New Jersey Ofce of the Attorney General
Division of Consumer Affairs
Legalized Games of Chance Control Commission
124 Halsey Street, P.O. Box 46000
Newark, N.J. 07101
(973) 273-8000
The Legalized Games of Chance Control Commission
Bingo and Rafe License Process Instructions
New Jersey allows certain types of gaming by specic types of non-prot organizations. There are detailed
licensing procedures that must be followed, as well as special restrictions on how the proceeds derived from
permitted games of chance may be used. Many non-prot groups that would qualify to conduct games of chance
are unaware of the licensing requirements imposed by law and the civil penalties that may be assessed for
conducting such gaming without a license.
A majority of gaming by non-prots is conducted in the form of bingo and rafes. Accordingly, this posting
focuses specically on gaming under the Bingo Licensing Law
1
and the Rafes Licensing Law
2
(together referred
to as bingo and rafes licensing laws), and the corresponding regulations established under them.
3
The Licensing Process
The bingo and rafes licensing laws provide a dual licensing mechanism, in which the municipality where the
gaming will be conducted ultimately issues the license to a qualied fund-raising organization. Thus, the location
where the gaming activity is going to be conducted is extremely important, because the particular municipality
determines whether the gaming will be permitted. The bingo and rafes licensing laws operate only in those
municipalities where they have been adopted by public referendum.
Organizations desiring to be licensed to conduct bingo or rafes must begin with the Legalized Games of Chance
Control Commission, established under the Department of Law and Public Safety to administer the bingo and
rafes licensing laws.
4
In order for an organization to apply for a municipal license, it rst must register with and obtain an “Identication
Number” from the Commission.
In order to register, the organization must submit a completed application, including a nonrefundable, biennial
registration fee of $100.00 dollars
5
; a copy of its constitution and bylaws; a list of the names, addresses and ages
of each member of its organization; and if incorporated, a copy of its articles of incorporation led with the
Secretary of State.
6
The Commission will then analyze whether the organization is a “qualied” non-prot organization, as discussed
on the following page.
(Revised 4/6/16)
Qualied Organizations
Not all non-prot organizations are qualied to conduct games of chance pursuant to the bingo and rafes
licensing laws. Qualied organizations include bona de organizations or associations of veterans of any war in
which the United States has been engaged, churches and or religious congregations and religious organizations,
charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs,
ofcially recognized volunteer re companies and ofcially recognized volunteer rst aid or rescue squads.
7
If the
Commission determines that an organization falls within one of the above categories, it will review the following:
1. Documentation indicating whether the organization is incorporated, whether it is incorporated in New Jersey
as a religious corporation or as an association not-for-pecuniary prot, and is empowered by its articles of
incorporation to further one or more of the authorized purposes dened by the regulations. If incorporated out
of the state of New Jersey, a form 12A must be completed;
2. Documentation showing that if it is not incorporated, whether it is organized in New Jersey as a religious or
other organization not-for-pecuniary prot, and is authorized by its written constitution, bylaws or charter to
further one or more of the authorized purposes;
3. Documentation indicating whether the organization is comprised of a membership of not less than ve (5)
persons;
4. Documentation indicating whether the organization relies primarily on funds from sources other than the
conduct of games of chance for furthering its authorized purpose
8
; and
5. A letter from the afliated national organization indicating that the organization is in good standing, and a
copy of the dissolution statement.
* If the application meets these criteria, the Commission will issue the organization an identication number,
which is valid for two years, allowing it to apply to a municipality for a license to conduct gaming. There is no
requirement in the bingo and rafes licensing laws or the regulations that the organization be a corporation which
is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986 as amended, in order
to be issued an identication number. Additionally, the term “membership” is not dened by the regulations, nor
is there any mechanism to obtain a waiver of the of the ve-member requirement. For these reasons, the Commission
has been reluctant to issue identication numbers to applicants which are not comprised of at least ve (5) persons
who possess voting power in the corporation or association.
The Municipal License
Neither registration nor assignment of an identication number entitles a qualied organization to hold or conduct
a game of chance. Organizations must rst obtain the approval of the municipality in which the game of chance
is to be held, operated or conducted.
The application led with the municipality in which the game will be held generally requires the same information
required by the Commission, together with a description of the gaming to be conducted, including a sample ticket,
if it is a rafe.
The application also must designate an active member or members of the organization under whose control the
game of chance will be conducted, including a statement by the member or members that they will be responsible
for the conduct of the game in accordance with the bingo and rafes licensing laws and the regulations if a license
is granted.
