Did South Carolina Revenue Ruling 92-8 permit bonus-number, bonus-card, progressive, wheel-or-balloon, or odd/even cover-all bingo games?

Plain-English summary

South Carolina Revenue Ruling 92-8 rejected five bingo prize or play formats under the Bingo Act provisions then in effect.

The ruling read the statute as requiring the caller to announce one specific dollar or merchandise prize and one winning configuration before play. Once play began, the prize could not be increased, decreased, or otherwise altered; it had to be awarded immediately, divided equally among multiple winners, and attached to an identifiable geometric design.

The five rejected formats

1. Bonus number

A game offered its normal prize plus a bonus if bingo occurred when a preselected number—such as B-14—was called.

The ruling found this impermissible because it increased the announced prize based on the winning number.

2. Bonus card

Players could receive different-sized sheets, and a win on a particular card within the larger sheet paid more than a win on another card.

The ruling rejected the format because the prize increased based on which specific card produced bingo. The result also risked unequal prizes for winners of the same game.

3. Progressive game

The same card continued through multiple winning stages—for example, a prize for four corners followed by another prize for covering the remaining spaces.

The ruling said the statute did not authorize more than one prize per game. Treating each stage as a separate game also failed because numbers covered during the first stage became unauthorized free spaces during the later stage.

4. “Let's Make a Deal” game

After winning, the player spun a wheel or popped a balloon to determine the prize, sometimes choosing between a stated award and a chance at a larger one.

This was impermissible because the game did not begin with one specific announced prize and could alter the winner's prize afterward.

5. Odd or even cover-all

A player won by covering every odd or every even number printed on the card. Different cards could require dramatically different numbers of covered spaces.

The ruling found that covering all odd or even numbers was not an identifiable geometric design.

Rules the commission drew from the statute

The ruling summarized the historical requirements as follows:

• announce the specific dollar or merchandise prize before play;
• do not increase or decrease the prize after announcement;
• call only one number at a time;
• award the prize immediately;
• divide it equally among multiple winners;
• offer only one prize per game;
• use an identifiable geometric winning design; and
• allow no free space beyond the statutorily authorized center square.

It cautioned that each example might violate the Bingo Act for additional reasons beyond the ground specifically discussed.

What this means for you

Bingo operators reviewing historical guidance

The ruling focused on a fixed, preannounced prize and a geometric winning configuration. Variable prizes, multiple prize stages, or nongeometric patterns failed that framework.

Game designers

Changing a prize based on the number called, the card used, or a post-win wheel or balloon was treated as altering the announced prize.

Compliance professionals

This is a 1992 interpretation. Verify current South Carolina bingo law before applying any of these conclusions to a present game.

Common questions

Q: Could one game award both a four-corners prize and a later cover-all prize?
A: No under this ruling. It allowed only one prize per game, and continued play reused covered spaces as unauthorized free spaces.

Q: Could a winner spin a wheel for a larger prize?
A: No. The prize had to be specific and announced before play, then remain unchanged.

Q: Could a particular card pay a larger prize?
A: No. The bonus-card example improperly increased the prize based on which card won.

Q: Was odd/even cover-all a valid winning pattern?
A: No. The ruling said it was not an identifiable geometric design.

Q: What was the practical effect of the ruling?
A: One prize offered and awarded per game, with an identifiable geometric winning configuration.

Citations and references

• S.C. Code Ann. § 12-21-3410 — historical manner-of-play rules, prize announcement, and geometric configuration
• S.C. Code Ann. § 12-21-3420 — historical conduct rules for prizes and winning configurations
• S.C. Code Ann. § 12-21-3320(3) — bingo card definition and center free space
• S.C. Code Ann. § 12-4-320 — Tax Commission authority
• SC Revenue Ruling 91-11 — earlier free-space guidance cited by the ruling

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR92-8.pdf

Original ruling text

SC REVENUE RULING #92-8

SUBJECT:

Prizes and Games
(Bingo)

TAX MANAGER:

John P. McCormack

EFFECTIVE DATE:

August 1, 1992.

REFERENCE:

S.C. Code Ann. Section 12-21-3410 (Supp. 1991)
S.C. Code Ann. Section 12-21-3420 (Supp. 1991)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (Supp. 1991)

SCOPE:

A Revenue Ruling is the Commission's official interpretation of
how tax law is to be applied to a specific set of facts. A Revenue
Ruling is public information and remains a permanent document
until superseded by a Regulation or is rescinded by a subsequent
Revenue Ruling.

