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Is running bingo on Facebook illegal?

Is running bingo on Facebook illegal?

Bingo is a popular game typically played in bingo halls, churches, or other community gatherings. With the rise of social media, some bingo operators have looked to platforms like Facebook to host online bingo games. This has raised questions about the legality of running bingo on Facebook.

Is it legal to play bingo online?

In general, yes, it is legal to play bingo online, including on Facebook. Most states allow some form of online bingo as long as the operator is properly licensed and follows applicable regulations. However, the specifics can vary by jurisdiction.

For example, some states restrict online bingo to only nonprofit organizations. Others may limit prizes or require players to be physically located within the state. Operators must check their state’s gaming laws to ensure they comply with all bingo regulations for online play.

Does Facebook allow bingo apps or games?

Facebook’s policies prohibit illegal gambling services or online casinos. Their terms state: “Ensure your app does not facilitate or promote online gambling, including but not limited to, online casinos, sports betting, lotteries, or games of skill that offer prizes of cash or other value.”

So Facebook does not allow traditional gambling apps or games like online slots or blackjack. However, social gaming for entertainment purposes may be permitted if it complies with local laws.

Facebook does host various bingo game apps and Pages for entertainment purposes. But operators should be careful not to offer real money prizes or anything of value. Staying on the social gaming side likely keeps bingo apps within Facebook’s policies.

Can you legally collect money for Facebook bingo games?

This is where legal issues often arise with Facebook bingo. While entertainment bingo games may be permitted, collecting money adds the element of gambling which raises legal concerns.

If players pay to participate and can win prizes of value, this likely constitutes illegal gambling under most state laws. Even if the games claim to be for entertainment or “social” purposes only, asking players to pay money to play bingo crosses into gambling territory in many jurisdictions.

Certain exceptions may apply for properly licensed nonprofits raising funds in a legal manner. But in general, collecting money for online bingo games on Facebook slides into illegal gambling areas rather than legal social gaming.

Key factors that may make Facebook bingo illegal:

  • Charging players money to buy cards or tokens
  • Offering cash prizes or prizes worth money
  • Paying out winnings from player buy-ins
  • Not having proper gaming licenses for the state(s) of operation

These factors likely mean the bingo game involves illegal gambling, even if labeled a social game. Avoiding money prizes and entry fees reduces this risk and helps stay on the entertainment side of bingo games.

What legal consequences can arise from illegal bingo?

Running illegal gambling operations, including online bingo, can result in serious criminal and financial consequences:

  • Criminal charges for illegal gambling, money laundering, tax evasion, etc.
  • Fines up to hundreds of thousands of dollars per violation
  • Jail or prison time for operators
  • Seizure of money and assets related to illegal gambling
  • Ban from legal gaming industry activities
  • Payment of back taxes and interest
  • Lawsuits from players or government

Many states aggressively prosecute illegal gambling operations. Even if located offshore, operators can face prosecution if taking bets from players within that state. The penalties add up quickly, making illegal online bingo risky.

How can you run legal bingo games on Facebook?

Here are some tips for staying on the right side of bingo laws on Facebook:

  • Do not charge money for cards or tokens
  • Avoid any prizes of cash or monetary value
  • Stay away from traditional bingo lingo like “buy-ins” or “payouts”
  • Use words like “play”, “friendly” and “social” instead of “betting” or “wagering”
  • Have proper licenses and comply with state regulations if offering real money bingo
  • Consult a lawyer if unsure about compliance

Emphasizing free, friendly social gameplay is important. Make sure players understand there is no money involved and no valuable prizes. This helps provide bingo enjoyment on Facebook in a legal manner.

Social bingo alternatives

Other options exist for operators who want to build bingo-style communities on Facebook without the risks of illegal activity:

Free friendly bingo

Host games for entertainment with no money changing hands and no prizes having monetary value. Players can enjoy the social aspects and have fun competing with friends.

Sweepstakes bingo

Rather than direct payouts for wins, provide entries into prize drawings for all participants regardless of winning bingos. Make sure sweepstakes rules comply with laws.

In-app currency bingo

Use a virtual currency within games that cannot be withdrawn or exchanged for real money. Players can buy extra currency but have no way to cash it out.

Supporter badges

Offer supporters of your Page special badges or recognition for contributing. But avoid tying contributions directly to playing bingo.

Each approach provides ways to creatively engage players while avoiding illegal gambling issues. Work closely with experienced legal advisors when planning social bingo games on Facebook.

The bottom line

While it is possible to legally offer certain types of online bingo on Facebook, collecting money for games or offering cash prizes generally crosses into illegal gambling territory. Operators should emphasize free, friendly entertainment play or find alternative approaches. Thoroughly checking state gaming laws and consulting lawyers is important for staying compliant and avoiding severe consequences.

Overall, some bingo-style games may be permissible on Facebook. But carefully follow social gaming policies, avoid prizes of real value, and steer clear of anything involving money changing hands. This helps keep bingo fun and legal for everyone.