Idaho

Gambling License

Idaho has strict gambling regulations, allowing limited activities like charitable bingo, raffles, pari-mutuel betting, and tribal Class II gaming. To operate legally, organizations must secure a gambling license. Here's a quick breakdown:

Key Highlights:

• Allowed Gambling: State lottery, bingo (>$10,000 revenue), raffles (>$5,000 prizes), tribal gaming.
• Who Can Apply: Tax-exempt organizations with 1 year of local activity.
• License Fees: $100–$300/year based on revenue.
• Approval Time: 15 days for applications.
• Renewals: Annual, with a 30-day prior submission deadline.
• Penalties: Non-compliance can lead to fines, jail time, or license revocation.

Application Process:

1. Confirm tax-exempt status and local presence.
2. Gather documents (financial records, background checks, etc.).
3. Submit application with fees ($100–$300 based on revenue).
4. Undergo audits and renew annually.

B2C vs. B2B Licenses:

• B2C: For direct gambling services (e.g., bingo halls, raffles).
• B2B: For service providers (e.g., gaming software, equipment).

Idaho's gambling laws are restrictive but provide a clear path for charitable organizations to operate legally. Stay compliant to avoid penalties and maintain public trust.

Types of Idaho Gambling Licenses

Allowed Gambling Activities

In Idaho, state-approved gambling includes lottery games, pari-mutuel betting on horse racing, and tribal Class II gaming on specific reservations. Charitable gaming, such as bingo and raffles, is also permitted but comes with certain thresholds. Bingo requires a license if annual revenue exceeds $10,000, while raffles need one if prizes are worth more than $5,000. Organizations are limited to hosting 12 raffle events per year ^[4]. Knowing these rules helps determine the right license for your organization.

Regulatory Bodies

The Idaho State Lottery Commission oversees most gambling activities in the state. It works closely with IRS-recognized tax-exempt organizations to manage licensing, process applications within 15 days ^[2], and enforce gambling laws. To qualify, organizations must have tax-exempt status, such as 501(c)3 or equivalent.

The Lottery Enforcement Division ensures compliance by conducting audits and maintaining records of licensed activities. These regulatory bodies set clear standards that organizations must meet to legally operate gambling activities in Idaho.

License Requirements

Eligibility

To apply for a gambling license in Idaho, organizations need to meet specific criteria. They must have federal tax-exempt status and show at least one year of active operations in the county where they intend to run gambling activities. Additionally, key figures such as the president, chairman, and treasurer are required to complete annual background checks through the Idaho State Police to ensure compliance with state laws and maintain operational transparency ^[3].

Needed Documents

Applicants must submit various documents to confirm their legal and operational standing:

Financial Needs

Organizations must also meet financial requirements to ensure their operations are both compliant and sustainable. The Idaho State Lottery Commission has established the following fee structure:

For first-time applicants, there is a flat $100 application fee, regardless of projected revenue ^[5]. Organizations earning over $75,000 annually are required to provide detailed financial reports to prove their operational stability. Additionally, all organizations must maintain separate accounts and demonstrate their ability to cover prizes and operational expenses.

Meeting these financial and documentation requirements is a crucial part of securing an Idaho gambling license. Once these steps are completed, organizations can move forward with the application process.

Pros and Cons of an Idaho Gambling License

Advantages

Getting a gambling license in Idaho helps organizations comply with the law, avoid penalties, and gain trust with donors and participants. The state offers a tiered fee structure starting at just $100 for organizations earning under $25,000, making it affordable for smaller groups ^[1]. Plus, the Idaho Lottery processes applications quickly - usually within 15 calendar days ^[2] - so organizations can start their activities faster compared to other states.

That said, there are challenges tied to Idaho's licensing system that organizations need to consider.

Disadvantages

One of the biggest drawbacks is the limited scope of allowed activities. Licensed groups are restricted to specific operations like bingo and charitable raffles ^[2].

There are also operational hurdles, including annual background checks, maintaining separate accounts, compliance reviews, and a 30-day renewal process. For organizations earning over $75,000, the requirements become even stricter, with detailed financial reporting needed ^[5].

Another challenge is the requirement for a continuous local presence. Organizations must prove they've been active for at least one year in the county where they plan to operate gambling activities ^[3]. This rule can make it harder to expand or operate in new areas.

Lastly, staying compliant with Idaho Code and Administrative Rules is non-negotiable. Failing to do so could lead to legal trouble. Organizations need to weigh these factors to decide if pursuing a license aligns with their goals and resources.

Application Process Steps

Application Preparation and Submission

To apply for an Idaho gambling license, your organization must qualify as a tax-exempt charitable or non-profit entity. Gather the necessary documents, such as application forms, tax-exempt certification, proof of non-profit status, and background check forms ^[1][3].

Submit the completed application packet along with a $100 application fee to the Idaho Lottery Enforcement Division. The annual license fee depends on your organization's revenue:

Background Checks

The Idaho Lottery requires annual background checks for key personnel, including:

• The organization’s president or chairman
• Treasurer (CFO)
• Individuals involved in fundraising activities ^[3]

These checks are designed to uphold transparency and accountability in gambling operations.

