The Texas Bingo Enabling Act mandates that bingo in Texas can only be operated by an organization licensed by the Texas Lottery Commission and must be a religious society, a nonprofit organization (501(c)(3)), a fraternal organization, a veterans' organization, or a volunteer fire department.

Churches which operate bingo activities are exempt under Section 201.066 of the TUCA. Churches are not permitted to volunteer under Section 201.024 even if their only payroll activity is for bingo operations.

Organizations which operate bingo activities are treated the same as any other employer. The TUCA contains no exemption for organizations operating bingo or their employees. The licensed organization is the employer for TWC purposes and is required by the Texas Lottery Commission to:

1. Designate an operator (one or more 2-year members of the licensed organization) to run the bingo operation.
   
   
2. Maintain a separate bank account for all bingo activities;
   
   
3. Renew their license annually; and
   
   
4. Report the name, social security number, driver's license number, and address of each person who will work at the bingo games as well as the nature of the work to be performed.
   
   License Renewal: Each year the Licensed Authorized Organization must renew their license in order to keep operating. At that time the application must include the name, social security number, driver’s license number and address of each person who will work at the proposed bingo games and the nature of the work to be performed.
   
   Texas Lottery Commission will also license individuals or organizations as an ‘Authorized Commercial Lessor’. The lessor will only lease bingo premises to a Licensed Organization, and will not have any involvement with the bingo workers.
   
   Employment status of workers will be determined by an examination of the facts in each case.

Until September 1, 2003, The Texas Bingo Enabling Act required that employers maintain separate tax accounts for each legal entity. The 78th Legislature amended the Bingo Enabling Act as follows:

Therefore, when two or more licensed authorized organizations, which conduct bingo on the same premises, jointly hire bingo employees they may be established as a single entity for tax purposes. If two or more licensed authorized organizations, which conduct bingo operations on the same premises, move their employees into a single tax account, it will be treated as an acquisition.

Total and partial acquisitions of bingo operating entities will be treated in accordance with established Status procedures at the time the acquisition occurred.

Any bingo operating entity established under this procedure that holds a 501(c)(3) exemption will be provided with the option of being a taxed employer or a reimbursing employer in accordance with specific Status procedures.

Non-profit organizations which hold a 501(c)(3) exemption with IRS must have four or more employees in twenty weeks or volunteer to be liable for the state unemployment tax. See Chapter 1 - "New Accounts 201.023" and "New Accounts 201.024".

Other non-profit organizations must pay gross wages of $1,500 in a calendar quarter, have one or more employees in twenty weeks or volunteer to be liable for the state unemployment tax. See Chapter 1- "New Accounts 201.021" and "New Accounts 201.024".

Churches which operate bingo activities are exempt under Section 201.066 of the TUCA. Churches are not permitted to volunteer under Section 201.024 even if their only payroll activity is for bingo operations.