Bingo and Unrelated Business Income Tax

Generally, non-linked or traditional bingo, such as bar bingo, is not subject to Unrelated Business Income Tax (UBIT). Non-linked bingo games have all players at one location.

Linked bingo is subject to UBIT. Linked bingo games, such as electronic bingo, have players at more than one location.

Note: Linked and non-linked bingo is subject to UBIT for 501(c)7 organizations.

Income and Expenses on UBIT Return

Do not include income and expenses from non-linked bingo on Form M4NP, Unrelated Business Income Tax Return unless you are a 501(c)7 organization.

If expenses are shared between non-linked bingo and other forms of gambling, allocate the shared or joint expenses on a reasonable basis. Some organizations use an allocation based on gross or net receipts. 

You may not allocate rent paid on the lease of a gambling site unless the site is where bingo is the primary business conducted, such as a bingo hall.