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Can I offer contests that involve charity donations in Nebraska? What are the requirements?

Requirements for Offering Contests Involving Charity Donations in Nebraska

In Nebraska, contests that involve charity donations are considered a form of gambling and are subject to regulation by the Nebraska Department of Revenue, Charitable Gaming Division [2.1]. To offer such contests, you must obtain a license from the Department and comply with the Nebraska Bingo Act and Regulations [2.1].

To obtain a license, you must submit an application to the Department that includes information about your organization, the location where the contest will be held, the prizes to be awarded, and the amount of the entry fee or suggested donation [2.1]. The Department will review your application and may require additional information before issuing a license [2.1].

In addition to obtaining a license, you must comply with the requirements for conducting bingo under a Class I or Class II license, depending on the amount of gross receipts from the contest [2.1]. These requirements include obtaining a license for at least one member of your organization to serve as the utilization of funds member and, if applicable, obtaining a license for at least one individual to serve as the gaming manager [2.1].

You must also comply with the requirements for conducting bingo under a Class II license if your gross receipts from the contest exceed $100,000 for the annual reporting period July 1 through June 30 [2.1]. These requirements include discontinuing the use of any reusable hard bingo card or shutter card and adhering to all regulations and requirements for a Class II bingo licensee [2.1].

Matching Funds

If you are using matching funds for your charity donations, you must follow the guidelines set forth by the Nebraska Arts Council or the Nebraska Humanities Council [3.1]. The guidelines specify what constitutes new money for endowments established by the NAC or the NHC to be used as match [3.1]. The guidelines also specify what types of designated funds can be included as part of the match [3.1].

Conclusion

To offer contests that involve charity donations in Nebraska, you must obtain a license from the Nebraska Department of Revenue, Charitable Gaming Division, and comply with the Nebraska Bingo Act and Regulations. The requirements for obtaining a license and conducting the contest depend on the amount of gross receipts from the contest. If you are using matching funds, you must follow the guidelines set forth by the Nebraska Arts Council or the Nebraska Humanities Council.

Source(s):
Jurisdiction

Nebraska