Bingo is not outright illegal in South Carolina under the 2026 statutes, but it is tightly limited to qualified charitable or religious organizations that obtain the proper licensing. Any game that falls outside those parameters—such as for-profit bingo halls or unauthorized online platforms—remains prohibited and can trigger criminal penalties. The key is whether the activity meets the state’s definition of “charitable bingo” and follows the newly clarified permitting process.
What the 2026 Legislative Updates Entail
The 2026 amendment to South Carolina Code § 16‑5‑10 clarifies that bingo may be conducted only by entities recognized as charitable, religious, or educational. It adds a mandatory registration deadline of June 1 each year and imposes a flat fee of $150 for a statewide license. The law also expands enforcement authority to the Department of Revenue, allowing surprise inspections and electronic monitoring of digital bingo streams.
How South Carolina Defines Legal Bingo
Legal bingo is defined as a game of chance in which participants purchase cards marked with numbers, and a caller announces randomly drawn numbers. The proceeds must be allocated at least 90 percent to the sponsoring organization’s charitable purpose, with the remainder covering allowable costs. Any prize exceeding the value of a purchased card, or any cash payout not directed to a charitable fund, disqualifies the game from the exemption.
Permits and Exceptions for Nonprofit Organizations
Nonprofit groups must file Form B‑2026 with the Department of Revenue, attach proof of tax‑exempt status, and publish a notice of the intended bingo event in a local newspaper at least 30 days in advance. Religious congregations are exempt from the publication requirement but still need the state license. Schools may conduct bingo as a fundraising activity only if the event occurs on campus and all proceeds are earmarked for school programs.
Enforcement and Penalties
Violations are classified as a misdemeanor of the first degree, punishable by up to one year in jail and a fine of $2,500 per incident. Repeated offenses trigger a felony charge and potential revocation of the organization’s tax‑exempt status. The Department of Revenue can also impose civil penalties of $500 for each unlicensed game detected during an audit.
Practical Steps for Operators
- Verify nonprofit status with the South Carolina Secretary of State.
- Submit the licensing application before June 1 and retain the confirmation number.
- Keep detailed records of ticket sales, prize payouts, and expense allocations for at least three years.
- Train staff to use the state‑approved bingo software that timestamps each draw.
- Conduct a pre‑event self‑audit to ensure compliance with the 90‑percent charitable allocation rule.
Can a for‑profit business run bingo if it partners with a charity?
No. The law requires the sponsoring entity itself to be a qualified nonprofit. Merely partnering with a charity does not satisfy the licensing criteria and the game would be illegal.
Are online bingo platforms subject to the same rules?
Yes. The 2026 amendment expressly includes digital bingo conducted over the internet, requiring the same charitable licensing and allocation standards as in‑person games.
What qualifies as a “charitable purpose” under the statute?
Qualifying purposes include relief of poverty, advancement of education, religious worship, or any activity recognized by the IRS as charitable under Section 501(c)(3).
How often must a licensed organization renew its bingo permit?
Licenses are issued annually and must be renewed by May 31 each year. Failure to renew results in immediate suspension of bingo activities.
What evidence does the Department of Revenue request during an inspection?
Inspectors typically request the original license, financial ledgers showing ticket sales, receipts for prizes, and a copy of the published notice or exemption documentation for religious groups.