Contact:
Neil Watson
Public Information Officer
neil.watson@nebraska.gov
402-471-6120
The Nebraska Legislature has enacted laws to provide Nebraska nonprofit organizations and local municipalities a means to raise funds for charitable and community betterment purposes through the conduct of certain gaming activities. The charitable gaming activities authorized for nonprofit organizations are bingo, the sale of pickle cards (pull-tabs), and ticket drawings for either cash prizes (lotteries) or merchandise prizes (raffles). In addition, counties, cities, and villages are authorized to conduct keno lotteries.
Since 1986, the Nebraska Department of Revenue Charitable Gaming Division has been responsible for the licensing and regulation of those interested in conducting charitable gaming activities, for overseeing the proper conduct of games, and for insuring the profits are used in a lawful manner. The Charitable Gaming Division is self-supported through a portion of licensing fees and the various gaming taxes imposed by the Legislature. No state general funds are used to regulate charitable gaming.
Are any other forms of gaming (gambling) allowed under Nebraska law?
Only those forms of gambling authorized by the Nebraska Constitution and Nebraska statutes can legally be conducted in our state. In addition to bingo, pickle cards, nonprofit lotteries and raffles, and local option keno, Nebraska law also permits horse racing when conducted at licensed racetrack facilities (this also includes intrastate and interstate simulcasting), and a state-operated lottery (scratch tickets, Powerball®, and other on-line games). All other forms of gambling are illegal.
Gambling by telephone or over the Internet is a violation of state and federal law, and individuals or entities engaging in this illegal activity could be subject to criminal prosecution.
What constitutes “Gambling”?
Gambling activities consist of three elements: Consideration, Chance, and Reward. When a person “wagers” something of value (consideration), for the opportunity to win a prize (reward), and the winner of the prize is determined by some random factor (chance), you have gambling.
Only qualifying nonprofit organizations who have obtained the proper licenses or permits are allowed to conduct bingo, sell pickle cards, or hold a lottery or raffle. Only counties, cities, and villages whose citizens have approved a lottery in an election can be licensed to conduct keno. Businesses which hold a retail liquor license may be licensed to sell pickle cards on behalf of nonprofit organizations. Local businesses may be licensed as sales outlet locations for keno, if approved by the sponsoring county, city, or village.
Help for compulsive gambling is available through the Compulsive Gambling Help Line: 800-426-2537 (800-GAMBLER).
In
1977, Nebraska became the first state to authorize “local option
lotteries” to be conducted by counties, cities, and villages for the
purpose of raising funds for community betterment
purposes. Although other forms of local option lotteries (such as
ticket drawings, video poker, and even scratch-offs) have come and gone
with law changes over the years, keno has been the most enduring form of
local option lottery and now represents roughly 70% of the total
charitable gaming dollars wagered in our state. It is said that the
game of keno was brought to the United States in the mid-to-late 1800s
by Chinese immigrants who came to work on the railroads or in the gold
and silver mines. The game was referred to then as the Chinese
Lottery. The first keno game in Nebraska was operated by the City
of Bellevue and was a manual game. Today, there are over 145
counties, cities, and villages which are licensed to conduct a keno
lottery. Computerized keno systems are now required to be used, and
businesses which operate keno on behalf of a county, city, or village
are required to be licensed as lottery operators or sales outlet
locations. Manufacturers of computerized keno systems and related
equipment are also licensed, and the systems and equipment are tested
and approved by the Charitable Gaming Division. You must be at least 19
years of age to play keno or to work at a keno lottery, and individuals
who work at keno games are also licensed.
Click here for a historical perspective of county/city lottery (keno).
Lotteries and raffles are a way to raise funds for charity. In order to legally conduct a lottery or raffle in Nebraska, you must be a qualifying nonprofit organization. It is not sufficient to simply give all the money you raise to charity; a charity must actually be involved in running the activity from the beginning. Some lotteries and raffles (while not all) may need to be licensed. In general, a lottery awards cash prizes, while a raffle awards merchandise prizes. If gross lottery ticket sales will exceed $1,000, or gross raffle ticket sales will exceed $5,000, the nonprofit organization must first apply for and be issued a license by the Charitable Gaming Division. Lotteries and raffles that do not require a license do not have any age restrictions. However, when an activity is licensed, you must be 18 years of age to participate unless a special permit has been issued by the Charitable Gaming Division.
Bingo has been a legal form of charitable gaming in Nebraska since 1958. Bingo can be found in almost every county in Nebraska, from church basements to fraternal clubs, and town celebrations to commercial bingo halls. But regardless of the town or the size of the crowd, any time (a) a charge is required in order to play bingo, or (b) a prize with a value over $25 is awarded, a bingo license or permit is required. Depending on how often bingo is played, and how much revenue is generated on a yearly basis, different classes of licenses and permits are available. Certain individuals involved in conducting bingo, like the gaming manager and utilization of funds member, must obtain licenses. Manufacturers and distributors of bingo equipment are also required to be licensed. In general, you must be 18 years of age to play or help conduct bingo.