Question:
May a bingo operation offer a prize for a game, or play a game, as described in each one
of the examples outlined in the Facts?
Facts:
Recently, questions have arisen concerning various methods of offering a prize to the
winner or winners of a bingo game. Also, a question has arisen concerning the so-called
odd or even cover-all games.
Example 1 - Bonus Number: The first method concerns a bonus prize awarded for
achieving bingo on a specific number. For example, the bingo operation, prior to
the game, will randomly select "B-14" as the bonus number. If the winner of that
game achieves bingo when "B-14" is called, then the player will win a $100 bonus
prize. Accordingly, if the prize for the game was $200, then the winning player
will receive the $200 prize plus a $100 bonus prize.

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Example 2 - Bonus Card: The second method concerns a bonus prize awarded for
achieving bingo on a certain card, as opposed to a certain number. For example,
players are sometimes allowed to purchase either a regular pack of cards for the
session for $49, or a super pack for $64. The super pack offers more cards for
some of the games; however, the individual cards for each game sell for the same
price. Usually, this means that the player purchasing the regular pack will receive
a sheet of three cards ("3-on") for a particular game and the player purchasing the
super pack will receive a sheet of nine cards ("9-on") for the same game. If the
winner of that game achieves bingo on the center card of the 9-on sheet, then the
player will win a $5,000 prize. However, if bingo is achieved on any other card on
the 9-on sheet, or any card on the 3-on sheet, the prize awarded is $2,000.
Example 3 - Progressive Games: The third method concerns prizes that are offered
for achieving bingo several times during the same game on the same card. For
example, the first person to achieve "four corners" is awarded $100, and after the
$100 is given to the winner, play continues on the same card until someone covers
all the remaining spaces on the card. That person is then awarded $500.
Example 4 - "Let's Make a Deal" Games: The fourth method of offering prizes
requires the winner to spin a wheel, or pop one of several balloons, to determine
the amount of the prize to be awarded. The wheel has several prize amounts listed
on it, while each balloon contains a card with a different prize amount printed on
it. In some instances, a specific prize is offered, but the winner has the option to
spin the wheel or pop a balloon in order to try for a larger prize. The winner may
or may not be guaranteed a minimum prize.
Example 5 - Odd or Even Cover-All Games: This example does not concern how
the prize is awarded or determined, but how the game is played. Simply stated, the
winner of this type of game is the person who achieves bingo by covering all the
odd, or even, numbers on his card. For example, player "A" has one odd number
on his card and player "B" has twenty odd numbers on his card. Therefore, player
"A" can achieve bingo in an odd cover-all game by covering one space on his
card, while player "B" must cover twenty spaces to achieve bingo for the same
game.
Discussion:
Article 23 of Chapter 21 of Title 12 of the South Carolina Code of Laws regulates the
game of bingo in this State. Specifically, the law sets forth who may establish a bingo
operation, the licenses and taxes that are due, how the game is to be played and various
other requirements.

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The issue at hand concerns how the game is played. This is addressed in Code Sections
12-21-3410 and 12-21-3420.
Code Section 12-21-3410 reads:
(A)

The game of bingo must be played in the following manner:
(1)

Bingo is played by more than one player and a caller who is associated with
the house. Each player pays an amount certain for each card to be played
during the course of a game and may purchase the card for a specified
number of games. After the player has purchased a card or cards for a
specified number of games, the house cannot require or accept an additional
payment or consideration by the player in order to complete the specified
number of games.

(2)

Before each game begins, the caller shall announce to the players the
configurations that will win the game. A configuration consists of covering
a number of grids in some geometrical design such as, but not limited to, a
line, square, or the four corners of the card.

(3)

At the beginning of each game, the caller also shall announce the prize,
specifically stating the dollar amount or merchandise that will be awarded
to the winner. After the prize has been announced and the game has begun,
the prize must not be diminished or altered. The prize must be awarded to
the winner of that game without delay. For multiple winners, the prize must
be divided equally among the winners.

(4)

The caller shall draw numbers from the cage one at a time. As each number
is selected, it is announced to the players. If a player has a card with the
called number on it, he may use a marker to cover the square which
contains the number. After the number is announced, it must be indicated
on the master-board by the caller.

