NE 35-00-2 Bingo, Lottery by Pickle Card, Lottery and Raffle 2000-08-15

Can a Nebraska nonprofit sell 'bingo bonus' pickle cards whose winners are decided by a bingo-ball draw, and what rules apply?

Short answer: Yes, if the organization holds both licenses. Under LB 658, effective July 13, 2000, a Nebraska organization holding a Class I or Class II bingo license that also holds a Class I or Class II lottery-by-pickle-card license may sell 'bingo bonus pickle cards' at its regular or limited-period bingo occasions. These are pickle-card games whose winners are determined by the drawing of bingo balls during a licensed bingo occasion. Except as the ruling provides, they must meet all requirements of the Nebraska Pickle Card Lottery Act and Pickle Card Regulation 35-318. The ruling sets detailed manufacturer, distributor, and organization rules: each unit must contain the 75 hold combinations B-1 through O-75 with no duplicates; no card may be both an instant winner and a hold card; cards may be sold only at a licensed bingo occasion (not through dispensing devices); winning numbers are drawn only after all cards are sold; prizes must be claimed within 30 days; and proceeds are recorded as pickle card sales (not bingo gross receipts) and are not counted as bingo prizes.

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This page answers the general question as of 2000. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

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Plain-English summary

A "bingo bonus pickle card" is a hybrid charitable-gaming product: it is a pickle-card (pull-tab) game, but the winners of its top prizes are decided by the drawing of bingo balls during a licensed bingo occasion. This ruling authorizes the product and lays out the rules for it.

Who can sell them. Under LB 658, effective July 13, 2000, a Nebraska organization that holds a Class I or Class II bingo license and a Class I or Class II lottery-by-pickle-card license may sell bingo bonus pickle cards at its regular or limited-period bingo occasions. Except where this ruling says otherwise, the cards must meet all requirements of the Nebraska Pickle Card Lottery Act and Pickle Card Regulation 35-318.

How the game works. A "bingo bonus hold card" carries a bingo letter-and-number combination (B-1 through O-75) predetermined by the manufacturer to be a "hold" combination eligible for a cash bonus prize. After all the cards in a unit are sold, the first bingo ball drawn in the next bingo game determines the winning hold number.

Key rules the ruling imposes:

Manufacturers must build each unit with the 75 hold combinations B-1 through O-75 (no duplicates within a unit); no card may be both an instant winner and a hold card; no last-sale, user-determined, carry-over, or progressive prizes; and each unit ships with a warning label that the game may be played only at a licensed bingo occasion.
Distributors may sell units only to organizations holding both licenses, and only after the manufacturer's warning label is affixed.
Organizations may sell the cards only at a licensed Class I/II or limited-period bingo occasion, never through a coin- or currency-operated dispenser, and may not commingle units. Winning numbers are drawn only after all cards in the unit are sold, results are recorded on the flare card, and unclaimed prizes must be posted and redeemed within 30 days.

Money handling. Proceeds from bingo bonus pickle cards are recorded as pickle card sales, not bingo gross receipts, and (less prizes paid) are deposited in the organization's pickle-card checking account. The prizes are not bingo prizes and are not counted toward bingo prize limits or payout requirements.

What this means for you

A licensed nonprofit that runs both bingo and pickle cards

You can add this game, but only if you hold both a Class I/II bingo license and a Class I/II pickle-card license. Sell the cards only at your bingo occasions, follow the draw-and-record procedure, and keep the proceeds in your pickle-card account — not your bingo receipts.

A pickle-card manufacturer or distributor

Build and label the units exactly to the ruling's specs (the B-1–O-75 hold set, unique form number, warning label) and sell only to organizations that hold both required licenses.

Common questions

Q: Can any bingo hall sell bingo bonus pickle cards?
A: No — the organization must hold both a Class I or II bingo license and a Class I or II lottery-by-pickle-card license.

Q: When are the winning numbers drawn?
A: Only after every pickle card in the unit has been sold; the first bingo ball drawn in the next bingo game sets the winning hold number.

Q: Do the proceeds count as bingo income?
A: No. They are recorded as pickle card sales and deposited in the pickle-card checking account, and the prizes are not bingo prizes.

Citations and references

LB 658 (effective July 13, 2000) — authorizes organizations holding both a bingo and a pickle-card license to sell bingo bonus pickle cards.
Nebraska Pickle Card Lottery Act — the governing act these games must otherwise comply with.
Pickle Card Regulation 35-318 — the regulation whose pickle-card and flare-card requirements apply.

