How to Start a Charitable Gaming Operation in Nebraska: Bingo $30, Pickle Cards $200 to $300, Keno Operator $500 and the 2% to 10% Taxes

Nebraska lets qualified nonprofit organizations raise money through charitable gaming, but the state does not issue a general business license for it. Each game has its own license, fee schedule and tax. If you want to know how to start a charitable gaming business in Nebraska, the work is less about filing one application and more about lining up the right license for each game you plan to run. This guide walks through that process in order, using the fees and tax rates set in the Nebraska Revised Statutes.

Who Regulates Charitable Gaming in Nebraska

The Department of Revenue Charitable Gaming Division issues the licenses and oversees the taxes. The volume is large. The Department of Revenue reported $362 million in charitable gaming wagering for FY2024-25, and $337.7 million of that came from keno. Keno is also the game with the most local involvement, since it requires voter approval and a local license. Nebraska has 93 counties and 528 cities and villages, and several of the licenses below depend on your local government.

Materials and Documents You Will Need

• Proof that your organization is a qualifying nonprofit with a charitable purpose. Confirm the exact eligibility documents with the Department of Revenue before you assemble your packet.
• A federal Employer Identification Number (EIN) from the IRS.
• Your bylaws, a current officer and member list, and board minutes authorizing the gaming activity.
• A Nebraska entity filing, if you form an LLC or corporation to hold the license: a Certificate of Organization for an LLC, or Articles of Incorporation for a corporation.
• A registered agent in Nebraska. Nebraska uses this term for the in-state contact that receives legal papers.
• A trade name registration, if you will operate under a name other than your legal name.
• A dedicated bank account for gaming receipts and a bookkeeping system that tracks gross receipts by game, date and session.
• Written confirmation from your city or county zoning office for every site where games will run.
• A budget for license fees, supplies and newspaper publication. Confirm the publication charge directly with the newspaper.

Step 1: Choose Your Game and Check Local Approval

Start with the game, not the form. Nebraska charitable gaming includes bingo, raffles and lotteries, pickle cards and keno. Each one has different licensing, tax and operating rules, and some organizations run more than one.

Keno is the exception. Keno runs only where a majority of voters approved it (Neb. Rev. Stat. 9-625). Before you plan a keno operation, ask your county, city or village clerk whether keno was approved in your area. If it was not, you cannot start keno there, no matter how strong your application is.

Step 2: Get Your Entity in Order

Charitable gaming licenses go to organizations, so confirm your entity status first. If your group is already a nonprofit corporation, check that its records are current with the Nebraska Secretary of State, Business Services Division. If you are forming a new entity, the Secretary of State accepts filings through the Corporate and Business Document eDelivery portal or by mail to Lincoln. The Secretary of State does not publish a standard processing time, so plan for delays and confirm current timing with the office.

Two filing costs apply to standard formation. An LLC's Certificate of Organization carries a $100 filing fee when filed online ($110 in office), and corporate Articles of Incorporation carry the same fees. Corporations must list a registered agent and registered office in their formation documents. Every LLC must also keep a Nebraska office and registered agent in place. Losing your agent can lead to administrative dissolution, so put the agent's renewal on your calendar.

New LLCs and corporations must publish a notice in a legal newspaper for three successive weeks and then file proof of publication with the Secretary of State. Budget for that cost and ask the newspaper for its rate before you commit. Ask the Secretary of State whether your entity type also owes a biennial report. LLCs file in odd-numbered years, and corporations file in even-numbered years, with a $25 fee for LLCs filed electronically and a $26 figure for corporations as listed in state records. Confirm the corporate figure applies to your organization.

Step 3: Register for Tax and Employer Accounts

Nebraska has no general state business license and no county business license. Registration follows activity. Your gaming organization should register with the Department of Revenue for a Nebraska ID, which covers sales tax and income tax withholding when those apply. If you sell food, merchandise or other taxable items at events, you need a sales and use tax permit. The state sales tax rate is 5.5 percent, and some cities add their own sales tax on top.

If you hire employees, you will need an income tax withholding account. Unemployment tax registration and contractor registration run through the Nebraska Department of Labor. Register with the Department of Revenue at revenue.nebraska.gov and confirm which accounts your activity requires.

Step 4: Apply for Your Game License

Each game has a fixed license fee set by statute. Use this list to budget and to choose the right application.

• Bingo: $30 for Class I and $100 for Class II, paid biennially (Neb. Rev. Stat. 9-233).
• Raffle or lottery organization: $30 (Neb. Rev. Stat. 9-424).
• Pickle card organization: $200 for Class I and $300 for Class II (Neb. Rev. Stat. 9-328 to 9-330).
• Keno: a county, city or village keno license at $100, plus a keno lottery operator license at $500 (Neb. Rev. Stat. 9-631).

The statutes set the Class I and Class II tiers, but this guide does not state the criteria that place an organization in each tier. Ask the Department of Revenue Charitable Gaming Division which class fits your organization before you file. Choosing the wrong tier can mean paying the wrong fee or filing the wrong form.

