 1997. 

A nonprofit organization must be organized and operated for charitable, religious, or fraternal purposes and must be exempt from federal income taxes as wither a 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19) organization. Nonprofit organizations not meeting these criteria may not conduct bingo in South Carolina.  Bingo Games may only occur between the twelve hour period of one o'clock p.m. and one o'clock a.m.

The nonprofit organization must notify the Department of Revenue of a change in the time and place of the bingo game at least thirty days prior to the change.