Source

Original ruling text

Revenue Ruling 35-00-2
August 15, 2000
Bingo, Lottery by Pickle Card, Lottery, and Raffle - Bingo Bonus Pickle Cards. IN ACCORDANCE
WITH PROVISIONS CONTAINED IN LB 658, EFFECTIVE JULY 13, 2000, AN ORGANIZATION
WHICH HOLDS A CLASS I OR CLASS II BINGO LICENSE WHO ALSO HOLDS A CLASS I OR
CLASS II LOTTERY BY THE SALE OF PICKLE CARDS LICENSE MAY SELL BINGO BONUS
PICKLE CARDS AT ITS REGULAR OR LIMITED PERIOD BINGO OCCASIONS. EXCEPT
AS PROVIDED IN THIS RULING, BINGO BONUS PICKLE CARDS SHALL BE SUBJECT TO
ALL OF THE REQUIREMENTS OF THE NEBRASKA PICKLE CARD LOTTERY ACT AND
ACCOMPANYING REGULATIONS.
Advice has been requested as to the proper marketing, sale, and conduct of a lottery by the sale of
pickle cards in which certain prize winners in the lottery by pickle cards are determined by the drawing
of bingo balls during the conduct of a licensed bingo occasion. Such pickle card games shall be known
and referred to as “bingo bonus pickle card games” and are subject to the following provisions.
I. DEFINITIONS
A. Bingo bonus pickle card game means a lottery by the sale of pickle cards game in which
certain prize winners are determined by the drawing of bingo balls during the conduct of a
licensed bingo occasion.
B. Bingo bonus hold card means a pickle card used in conjunction with a bingo bonus pickle
card game which contains a bingo letter and number combination predetermined by the
manufacturer to be a “hold” combination eligible for a bingo bonus prize.
C. Bingo bonus prize means a cash prize amount predetermined by the manufacturer which is to
be awarded to a player possessing a bingo bonus hold card which has been determined to be
a winning card based upon the drawing of bingo balls at a licensed bingo occasion.
II. MANUFACTURER REQUIREMENTS
A. Except as otherwise specifically provided in the Nebraska Pickle Card Lottery Act, bingo
bonus pickle cards shall adhere to all of the requirements contained in the Act and Pickle Card
Regulation 35-318, which apply to traditional pickle cards.
B. No bingo bonus pickle card shall be both an instant winner and a bingo bonus hold card.
In designing a bingo bonus pickle card game, the manufacturer shall ensure that each unit
contains 75 bingo numbered hold combinations which correspond to the traditional bingo ball
numbers of B-1 through O-75. The manufacturer shall ensure that no individual unit of bingo
bonus pickle cards contains any duplicate or identical bingo bonus hold combinations.

The manufacturer may design a bingo bonus pickle card game to contain multiple sets
of bingo numbered hold combinations provided each set of hold numbers contains the
numbers B-1 through O-75 and is distinguishable by color.
The manufacturer may design a bingo bonus hold card to contain more than one bingo
numbered hold combination.
C. No bingo bonus pickle card game may contain a last sale feature whereby a prize is to be
awarded to the person who purchases the last pickle card of a particular unit.

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

Revenue Ruling Revenue Ruling 35-00-2

August 15, 2000

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D. No bingo bonus pickle card game shall incorporate user-determined, carry-over, or progressive
prize features. The number of winners and all cash prize amounts to be awarded shall be
predetermined by the licensed manufacturer.
E. The flare card for each bingo bonus pickle card game shall adhere to all of the requirements
contained in the Nebraska Pickle Card Lottery Act and Pickle Card Regulation 35-318 which
apply to flare cards.

No bingo bonus pickle card game may utilize multiple boards or placards. All the required
flare card information and game play features must be contained on one board or placard
which shall serve as the game’s flare card.
F. Each bingo bonus pickle card game must have a unique form number which differentiates such
game from any similar seal card game approved for sale in Nebraska.
No bingo bonus pickle card game shall be packaged to contain an optional seal card which
can be used in place of the drawing of bingo balls to determine prize winners.
G. For each unit of bingo bonus pickle cards sold to a Nebraska licensed distributor for resale
in Nebraska, the licensed manufacturer shall supply a conspicuous warning label or sticker,
advising that such game can be played in Nebraska only at a licensed bingo occasion.
Each manufacturer shall submit a sample of such label or sticker to the Department for
approval. Any subsequent modifications made to an approved label or sticker shall also be
subject to Department approval.
III. DISTRIBUTOR REQUIREMENTS
A. A licensed distributor shall ensure that bingo bonus pickle card units are sold only to
organizations which hold a Class I or Class II bingo license and a Class I or Class II lottery by
the sale of pickle cards license.
B. A licensed distributor shall not sell or otherwise provide a unit of bingo bonus pickle cards
to any licensed organization in this state unless and until such unit has been affixed with a
conspicuous warning label or sticker, supplied by the manufacturer of the game, advising that
such game can be played in Nebraska only at a licensed bingo occasion.
The warning label or sticker shall be affixed to outside of the box or other container in
which the game is packaged by the manufacturer in such a manner as to easily draw the
attention of the licensed organization to whom the game is supplied.
It shall be the responsibility of the licensed distributor to ensure that the warning label or
sticker provided by the manufacturer is properly affixed to each unit of bingo bonus pickle
cards.
IV. ORGANIZATION REQUIREMENTS
A. Bingo bonus pickle cards shall be sold to the public only at a licensed Class I or Class II bingo
occasion or at an authorized limited period bingo occasion. A licensed organization shall not
sell bingo bonus pickle card units to any pickle card operator or at its designated premises
except in conjunction with the conduct of bingo.
B. Bingo bonus pickle cards shall not be sold through any coin-operated or currency-operated
pickle card dispensing device. Additionally, the commingling of two or more units of bingo

Revenue Ruling 35-00-2

August 15, 2000

Page 3 of 4

bonus pickle cards is prohibited. However, a licensed organization may offer for sale more
than one bingo bonus pickle card game simultaneously, provided the games are of a different
form number.

