After a completed application has been led, the municipal governing body must investigate the merits of each
application and make specic ndings, including whether the applicant is in fact a qualied organization and
whether the designated member or members are bona de members of the organization, of good moral character
and have never been convicted of a crime.
9
If the municipal governing board makes the requisite ndings with respect to an application for a gaming license,
the board must adopt a resolution authorizing issuance of the license.
10
The license shall be valid for a period of
no more than one year from the date of issuance.
Conducting Bingo and Rafes
The regulation governing the conduct of bingo and rafes under the bingo and rafes licensing laws is quite
comprehensive. Detailed below are some fundamental requirements for conducting bingo or rafes which
licensees should be aware of.
The licensee must designate a specic representative who will be responsible for insuring that all gaming is
conducted in accordance with applicable statutes and regulations. Only bona de members of the organization may
operate the game, and no person can be paid for conducting or assisting in conducting the game. The exception to this
rule applies to Casino Night events that require trained licensed operators known as dealers. Proceeds derived from
gaming operations may be used only to further the organization’s authorized purpose. Furthermore, supplies necessary
to the gaming operation may be purchased or leased only from vendors approved by the Commission.
The bingo and rafes licensing laws also limit the prizes that may be awarded in the aggregate and in any one
particular game. Specically, no licensee may offer a prize having a retail value greater than $100,000 in any one
rafe conducted by drawing, or $500 in any rafe not conducted by drawing. Furthermore, no licensee shall offer
prizes that, in aggregate, amount to a value greater than $500,000 in any 12-month period. Finally, all tickets or
rights to participate in a rafe must be sold at a uniform unit price, and discounts for purchases of more than one
ticket are prohibited.
11
As for bingo games, no prize may be offered exceeding $1,000 in one particular game, nor
may prizes exceeding $3,000 in the aggregate for one occasion be offered.
12
As for the premises and equipment
used for bingo, unless the licensee is the sole owner, or it is donated, the person leasing the premises and equipment,
and the price for the same, must be approved by the Commission.
Report of Operations
No later than the 15th day of the calendar month following the month in which a game of chance is conducted, the
organization conducting the game and the member or members responsible for the conduct of the game must le
a report of operation with the Commission.
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The report must include the gross receipts derived from each game;
the expenses incurred and to whom such amounts were paid; the net prot from each game; the uses to which the
net prot has been or will be applied; and a list of the prizes offered or given and the respective value of each.
Fines and Penalties
A violation of the bingo and rafes licensing laws or regulations carries a ne of up to $7,500 for a rst offense
and up to $15,000 for the second and each subsequent offense. In addition, the Commission is authorized to order
restitution to an aggrieved party.
14
All penalties may be collected in a summary manner pursuant to the Penalty
Enforcement Act.
15
Conclusion
New Jersey non-prot organizations can successfully raise funds through bingo or rafes. However, if the
organization does not adhere to the bingo and rafes licensing laws or the regulations, the penalty may wipe out
any prots realized. Care should be taken, therefore, to understand and comply with all of the applicable laws and
regulations.