Approval Steps

The Idaho Lottery reviews applications within 15 calendar days ^[2]. To avoid delays, make sure to:

• Verify all submitted documents for accuracy
• Follow Idaho Code Title 67, Chapter 77
• Respond promptly to any requests for additional information

For help during the process, you can reach out to the Idaho Lottery Enforcement Division.

Keep in mind that licenses are valid for one year. To prevent disruptions, submit your renewal application at least 30 days before the expiration date ^[3]. After approval, organizations must continue adhering to regulations to ensure smooth operations and prepare for future renewals.

B2C and B2B Licenses in Idaho

Idaho provides two main types of licenses for the gambling industry: Business-to-Consumer (B2C) and Business-to-Business (B2B) licenses. Each serves a specific purpose and caters to different operational needs.

B2C Licenses

B2C licenses are for organizations that offer gambling services directly to the public. These licenses primarily cover charitable gaming activities such as bingo halls and raffle operators. To stay compliant, license holders must follow the regulations outlined in Idaho Code Title 67, Chapter 77. Key requirements include:

• Submitting regular financial reports to ensure transparency
• Implementing measures to promote responsible gambling
• Keeping detailed records of all gaming activities
• Operating under the supervision of the Idaho State Lottery

B2B Licenses

B2B licenses are for companies that provide critical infrastructure and services to the gambling industry. These businesses typically specialize in areas such as:

• Gaming software and platform development
• Payment processing solutions
• Supplying and maintaining gaming equipment
• Testing and certification services
• Risk management and security solutions

Both B2C and B2B license holders must adhere to the rules established under IDAPA 52.01.03. The Idaho Lottery Enforcement Division regularly conducts audits and compliance checks, offering guidance and support during the application process. Maintaining communication with the Charitable Gaming Coordinator is essential to ensure compliance and smooth operations.

For both license types, compliance is key to securing renewals and avoiding operational disruptions.

License Renewal

Renewal Schedule

Idaho gambling licenses need to be renewed every year, with each license expiring exactly one year from its issue date. To avoid a $50 late fee, renewal applications must be submitted no later than 30 days before the expiration date. Make sure to have all required renewal documents ready in advance.

Documents for Renewal

To complete your renewal, you'll need to provide the following:

• Charitable Gaming Renewal Application form
• Charity and/or Non-Profit to Receive Funds form
• Background checks for key personnel, just like in the initial application
• Payment for the license fee, calculated based on last year's revenue

The license fee is determined by your organization's gross revenue from bingo and raffle activities:

If your organization is tax-exempt, you'll also need to include:

• A copy of your IRS tax-exempt status letter and current bylaws or articles of incorporation
• Meeting minutes from the last 12 months
• Detailed reports on your fundraising activities

Audits During Renewal

The Idaho Lottery Enforcement Division will review your compliance as part of the renewal process. These audits focus on:

• Accuracy of your financial records
• Adherence to Idaho's gambling regulations
• Evaluation of your operational procedures

These checks ensure organizations are meeting state standards and maintaining public trust.

Send completed renewal applications to the Idaho Lottery Charitable Gaming Coordinator at the following address:

Idaho Lottery
Attn: Charitable Gaming Coordinator
P.O. Box 6537
Boise, ID 83707

Idaho Gambling Laws

Main Laws

Idaho regulates gambling primarily through Title 67, Chapter 77 of the Idaho Statutes, with sections 67-7711 and 67-7712 focusing on charitable gaming like bingo and raffles ^[2]. These laws set clear boundaries for legal gambling activities in the state.

Public and private elementary or secondary schools are given certain exemptions from standard licensing rules. However, they must still follow basic operational guidelines ^[4].

For organizations involved in gambling, strict compliance with these laws is required to maintain their licenses.

Compliance Rules

Licensed gambling organizations in Idaho must follow detailed operational requirements. This includes keeping thorough financial records, ensuring oversight by their leadership team, and submitting regular reports to the Idaho State Lottery Commission. The Commission, acting as the main regulatory body, conducts audits and reviews to ensure rules are followed ^[2].

Transparency is essential. All gaming activities must be directly managed by the governing body listed on the license application ^[3].

Failing to meet these requirements can lead to serious penalties, as outlined below.

Penalties

Non-compliance with Idaho's gambling laws can bring severe consequences. The Idaho State Lottery Commission enforces penalties ranging from civil fines for minor issues to license suspension, revocation, or even criminal charges for intentional violations ^[2].

The Commission also has the authority to deny new license applications, suspend ongoing operations, revoke licenses for major breaches, and issue cease-and-desist orders. Organizations facing violations should act quickly to resolve compliance issues and avoid harsher penalties ^[2][5].

Costs and Timeframes

Fees

If you're applying for a gambling license in Idaho, here's the fee breakdown:

First-time applicants pay a $100 application fee, while renewal fees depend on your annual gross revenue from bingo and raffle activities. All fees are non-refundable and must be paid by check to the Idaho State Lottery ^[1].

Approval Timeline

The Idaho State Lottery Commission reviews applications within 15 calendar days ^[2]. For renewals, it's best to submit your application at least 30 days before your current license expires ^[3]. Applications are reviewed in the order they're received, so incomplete submissions could cause delays. Keeping these timelines in mind can help you avoid interruptions in your operations.