After a completed application has been led, the municipal governing body must investigate the merits of each
application and make specic ndings, including whether the applicant is in fact a qualied organization and
whether the designated member or members are bona de members of the organization, of good moral character
and have never been convicted of a crime.
9
If the municipal governing board makes the requisite ndings with respect to an application for a gaming license,
the board must adopt a resolution authorizing issuance of the license.
10
The license shall be valid for a period of
no more than one year from the date of issuance.
Conducting Bingo and Rafes
The regulation governing the conduct of bingo and rafes under the bingo and rafes licensing laws is quite
comprehensive. Detailed below are some fundamental requirements for conducting bingo or rafes which
licensees should be aware of.
The licensee must designate a specic representative who will be responsible for insuring that all gaming is
conducted in accordance with applicable statutes and regulations. Only bona de members of the organization may
operate the game, and no person can be paid for conducting or assisting in conducting the game. The exception to this
rule applies to Casino Night events that require trained licensed operators known as dealers. Proceeds derived from
gaming operations may be used only to further the organization’s authorized purpose. Furthermore, supplies necessary
to the gaming operation may be purchased or leased only from vendors approved by the Commission.
The bingo and rafes licensing laws also limit the prizes that may be awarded in the aggregate and in any one
particular game. Specically, no licensee may offer a prize having a retail value greater than $100,000 in any one
rafe conducted by drawing, or $500 in any rafe not conducted by drawing. Furthermore, no licensee shall offer
prizes that, in aggregate, amount to a value greater than $500,000 in any 12-month period. Finally, all tickets or
rights to participate in a rafe must be sold at a uniform unit price, and discounts for purchases of more than one
ticket are prohibited.
11
As for bingo games, no prize may be offered exceeding $1,000 in one particular game, nor
may prizes exceeding $3,000 in the aggregate for one occasion be offered.
12
As for the premises and equipment
used for bingo, unless the licensee is the sole owner, or it is donated, the person leasing the premises and equipment,
and the price for the same, must be approved by the Commission.
Report of Operations
No later than the 15th day of the calendar month following the month in which a game of chance is conducted, the
organization conducting the game and the member or members responsible for the conduct of the game must le
a report of operation with the Commission.
13
The report must include the gross receipts derived from each game;
the expenses incurred and to whom such amounts were paid; the net prot from each game; the uses to which the
net prot has been or will be applied; and a list of the prizes offered or given and the respective value of each.
Fines and Penalties
A violation of the bingo and rafes licensing laws or regulations carries a ne of up to $7,500 for a rst offense
and up to $15,000 for the second and each subsequent offense. In addition, the Commission is authorized to order
restitution to an aggrieved party.
14
All penalties may be collected in a summary manner pursuant to the Penalty
Enforcement Act.
15
Conclusion
New Jersey non-prot organizations can successfully raise funds through bingo or rafes. However, if the
organization does not adhere to the bingo and rafes licensing laws or the regulations, the penalty may wipe out
any prots realized. Care should be taken, therefore, to understand and comply with all of the applicable laws and
regulations.
Endnotes
1. N.J.S.A. 5:8-24 et seq.
2. N.J.S.A. 5:8-50 et seq.
3. N.J.A.C. 13:47-1.1
4. N.J.S.A. 5:8-1. et seq.
5. A senior citizen association or club requesting registration is exempt from the biennial registration fee.
N.J.A.C. 13:47-2.3(b).
6. N.J.A.C. 13:47-2.3(a).
7. N.J.S.A. 5:8-25 and 51.
8. An “authorized purpose” is an educational, charitable, patriotic, religious or public-spirited purpose, dened
to be a purpose that benets an indenite number of persons, either by bringing their minds or hearts under
the inuence of education or religion, by relieving their bodies from disease, suffering or constraint, by helping
them establish themselves in life, or by erecting or maintaining public buildings or works, or otherwise
lessening the burden of government, or in the case of a senior citizen association or club, the support of such
organization. An authorized purpose does not include the erection, acquisition, repair, improvement or
maintenance of property, real personal or mixed, unless such property is and shall be used exclusively for one
or more of the purposes stated above. N.J.A.C. 13:47-1-1.
9. N.J.S.A. 5:8-27 and 53.
10. Id.
11. N.J.A.C. 13:47-8.3 Note that these limits do not apply to on-premise rafes where all of the prizes are wholly
donated.
12. N.J.A.C. 13:47-7.2 Progressive Jackpot Bingo and 50/50 bingo games are not subject to this limitation.
13. N.J.S.A. 5:8-37 and 64.
14. N.J.S.A. These penalty provisions do not apply to violations that are committed by organizations that hold a
valid license at the time the offense is allegedly committed.
15. N.J.S.A. 2A:58-1 et seq.