Compilation of Rules and Regulations of the State of Georgia
Department 92 - GEORGIA BUREAU OF INVESTIGATION
Chapter 92-2 - NONPROFIT BINGO GAMES
Rule 92-2-.06 - Rental Agreements Concerning Premises

Universal Citation: GA Rules and Regs r 92-2-.06

Current through Rules and Regulations filed through March 20, 2024

(1) The total cost of leasing the premises used by a nonprofit tax exempt organization in its bingo operation shall not exceed the fair market rental value of such premises and may not be based on gross receipts, gross proceeds, or any other scale or percentage that is related to or dependent upon the amount of revenue created by the bingo operation. No salaries, fees or payments of any type shall be made to any person or entity based upon a scale or percentage that is related to or dependent upon receipts from a bingo operation.

(2) The diversion of bingo proceeds from the nonprofit organization operating bingo games, except in the manner expressly authorized by the Act and under these regulations, is contrary to the legislative intent of the Act and contrary to the public welfare and constitutes a violation of these rules.

(3) No licensee may make any payments, give any compensation or divert any proceeds from receipts from any bingo operation to any person or entity, other than to the licensed nonprofit organization itself in furtherance of the legitimate nonprofit aims of the organization, except in exchange for goods or services actually provided or rendered and then only in an amount equal to the fair market value of the goods or services.

(4) No organizational member, agent, representative or profit making organization shall derive any financial benefit from any bingo operation licensed under the Act and these regulations with the exceptions of the salaries and fees expressly authorized by these regulations and the Act and then only a reasonable profit shall be derived. No employee/operator or an agent acting on the behalf of the employee/operator may participate in the playing of bingo, during a session in which the employee/operator has assisted the organization in the operation of its bingo game.

O.C.G.A., Title 16, Chapter 12, Article 2, Part 2.

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