Lotteries; Bingo; Municipalities; Special Use Permit for Bingo Establishment

February 26, 1981 Subject: Lotteries; Bingo; Municipalities; Special Use Permit for Bingo Establishment. Requested By: W. Harrell Everett, Jr. City Attorney Goldsboro, North Carolina Question: Where a city ordinance required applicants to provide sufficient evidence that they comply with the requirements of G.S. 14-292.1 (North Carolina’s Bingo and Raffles law) to qualify for a special use permit to operate a bingo establishment within its city limits, may a city Board of Aldermen deny issuance of the permit to a for-profit corporation where the corporation admits that its not a tax-exempt organization as defined in G.S. 14-292.1(b)(1) and states that its cash prize would be in excess of $10.00 per game? Conclusion: Yes. Generally, G.S. 14-292.1 allows certain exempt organizations as defined by G.S. 14-292.1(b)(1) to operate bingo games and raffles pursuant to G.S. 14-292.1(a) through (k). G.S. 14-292.1(1) allows any person or entity to operate bingo games where the prize value in cash or merchandise is ten dollars ($10.00) or less per bingo game. Although a for-profit corporation may comply with G.S. 14-292.1(1), it cannot comply with G.S. 14-292.1(b)(1) which defines the type of exempt organization permitted to operate bingo games and raffles in accordance with G.S. 14-292.1(a) through (k). Therefore, a city Board of Aldermen can deny issuance of a special use permit to operate a bingo establishment to a for-profit corporation where the corporation admits that it is not a tax-exempt organization as defined by G.S. 14-292.1(b)(1) and states that its cash prize would be in excess of ten dollars ($10.00) per game. Rufus L. Edmisten Attorney General Acie L. Ward Assistant Attorney General