Click here for a chronology of state and local bingo taxes.
“Pickle cards” are better known as “pull-tabs” to the rest of world, but as Nebraskans we prefer to be unique. The origin of the term “pickle card” comes from the days when they were sold illegally in taverns and bars across Nebraska. The cards were kept in large empty “pickle jars” which could easily be skirted out of sight. Today, pickle cards are sold legally by hundreds of licensed nonprofit organizations at their bingo games, club facilities, and on behalf of licensed organizations through convenience stores, bars, and restaurants licensed as “pickle card operators.” An individual called a “sales agent,” who represents the licensed organization and who must also obtain a license, sells and delivers pickle cards to the pickle card operators. Pickle cards are often still sold over the counter, but more frequently and conveniently, they are sold through vending machines called pickle card dispensing devices. The manufacturers and distributors of these games are licensed, and the Charitable Gaming Division approves each kind of pickle card sold. As with bingo, you must be 18 years of age to play or sell pickle cards.
Click here for a chronology of the state pickle card tax.
Charitable gaming proceeds benefit people across Nebraska. In fiscal year 2009-2010, $21.4 million in proceeds were reported to the Charitable Gaming Division as available for community betterment. Examples of community betterment projects include:
Permitted uses of charitable gaming funds are specifically defined in the regulations for each charitable gaming activity.
| FYE 6/2003 | FYE 6/2004 | FYE 6/2005 | FYE 6/2006 | FYE 6/2007 | |
| Keno | $179,518,444 | $182,190,233 | $181,255,946 | $185,340,795 | $196,210,843 |
| Pickle Cards | 62,559,488 | 57,510,542 | 50,819,571 | 45,943,737 | 41,620,943 |
| Bingo | 16,558,843 | 15,370,116 | 14,268,212 | 14,051,926 | 12,179,641 |
| Lottery and Raffle | 5,168,480 | 4,860,299 | 5,545,781 | 5,432,488 | 6,061,004 |
| Totals | $ 263,805,255 | $ 259,931,190 | $ 251,889,510 | $ 250,768,946 | $ 256,072,431 |
| FYE 6/2008 | FYE 6/2009 | FYE 6/2010 | FYE 6/2011 | FYE 6/2012 | |
| Keno | $210,833,663 | $203,508,702 | $185,461,253 | $195,798,422 | $203,810,243 |
| Pickle Cards | 40,737,874 | 37,624,821 | 30,752,495 | 28,771,868 | 28,521,223 |
| Bingo | 10,932,502 | 10,516,491 | 9,427,780 | 8,900,653 | 8,134,470 |
| Lottery and Raffle | 5,951,688 | 5,876,642 | 6,820,938 | 6,993,205 | 6,863,176 |
| Totals | $ 268,455,727 | $ 257,526,656 | $ 232,462,466 | $ 240,464,148 | $ 247,329,112 |
The links in the above table refer to the Charitable Gaming Annual Report for that fiscal year. Click here for a listing of available Annual Reports.
Effective Date |
Law |
Tax Rate on Gross Receipts |
|
Regulatory Authority |
06/18/1959 |
9-113 |
-Local county, city, or village tax* |
10% |
Governor |
06/24/1969 |
9-113 |
-State tax collected by Tax Commissioner |
5% |
Tax Commissioner |
07/22/1978 |
9-165 |
-Local county, city, or village tax* |
5%
|
State Treasurer's office |
08/26/1983 |
9-165 |
-State tax |
6% |
Bingo and Pickle Card Commission |
07/17/1986 |
-State tax |
6% |
Dept of Revenue, Charitable Gaming Division |
|
10/01/1990 |
-State tax |
6% |
|
|
10/01/1997 |
-State tax |
3% |
|
|
01/01/1999 |
-State tax |
3% |
|
*If bingo game operated within city or village limits, city or village receives tax. If operated outside city or village limits, county receives tax.
Effective Date |
Law |
Tax Rate |
Regulatory Authority |
08/26/1983 |
9-184 |
2%of Gross Proceeds plus $2 per unit |
Bingo and Pickle Card Commission |
06/17/1986 |
2% of Gross Proceeds |
Dept of Revenue, Charitable Gaming Division |
|
07/01/1986 |
3% of Gross Proceeds |
|
|
01/01/1988 |
20% of Definite Profit* |
|
|
01/01/1989 |
13% of Definite Profit* |
|
|
01/01/1990 |
10% of Definite Profit* |
|
* Definite Profit means the gross proceeds less prizes