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I just received this from the State Library and spoke with Christine McNew.
It apparently truly means free games for kids in libraries, parks, schools,
churches, etc. It includes Book Bingo, Loteria, and anything else that
sounds, looks, or walks like Bingo. 

Jeanette Larson

-----Original Message-----
From: Christine McNew [mailto:[EMAIL PROTECTED]
Sent: Monday, February 09, 2004 11:24 AM
To: [EMAIL PROTECTED]
Subject: [syscon-tx] License Required to Play Bingo in Libraries


Dear Librarians:

We have recently learned that a Texas public library is begin investigated
by the Lottery Commission for conducting an "illegal" bingo game. As you
plan your summer programs, please be aware that it is a third degree felony
subject to a $10,000 fine and 3 years of jail time to sponsor bingo without
a license.  The Bingo Enabling Act prohibits libraries, schools, and
non-profits from sponsoring any type of Bingo game without a license from
the Texas Lottery Commission; licenses are required for all types of bingo,
including Mexican bingo or loteria.  Licenses are only available to
organizations that hold a 501c exemption from the IRS and have been in
existence for at least 3 years.  Applying for a license may take 30-60 days.
Application forms are available online at <http://www.txbingo.org/>.  

According to the Lottery Commission, a license may cost from $100 to $2500
per year.  Libraries with bingo licenses must charge for bingo and must
collect taxes.  They must maintain records and file quarterly reports with
the Texas Lottery Commission.  A parent or legal guardian must be present
with all minors and the parent or legal guardian must claim the prizes.  For
more information on the Bingo Enabling Act, please visit the Texas Lottery
Commission web site at http://www.txbingo.org/bingo/bingo_enabling_act.htm.
Specificically, see Subchapter L. Enforcement, Sec. 2001.551. Unlawful
Bingo; Offense.  

For games nights, libraries may legally offer alternate games such as "Wheel
of Fortune" and cake walks.

Christine McNew
Youth Services Consultant
Texas State Library and Archives Commission

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