Gambling Filing Requirements

Posted on 4/12/2022 admin

NOTICE: The DIA website is available only for filing an online annual gambling report. If you want to apply for a social or charitable gambling license, you will need to fill out a paper application. Please download the appropriate application below and mail the completed packet including payment to our office.

Your filing requirements to prepare and eFile a 2020 federal income tax return by April 15, 2021 depends on the following factors: Filing Status, Taxable Income, and your Dependency Status. Reason to File a Return: Let's say a single person without a qualified child(ren) had a total of $7,900 taxable income in 2020 and was born in 1994 or before. Gambling Income Tax Requirements for Nonresidents. Nonresidents can usually report income that is 'effectively connected' with a U.S. Business on Form 1040NR-EZ. Gambling winnings, however, are considered to be 'not effectively connected' and must generally be reported on Form 1040NR. Such income is generally taxed at a flat rate of 30%.

You may obtain a paper copy of the annual gambling report by contacting our office either by phone at 515.281.6848 or by email at scg@dia.iowa.gov. This report is due on Jan. 31 each year and covers the previous calendar year. A notice is mailed in early January each year to all nonprofit organizations that had a license at any point during the reporting period. The notice includes instructions on where and how to complete the annual report.

The Social and Charitable Gambling Unit administers Iowa Code Chapter 99B, which regulates games of skill or chance, raffles, bingo, social gambling and amusement devices. Qualified organizations may obtain a social or charitable gambling license to conduct fund-raising activities benefiting educational, civic, public, charitable, patriotic, or religious purposes.

Sales Tax Information

Gambling receipts are subject to Iowa sales tax, even for nonprofit organizations. All taxes are payable to the Iowa Department of Revenue, and should not be submitted to DIA. More information about taxes on gambling receipts can be found on the Iowa Department of Revenue website.

Types of Gambling Licenses

Dependent Filing Requirements. Your dependent may be required to file a tax return if their income is within the IRS filing requirements.To determine if your dependent is required to file a return, use our FILEucator Tax Tool. The filing requirements pertaining to: (i) IRS Form W-2G, Certain Gambling Winnings; (ii) IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding; or (iii) IRS Forms 1099-Misc, Miscellaneous Income (e.g., pertaining to prizes or awards) are particularly relevant here.

In order to conduct charitable gambling activities, a nonprofit organization will first need to obtain a Charitable Gambling License. The Charitable Gambling License applications describe the various types of gambling activity that are permitted by the licensees. The only gambling activities authorized under these licenses are bingo, raffles, and games of skill and chance.

A license must be issued by DIA before gambling takes place, including the promotion and sale of tickets. Applications should be received by DIA at least 30 days prior to the intended start of activity.

The type of license you need will depend on the period of time for which you plan to conduct gambling activity in your organization.

Qualified Organization License, 14-Day($15)
Qualified Organization License, 90-Day($40)
Qualified Organization License, 180-Day($75)
Qualified Organization License, One-Year($150)
Qualified Organization License, Two-Year($150)
Bingo at a Fair or Festival License($50)
Very Large Raffle License ($100)

License Type/Gambling Activity Permitted	Two-Year Qualified Organization*	One-Year Qualified Organization	180-Day Qualified Organization	90-Day Qualified Organization	14-Day Qualified Organization	Bingo at a Fair or Festival
Bingo	Three occasions per week/15 occasions per month	Not allowed	Not allowed	Not allowed	Two total occasions	One occasion per day for length of event
Games of Skill & Chance	Unlimited carnival-style games	Not allowed	Not allowed	Not allowed	Unlimited carnival-style games	Not allowed
Game Night	One per calendar year	One per calendar year	One per calendar year	One per calendar year	One per calendar year	Not allowed
Very Small/ Small Raffles	Unlimited	Unlimited	Unlimited	Unlimited	Unlimited	Not allowed
Large Raffles	One per calendar year	Eight per license period w/each raffle conducted in a different county	One per calendar year	One per calendar year	One per calendar year	Not allowed
Very Large Raffles**	One per calendar year w/additional Very Large Raffle License	One per calendar year w/additional Very Large Raffle License	Not allowed	Not allowed	Not allowed	Not allowed
Electronic Raffles	One small raffle per day; One large raffle per calendar year	Not allowed	Not allowed	Not allowed	Not allowed	Not allowed

*An organization requesting a Two-Year Qualified Organization License must have been in existence for at least five years.
**In addition to a One-Year or Two-Year Qualified Organization License, organizations wishing to conduct a Very Large Raffle will need to complete a separate Very Large Raffle License Application.

