501 c licensed charities can host
up to four charity poker fundraisers in a license
year. The Charities apply for a license from the
Illinois Department of Revenue, Bingo and Charitable
games ($400) license fee and they also pay a 5% tax
on the net income they earn from the poker games.
The good news is that the hosting charities are
not on the hook for paying any big winners as in poker
the players are playing against each other and not
the hosting charity. The hosting charity simply
receives 10% of the poker pots up to a $5 dollar
maximum from each pot. in a $30 dollar pot the
charity would receive $3 in a $70 pot the charity
would receive the $5 maximum
In the course of an average 12 hour event the
hosting charity should walk away with a net
$2500 for their efforts after all operating expenses.
As the header says it is a tax on the willing poker players
that want a clean covid free place to play their
favorite pastime Texas Hold’em Poker.
For more info on hosting charity poker events
call Jim AT 815 914 7529