Step 5: Plan Your Pickle Card Supply Chain

Pickle cards involve more people than the other games, so map out who needs a license before you start selling. A utilization member license costs $40, and a sales agent license costs $100. Individuals who handle pickle cards for your organization may need one of these, so confirm with the Department of Revenue which roles apply to your volunteers and staff.

The distributor license is $3,050. Most charitable organizations buy from a licensed distributor rather than obtaining that license themselves, so confirm that your distributor holds a current Nebraska license before you place an order. The 10 percent pickle card tax is paid by the distributor and built into the unit prices you pay. That means your cost per pack already includes the tax, so calculate your margin from the distributor's unit price, not the retail price you post at the table.

Step 6: Set Up Accounting and Tax Reporting

Gaming taxes apply by game, and each one uses a different base. Track gross receipts separately for every game and session so your returns match your records.

Game	Tax rate	Tax base and source
Bingo	3%	Gross receipts (Neb. Rev. Stat. 9-239)
Pickle cards	10%	Definite profit, paid by the distributor and built into unit prices (Neb. Rev. Stat. 9-344)
Keno	2%	Gross proceeds, paid quarterly by the county, city or village that runs the lottery (Neb. Rev. Stat. 9-648)
Raffles and lotteries	2%	Applies to the gross proceeds of a raffle or lottery that exceeds $15,000; smaller ones owe no tax (Neb. Rev. Stat. 9-429)

Here is how the numbers work in practice. A bingo operation with $10,000 in gross receipts would owe 3 percent, or $300. A raffle with $20,000 in gross proceeds is above the $15,000 threshold, and the statute taxes 2 percent of the gross proceeds of that raffle, or $400. A raffle with gross proceeds of $15,000 or less owes no tax. Confirm how the threshold applies to your raffle with the Department of Revenue before you file.

Step 7: Operate Within the Rules and Renew on Time

Before you run your first session, handle four operational items. First, check your site with the city or county zoning office. Zoning rules apply to where you hold games, and a site that works for a bingo hall may not work for a keno operation.

Second, if you plan to serve alcohol at any event, the Liquor Control Commission works with the city or county that grants retail liquor licenses. Contact that local office before the event, not after.

Third, do not buy or lease any machine marketed as a cash device or skill game until you have checked its status. Cash-device and skill-game litigation in Nebraska has not been resolved for purposes of this guide. Ask the Department of Revenue for the current position before you spend money on equipment.

Fourth, calendar your renewals. Gaming licenses carry biennial fees, and a lapsed license can stop your operation. Set reminders at least 60 days before each renewal date and confirm the due date with the Department of Revenue.

Expected Results

A license does not guarantee revenue. Results for charitable gaming depend on attendance, sales volume, prize costs, local competition and how consistently you run your sessions. Some organizations find that gaming makes a meaningful contribution to their fundraising, while others find it covers its costs with less left over than they expected. Build a conservative budget that assumes lower attendance and sales in your first year, and treat any early results as a starting point rather than a forecast.

Common Mistakes to Avoid

• Looking for a general business license. Nebraska does not issue one. Register by activity and by game instead.
• Planning keno without checking the vote. Keno requires majority voter approval in your area, and a local keno license alone is not enough.
• Choosing the wrong bingo or pickle card class. The fee and eligibility depend on the class, so confirm it before you pay.
• Pricing pickle cards from the retail price. The 10 percent tax is already in the distributor's unit price, so your margin math has to start there.
• Mixing gaming funds with operating funds. A separate account and per-game ledger make tax filings and audits far easier.
• Buying machines before confirming their legal status. Cash-device litigation is unresolved for this guide, so confirm with the Department of Revenue first.
• Letting the registered agent lapse. A missed agent or office requirement can lead to administrative dissolution for an LLC, which can disrupt your license.
• Forgetting the publication requirement. New LLCs and corporations must publish for three successive weeks and file proof with the Secretary of State.

Tips for a Smoother Start

• Call the Department of Revenue Charitable Gaming Division before you file. A short conversation can clear up class, tax base and eligibility questions that would otherwise cost you a rejected application.
• Ask your local clerk for a list of the licenses your city or county requires, since local requirements vary across the 528 cities and villages and 93 counties.
• Keep a written record of every volunteer who handles gaming activity and confirm whether each one needs a license.
• If you need help with your business plan or finances, the Nebraska Business Development Center at the University of Nebraska at Omaha offers no-cost or low-cost guidance for startups and growing organizations.
• Check the Secretary of State's business search to confirm your organization's name is available or already registered before you file.

Next Steps

Work through the steps in order. Confirm your entity status, choose your game, check local approval, register your tax accounts, file for your license and set up your accounting before your first session. Keep the fee schedule and tax table above in your planning file, and recheck them with the agency each time you renew.

Disclaimer: This article is informational content, not legal or tax advice. Charitable gaming rules, fees and tax calculations change, and some items in this guide, including the Class I and Class II criteria, cash-device litigation and newspaper publication costs, must be confirmed with the named agency. Consult a qualified Nebraska attorney and a certified public accountant before you form your organization, file for a license or buy gaming equipment.