Tax Compliance: Hosting Charitable Gaming Events

ARTICLE | March 03, 2025

Authored by Vasquez + Company

Charitable events involving games of chance, such as bingo, raffles, and casino nights, have become a popular way for nonprofit organizations to attract supporters and boost fundraising. These lively gatherings mix social engagement with the thrill of wagering, creating memorable experiences and helping causes generate significant revenue. However, hosting gaming activities enters a space that is firmly regulated at both federal and state levels. Nonprofits must pay close attention to a variety of tax and reporting rules. Otherwise, they risk costly penalties and unwanted scrutiny. Understanding and complying with these requirements is key to a successful—and legally sound—fundraiser.

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Gaming-based fundraisers can offer a winning combination of entertainment and philanthropy. Yet, they operate in a regulated realm that demands careful attention to details like unrelated business income, excise taxes, participant reporting, and tax withholding. Moreover, many states and localities add their own licensure and banking mandates. When charitable gaming is well-structured and compliant, it can create a positive experience, generate crucial revenue for worthy causes, and maintain the public trust that nonprofits work so hard to build. As you plan your next casino night or raffle, remember to consult with professional advisors, stay current on changing regulations, and maintain comprehensive documentation. By doing so, nonprofits can continue to bring people together around good causes—legally, responsibly, and successfully.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.