Bingo Hall Rental Agreement Compliance
The Louisiana Department of Revenue’s Office of Charitable Gaming (OCG) is issuing this notice to remind licensed charitable gaming organizations and commercial lessors of statutory requirements governing rental and lease agreements for premises used in charitable gaming, including bingo and electronic video bingo.
A formal written notice will also be issued directly to affected licensees and lessors.
Reasonable Market Rental Rates Required
Louisiana law requires that rental rates for premises used in charitable gaming reflect reasonable market rental rates. The law does not set a fixed amount. Instead, reasonableness must be based on local market conditions, which may vary by parish and community.
When evaluating rental rates, licensees should consider:
- Comparable rental rates for similar facilities
- Location and local market conditions
- Square footage and layout
- Amenities unrelated to gaming activities
Prohibited Rental Arrangements
Rental or lease agreements may not base rent on a percentage of gaming proceeds, gross receipts, or profits. Any arrangement tying rent, in whole or in part, to charitable gaming proceeds is prohibited by law and considered noncompliant.
Required Action
Effective immediately:
- Percentage-based rental agreements must be discontinued.
- Noncompliant agreements must be renegotiated into a flat-fee structure that reflects a reasonable market rental rate.
- Licensees operating under noncompliant agreements must contact OCG immediately to discuss corrective action.
Compliance Deadline
Licensees have forty-five (45) days from the date of this notice to bring any noncompliant rental or lease agreements into full compliance. Failure to take corrective action or to contact OCG may result in administrative enforcement action.
Questions
For questions or assistance, contact the Office of Charitable Gaming at ocg@la.gov.