Definitions

Bingo Conducted at a Fair or Community Festival – License that allows bingo to be conducted for the duration of a fair or community festival of no more than six consecutive days in length held by a community group. Bingo occasions held under this license shall not be counted in determining whether a qualified organization has conducted the maximum three occasions per week or 15 occasions per month.
Community Festival – A festival of no more than six consecutive days in length held by a community group.
Community Group – An Iowa nonprofit, tax-exempt organization which is open to the general public and established for the promotion and development of the arts, history, culture, ethnicity, historical preservation, tourism, economic development, festivals or municipal libraries. “Community group” does not include a school, college, university, political party, labor union, fraternal organization, church, convention or association of churches or organizations operated primarily for religious purposes, or which are operated, supervised, controlled or principally supported by a church, convention of association of churches.
Games of Skill and Chance – Includes but not limited to carnival-style games. They do not include casino-style games (See Game Night).
Game Night – An event at which casino-style games may be conducted, in addition to games of skill and games of chance, within one consecutive 24-hour period.
Raffle – A lottery in which each participant buys an entry for a chance at a prize with the winner determined by a random method and the winner is not required to be present to win. For raffles, the license duration must include your advertising, ticket sales, and drawing of the winner(s). A combination of licenses may be used to obtain the requested length of time.
Very Small Raffle – A raffle where the total value of cash and/or merchandise prizes is $1,000 or less and the value of all entries sold is $1,000 or less, or the total value of donated merchandise prizes is $5,000 or less and the value of all entries sold is $5,000 or less.
Small Raffle – A raffle where the total value of cash and/or prizes is more than $1,000 but not more than $10,000.
Large Raffle – A raffle whether the total value of cash and/or prizes is more than $10,000 but not more than $100,000.
Very Large Raffle – A raffle where the total value of cash and/or prizes is more than $100,000 but not more than $200,000 or if the prize is real property.

Social Gambling License for Beer and Liquor Establishments

Authorizes small stakes card and parlor games between individuals (i.e., euchre, hearts, pitch, pinochle, gin rummy, poker, cribbage, pepper, darts, and billiards). Additionally, this license allows the establishment to conduct sports betting pools.

A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity.

License duration: Two years
Cost: $150

Access the Social Gambling License Application.

Social Gambling License for Public Place, No Alcohol Allowed

Authorizes patrons to socially gamble amongst themselves in the licensed establishment on small stakes card and parlor games (i.e., euchre, hearts, pitch, pinochle, gin rummy, poker, cribbage, pepper, darts, and billiards). This license does not allow sports betting pools.

A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity.

License duration: Two years
Cost: $100

The following activities are NOT permissible under this license:

Raffles
Bingo
Poker tournaments
Poker runs
Roll-of-the-day
Bookmaking
Casino-style games other than poker

Access the Social Gambling License Application.

Iowa Code section 99B.6(7) permits the those with a two-year Social Gambling License for Beer and Liquor Establishments (see tab above) to conduct a sports betting pool under certain circumstances. There is no additional cost to conduct a sports-betting pool.

'Amusement concession' means a game of skill or game of chance with an instant win possibility where, if the participant completes a task, the participant wins a prize. 'Amusement concession' includes but is not limited to carnival-style games that are conducted by a person for profit. 'Amusement concession' does not include casino-style games or amusement devices required to be registered pursuant to section 99B.53.

Games may only be conducted after a license has been issued by DIA. Applications should be received by DIA at least 30 days prior to the intended start of activity.

Gambling Filing Requirements California

License duration: One year
Cost: $50 per game

Gambling Winnings Filing Requirements

View or download the Amusement Concession License Application.