Only one bingo bonus pickle card game of a particular form number may be placed in play
at a time. No licensed organization shall place a second unit of bingo bonus pickle cards,
with the same form number, in play until the winning bingo bonus hold number(s) of the
previous game have been drawn and announced.
C. The winning bingo bonus hold number(s) for a particular game shall not be drawn unless and
until all of the pickle cards within the unit have been sold.
The winning bingo bonus hold number for a particular game shall be determined by the
first bingo ball drawn of the first bingo game conducted after all of the bingo bonus pickle
cards of the game have been sold.
If the manufacturer has designed a bingo bonus pickle card game which allows two or
more bingo bonus prizes to be awarded by the drawing of more than one bingo ball, the
winner of the top-tier bingo bonus prize shall be determined by the first bingo ball drawn,
and the remaining bingo bonus prize winners shall be determined in successive ball draws
with prizes awarded in descending order of value.
If the last pickle card of a particular bingo bonus pickle card game is sold during the last
bingo game of the occasion, then upon the conclusion of that bingo game the bingo caller
shall:
a. Return all bingo balls to the receptacle; and
b. Draw the appropriate number of bingo balls necessary to determine the bingo bonus
winners.
The bingo caller shall record the following information on the flare card for each bingo
bonus pickle card game:
a. The number of the bingo game in which the bingo bonus numbers were drawn;
b. The winning bingo bonus number(s) drawn;
c. The date of the bingo occasion at which the winning numbers were drawn;
d. The first and last name of the bingo caller; and
e. The first and last name of either the bingo chairperson or the gaming manager for the
licensed organization signifying that such person has verified the winning bingo bonus
number(s) drawn.
In the event a particular unit of bingo bonus pickle cards is not completely sold during the
course of the bingo occasion, the licensed organization must continue to sell the pickle
cards for that game at its next bingo occasion. Additionally, the bingo caller must make
an announcement at the conclusion of the bingo occasion advising that any player with
a bingo bonus hold card for a game to be continued at the next bingo occasion, shall be
solely responsible for the safekeeping of his or her hold card(s).
No licensed organization shall award a bingo bonus prize unless and until the appropriate
winning bingo bonus hold card is presented for payment. The licensed organization must

Revenue Ruling 35-00-2

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verify that the serial number of any winning bingo bonus pickle card presented matches the
serial number of a game which was sold at its bingo occasion.
a. In the event one or more of the winning bingo bonus hold cards are not presented for
payment during the bingo occasion at which the winning numbers were determined,
the licensed organization shall post the following information at each successive bingo
occasion for the next thirty days or until the bingo bonus prize(s) have been claimed,
whichever comes first:
i.

The name, form number, and serial number of the bingo bonus game with unclaimed
bingo bonus prizes;

ii. The date of the bingo occasion at which the winning numbers were drawn;
iii. The winning bingo bonus number for the game; and
iv. A statement indicating that bingo bonus pickle card prizes must be claimed within
thirty days.
b. The bingo caller shall, at the beginning of each bingo occasion, make an announcement
identifying the name and serial number of each bingo bonus pickle card game with
unclaimed prizes. Such announcement shall be made at each successive bingo occasion
for the next thirty days or until the prize(s) have been claimed, whichever comes first.

Winning bingo bonus hold cards must be redeemed within 30 days from the date of the
bingo occasion at which the winning bingo bonus hold number(s) were determined. At the
end of the 30-day period, any unclaimed prize shall be retained in the licensed organization’s
pickle card checking account until utilized for a lawful purpose.
a. Winning bingo bonus hold card(s) must be stapled to the game flare card. The flare card
and winning bingo bonus hold card(s) shall be retained with the organization’s records
for a period of three years.
The proceeds from the sale of bingo bonus pickle cards shall not be included in the
organization’s bingo gross receipts and shall be recorded as pickle card sales. The proceeds
from the sale of bingo bonus pickle cards, less prizes actually paid, shall be deposited in
the licensed organization’s pickle card checking account.
a. Bingo bonus pickle card prizes are not considered bingo prizes and are not required
to be included when determining bingo prize limitations or bingo prize payout
requirements.
APPROVED:

Mary Jane Egr
State Tax Commissioner
August 15, 2000

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