Charitable Bingo Operations Business Plan - Texas Lottery

competently and consistently. We will develop clear regulatory requirements in an open environment,
encouraging two-way communication.
Customers and Beneficiaries
Customers
Customers of the CBOD are: licensed organizations including nonprofit organizations, commercial lessors,
manufacturers, and distributors; the Legislature; members of the public who play bingo, the Texas Lottery
Commissioners and agency staff, and ultimately those who benefit from the charitable distributions derived
from bingo activities and the net revenue contributions to the state of Texas. The charitable bingo player
base consists primarily of adult Texans 18 years and older; however, it is not required that a bingo player
be 18 if accompanied by a parent or guardian.
Beneficiaries
Providing authorized nonprofit organizations the opportunity to raise funds for their charitable purposes by
conducting bingo improves the lives of many Texans. In calendar year 2010, reported charitable
distributions from bingo activities were $33,905,701, while the minimum required charitable distributions
for 2010 were $8,392,575. Reported charitable distributions have continually exceeded the amount required
to be distributed by statute.
Local jurisdictions benefit from charitable bingo activity in the form of allocations derived from fees
collected on bingo prizes. A county that imposed a gross receipts tax on the conduct of bingo as of January
1, 1993, is entitled to 50 percent of the bingo prize fee collected under § 2001.502 of the Bingo Enabling
Act on a prize awarded at a game conducted in the county. A municipality that imposed a gross receipts tax
on the conduct of bingo as of January 1, 1993, is entitled to 50 percent of the bingo prize fee collected
under § 2001.502 of the Bingo Enabling Act on a prize awarded at a game conducted in the municipality. If
a county and municipality are both entitled to a share of the fee imposed by § 2001.502, then the county is
entitled to 25 percent of the fee on a prize awarded at a game conducted in the county; and the municipality
is entitled to 25 percent of the fee on a prize awarded at a game conducted in the municipality.
In 2010, counties received $6,446,725.41 in allocations and municipalities received $5,891,841.90 in
allocations from the conduct of charitable bingo. Allocations to counties and municipalities have increased
yearly from 2002 through 2010.
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