AN ACT to revise the laws governing instant bingo games, to revise the method by which funds received in connection with a bingo game may be disbursed, and to make various technical corrections.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 14‑309.6 reads as rewritten:

§ 14‑309.6.  Definitions.

For purposes of this Part, the term:following definitions apply:

(1)        Exempt organization means anExempt organization. – An organization that has been in continuous existence in the county of operation of the bingo game for at least one year and that is exempt from taxation under section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal Revenue Code and is exempt under similar provisions of the General Statutes as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic or veterans' organization or as a nonprofit volunteer fire department, or as a nonprofit volunteer rescue squad or a bona fide homeowners' or property owners' association. (If the organization has local branches or chapters, the term exempt organization means the local branch or chapter operating the bingo game);game).

(2)        Bingo game means aBingo game. – A specific game of chance played with individual cards having numbered squares ranging from one to 75, in which prizes are awarded on the basis of designated numbers on such cards conforming to a predetermined pattern of numbers (but shall not include instant bingo which is a game of chance played by the selection of one or more prepackaged cards, with winners determined by the appearance of a preselected designation on the card);numbers. This term includes instant bingo.

(2a)      Instant bingo. – A game of chance played by the selection of one or more predesignated paper or digital tickets, with winners determined by the appearance of a preselected designation on the ticket.

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(4)        Local law‑enforcement agency means forLocal law enforcement agency. – For any bingo game conducted outside the corporate limits of a municipality or inside the corporate limits of a municipality having no municipal police force:force, this term means either of the following:

a.         The county police force; orforce.

b.         The county sheriff's office in a county with no county police force;force.

(5)        Local law‑enforcement agency means theLocal law enforcement agency. – The municipal police for any bingo game conducted within the corporate limits of a municipality having a police force;force.

(6)        Beach bingo games means bingoBeach bingo games. – Bingo games which have prizes of ten dollars ($10.00) or less or merchandise that is not redeemable for cash and that has a value of ten dollars ($10.00) or less; andless. This term does not include instant bingo.

(7)        Licensed exempt organization means anLicensed exempt organization. – An exempt organization which possesses a currently valid license.

(8)        Nonprofit organization means anNonprofit organization. – An organization or association recognized by the Department of Revenue as tax exempt pursuant to G.S. 105‑130.11(a), or any bona fide branch, chapter, or affiliate of that organization.

SECTION 2.  G.S. 14‑309.8 reads as rewritten:

§ 14‑309.8.  Limit on sessions.

The number of sessions of bingo conducted or sponsored by an exempt organization shall be limited to two sessions per week and such sessions must not exceed a period of five hours each per session. No two sessions of bingo shall be held within a 48‑hour period of time. No more than two sessions of bingo shall be operated or conducted in any one building, hall or structure during any one calendar week and if two sessions are held, they must be held by the same exempt organization. This section shall not apply to bingo games conducted (i) at a fair or other exhibition conducted pursuant to Article 45 of Chapter 106 of the General Statutes.Statutes or (ii) by an organization exempt from taxation under section 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code.

SECTION 3.  G.S. 14‑309.9(a) reads as rewritten:

(a)      TheExcept as otherwise provided in this section, the maximum prize in cash or merchandise that may be offered or paid for any one game of bingo is five hundred dollars ($500.00). The maximum aggregate amount of prizes, in cash and/orcash, merchandise, or cash and merchandise, that may be offered or paid at any one session of bingo is one thousand five hundred dollars ($1,500). Provided, however, that if an exempt organization holds only one session of bingo during a calendar week, the maximum aggregate amount of prizes, in cash and/orcash, merchandise, or cash and merchandise, that may be offered or paid at any one session is two thousand five hundred dollars ($2,500). The maximum prize in cash or merchandise that may be offered or paid for any one game of instant bingo is six hundred dollars ($600.00).

SECTION 4.  G.S. 14‑309.10 reads as rewritten:

§ 14‑309.10.  Operation of bingo.

(a)        The operation of bingo games shall be the direct responsibility of, and controlled by, a special committee selected by the governing body of the exempt organization in the manner provided by the rules of the exempt organization.

(b)        Only organizations exempt from taxation under section 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code may conduct instant bingo.

(c)        Paper instant bingo tickets shall comply with the standards for instant bingo tickets or cards established by the North American Gaming Regulators Association, as amended from time to time.

(d)       Prior to use, electronic instant bingo systems shall be tested by an independent gaming test laboratory and certified as compliant with the GLI‑14 standard produced by Gaming Laboratories International, LLC.

SECTION 5.  G.S. 14‑309.11 reads as rewritten:

§ 14‑309.11.  Accounting and use of proceeds.

(a)        All funds received in connection with a bingo game shall be placed in a separate bank account. No funds may be disbursed from this account except the exempt organization may expend proceeds for prizes, advertising, utilities, and the purchase of supplies and equipment used in conducting the raffle and in playing bingo, taxes and license fees related to bingo andbingo, the payment of compensation as authorized by G.S. 14‑309.7(c)14‑309.7(c), and for the purposes set forth below for the remaining proceeds. Such payments shall be made by consecutively numbered checks.checks or by electronic funds transfer. Any proceeds available in the account after payment of the above expenses shall inure to the exempt organization to be used for religious, charitable, civic, scientific, testing, public safety, literary, or educational purposes or for purchasing, constructing, maintaining, operating or using equipment or land or a building or improvements thereto owned by and for the exempt organization and used for civic purposes or made available by the exempt organization for use by the general public from time to time, or to foster amateur sports competition, or for the prevention of cruelty to children or animals, provided that no proceeds shall be used or expended for social functions for the members of the exempt organization.

(b)        An audit of the account required by subsection (a) of this section shall be prepared annually for the period of January 1 through December 31 or otherwise as directed by the Alcohol Law Enforcement Division of the Department of Public Safety and shall be filed with the Division and the local law‑enforcement agency at a time directed by the Division. The audit shall be prepared on a form approved by the Division and shall include all of the following information:

(1)        The number of bingo games conducted or sponsored by the exempt organization;organization.

(2)        The location and date at which each bingo game was conducted and the prize awarded;awarded.

(3)        The gross receipts of each bingo game;game.

(4)        The cost or amount of any prize given at each bingo game;game.

(5)        The amount paid in prizes at each session;session.

(6)        The net return to the exempt organization; andorganization.

(7)        The disbursements from the separate account and the purpose of those disbursements, including the date of each transaction and the name and address of each payee.

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SECTION 6.  This act becomes effective October 1, 2025, and applies to bingo games conducted on or after that date.