There are lots of things you can do and not get caught, or things that are wrong but rarely prosecuted.
Running a an unlicensed bingo game in Texas is a felony under state law. City or county officials don't have the right to supersede that law.
Basically, any game run for more than 15 people for other than recreational purposes outside your home should be licensed. (Unless the prizes have only nominal value. i.e., you're playing for fun, not for prizes.) There are very few exceptions, and school fundraisers do not qualify. They need to be licensed.
Even though the chance of prosecution might be remote, I personally would have a problem with the PTO doing this, because:
1) The PTO knowingly participating in illegal activities is not the example I'd want to set for the students
2) This is the perfect opportunity for the inevitable disgruntled parent to cause trouble and turn you in. Even if no one gets prosecuted, the resulting investigation would be embarrassing.
I think if you do it as a Fun Night, no charge, you don't need a license. However, if you charge for it, then you should cover your b*** and get the license. Another option is to sell the food (hot dogs, drinks, etc) and this way get the money from another source, not the actual game of Bingo.
We just hosted our first ever bingo game at our Fall Festival last nite. It was a great success and a lot of fun. Now, to answer your question about Bingo in Texas. When we decided back in April to include this in our Fall Festival, I went to the website mention above Texas Charitable Bingo. I downloaded the application, and found it to be very long and expensive. To me it was more for the organizations that were going to do it on a regular basis (first Tues of each month). So I contacted our local county offices (very small county)and they said they have never had anyone apply and were not worried about a PTO having a one time a year bingo nite. Note we did use donated gifts for prizes not money. Before I would do all the state paper work, I would check with your Superintendent and local county license office. Good Luck!
The others are right. In Texas, Bingo is a heavily regulated business, and there are very few exceptions (like nursing homes)where a game can be run without a license. Also, all bingo cards must be purchased through licensed entities.
The paperwork is a bit daunting the first time, but renewals aren't as bad. You need at least 30 days to start the process. It requires a background check on all your board members (Texas government does it) and a $25 fee per game. There are some very rigid rules. You have to set a date and time - no changes allowed. You have to define a person to be the "official operator". If anything happens (sick child, car accident) and she can't make it - you can't hold the game. Note, when you look at the site and the paperwork, it will say that all operators must attend a one day training class. Charitable bingo operators are exempt from the training.
Then you need to file a one page form and pay some minor taxes each quarter on any games you hold. I think charities (501c3) can hold up to 6 games a year.
You just need someone to plug through the paperwork. It simply takes a bit of determination. The IRS doesn't care as long as the games (and thus the income) are run legally. Bingo is a very common fundraiser for non-profits. Also, our school and district were fine with it as long as we had a proper license.
On the bright side, it's a lot of fun and the families love it.
