Bingo Tax Hike for Operators

Summary#

The Commercial Bingo Amendment Act of 2026 would amend Titles 36 and 47 of the D.C. Code, which cover bingo and taxation. It would change rules for commercial bingo and set two tax rates at 25% of defined net commercial bingo gaming revenue. No stated goal is given in the supplied materials.

  • The bill defines net revenue as game and admission revenue minus prizes or winnings paid out; operators cannot deduct other expenses.
  • According to the fiscal impact statement, the tax rates would rise from 7.5% to 25%.
  • The fiscal impact statement describes commercial bingo as a paid game with numbers called in person, where all players are physically present and compete in the same game. It says the definition excludes bingo organized by certain nonprofits, senior groups, and citizen-service programs; bingo using federally defined gambling devices, online bingo, bingo on devices resembling or qualifying as Class III gaming devices, and bingo on slot machines.
  • The supplied bill text prohibits a machine, device, or terminal from letting someone play against a machine or computer, play against people at another location, or join from outside the licensed establishment where numbers are called.
  • The bill would take effect after mayoral approval (or a veto override), a 30-day congressional review period, and publication in the D.C. Register. It is introduced and is not law.

What it means for you#

  • Commercial bingo operators: They would pay tax at 25% of game and admission revenue after subtracting prizes or winnings. Rent, wages, and other business expenses would not reduce the bill’s defined tax base.
  • Players: The bill does not create a player benefit or require players to apply or register. It restricts the listed ways commercial bingo games may be played.
  • Establishments and regulators: The fiscal impact statement says the Alcoholic Beverage and Cannabis Administration, Office of Lottery and Gaming, and Office of Tax and Revenue can implement the bill with current resources. It says establishments selling alcohol under specified licenses already need a $300 annual commercial-bingo endorsement; the bill does not appear to change that fee.
  • Other bingo organizers: The fiscal impact statement says certain charitable and community bingo activities are outside the bill’s definition of commercial bingo. The bill does not directly change the rules for those activities.

Money#

The bill raises the stated tax rate on commercial bingo, but the fiscal impact statement estimates no additional revenue because the number of operators and any displacement of other taxable sales are unknown.

  • Operators would pay 25% of the bill’s defined net revenue; the fiscal impact statement says current rates are 7.5%.
  • The three named District agencies are expected to implement the bill within current resources.
  • The fiscal impact statement says positions for bingo regulation were already included in the Office of Lottery and Gaming’s fiscal year 2026 budget. It gives no separate cost estimate for the bill.

What is unclear#

  • The supplied bill text prohibits devices that allow play against a machine or computerized system. But the fiscal impact statement says the bill repeals a prohibition on such devices and would make Class II electronic bingo machines legal. These descriptions conflict, so the effect on machine-based bingo is unclear from the supplied materials.
  • The fiscal impact statement describes changes to the definition of commercial bingo, but the full amended definition is not included in the supplied bill excerpt.
  • The materials do not give the expected number of operators, taxable revenue, or effect on existing taxable sales.
  • The materials do not explain how compliance will be overseen or how tax proceeds will be divided in practice.

Case for#

  • A possible argument for the bill is that it sets a clear tax base: operators can subtract prizes and winnings, but not other expenses.
  • The in-person limits described in the fiscal impact statement could clarify which games count as commercial bingo.
  • The fiscal impact statement says the relevant agencies can carry out the changes using existing resources.

Case against#

  • The tax rate would rise from 7.5% to 25%, and operators could not deduct ordinary business expenses from the bill’s defined tax base. That could mean a substantially higher tax burden, though the materials do not estimate its amount.
  • The conflicting accounts of whether machine-based play is allowed could leave operators and regulators uncertain about which formats are permitted.
  • The District’s actual revenue effect is uncertain: the fiscal impact statement gives no revenue estimate and says commercial bingo might displace other taxable sales.