Iowa Admin. Code r. 481-103.6 - Prizes
Cash and merchandise prizes are subject to the limits set forth in Iowa Code section 99B.21. The exact amount of the prize shall be announced before the beginning of each game.
(1) Prizes shall be recorded each occasion on
the daily bingo summary (Table A-end of this chapter) as they are paid by
listing the number of the game; the winning pattern; the type, color, and
series of cards used in the game; the amount of the prize; and the name,
address, and social security number of each winner of any prize over $600. Cash
prizes over $600 require the deduction of 5 percent withholding taxes as set
forth in Iowa Code section
99B.8.
(2) Cash prizes awarded in games with more
than one winner shall be shared equally.
a. It
is permissible to round up or down, provided doing so does not exceed the
maximum payout for that particular game.
b. Examples of prizes awarded in games with
more than one winner:
(1) Two winners with a
total of three bingos: Player 1 has two bingos in separate squares, and Player
2 has one bingo in one square. Player 1 receives two-thirds of the prize, and
Player 2 receives one-third of the prize.
(2) Multiple winners equally splitting a
prize with rounding to the nearest dollar: Six players all win the single $250
prize. The appropriate payout is $41.66 each, but rounding to the nearest
dollar ($42) for each winner would result in a payout of $252, in violation of
the maximum payout for a nonjackpot bingo game.
(3) A licensed qualified organization shall
have rules governing how a merchandise prize is awarded when there is more than
one winner, posted in accordance with rule
481-103.5 (99B). The
organization must:
a. Split the cash
equivalent of the merchandise prize equally among the winners so long as the
retail value of the merchandise prize is $250 or less;
b. Provide a substitute merchandise prize
with an aggregate retail value approximately equal to that of the designated
prize so long as the aggregate retail value of all prizes is $950 or less;
or
c. Conduct a continuous or
separate playoff bingo game consisting of only the winning players.
(4) An animal shall not be awarded
as a prize for persons participating in a game or fair event.
(5) A player shall not be required to return
cash or a merchandise prize won in one game in order to play a subsequent
game.
(6) Jackpot games shall be
conducted in accordance with Iowa Code section
99B.21(2)
"d" and the following:
a. The
jackpot prize will not decrease until it is won;
b. If a jackpot game is not won in accordance
with the rules for the jackpot game, the game may transition to a consolation
game with a prize of $250 or less.
This rule is intended to implement Iowa Code sections 99B.21, 422.16, and 717D.2.
Notes
1 See forms at end of this chapter.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(1) Prizes shall be recorded each occasion on the daily bingo summary (see Table A) as they are paid by listing the number of the game; the pattern required to win; the type, color, and series of cards used in the game; and the amount of the prize. The name, address, and social security number of each jackpot winner is required.
NOTE: Prizes of more than $600 require the deduction of 5 percent withholding taxes. See paragraph 103.6(5) V
(2) Prizes awarded in games with more than one winner shall be shared equally. It is permissible to round up or down, provided doing so does not exceed the maximum payout for that particular game.
Examples of prizes awarded in games with more than one winner:
1. Two winners with a total of three bingos: Player 1 has two bingos in separate squares, and Player 2 has one bingo in one square. Player 1 receives 2/3 of the prize, and Player 2 receives 1/3 of the prize.
2. Multiple winners equally splitting a prize with rounding to the nearest dollar: Six players all win the single $250 prize. The appropriate payout is $41.66 each, but rounding to the nearest dollar ($42) for each winner would result in a payout of $252, in violation of the maximum payout for a nonjackpot bingo game.
(3) An animal shall not be awarded as a prize for persons participating in a game or fair event.
(4) A player shall not be required to return cash or a merchandise prize won in one game in order to play a subsequent game.
(5) No more than two jackpot games may be played during a 24-hour period as follows:
a. An organization is limited to two jackpot games.
b. The jackpot starting prize shall not exceed $500 in cash or actual retail value of merchandise.
c. The jackpot prize shall not increase more than $200 after each jackpot game. The maximum prize shall not be greater than $1,000 for the first jackpot game and shall not be greater than $2,500 for the second jackpot game.
d. The jackpot prize shall not decrease until it is won.
e. If a jackpot is not won in the specified number of calls, the game reverts to a regular game with a prize of $250 or less.
f. Each jackpot game shall begin again at no more than $500.
g. Cash prizes over $600 require the deduction of 5 percent withholding taxes. This tax is to be withheld by the organization conducting the game. The amount deducted shall be remitted to the Iowa department of revenue on behalf of the prize winner.
This rule is intended to implement Iowa Code sections 99B.2l, 422.16 and 717D.2.
1See forms at end of this chapter.