(5)

When a player covers sufficient squares on a card to achieve the winning
configuration, he may indicate to the caller. The caller shall require that the
player's card be checked against the master-board in the presence of the
other players to determine if the squares were covered accurately. If it is
determined by the caller that the player accurately has covered the squares
and achieved the preannounced configuration, the player is declared the
winner. If it is determined that the player has not covered the squares
accurately and achieved the preannounced configuration, play continues in
that game.

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(6)

All devices, including the master-board, used to show what numbers have
been called during a game must not be changed or turned off until the
winners are verified. (Emphasis added.)

Code Section 12-21-3420 reads, in part:
In addition to the manner of play prescribed in Section 12-21-3410, the following
procedures apply to the conduct of the game:

(5) Before the start of the play, the caller shall announce to all players the prize
to be awarded for that game.

(7) Before the start of play, the caller shall announce the winning configuration
of covered squares for that particular game
(8) The prize must be awarded to the first person who successfully achieves the
winning configuration of covered squares. (Emphasis added.)
Finally, it should be noted that Code Section 12-21-3320(3) defines the term "card", and
specifically authorizes one free space in the center of the card.
The following quote from 73 Am. Jur. 2d., Statute, Section 191 provides guidance:
The different parts of a statute reflect light upon each other, and statutory
provisions are regarded as in pari materia where they are parts of the same act.
Hence, a statute should be construed in its entirety, and as a whole.
All parts of the act should be considered, and construed together. It is not
permissible to rest a construction upon any one part alone, or upon isolated words,
phrases, clauses, or sentences, or to give undue effect thereto. The legislative
intention, as collected from an examination of the whole as well as the separate
parts of a statute, is not to be defeated by the use of particular terms.
In construing all parts of the Bingo Act together, the following must be adhered to in
conducting a game of bingo:
(1) The caller must announce the prize being offered, specifically stating the
dollar amount or merchandise.

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(2) The prize, after it is announced, must not be increased or decreased.
(3) Only one number may be called at a time.
(4) The prize must be awarded immediately to the winner.
(5) The prize must be divided equally if there are multiple winners.
(6) Only one prize may be offered per game.
(7) A configuration must be an identifiable geometric design.
(8) No free spaces, other than the one authorized by the statute for the center
square of the card, are allowed. See also SC Revenue Ruling #91-11 and
Code Section 12-21-3320(3).
Conclusion:

1. Bonus Number - The method of offering a prize for a game as described in Example 1
   of the Facts is not permissible, since the prize is being increased if bingo is achieved
   on a specific number.
2. Bonus Card - The method of offering prizes for a game as described in Example 2 of
   the Facts is not permissible, since the prize is being increased if bingo is achieved on
   a specific card.
3. Progressive Games - The method of offering prizes for a game as described in
   Example 3 of the Facts is not permissible, since the statute does not authorize more
   than one prize per game. In addition, if each prize offering is considered a separate
   game, then the "progressive games" described in Example 3 are not permissible since
   the numbers called for the first game, and remaining covered for subsequent games,
   constitute unauthorized free spaces for the subsequent games on that card.
4. "Let's Make a Deal" Games - The method of offering prizes for a game as described
   in Example 4 of the Facts is not permissible, since a specific dollar or merchandise
   prize is not being offered and since the prize in some instances is being altered when
   the winner is allowed to spin the wheel or pop a balloon in order to try for a larger
   prize.
5. Odd or Even Cover-All Games - The method of playing a game as described in
   Example 5 of the Facts is not permissible, since the covering of all odd or even
   numbered spaces does not constitute an identifiable geometric design.
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Note: The above games have been ruled as not permissible under the Bingo Act for
certain stated reasons; however, there may be additional reasons for not permitting these
games. Such reasons include, but may not be limited to: the offering of more than one
prize per game; the awarding of unequal prizes; conducting the game in such a manner so
as to no longer make bingo a game of chance as defined in the statute; and, the altering of
a prize to which a winner is entitled.
In addition, the practical effect of this ruling is to allow only one prize to be offered and
awarded per game and to limit a configuration to an identifiable geometric design.
SOUTH CAROLINA TAX COMMISSION

s/A. Crawford Clarkson, Jr.
A. Crawford Clarkson, Jr., Chairman

s/T. R. McConnell
T. R. McConnell, Commissioner

s/James M. Waddell, Jr.
James M. Waddell, Jr., Commissioner
Columbia, South Carolina
July 21
, 1992

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